Blue Star Gold developing Nunavut gold resources

Corporate Profile

Blue Star Gold Corp. [BAU-TSXV] has assembled two high-grade gold exploration-stage prospects in Nunavut Territory, northern Canada. The claim package is approximately 530 km north-northeast of Yellowknife, capital of the Northwest Territories and about 45 km north of the Arctic Circle.

While the project location is indeed in the Arctic, Canadian explorers and miners have a history of successfully meeting these unique operating challenges. For example, Sabina Gold & Silver is advancing its high-grade, permitted gold project towards a production decision to build a mine. Sabina’s success has other important implications for Blue Star as both companies are located in greenstones within the Archean-aged High Lake Volcanic Belt.

In addition, TMAC Resources is a gold producing Arctic miner with the Doris Mine achieving commercial production in 2017 and the Madrid and Boston deposits expected to be in production in 2020 and 2022, respectively. Sabina is 250 km to the southeast while TMAC is 280 km northeast of Blue Star Gold’s projects.

Blue Star has a 100% interest in the 8,015-hectare Hood River property where exploration to date has identified 22 gold targets. Only 33 drill holes have ever been drilled on the Hood River property. Adjacent to the west is the Ulu property where Blue Star has a definitive agreement to acquire a 100% interest from Mandalay Resources Corp. Under the option terms, Blue Star agreed to pay Mandalay $400,000 (paid April 2018) and will issue 15 million shares to Mandalay upon Mandalay completing selective remediation work and upon receiving regulatory approval.

The Ulu Project is more advanced than Hood River and hosts NI 43-101 compliant measured and indicated resources totaling 2,500,000 tonnes grading 7.53 g/t gold, for 605,000 contained ounces, plus inferred resources of 1,261,000 tonnes grading 5.57 g/t, for 226,000 contained ounces. The independently prepared resource estimate used a 4 g/t gold cut-off value.

At the Ulu Project, most of the historic drilling focused on the Flood Zone that can be traced on surface for 435 metres with the current resources situated between surface and a vertical depth of 525 metres. The deepest intersection assayed 14.9 g/t gold over 7.76 metres at a vertical depth of 610 metres, demonstrating good depth potential. The Flood Zone remains open along strike and has infill potential near surface in which to expand resources and improve grade. Ten additional high priority drill targets have been identified at Ulu.

Briefly, here are some of the main drill-ready gold targets on the Hood River property:

• North Fold Nose – BHP drill hole 90VD-81 returned 6.03 metres grading 7.31 g/t gold, including 25.63 g/t gold over 1.54 metres. A hole under 90VD-81 returned 9.16 g/t gold over 6.88 metres, including 54.94 g/t gold over 0.95 metres.
• Crown Zones – Five separate mineralized zones with veins up to 6 metres wide and 800 metres along strike. An historic drill intersection reported 13.47 g/t gold over 2 metres.
• Penthouse North & South Zones – 3 km north of Crown Zones. One sample returned 130.1 g/t gold.
• Blackridge Zone – 750 metres long mineralized vein/shear zone. A 1 metre chip sample returned 21.58 g/t gold. Shallow drilling tested 300 metres of this structure and returned 10.3 g/t gold over 1.07 metres.

Financing plans are underway and depend on the permitting schedule. Blue Star Gold is planning a summer exploration program that would utilize helicopter support for drilling operations. Otherwise, there is a fixed-wing gravel landing strip nearby with year-round air access. The company is also planning to build a temporary camp.

Blue Star has signed a working agreement with the Nunavut Tunngavik Incorporated for a relationship through to production on the Inuit Owned Lands.

Stephen Wilkinson, MSc, (Geology), MBA, is President and CEO, and has over 35 years’ experience in senior positions in the mining and finance industries.

While the Blue Star Gold projects are in the Arctic, they have easy access and, notably, the all-important high gold grades needed for success in this region. Blue Star Gold has 129.6 million shares outstanding.