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Blue Star Gold Corp
Symbol BAU
Shares Issued 240,006,388
Close 2021-01-12 C$ 0.075
Recent Sedar Documents

Blue Star drills 13.8 m of 14.95 g/t Au at Ulu

2021-01-14 08:20 ET - News Release

Mr. Grant Ewing reports

BLUE STAR GOLD DRILLS 14.95 G/T OVER 13.80 METRES AT THE Flood ZONE ON ITS ULU GOLD PROPERTY

Blue Star Gold Corp. has provided the final assay results from the 2020 exploration program at its Ulu and Hood River properties. The properties are located approximately 525 kilometres north-northeast of Yellowknife, Northwest Territories, in the Kitikmeot region of western Nunavut. Kugluktuk is approximately 210 km to the northwest.

Highlights

  • Seven thousand six hundred twenty-one metres were drilled in 38 diamond drill holes during the 2020 program.
  • Ten holes were drilled at the Ulu and Gnu zone deposits to expand known resources and provide data for resource modelling, and 28 holes were drilled to test exploration targets on both the Ulu and Hood River properties, including 14 in the North Fold Nose (NFN) zone.
  • Assay results for the final 17 holes and the balance of assays from two previously reported holes are included in this news release, as well as an overall summary of the 2020 program.
  • Highlight gold assay results for the Flood zone (BS2020ULU-005) reported today include:
    • 14.95 grams per tonne Au over 13.8 metres (upper zone) from 426.2 to 440.0 m;
    • 9.65 g/t Au over 6.00 m (lower zone) from 459.0 to 465.0 m.
  • See the "Ulu property gold assay results reported today" and "Hood River property gold assay results reported today" tables for a summary of the results for the holes reported today, and the "Highlight gold composites from 2020 program on Ulu and Hood River properties" table for a summary of all highlight gold composites for the 2020 program.

Next steps, upcoming milestones

  • A comprehensive GIS compilation of all technical data for the projects is continuing, which will lead to an updated geologic model for the Flood and Gnu zone deposits.
  • An updated resource estimate for the projects is planned to follow the compilation noted above; in addition to the Flood and Gnu zone deposits, it is anticipated that sufficient data will be available to complete an initial resource estimate for the NFN zone.
  • Exploration focus going forward
    • There is excellent resource expansion potential at the Flood and Gnu zone deposits, and strong potential for new discovery proximal to these deposits and regionally on the extensive landholdings held by the company.
    • The early results from the extensive GIS compilation and targeting work continuing is yielding several high-quality near-surface targets within about one km radius of the Flood zone.
    • Detailed planning for the 2021 exploration program is under way:
      • The primary exploration focus will be on expanding resources at the known deposits (Flood and Gnu) and testing high-priority targets proximal to the known deposits on the Ulu property.
      • The secondary exploration focus will be regional targeting/testing over the extensive and highly prospective Hood River property, where numerous high-grade gold showings exist.

Ulu and Hood River properties overview

The Ulu lease and the contiguous Hood River property together encompass approximately 9,000 hectares of highly prospective exploration ground. The Ulu lease hosts the advanced stage Flood and Gnu zone gold deposits, where a significant high-grade gold resource has been outlined. Several additional gold zones (including NFN, Zebra, Bizen, Apex and Contact zones) are spatially related to the axis of the about five km long Ulu regional fold which extends from the Ulu lease onto the north Hood River property. The Hood River property is contiguous to the Ulu lease to the north, east and south, and hosts over 20 known gold showings. Many of the high-priority target areas outside of the Flood zone have only been tested with relatively shallow drilling, and the potential throughout the properties to host new discoveries at depth is considered high.

2020 exploration program summary highlights

The 2020 exploration program entailed 7,621 metres of diamond drilling in 38 diamond drill holes on the Ulu and Hood River properties. Below is an overall summary of the program, including diamond drill holes that were reported in previous news releases (see news releases dated Sept. 30 and Oct. 28, 2020).

Ulu lease

The 2020 drill program at the Flood zone comprised six drill holes (BS2020-ULU-001 to BS2020-ULU-006). The purpose of the drilling was to provide additional geologic information and confirm certain aspects of the geologic model of the deposits, to improve drill hole density and to allow for possible upgrading of the resource category. Drill hole BS2020-ULU-005 (reported today) tested inferred resource blocks at a vertical depth of approximately 400 metres. The hole intercepted a series of mineralized zones from a down-hole depth of 425.0 m to 469.0 m, including 14.95 g/t Au over 13.80 m (426.20 to 440.0 m) and 9.65 g/t Au over 6.0 m (459.0 to 465.0 m). The azimuth and dip of the hole at this intercept point are approximately 242 and minus 62 degrees respectively. Mineralization occurs as fine- to coarse-grained disseminated arsenopyrite along with fine-grained pyrrhotite, pyrite and chalcopyrite associated with smoky quartz veins within a calc-silicate alteration envelope. Previous modelling indicates that the Flood zone is near vertical in the area of BS2020-ULU-005's intercepts. The results of this hole potentially allows for an improvement in the resource grade and a change of the resource category from inferred to indicated status in this area. Holes BS2020-ULU-001 to 004 and 006 were reported previously (see news releases dated Sept. 30 and Oct. 28, 2020).

The Gnu zone, which is 700 m north of the Flood zone, can be traced over approximately 625 metres in a northwest-southeast direction. Mineralization typically occurs as finely disseminated acicular arsenopyrite associated with pervasive calc-silicate alteration, similar to that found in the Flood zone. Polymetallic quartz veins are also present in the Gnu zone. The high-grade gold mineralization intersected in BS2020ULU-007 (52.7 g/t Au over two m, see news release dated Oct. 28, 2020) has a polymetallic signature with highs of 0.8 per cent lead, 0.7 per cent zinc, 57.5 parts per million silver and anomalous bismuth. BS2020ULU-007 was collared 30 m east of historic hole 92VD161 (14.7 g/t Au over 3.22 m from a polymetallic quartz vein). Subsequent drill holes BS2020ULU-008 through BS2020ULU-010, which were drilled in the vicinity of BS2020ULU-007 and 92VD161, did not intersect significant gold values. The geometries of the different styles of mineralization present have not yet been resolved with the limited amount of drilling (20 holes totalling 2,167 m) completed to date. The geologic model for the Gnu zone is planned to be updated as part of the property-wide data assessment and compilation program under way.

At the Contact zone, which is approximately 1.8 km north of the Flood zone, mineralization occurs in quartz veins and stockworks, and sulphide replacement zones. The vein type is associated with haloes of pervasive sericite plus or minus silica altered basalt with pyrrhotite, arsenopyrite, pyrite and arsenopyrite. The best mineralization intersected in the two holes drilled in 2020 was 3.96 g/t Au over 1.0 m in hole BS2020ULU-011.

Hood River North

The 2020 drill program tested targets along the east limb of the Ulu anticline including the NFN, Int, Bizen and Apex zones. The fold limb is expressed as a topographic break coincident with the steeply east-dipping Contact between basaltic volcanic and biotite-cordierite metasedimentary rocks.

At the NFN zone, 14 drill holes (HR20-13 to HR20-26) were drilled in an area 215 metres long by 100 metres wide to a maximum depth of 180 metres from surface. The NFN zone is a south-dipping synform with mineralization focused along a shear zone dividing basaltic volcanics and biotite-cordierite schists. Anomalous gold values occur in quartz-carbonate-sericite-pyrrhotite-arsenopyrite-chalcopyrite shear vein fillings. An envelope of biotite and calc-silicate alteration extends tens of metres into the hangingwall basalts. All the holes drilled at the NFN intersected the targeted structure and 12 out of 14 returned significant gold grades. The mineralized intervals were typically between two and four metres wide. Higher grade intercepts included 13.87 g/t Au over 3.00 m (HR20-17) and 13.18 g/t Au over 2.00 m (HR20-13). Only two drill holes (HR20-19 and HR20-26) failed to return anomalous gold values. These two holes tested the northwestern and southern boundaries of drill coverage and intersected the targeted Contact, however, only moderate silicification and traces of arsenopyrite was observed. It is expected that the results of the 2020 exploration program will provide enough data to complete the first resource estimate for this zone (see news releases dated Sept. 30 and Oct. 28, 2020, for additional results).

The Int zone is located between the NFN and Bizen zones along the east limb of the Ulu anticline. Channel sampling conducted in 2019 resulted in one sample grading 25 g/t Au (Y622120). Follow-up drilling in 2020 included two drill holes, HR20-27 and HR20-28. A one-metre interval of anomalous gold in HR20-27 occurs in a shear zone containing medium-grained pyrrhotite and pyrite altered with patchy actinolite and biotite.

One hole at the Bizen zone (hole HR20-29) was drilled to test for mineralization near the Contact between mafic volcanics and metasediments. Gold-bearing mineralization is hosted in a unit of basaltic tuffaceous metagreywacke. Anomalous gold values are localized to thin, typically less than 10 centimetres, quartz-calc-silicate veins with medium-course-grained pyrrhotite, chalcopyrite and arsenopyrite. Patchy biotite alteration extends several metres outward from and is overprinted by sericite proximal to the gold-bearing veins.

The Apex zone is located 350 to 700 metres north of the Contact zone. It is characterized by two zones of discontinuous gossans that merge toward the north. Mineralization occurs as quartz veins associated with biotite plus or minus silica alteration and enriched in biotite, chlorite and minor actinolite. Mineralization encountered during the current program was generally weak and consisted of minor pyrite and arsenopyrite in narrow stringers that tend to parallel the regional, north-south-oriented structure. Three diamond drill holes were completed in the area during the program to test sulphide-bearing calc silicates and to improve the geological knowledge on the target. The highest grade gold mineralization was intersected in HR20-032 (3.53 g/t Au over 2.00 m).

Hood River East

The Hood River East property holes were designed to test early-stage targets throughout the highly prospective property. The promise of the Hood River East ground stems from the fact that it shares the same deformation history (including tight folding) and the same volcano-sedimentary stratigraphic sequences as the Flood zone.

At the Crown showing, mineralization occurs as quartz veins and sulphide replacement zones and stockworks. The veins are associated with haloes of pervasive biotite plus or minus silica alteration and contain sulphides (predominantly pyrrhotite with minor amounts of pyrite and arsenopyrite). The basalt is moderately to strongly altered. Three diamond drill holes were completed to test mineralization near the volcanic and metasediments Contact. The highest grade gold mineralization was intersected in HR20-033 (2.33 g/t Au over 2.00 m). The prospective trace of the north-trending fold axis, which links the Crown showing to the Pro zone four km to the north, remains untested.

At the PC showing in the Penthouse Lake area, mineralization occurs in sediment-hosted polymetallic quartz veins within massive sulphide lenses proximal to a mafic volcanic-sediment Contact. Three diamond drill holes were completed here. The highest grade gold assay of 2.53 g/t Au over 0.95 m (HR20-038 20.0 to 20.95 m) was returned from a zone of massive sulphides with quartz veining. Base metal values in this zone included highs of 9.6 per cent Zn, 0.4 per cent Cu and 0.9 per cent Pb over 0.55 m (20.95 to 21.50 m).


                       ULU PROPERTY GOLD ASSAY RESULTS REPORTED TODAY

Hole ID              From (m)       To (m)    Width (m)     Au (g/t)                Comments

BS2020ULU-005          426.2          440         13.8        14.95               upper zone
and                      446          449            3        11.57
and                      453          455            2         9.26
and                      459          465            6         9.65               lower zone
BS2020ULU-008                                                   NSV     no significant value
BS2020ULU-009                                                   NSV     no significant value
BS2020ULU-010                                                   NSV     no significant value
BS2020ULU-011             53           54            1         3.96


                       HOOD RIVER PROPERTY GOLD ASSAY RESULTS REPORTED TODAY

Hole ID            From (m)         To (m)    Core length (m)       Au (g/t)                Comment

HR20-021**           141.5            143                1.5           6.39
incl.                142.1            143                0.9           8.70
HR20-026                                                                NSV    no significant value
HR20-029               156            157                  1           1.37
and                    164            165                  1           2.73
HR20-030                                                                NSV    no significant value
HR20-031                95             96                  1           1.43
HR20-032                34             36                  2           3.53
HR20-033                12             14                  2           1.15
and                     36             38                  2           2.33
incl.                   36             37                  1           3.02
HR20-034                                                                NSV    no significant value
HR20-035                 9             10                  1            3.7
HR20-036                23             24                  1           1.14
HR20-037                10             11                  1           1.24
and                     17             21                  4           1.37
HR20-038                16             17                  1           1.23
and                     20          20.95               0.95           2.53

* intervals listed in the tables are core length, and not true width. All assay values are uncut.    

** These intervals were reported with results from HR20-022 in the news release dated Sept. 30, 2020.

            HIGHLIGHT GOLD COMPOSITES FROM 2020 PROGRAM ON ULU AND HOOD RIVER PROPERTIES

                           Zone
Hole ID               or target          From (m)           To (m)        Width (m)         Au (g/t)

BS2020ULU-002             Flood                9               16                7            13.42
BS2020ULU-003             Flood               13               22                9             8.67
"                         Flood              110              118                8             8.26
"                         Flood              160              164                4             8.17
BS2020ULU-005             Flood            426.2              440             13.8            14.95
                          Flood              459              465                6             9.65
BS2020ULU-006             Flood              407              411                4             12.5
"                         Flood              432              436                4             9.98
"                         Flood              487              501               14             4.23
"                         Flood              504              511                7             12.5
BS2020ULU-007               Gnu               25               27                2             52.7
HR20-013                    NFN              109              111                2            13.18
HR20-014                    NFN              118              122                4             7.59
HR20-016                    NFN              143              145                2            10.85
HR20-017                    NFN              164              167                3            13.87

* Composite intervals listed in the table are core length, and not true width. All assay values 
  are uncut.

                        ULU PROJECT DIAMOND DRILL HOLE SUMMARY

Hole name                 Project name             Target name    Total metres drilled

BS2020ULU-001              Ulu project                   Flood                     400
BS2020ULU-002              Ulu project                   Flood                      17
BS2020ULU-003              Ulu project                   Flood                     350
BS2020ULU-004              Ulu project                   Flood                     641
BS2020ULU-005              Ulu project                   Flood                     536
BS2020ULU-006              Ulu project                   Flood                     542
BS2020ULU-007              Ulu project                     Gnu                     170
BS2020ULU-008              Ulu project                     Gnu                     101
BS2020ULU-009              Ulu project                     Gnu                   130.5
BS2020ULU-010              Ulu project                     Gnu                     142
BS2020ULU-011              Ulu project                 Contact                     284
BS2020ULU-012              Ulu project                 Contact                     383
Total                                                                         3696.5 m

                      HOOD RIVER PROJECT DIAMOND DRILL HOLE SUMMARY

Hole name                  Project name              Target name     Total metres drilled

HR20-013             Hood River project                      NFN                      126
HR20-014             Hood River project                      NFN                      151
HR20-015             Hood River project                      NFN                      181
HR20-016             Hood River project                      NFN                    210.5
HR20-017             Hood River project                      NFN                      215
HR20-018             Hood River project                      NFN                      211
HR20-019             Hood River project                      NFN                      164
HR20-020             Hood River project                      NFN                      154
HR20-021             Hood River project                      NFN                      148
HR20-022             Hood River project                      NFN                      163
HR20-023             Hood River project                      NFN                      109
HR20-024             Hood River project                      NFN                    120.5
HR20-025             Hood River project                      NFN                      101
HR20-026             Hood River project                      NFN                      133
HR20-027             Hood River project                      Int                      100
HR20-028             Hood River project                      Int                      145
HR20-029             Hood River project                    Bizen                      314
HR20-030             Hood River project                     Apex                    300.7
HR20-031             Hood River project                     Apex                      161
HR20-032             Hood River project                     Apex                    111.5
HR20-033             Hood River project                    Crown                      149
HR20-034             Hood River project                    Crown                       89
HR20-035             Hood River project                    Crown                      152
HR20-036             Hood River project          South Penthouse                      107
HR20-037             Hood River project          South Penthouse                       46
HR20-038             Hood River project          South Penthouse                       62
Total                                                                            3924.2 m


Quality assurance/quality control program for the 2020 exploration work:

All drill core was logged and sampled in secure core processing structures located at the Ulu or Hood River camps. Drill core samples were collected by either cutting the core in half using diamond saws or by splitting the core in half using hydraulic core splitters. In addition to the QA/QC protocols of ALS Global, the company maintains its own program of inserting standard reference material in the form of standards and blanks into the sampling stream, prior to being shipped to ALS's preparation facility in Yellowknife.

History and geology of the Ulu and Hood River gold properties

The properties are located approximately 525 kilometres north-northeast of Yellowknife, Northwest Territories, in the Kitikmeot region of western Nunavut. Kugluktuk is approximately 210 km to the northwest.

The Ulu property consists of a renewable 21-year mining lease and covers an area of approximately 947 hectares. The lease hosts an advanced gold project that between 1989 and 2012 saw significant exploration and development by BHP Minerals and Echo Bay Mines, among others. The past work includes approximately 1.7 km of underground development and approximately 405 diamond drill holes that produced 97,820 m of core (Ulu and Hood River). The Flood zone contains the bulk of the Ulu gold resource and is open on strike and at depth. Overall resources of 2.50 million tonnes grading 7.53 g/t Au for 605,000 gold ounces (measured and indicated category) and 1.26 million tonnes grading 5.57 g/t Au for 226,000 gold ounces (inferred category) have been estimated for the Flood and Gnu zones (refer to "Technical Report on the Ulu Gold Property, Nunavut, Canada" dated July 10, 2015). The deepest intersection of minable width at the Flood zone is 14.9 g/t Au over 7.7 m in BHP's drill hole 90VD-75 at 610 m below surface. Metallurgical testing on the Flood zone gold mineralization has shown that gold is recoverable in amounts greater than 90 per cent by gravity, flotation and cyanidation.

The Hood River property is contiguous to the Ulu lease to the north, east and south. The property is held through a renewable, 20-year mineral exploration agreement with Nunavut Tunngavik Inc. The highly prospective property encompasses 8,015 hectares. At least 22 known gold showings have been identified on the property. The exploration target for the property is shear-hosted gold mineralization similar to the Flood zone on the adjacent Ulu lease.

A series of gold occurrences occur on strike and north of the Flood zone and are thought to be related to the about five km long Ulu regional fold that extends from the Ulu lease onto the north Hood River property culminating at the NFN zone. This structure extends from the Flood and Gnu zones along the Ulu fold to the north and hosts at least five gold zones in addition to the Flood and Gnu zones (NFN, Int, Bizen, Apex and Contact zones).

Gossanous auriferous rocks hosted within mafic volcanic units at or close to the Contact with meta-greywacke rocks occur along the Ulu fold trend. The gold mineralization is commonly enveloped by an alteration halo of biotite-actinolite-quartz. The mineralized zones are believed to be the result of brittle-ductile failure caused by regional stresses during different deformation stages. Along sedimentary-volcanic contacts, regional folding causing shearing, due to lithological competency contrasts, resulted in minor dilatancy. These dilatational zones were infilled with the gold-arsenic-rich hydrothermal fluids. Mineralization shows pinch and swell style.

Several high-grade gold occurrences also occur on the east Hood River property, including the Crown and Penthouse zones, where additional gold trends may exist. In addition, many unnamed gold occurrences exist on the two properties, where further prospecting is required to advance the showings to target zones. The large number of high-grade gold showings that occur throughout the properties provide for excellent resource expansion potential at multiple targets.

Supplementing the high-grade gold resources, the Ulu project includes a substantial inventory of capital equipment, a camp with shop and a 1,200 m long airstrip. The site of the future deepwater port at Grays Bay is 100 km to the north of the properties, and the proposed route corridor for the all-weather Grays Bay road passes in close proximity to the Ulu and Hood River projects.

                             ULU RESOURCE ESTIMATE
                                            
                               Gold      Tonnage   Gold grade   Gold contained
Classification         cut-off (g/t)      tonnes          g/t               oz
Flood Zone                                                                                   

Measured                       >4.0    1,000,000         8.48          272,000       
Indicated                      >4.0    1,500,000         6.90          333,000       
Measured and indicated         >4.0    2,500,000         7.53          605,000       
Inferred                       >4.0      891,000         5.57          160,000       
                                                                                             
Gnu zone                                                                                     
Inferred                       >4.0      370,000         5.57           66,000        
                                                                                             
Total -- Flood and Gnu zones                                                                  

Measured and indicated         >4.0    2,500,000         7.53          605,000       
Inferred                       >4.0    1,261,000         5.57          226,000       

Notes to the resource estimate

(1) Mineral resources which are not mineral reserves do not have demonstrated 
    economic viability. The estimate of mineral resources may be materially 
    affected by environmental, permitting, legal, title, taxation, socio-
    political, marketing or other relevant issues.

(2) Confidence in the estimate of inferred mineral resources is insufficient to 
    allow the meaningful application of technical and economic parameters. There 
    is no guarantee that all or any part of a mineral resource can or will be 
    converted into a mineral reserve.

(3) The mineral resources in this estimate were calculated using the Canadian 
    Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral 
    Resources and Reserves, Definitions and Guidelines prepared by the CIM 
    Standing Committee on Reserve Definitions and adopted by CIM Council.

(4) The reliability and accuracy of downhole surveys in 188 of 313 drill holes in 
    the resource area are in question due to their lack of proper measurements. 
    For these holes, the qualified persons have imposed an average demonstrated 
    predictability of drill hole deflection that are present in holes on the 
    property that do have proper down hole measurements. In the opinion of the 
    QPs, this is a more reasonable assumption than assuming straight line drill 
    holes.

(5) The following parameters were used to derive the cut-off: $100 per tonne mining 
    costs, $25/t processing costs, and $10/t general and administrative; transporting 
    gravity and flotation concentrate to the Lupin to produce dore with a $25/t 
    transport cost; $1,500 per ounce gold price; process recoveries of 90 per cent, 
    smelter payables of Au at 96 per cent and refining charges of Au $12/oz. The 
    company filed its technical report, titled "Technical Report on the Ulu Gold 
    Property, Nunavut, Canada" dated July 10, 2015, from which the table of resources 
    was taken. Gary Giroux, PEng, of Giroux Consulting Inc., Bob Singh, PGeo, of North 
    Face Software Ltd. and Paul Cowley, PGeo, of Buena Tierra Developments Ltd., are 
    qualified persons as defined in National Instrument 43-101 and were responsible 
    for the preparation of the technical report.

(6) An updated resource estimate is planned, as there are several new variables that 
    apply, including gold price, exchange rate, fuel costs and the fact that the Lupin 
    mine site would no longer be the processing site.

Qualified person

Grant Ewing, PGeo, is a qualified person under National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

About Blue Star Gold Corp.

Blue Star is a Vancouver-based gold and silver company focused on exploration and development within Nunavut, Canada. The company owns the Ulu gold property lease, an advanced gold and silver project, and the highly prospective Hood River gold concessions that are contiguous with the Ulu mining lease. The combined properties total approximately 9,000 hectares of prospective mineral claims within which the company has a significant high-grade gold resource on the Ulu lease, and numerous high-grade gold occurrences and priority targets throughout the Ulu and Hood River properties.

We seek Safe Harbor.

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