MONTRÉAL, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Goldstar Minerals Inc. (“Goldstar” or the “Corporation”) (TSX-V: GDM) is pleased to announce that it has negotiated a 100% purchase of three properties in Québec and Newfoundland: the Prince Gold Property (Newfoundland), Panache North Property (Québec), and the Fortune Gold Project (Québec) in consideration of a cash payment of $30,000 and the issuance of 2,000,000 common shares of the Corporation.
Prince Gold Property
The Prince Gold Property is located in Newfoundland, and covers 125 hectares. The property is contiguous to the eastern boundary of New Found Gold’s (NFG.V) recently announced Queensway Project discovery area, where New Found Gold reports historical gold values in a major structure that extends for several kilometres. New Found Gold’s Queensway Gold property has two major fault areas under investigation, with the eastern extent in close proximity to Goldstar’s new acquisition.
In a November 16, 2020 news release, New Found Gold reported additional gold intercepts including 6.85 metres of 44.5g/t gold at the Keats Zone from its ongoing 100,000-metre drilling program at its Queensway Project (1). Goldstar’s Prince Gold Property is also bounded to the east by Gossan Resources’ Gander Property.
Panache North Property
The Panache North Property covers 225 hectares in the Windfall Lake (Urban Barry) area of Québec, situated to the northeast of the recently announced surface gold discovery at BonTerra Resources’ (BTR.V) Panache Property, just north of their historical Panache gold showing. In a news release dated September 30, 2020, BonTerra announced the discovery of high-grade gold in channel samples, with best result reported of 18.6g/t gold over 1 metre in Channel 3. (2)
The Windfall Lake area has seen several gold discoveries led by Osisko Mining (OSK.T), which is currently completing an extensive infill drilling program on its Windfall gold property to the southeast.
Fortune Gold Project
The Fortune Gold Project covers 509 hectares in the Gaspé Peninsula of Québec, with direct access to most of the property by Highway 132 and a network of maintained roads.
Conglomerate-hosted gold occurrences at the Fortune Gold Project were reported to have been hand-mined in the early 1900’s, according to a 1935 summary report on the property. Ten adits were hand-driven into the sedimentary rock units, which the discovering prospector considered to be similar to conglomerate-hosted gold at Cripple Creek, Colorado, where he worked during the gold rush. Several historical gold samples are reported in the 1935 report and visual estimation of conglomerate material is also made. Québec’s MERN reports that gold values in the conglomerate unit have not been replicated since the date of the 1935 report. (3)
The same 1935 report discusses the local geology as consisting of “…slate, limestone, conglomerate, quartzite, mudstone, dolomite, conglomerate reefs…” and proposes that the Mt. Albert granite batholith may be the heat source responsible for the alteration at the Fortune Gold Project area, and goes on to propose an area of interest of 19 kilometres by 3 kilometres. (3)
In the early 1980’s, Avalon completed geophysics and soil geochemical sampling over the claim area and the historical ten adits. The adits were not discussed in the accompanying report; however Avalon did delineate gold and geophysical anomalies that were not drilled. (4) (5)
From 2013 to 2014, a site visit located the 10 adits and the adit locations were overlaid on the geophysical survey grid carried out by Avalon.
Goldstar has applied for additional titles to cover the reported area and projected district-scale geology.
About Conglomerate-Hosted Gold Deposits
The author of the 1935 report on the Fortune Gold Project references Cripple Creek as a potential geological analogue to the rocks on the property. According to a report on Cripple Creek by the US Geological Survey, “Most of the gold deposits of the Cripple Creek district occur within or at the margin of a mass of fragmental rocks of volcanic and nonvolcanic origin, collectively called ‘breccia,’ of Miocene age…The nonvolcanic rocks, locally present throughout the basin, range from coarse conglomerate to arkose and mudstone, with partings of shale and laminae of limestone...” (6)
Conglomerate-hosted gold deposits occur worldwide and offer large tonnage potential. According to the USGS, quartz-pebble conglomerate gold deposits represent the largest repository of gold on Earth, largely due to the deposits of the Witwatersrand Basin, which account for nearly 40 percent of the total gold produced throughout Earth’s history. (7)
Qualified Person
The technical content of this news release pertaining to the province of Quebec has been reviewed and approved by Alain-Jean Beauregard, Professional Geologist and a qualified person for the technical disclosure as defined by National Instrument 43-101.
The technical content of this news release pertaining to the province of Newfoundland and Labrador has been reviewed and approved by Case Lewis, P. Geo, director of the property vendor, who is a non-independent qualified person for the technical disclosure as defined by National Instrument 43-101.
For further information, please contact:
David Crevier
Chairman
Telephone: 514-284-3663
dcrevier@goldstarminerals.com
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 may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
1) New Found Gold Corp, News Release, November 16, 2020. “New Found Intercepts 44.5 G/T AU Over 6.85M in 60m Step-out at Keats Zone, Queensway Project, Newfoundland.”
2) Bonterra Gold, News Release, September 30, 2020. “Bonterra Resources Discovers New High-Grade Vein on the Panache Property in the Urban Barry Region”.
3) Canada, J.B., 1935. “Report on the Jacques Cartier Gold District, Grosses Roches, Matane County, Province of Quebec, Canada.” SIGEOM Report GM06275.
4) Arseneau, V., 1981. “Avalon Resources Inc: Geochemical report, Grosses Roches Property, Cherbourg Township.” SIGEOM Report GM37905.
5) Labreque, P.C., 1983. “Avalon Resources Inc: Geophysical Surveys (Mag & EM-VLF) Cherbourg Project, P.Q.” SIGEOM Report GM39510.
6) A. H. KOSCHMANN, 1949. “STRUCTURAL CONTROL OF THE GOLD DEPOSITS OF THE CRIPPLE CREEK DISTRICT TELLER COUNTY, COLORADO”. Bulletin 955-B. (https://pubs.usgs.gov/bul/0955b/report.pdf)
7) USGS Report 2010-5070-P (https://pubs.usgs.gov/sir/2010/5070/p/sir20105070p.pdf)