13:40:37 EDT Wed 12 May 2021
Enter Symbol
or Name

Login ID:

Megastar samples 308 g Ag, 1.07 g Au at Yautepec

2019-08-22 09:42 ET - News Release

Mr. Dusan Berka reports


Megastar Development Corp. has received sample results from a second period of reconnaissance fieldwork at its Yautepec project in Oaxaca state, Mexico.

A total of 162 samples were taken of prospective rock types, with a focus on high-potential areas identified during the first period of work as discussed in a prior news release dated July 16, 2019. Significant new results are shown in the attached table.


                   Element  Maximum value                   Lithology of highest value  Samples with significant values

Precious metals         Ag      308 grams   Quartz vein bounding silica sinter complex                    11 > 10 grams
                        Au     1.07 grams   Quartz vein bounding silica sinter complex                  11 > 0.20 grams
Base metals             Cu         99 ppm             Sinter complex: silica-carbonate                      12 > 50 ppm
                        Pb        464 ppm                    Quartz vein -- brecciated                     17 > 100 ppm
                        Zn        548 ppm   Quartz vein bounding silica sinter complex                     14 > 100 ppm
                        Mo        102 ppm                    Quartz vein -- brecciated                       3 > 50 ppm
Pathfinder elements     As          9.26%               Felsic intrusion -- brecciated                    18 > 1000 ppm
                        Ba      3,780 ppm                         Hydrothermal breccia                    17 > 1000 ppm
                        Hg       29.5 ppm                  Sinter: silica -- carbonate                       18 > 1 ppm
                        Sb        307 ppm                      Sinter complex: breccia                      8 > 100 ppm
                        Se       16.7 ppm               Felsic intrusion -- brecciated                       30 > 2 ppm
                        Te       5.27 ppm   Quartz vein bounding silica sinter complex                    19 > 0.20 ppm
                        Tl       3.35 ppm                       Sinter complex: silica                       10 > 1 ppm

David M. Jones, exploration manager and director of Megastar, says: "Our second round of sampling at Yautepec has not only confirmed our first round of results, but surpassed them, yielding silver values up to 308 grams and gold values to 1.07 grams in an historically undocumented quartz vein system of impressive length with structural widths up to seven metres, based on surface mapping to date. In tandem with the adjacent mineralized hot springs complex (sinter), we have generated a series of high-priority drill targets after only two periods of fieldwork. This is a remarkable accomplishment for our small and highly motivated team, all of whom have had significant exploration discoveries in their careers. The targets identified to date represent a small portion of the greater Yautepec project; multiple outlying exploration targets await further work which could potentially yield similar encouraging results."

The majority of new samples were collected from a quartz vein system exposed along a 530-metre northwest-southeast trend and as well from an immediately adjacent fossil hot springs system (sinter), developed along the same trend for 770 metres with widths up to 215 meters (approximately 95,000 square metres minimum surface area). These and prior results show that both the quartz vein system and sinter complex are mineralized and are logically genetically related. The presence of sinter indicates that the full vertical extent of potential bonanza style epithermal mineralization is conserved at depth; this is inferred from the fact that most known systems of this style are not well mineralized within 150 metres of documented paleo surfaces. The northwest-southeast structural trend of the quartz vein and sinter complex is similar to that of nearby producing mines on the Oaxaca epithermal gold-silver (Au-Ag) belt, such as Gold Resource Corp.'s Arista-Switchback mine and Fortuna Silver Mines Inc.'s San Jose mine.

A new mining claim was recently filed on open ground based on highly prospective geology discovered during the first period of work at Yautepec. Previously noted outlying target areas have yet to receive follow-up mapping and sampling, but remain a priority for further evaluation.

Company president and chief executive officer Dusan Berka added: "We are all very pleased and excited with what we have been able to demonstrate to date. Success of this nature, so early into a program, is rare. Megastar will continue to aggressively advance the work on its Oaxaca assets and opportunistically add properties as we have done here. With precious metal prices firming and interest coming back to the sector, we believe Megastar's advancements will be of interest to our shareholders and investors in general."

The technical content of this news release has been reviewed and approved by Robert Johansing, master of science, economic geologist and a qualified person pursuant to National Instrument 43-101.

About Megastar Development Corp.

Megastar Development is an emerging resource company engaged in the evaluation, acquisition and exploration of mineral properties in Canada and Mexico. Megastar has an option to acquire 100-per-cent interest in three epithermal Au-Ag mineral properties in Oaxaca, Mexico.

We seek Safe Harbor.

© 2021 Canjex Publishing Ltd. All rights reserved.