Canstar Resources Announces Acquisition of Kenora Gold Project
April 09 2014 - 6:00AM
Marketwired Canada
Canstar Resources Inc. (Canstar) (TSX VENTURE:ROX) is pleased to announce it has
entered into an option agreement to acquire several properties in the Kenora,
Ontario area, collectively called the Kenora Gold Project. The Kenora Gold
Project represents four separate properties made up of 19 mining claim blocks
comprised of 182 units for an area of 7,280 hectares. The properties are
situated in the Wabigoon sub-province, and located approximately 20 km east of
the Town of Kenora.
The Kenora Gold Project represents an area of historic mining during the 19th
and early 20th century, and has seen little exploration since that time. During
its time of production, the area accounted for 55% of gold production in
Ontario. Geologically the properties occur near the boundary of the English
River and Wabigoon subprovinces. Gold occurrences on the Project are typically
high-grade and associated with regionally extensive shear zones, as well as
dilational breccias. Recent prospecting in the area has returned grab samples of
up to 16 g/t gold, with gold shown to occur over a 140 meter strike length.
Historic production in the area reports gold values ranging from 56 g/t to 186
g/t. Very little modern exploration has been conducted on the project and
Management feels there is strong potential for the area to host numerous,
significant deposits. Many of the reported occurrences occur along the same
structure, demonstrating potential mineralization over several kilometers, much
of which has seen no modern exploration.
Danniel Oosterman, Canstar's President and CEO, states, "While the Mary March
Project remains our flagship property, the Kenora Gold Project is a great
opportunity in a much overlooked area in Northwestern Ontario. By acquiring this
project, we are rounding out our portfolio by adding a precious metals asset to
our existing core at a low cost that reflects the current market conditions, yet
has outstanding exploration potential."
Canstar has a right to earn 100% of the Kenora Project by making cash payments
totalling $18,200 over a two year term, and issuing 200,000 common shares upon
the second anniversary. The Optionors will maintain a 3% net smelter royalty
('NSR'), subject to a buy-back right of $1,000,000 for the first 1.5% and
$3,000,000 for the remaining 1.5%, which would reduce the NSR to 0%. The
agreement is subject to regulatory approval.
Mr. Danniel Oosterman, P.Geo., the President and CEO of the Company, is a
"Qualified Person" under National Instrument 43-101 and has reviewed the
technical disclosure in this press release.
On behalf of myself and the Board of Directors,
Danniel J. Oosterman, P.Geo, President & CEO
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. This News Release includes certain
"forward-looking statements". These statements are based on information
currently available to the Company and the Company provides no assurance that
actual results will meet management's expectations. Forward-looking statements
include estimates and statements that describe the Company's future plans,
objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as "believes", "anticipates",
"expects", "estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of the Company's
mineral properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements for many
reasons such as: changes in general economic conditions and conditions in the
financial markets; changes in demand and prices for minerals; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties encountered
in connection with the activities of the Company; and other matters discussed in
this news release. This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements. These and other factors should
be considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to update
any forward-looking statement that may be made from time to time by the Company
or on its behalf, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canstar Resources Inc.
Danniel J. Oosterman, P. Geo.
President & CEO
1-866-936-6766
doosterman@canstarresources.com
Canstar Resources Inc.
Karen Willoughby
Director Corporate Communications
1-866-936-6766
kwilloughby@canstarresources.com
www.canstarresources.com
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