Unanimous Decision Favours Canstar Resources Inc. in Mary March Dispute
Toronto, Ontario, October 26, 2009 - The directors of Canstar Resources Inc. (ROX-TSX.V ) are very pleased to announce that a decision has been reached in the dispute between the Newfoundland and Labrador Minerals Recording office and Vinland Resources over the Mary March mineral property held under option by Canstar from Phelps Dodge Canada.
On Friday Oct. 23rd, 2009 the Mineral Rights Adjudication Board of the Province of Newfoundland and Labrador unanimously rejected the grievance filed by Vinland Resources Limited. This grievance had been filed after the Mineral Claims Recorder for the Government of Newfoundland and Labrador refused to issue a licence to Vinland for lands in which Canstar Resources Limited holds rights. Vinland had claimed that the areas in question had been excluded from lands taken by the Anglo-Newfoundland Development Company Limited pursuant to legislation in 1905, and on that basis had been open for staking. In its 55 page ruling, the Board upheld the position taken by the Mineral Claims Recorder and Canstar Resources Ltd., following a careful review of the evidence it had heard. The full Adjudication Board decision can be viewed on Canstar’s website (www.canstarresources.com).
Under the Mineral Act an appeal on a point of law could be taken to the Trial Division of the Supreme Court of Newfoundland and Labrador, however it should be noted that the matter was previously considered by the Court of Appeal and the re-hearing by the Board followed the direction of that Court.
Harry J. Hodge, Canstar Chairman, stated, “The Canstar Board of Directors is delighted with the Adjudication Board’s decision which hereby returns the Mary March property title to its original owners. This has been a long process for all involved and we wish to acknowledge everyone whose efforts contributed to this positive outcome. We are looking forward to further developing this highly prospective property.”
The Company plans to resume comprehensive exploration, including detailed drilling, on the Mary March property at its earliest opportunity. Management believes that the property offers excellent potential to host a number of commercial, high grade VMS type base and precious metals deposits similar to the nearby Buchans Mine Discovery holes previously drilled on the property by Phelps Dodge in 1999 and 2000 produced some of the highest grade base and precious metal intersections ever achieved in the area outside the Buchans mine, including 9.3m @10.33% Zn, 1.62% Pb, 0.66% Cu, 118g/t Ag, and 4.1 g/t Au.
Canstar would especially like to thank its loyal shareholders for their support and patience during the course of this dispute.
On behalf of the Board of Directors
Harry J. Hodge, P.Eng.
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. 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
Manager, Corporate Affairs
Harry J.Hodge, P.Eng.