Canstar Resources (TSXV:ROX) to acquire new gold project in Newfoundland

• Canstar Resources (ROX) has signed a binding letter of intent to wholly acquire the Golden Baie Project in southern Newfoundland
• The project is currently held by Altius Resources, a 100 per cent owned subsidiary of Altius Minerals
• While the terms of the deal have not been released, the acquisition will add to Canstar’s existing project portfolio in the region
• Previous sampling work carried out by the vendors assayed as high as 2,213 grams per tonne of gold
• Canstar Resources (ROX) is currently up 70.37 per cent and is trading at C$0.23 per share

Canstar Resources (ROX) has signed a binding letter of intent to wholly acquire the Golden Baie Project in southern Newfoundland.

The project, which consists of roughly 2,600 mineral claims over a total of 66,000 hectares, is currently held by Altius Resources, a 100 per cent owned subsidiary of Altius Minerals.

While the terms of the acquisition have not been released, Canstar’s acquisition of the Golden Baie Project will build on its Newfoundland-based exploration focus and add to an existing portfolio of properties, which includes the Buchans-Mary March and Daniel’s Harbour projects.

Prospecting work carried out at the project over the last three years lead to the discovery of multiple new gold occurrences, with grab samples assaying up to 2,213 grams per tonne of gold.

All of the samples were reportedly collected from argillite-hosted quartz veins, although Canstar has not yet independently verified this.

In the 1980s, Westfield Minerals drilled roughly 60 shallow holes in the region, nine of which were on the Golden Baie Project. Mountain Lake Minerals also conducted a drill program between 2009 and 2011, with 38 occurring on the property.

The results of this work included hole DDH LR-09-02, which intersected 4.8 grams per tonne of gold over three metres, starting at a depth of 3.5 metres.

However, it’s thought that these previous operates missed the most prominent occurrences of visible gold in outcrops on the claims.

Dennis Peterson, Chairman and Interim CEO of Canstar Resources, commented on the proposed acquisition.

“We are extremely pleased to acquire such a large, prospective gold exploration project in Newfoundland to complement our existing portfolio of high-quality projects, including Buchans-Mary March and Daniels Harbour.

“With our already established base in Newfoundland and the concurrent financing the company will be able to begin work on the Golden Baie Project immediately,” he added.

Canstar Resources (ROX) is currently up 70.37 per cent and is trading at C$0.23 per share at 2:23pm EDT.