As announced at the outset of Phase 1 drilling, the Kenora Gold Project will undergo several phases of drilling this calendar year. This announced program is designed to specifically target areas discovered to be inaccessible by a standard drilling rig during Phase 1, including the "Ace Showing" whose results include surface channel samples of 29.3 meters (true width) averaging 3.1 g/t gold. The program will be comprised of 500 meters of drilling and will act as a precursor to a larger program to commence shortly afterward. Drilling should be completed within approximately 2 weeks of this announcement.

Canstar would like to take this opportunity to review the exploration dynamics and objectives for the Spring drilling program of 2017 for the Kenora Gold Project.

The recently announced results represent the first ever drill results based on only just over 1,000 meters of drilling. Two key findings came from this modest program:

  1. A new, 22 meter wide gold-bearing zone (0.5 g/t over 22 meters) was discovered 146 meters northeast of the Ace Showing on the same structural trend; this includes 7.0 meters at 0.7 g/t and 10.9 meters @ 0.6 g/t gold.
  2. A zone in proximity ("proximal zone") to the Ace Showing occurring 22 meters east and 77 meters below the Ace comprised of low grade yet wide gold mineralization (11.0 meters @ 0.3 g/t)

These results have demonstrated low grade gold bearing veins, which is a strong indicator of potential multiple gold bearing systems within the district at depth. The surface mineralization does correlate with the IP results and with placement of past shafts, as does the recent 22 meter intersection mentioned above. From the Ace Showing to the proximal zone encountered at depth is 80 meters of intervening, untested lithology. It is possible that these two zones are related and thus must be tested in this context. This program will do that.

"Until now the Kenora Gold Project has never been explored at any detail with any modern methods including drilling. Artisanal mining from the 1800's has left isolated shafts, which followed superficial surface veins to depth, and some indications of deeper drifts based on our drilling experience," says Danniel Oosterman, Canstar's President and CEO, "The size of the land package is appreciable within a historic mining camp. As there are numerous indications of gold bearing structures throughout the intrusion contact areas, the Company has determined that a strong understanding of the structural relationship is key to unraveling how mineralization occurs on the Project."

The Company's goal in 2017 is to determine the structure of the intrusion and how it relates to the host rock contacts throughout the district, as there are numerous superficial gold showings, and then determine where the more prospective gold bearing structures are likely to be and to focus and target these areas.

Canstar sees an incredible opportunity to explore a sizeable gold bearing system and potentially enhance the value of the Kenora Gold Project as the gold system becomes better understood.