Canstar Resources Inc. Completes Drilling nn CBS Project, Newfoundland; Mary March Hearing Update; New Website Launched
Toronto, Ontario, January 7, 2009 - The Directors of CANSTAR RESOURCES INC. (TSX-V: ROX) (“Canstar”) are pleased to announce the following corporate and exploration updates.
Drilling on the Company’s CBS base and precious metal project on the Avalon Peninsula, Newfoundland has been completed and assay results have been received. The program comprised 12 drill holes totaling 1196m targeting both geological and geophysical targets. Seven holes were drilled to test the strike and depth extension of the Pastureland base and precious metal showing. Highlights include a 26m zone of thin, intermittent, copper-lead-zinc sulphide mineralized bands in a pervasively altered mafic volcanic horizon. A 14 metre interval within this zone returned assay results of 1% zinc; 0.6% lead; 0.2% copper and 8 g/t silver, including 2.2 metres grading 2.6% zinc, 1.7% lead, 0.2% copper, 26 g/t silver. The last five holes tested selected VTEM airborne anomalies along the Pastureland horizon and intersected thick sequences of altered volcanics interlayered with altered metasedimentary rocks. No significant assays were returned from these holes.
The project covers a belt of volcanic rocks of Proterozoic age known to host Volcanogenic Massive Sulphide (VMS) type mineralization containing economically significant values in copper, zinc, lead, gold and silver. Historical grab samples from the Pastureland showing assayed 8.9 % zinc, 5.2 % lead, 0.8 % copper, 0.3 g/t gold and 1.4 g/t silver. The mineralization and alteration identified during drilling indicates that the CBS project has the potential to host significant volcanogenic massive sulfide deposits. The Company is currently reviewing all available data in order to determine future exploration plans.
The adjudication hearing for the Mary March property dispute was adjourned in early December and will resume on January 12, 2009. Although additional time was needed to hear the evidence, it is expected that the hearing will be completed before the end of January with no further adjournments. The Company is confident of a favourable outcome to the hearing and is looking forward to resuming work on this flagship property. The discovery of the Mary March deposit by Phelps Dodge in 1999 produced some of the highest-grade base and precious metal diamond drill intersections (9.2m @ 10.33% Zn, 1.62% Pb, 0.66% Cu, 118.1g/t Ag and 4.1 g/t Au) ever achieved in the area surrounding the Buchans mine.
The Company’s new website is now operational and can be viewed at the same address, www.canstarresources.com, as the previous website. The new platform was designed to allow for easier maneuvering and provides the most current information on the Company’s projects and corporate information. Feedback on the new site is welcome and can be sent to email@example.com.
Canstar Resources is a junior exploration company focused on base and precious metal exploration in eastern Canada. In addition to the recently acquired CBS Project, the Company has optioned property in the Buchans area of Newfoundland and 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. 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 or contact:
e : firstname.lastname@example.org
Harry J. Hodge, P.Eng.