Canstar Resources Commences Drilling on the Slate Bay Copper-Gold Project, Red Lake; Mary March Update
TORONTO, ONTARIO - (Marketwire - Sept. 4, 2008) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) are pleased to announce that drilling has commenced on the Company’s Slate Bay Project in the prolific Red Lake gold camp. The program will comprise five holes totaling approximately 1000m and is expected to take two weeks to complete. The Slate Bay property is located along the Red Lake “Mine Trend”, less than 10 kilometres northwest of Goldcorp’s producing Campbell and Red Lake Mines. Previous exploration on the property has intersected thick zones of copper-gold mineralization hosted by breccias and veins. The current program is designed to test the mineralized zones at depth and along strike, as well as a previously untested anomaly to the southwest of the main zone.
Previous drill programs by the Company on the Slate Bay project identified a large copper-gold-silver mineralized skarn system, considered to be the most intense ever encountered in the Red Lake mining camp. Grades of up to 7.2 g/t gold, 5.81% copper and 183 g/t silver were identified within considerably longer sections of lower grade material attaining widths of over 100m. The discovery zone comprises a thick, roughly tabular shaped package of steeply dipping skarn, including a mineralized breccia. The Induced Polarization (IP) anomaly related to the skarn has been traced on surface for over 1 km but tested to date by drilling over just 200m of strike length, and to a vertical depth of 130m. The skarn assemblage remains open in both directions along strike and down-dip. Canstar owns a 75% interest in the Slate Bay project with Luxor Explorations Inc, a privately held company, owning the remaining 25%.
Skarn deposits represent an important source of copper, gold and silver worldwide. At Slate Bay, a large mineralized system of considerable thickness has been identified, with the potential to host a large-tonnage, low-grade deposit containing high-grade zones. Skarns typically form at or near the contact between carbonate-rich rocks and an intrusive body and tend to be zoned, with metal grades generally increasing with proximity to the intrusion. At Slate Bay, the causative intrusion has not been identified at surface and is therefore postulated to occur at depth. Should this be the case, grades at Slate Bay might also be expected to increase with depth. Previous work supports this as the highest grade samples returned to date from Slate Bay have come from the deepest hole.
The Mary March adjudication hearing is set to begin on September 15, 2008, and should represent the final step in resolving this long-standing dispute. At the hearing Canstar will be represented by legal counsel and the Chairman of Canstar, Harry Hodge.
In July 2007 the Supreme Court of Newfoundland directed that the burden of proof during the adjudication hearing should rest with Vinland Resources, a privately held company that initiated the dispute. Vinland appealed this decision, however it was later upheld by the Appeal Court in 2008. The decision of the Supreme Court was considered favourable to Canstar, and management is confident that the matter will be decided in the Company’s favour. Updates will be provided to Shareholder’s, when they become available.
About the Company
Canstar Resources is a junior exploration company focused on base and precious metal exploration in eastern Canada. In addition to the Mary March project in the Buchans area of Newfoundland the company owns property in the McFauld’s Lake area of the James Bay Lowlands of Ontario, proximal to the high-grade nickel-copper-PGE discovery of Noront Resources. The McFauld’s Lake property comprises 70 claims covering 1,120 hectares of the McFauld’s Lake volcanic belt, and is under an option-joint venture agreement with United Reef Limited. In addition to these two properties, Canstar holds a 100% interest in the Shrimp Lake and Tahoe Lake VMS/gold properties north of Red Lake, Ontario, a 75% interest in the Slate Bay copper-gold project in Red Lake’s “Mine Trend”, and a 100% interest in the Miminiska gold property near Pickle Lake, Ontario. The Company currently has 59.9M shares issued and outstanding, which trade on the TSX Venture Exchange under the symbol ROX.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Canstar Resources, visit our website at www.canstarresources.com.
This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Canstar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canstar’s expectations are exploration risks detailed herein and from time to time in the filings made by Canstar with securities regulators.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For more information, please contact
Canstar Resources Inc.
(416) 777-6705 (FAX)
Canstar Resources Inc.
Harry J. Hodge, P.Eng.