TORONTO, ONTARIO–(Marketwired – Nov. 17, 2016) – Canstar Resources Inc. (TSX VENTURE:ROX) (the “Company”) is pleased to provide an update on its exploration program for the Kenora Gold Project, including additional assay results received from its fall prospecting program.
Highlights from the program include:
- A newly identified gold-bearing structure, extending more than 360 metres, yielding high-grade to anomalous samples of up to 4 g/t Au; this new trend was discovered ~600 meters east of the Company’s Westin Trend.
- Surface mapping has identified gold-bearing felsic volcanic rocks and quartz veining proximal to the Ace Showing, indicating a nearby but separate showing containing up to 1.36 g/t gold.
- High gold values associated with induced polarization anomalies on the northeastern portion of the Aviator trend with samples up to 10.6 g/t gold.
- Sampling southwest of the grid, along the inferred strike of the Aviator Trend, yielded samples of up to 1.9 g/t gold.
The Company has continued its prospecting program in preparation for drilling which it expects to commence this fall pending the issuance of a drilling permit. These results strengthen the exploration potential of the Aviator Trend, with gold bearing quartz vein systems identified along its 1.8 kilometre strike length and coincident with induced polarization anomalies delineated in its recently announced ground geophysical results (see July 11, 2016 press release). Table 1 shows some of the recent results described herein:
Table 1. Highlights of Fall 2016 Samples (0.5 g/t cutoff)
|Sample ID||Notes||Au (g/t)|
|179972||NE Aviator Trend||10.2|
|179902||New Trend – East of Westin||4|
|179952||New Trend – East of Westin||2.84|
|179953||New Trend – East of Westin||2.09|
|179915||SW Aviator Trend (off grid)||1.9|
|179963||Felsic showing (new). Proximal to Ace||1.36|
|179901||New Trend – East of Westin||1.2|
|179951||New Trend – East of Westin||0.928|
|179968||SW Aviator Trend (off grid)||0.911|
|179964||Felsic showing (new). Proximal to Ace||0.692|
Danniel Oosterman, President and CEO, states “Our priorities for this year were to identify new prospective gold targets on the Kenora Project and to bring our previously identified gold zones to drill readiness. With our 2016 exploration program we have achieved both objectives and are now waiting for permits to begin our first drilling campaign on the Kenora Project. We are encouraged by the continued success of our exploration and the growing potential we see in the Aviator and Westin trends, and look forward to entering the next phase of the project.”
QP and Quality Control
Canstar observes a quality control program for all of its exploration work according to best practices in the industry from sample shipment and preparation to data collection and analyses. Fire assay and Aqua Regia ICP analyses were completed by Activation Laboratories Ltd. (Actlabs) who are ISO 17025 accredited and/or certified to 9001: 2008.
Danniel Oosterman, P.Geo, is President and CEO of the Company, and is a Qualified Person as defined by NI 43-101 and is responsible for the technical information in this release.
Elimination of Odd Lots
Additionally, the Company is pleased to announce that it will consolidate (reverse split) its issued and outstanding common shares (the “Shares”) at a ratio of five hundred (500) pre-consolidation common shares to one (1) post-consolidation common share (the “Consolidation”), followed by an immediate deconsolidation (split) of common shares at the ratio of one (1) pre-deconsolidation common share to five hundred (500) post-deconsolidation common shares (the “Deconsolidation”), subject to the approval of the TSX Venture Exchange and the Company’s shareholders (the “Shareholders”). If approved, the Consolidation is scheduled to take place on Wednesday, December 31, 2016 and the Deconsolidation will follow on Thursday, January 1, 2017. The Company also advises that it will send materials to security holders of record as of November 1, 2016 relating to this year’s annual and special meeting which is to be held on December 14, 2016.
As at the date hereof, there are an aggregate of 102,706,144 pre-consolidation Shares issued and outstanding. Implementation of the Consolidation and Deconsolidation will not materially affect the percentage ownership of the Shareholders and the Consolidation and Deconsolidation will merely proportionally reduce the number of Shares held by the Shareholders.
In the event the implementation of the Consolidation would otherwise result in the issuance of a fractional Share, no fractional Share will be issued and such fraction will be rounded up or down to the nearest whole number. In addition, the number of Shares issuable upon the exercise of any outstanding incentive stock options of the Company will be proportionally adjusted upon the implementation of the Consolidation and Deconsolidation. Notwithstanding approval by the Shareholders, the board of directors of the Company may, in its sole discretion, revoke the special resolution approving the Consolidation and Deconsolidation at any time prior to its implementation.
It is management’s view that the Consolidation and Deconsolidation is in the best interests of the Shareholders, as the Company spends a significant amount of money each year printing and mailing materials to these Shareholders and servicing their accounts through the Company’s register and transfer agent. However, the Company lacks the current mailing addresses for many of these Shareholders and for the remainder, the Company believes that most will welcome the opportunity to realize the value of their Common Shares without being required to pay a brokerage fee, which makes disposing of their Common Shares prohibitive. The Company will not be changing its name or its trading symbol in conjunction with the Consolidation and Deconsolidation.
On behalf of the Board of Directors,
Danniel J. Oosterman, P.Geo
President & CEO
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 News Release. This News Release includes certain “forward-looking statements”. These statements are based on information currently available to Canstar, and Canstar provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe Canstar’s future plans, objectives or goals, including words to the effect that Canstar 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”. Forward-looking statements are based on Canstar’s assumptions regarding, among other things, results of exploration, project development, reclamation and capital costs of Canstar’s mineral properties, capital markets activities, and Canstar’s financial condition and prospects. As these statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, and so Canstar’s actual results 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 Canstar’s activities; and other matters discussed in this News Release. This list is not exhaustive of the factors that may affect any of Canstar’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Canstar’s forward-looking statements. Canstar does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf, except in accordance with applicable securities laws.