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The Directors of Canstar Resources Inc. (TSX VENTURE: ROX) are pleased to announce that a high-resolution airborne geophysical survey has been completed over the Company's McFaulds 1 and McFaulds 3 properties in Northern Ontario, located in the same volcanic belt hosting Noront Resources high-grade nickel-copper discovery. The results, which are expected shortly, will be used to further define existing targets for a winter drilling program scheduled to begin early in 2008.
Canstar currently holds two projects within the McFauld's Lake Area, the 100%-owned McFauld's 1 property (512 hectares) and the McFauld's 3 property (608 hectares), which is under an Option-Joint Venture agreement with Geocanex Ltd. Both properties occur in the McFauld's Lake Volcanic Belt, which has seen significant activity since the discovery of high-grade nickel-copper-PGE by Noront Resources in August 2007. Assay results of up to 5.9% Ni, 3.1% Cu, 2.87 g/t Pt and 9.78 g/t Pd over a 68.3 metre core length have been reported for the peridotite-hosted, magmatic sulphide mineralization. Previous exploration on the Canstar properties has identified seven drill targets, which remain untested.
The airborne survey was conducted by Aeroquest International utilizing the AeroTEM II system, which has a reported exploration depth of up to 250 metres. Once the data has been received and interpreted further announcements will be made on the results of the survey and the details of the 2008 drilling program.
Canstar's directors and management feel that the Noront discovery is important for the whole McFauld's Lake area as it demonstrates similarity to mining camps such as Timmins, Noranda and others, confirming the excellent economic potential of the area for nickel- copper deposits in addition to the previously discovered VMS copper-zinc-gold-silver deposits.
The McFaulds 3 option-joint venture agreement gives Canstar the right to earn a 50% interest in the property by September 22, 2008. As part of the agreement, Canstar is required to spend $250,000 in exploration expenditures.
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