Canstar Resources
Financials:
Primary ticker: TSXV:ROX
Stage of development: Exploration
Primary minerals: Gold
Project to promote: Golden Baie Project
Project location: Newfoundland, Canada
Website: www.canstarresources.com
Corporate presentation: Click here
Canstar has a strong technical team that is focused on district-scale gold exploration in Newfoundland, Canada. Canstar has a 100% interest in the Golden Baie and Hermitage projects, large claim packages at the south end of the Central Newfoundland Gold Belt, covering 77,350 hectares or 774 km2 with multiple outcropping gold occurrences on a major structural trend. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland.
Cash: CAD7M
Debt: /
Major shareholders:
Eric Sprott – 26%
Altius Minerals 9%
Management ownership 4%
Management Profile
Rob Bruggeman, President & CEO
Equity analyst and trader turned junior mining investor and executive with over 25 years’ experience. Successfully restructured and recapitalized AbraSilver Resource in 2018/19, which is now a $200M company with Mr. Bruggeman as chairman of the board. He is a licensed Professional Engineer and CFA charter holder.
What is your rationale for taking part 121 Mining Investment?
To attract new investors and increase market awareness of Canstar. Last year’s drilling on the Golden Baie project started to identify high grade gold mineralization near-surface. That mineralization is open along strike and down-dip, meaning that this could be the start of a major discovery since orogenic style gold mineralization can be very extensive, as being proven by New Found Gold on its Queensway project which is located on the same structural trend to the north of Golden Baie.
What recent news would you like to highlight to investors attending?
Feb. 8, 2022 – Canstar Intersects 11.8 g/t Gold over 5.7 Metres at Kendell, Commences Winter Drill Program
Jan. 24, 2022 – Canstar Acquires the Hermitage Property, Expanding its Newfoundland Gold Exploration Project Claims to 774 km2
Dec. 8, 2021 – Canstar Closes $5.2 Million Flow-Through Financing
Nov. 11, 2021 – Canstar Samples 289 g/t Au from the Skidder Target and Engages GoldSpot Discoveries for Golden Baie Exploration
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete a winter drill program on the Kendell prospect to test the continuation of high grade gold mineralization along strike and down-dip.
Evaluate the pending results of till samples and gold grain analysis in an effort to correlate high grade gold samples in float to their potential bedrock source.
Work with GoldSpot to use data analytics and AI to identify new areas of interest and potential drill targets.
6 Months:
Evaluate the western and southern portions of the Golden Baie and Hermitage claims for gold mineralization potential. These areas are remote and have seen little or no gold exploration work even though they are prospective for orogenic style gold mineralization.
Advance regional exploration work to identify new areas for trenching and drilling.
Dispose of Canstar’s base metals projects through a sale or joint venture arrangement.
12 Months:
Determine the extent of gold mineralization at the Kendell prospect.
Make another gold discovery on the Golden Baie project.
Advance our understanding of the many other gold anomalies on the Golden Baie property and prioritize the anomalies for trenching and drilling.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
There is a gold rush happening in Newfoundland. This is creating competition for geologists and prospectors. We are overcoming this by treating employees with respect and presenting them with an exciting gold exploration project that hasn’t been systematically explored for over 30 years.
What do you think makes your company such a compelling investment?
We have a district-scale gold exploration property that is on trend with the Queensway project owned by New Found Gold, which is valued at over $1 billion. Our market cap is only about $25M and we are getting high grade gold intercepts in our maiden drill program on the Golden Baie project. The discovery potential is tremendous, as is the potential impact on our valuation if we make a major gold discovery.
What are the top 3 key investor takeaways?
1. The Golden Baie Project consists of a 774 square kilometer land package with 20+ gold occurrences spanning 40km, but with less than 20,000 meters of shallow drilling (most of which was done in the 1980s). It is located on the same major structure as New Found Gold’s Queensway project, in the Central Newfoundland gold district.
2. Canstar’s 2021 drilling on the Kendell prospect included 9.6 g/t gold over 7.75 meters and 11.8 g/t gold over 5.7 meters at shallow depths. High grade gold mineralization is open along strike and down-dip.
3. Canstar has a strong technical team with extensive gold exploration experience. They are supported by a technical advisory committee consisting of Dr. David Palmer (Probe Metals), Dr. Lawrence Winter (Altius Minerals), and Dr. Laurie Curtis.