TORONTO, May 27, 2025 (GLOBE NEWSWIRE) -- (TSXV: ROX) (OTCPK: CSRNF) Canstar Resources Inc. is ramping up critical metals exploration in Newfoundland with the receipt of the initial $500,000 tranche of its previously announced $11.5M strategic exploration joint venture with VMS Mining Corporation (“VMSC”). The non-dilutive investment positions Canstar to aggressively pursue the discovery of new, high-grade polymetallic (copper-zinc-lead-gold-silver) mineralization at its Buchans and Mary March volcanogenic massive sulphide (“VMS”) projects, located in one of Canada's most prolific historic mining camps.
“We have made meaningful progress. We are fortunate to operate in Newfoundland, where the exploration-friendly permitting process underpins our ability to move quickly and decisively,” said Juan Carlos Giron Jr., President & CEO of Canstar Resources. “This initial $500,000 investment allows us to ramp up work immediately, without the issue of new share capital, and signals strong commitment from VMSC’s leadership and technical team. The Buchans District has hosted some of the world’s highest-grade VMS deposits.1 Our teams believe the project area holds enormous exploration potential based on historic production and current geological indicators.”
- $500,000 received to commence Phase 1
- Key permits received for trenching and airborne geophysics
- Total Phase 1 investment: $1.5M (asset-level) for 10% JV stake, valuing the JV projects at $15M pre-money
- Industry-leading VMS geologist Dr. Harold Gibson is leading the exploration activities
- Work underway: Deep IP geophysics continues at Buchans; Mary March to commence with geophysics surveys, trenching, mapping and advanced 3D data modeling for target generation
- Canstar retains 100% ownership of its Golden Baie gold-antimony project
Under the agreement, VMSC can earn up to 60% ownership of the JV through optional follow-on investments totaling $10 million across Phase 2 and Phase 3. Canstar retains the right to participate pro-rata in future phases to maintain a significant ownership position.
About VMS Mining Corporation
Established to develop Tier 1 VMS deposits globally, VMS Mining Corporation is a technically driven private corporation led by some of the most respected names in the mining industry, including founders, directors and executives behind Osisko Mining Inc., O3 Mining Inc., Aurelian Resources, and Dalradian Resources—companies with a collective track record of over $4.1 billion in acquisition value.
VMSC’s management and board are comprised of exploration leaders including founder and CEO Mr. Bernardo Álvarez Calderón (Director, Osisko Mining Inc. & O3 Mining Inc.), Mr. Patrick Anderson (Founder/CEO, Aurelian Resources Inc. & Dalradian Resources Inc.; Director, Osisko Mining Inc. & O3 Mining Inc.), Mr. John Burzynski (Chairman, O3 Mining Inc.; CEO/Director, Osisko Mining Inc.; Director, Osisko Gold Royalties Ltd.) and Mr. José Alberto Vizquerra Benavides (Founding Director, Osisko Mining Inc.; CEO/Director of O3 Mining Inc.). Collectively, Osisko Mining Inc., O3 Mining Inc., Aurelian Resources Inc., and Dalradian Resources Inc. were acquired in transactions totalling over $4.1 billion.
Renowned Exploration Leadership
Dr. Harold Gibson, VMSC’s VP-Exploration, is widely recognized as a leading global authority on VMS deposits, bringing 40+ years of VMS expertise. He has published more than 100 peer-reviewed publications. He is the recipient of the William Harvey Gross Award, the Duncan R. Derry Medal from the Mineral Deposits Division of the Geological Association of Canada, the Barlow Memorial Medal, the Julian Boldy Memorial Award from the Canadian Institute of Mining, Metallurgy and Petroleum, and the Research Excellence Award from Laurentian University. Dr. Gibson was the Director of the Mineral Exploration Research Centre (MERC) and the Scientific Lead and Founding Director of the Metal Earth Research Project—Canada’s unprecedented $104 million public-private mineral exploration research initiative.
Historic Mining Pedigree: Additional Information on Canstar’s Buchans and Mary March Projects
Canstar’s Buchans and Mary March Projects are located in the Buchans-Roberts Arm Belt of west-central Newfoundland, Canada. Recognized as one of the highest-grade VMS systems in history, Buchans was mined by ASARCO from the 1920s to the 1980s. Five deposits yielded 16.2 million tonnes with average mill head grades of 14.51% zinc, 7.56% lead, 1.33% copper, 122 g/t silver, and 1.37 g/t gold2 (these deposits are not on Canstar Claims and are described to indicate the potential of the area).
Canstar’s Buchans Project sits immediately adjacent to the historic Buchans mines, all 5 deposits are within 0 to 2,500 m of the Canstar licenses. New 3D geological modelling (2024) by Canstar suggests that the Buchans River Formation, the geological host unit for all five historic Buchans Mine deposits, underlies Canstar’s Buchans property at depth. It is possible, but not certain, that deposits similar-to those mined nearby at Buchans occur beneath Canstar’s Buchans-area claims.
A SkyTEM time-domain electromagnetic survey in 20173 identified several multi-kilometre geophysical anomalies within Canstar’s Buchans claims. The anomalism coincides with an area of low magnetism, indicating a potential alteration zone. A historic drillhole from the 1970s—located within one of these anomalies—intersected what was described as “stockwork style” mineralization. Stockwork zones typically exhibit a geophysical signature characterized by low magnetism, variable (generally poor to moderate) electrical conductivity, and good chargeability. These characteristics are similar to the geophysical attributes of the stockwork zones of the historic Buchans deposits, suggesting the potential discovery of stockwork and alteration zones associated with Buchans-style VMS deposits.
Canstar’s Mary March project—25km east of the historic Buchans mines—hosts a large mineralized system with alteration zones similar in scale to those at Buchans and high-grade massive sulphides. Historic drilling intersected a faulted-off massive sulphide lens 9.63 m thick, assaying 0.64% Cu, 1.8% Pb, 10.1% Zn, 4.2 g/t Au, 122 g/t Ag.4 Canstar trenching in 2019 identified Buchans-style debris flow deposits with massive sulphide clasts, which assayed up to 5.7% Cu, 1.6% Pb, 1.8% Zn, 29.4 g/t Ag, 1.2 g/t Au.5
Qualified Person Statement
Bob Patey B.Sc. (Hons), Vice President for Exploration for Canstar and a Qualified Person as defined in NI 43-101, has prepared and approved all scientific and technical information disclosed in this news release.
Acknowledgement
Canstar acknowledges the financial support of the Junior Exploration Assistance (JEA) Program from the Government of Newfoundland and Labrador Department of Industry, Energy and Technology, which has been a valuable contribution to the exploration programs on the Company’s Buchans-Mary March and Golden Baie projects.
About Canstar Resources Inc.
Canstar Resources Inc. (TSXV: ROX) is an exploration company focused on critical minerals and gold. The Company’s 100%-owned Golden Baie Project (489.5 km2) hosts high-grade gold and antimony showings along a major mineralized structure that also hosts a large number of gold deposits. The Buchans and Mary March projects (122.5 km2) are located within the historic past-producing VMS zinc-, copper-, and silver-rich Buchans Mining Camp and boast high-grade zinc and copper discoveries.