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Drill Results Routine +

Canstar Resources Launches First Mary March Drill Program Since 2019 as Earn-In Partner VMSC Increases Phase 1 Investment to C$2.0 Million

By The Northwire Desk — AI Analysis Jun 17, 2026 · 06:46 ROX · 0.05 Canstar Resources Inc.
ROX · Price

Executive Summary

  • Canstar Resources received an additional C$500,000 in exploration funding from JV partner VMS Mining Corporation (VMSC) upon the exercise of the Phase 1 Option under their earn-in agreement.
  • The investment brings VMSC's total Phase 1 funding to C$2.0 million and increases its indirect interest in the project-level vehicle from 10% to 15%, with all funding directed non-dilutively to the project level.
  • The capital supports the commencement of Canstar's first diamond drill program at the Mary March VMS Project since 2019, targeting newly identified geological models and DCIP anomalies.

Key Details

  • JV Funding & Interest: Additional C$500,000 received from VMSC; total Phase 1 funding now C$2.0 million; VMSC's indirect interest increases from 10% to 15% upon completion of applicable acquisition steps.
  • JV Structure & Upside: VMSC may earn up to a 60% indirect interest via C$11.5 million across three phases; Phase 1 exercise increases max potential indirect interest to 65% and raises max aggregate capital across three phases to C$12 million.
  • Capital Structure: Funding is made directly at the project level and is explicitly non-dilutive to Canstar's corporate share capital.
  • Drilling Program: First diamond drill program at Mary March since 2019 has commenced; planned holes include extending one existing hole to penetrate full thickness of southeast limb rhyolites, a second hole ~500 meters southwest of known occurrences, and three holes to test a northwest anomaly.
  • Geological Model & Targets: New model extends prospective felsic volcanic rocks hosting high-grade VMS mineralization to north and south limbs of a NE-trending anticline; south limb is cut and repeated by a low-angle thrust fault.
  • Geophysical & Geochemical Work: Winter 2026 DCIP survey chargeability anomalies correlate with alteration/mineralization in prospective rhyolite along the south limb and in footwall rocks at Nancy April; prospective rhyolite on the north limb was previously unrecognized.
  • Historical Data Integration: 14,400 meters of historical core relogged; multiple geophysical surveys (airborne, ground, borehole) and systematic surface/drill core lithogeochemical and pXRF surveys completed to build a "first principles" geological foundation.
  • Qualified Person: Bob Patey, B.Sc. (Hons.), P.Geo., Vice President, Exploration, has reviewed and approved the technical disclosures per NI 43-101.

Notable Quotes

  • "This additional C$500,000 reinforces momentum at our flagship Mary March program as we begin our first drilling campaign alongside a partner with whom we share deep alignment on exploration philosophy and real excitement about this project's potential." – Juan Carlos Giron Jr., President & CEO
Read the original news release →

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