MEGASTAR’S EFFORTS IDENTIFY MULTIPLE HIGH POTENTIAL TARGETS AT YAUTEPEC
Property lies within the known Oaxaca Au-Ag epithermal trend
Vancouver, BC, Canada, July 16, 2019 – Megastar Development Corp. (“Megastar”, or the “Company”) (TSX-V: MDV; Frankfurt: M5QN), an early stage mineral exploration company focused on its properties in Oaxaca, Mexico, is pleased to report on the Company’s preliminary exploration activities at its Yautepec project; one of three properties that the Company is currently earning a 100% ownership in.
Headed by David Jones, Megastar’s exploration manager, a team of geologists performed two rounds of reconnaissance mapping and geochemical sampling that have revealed widespread metal anomalies in multiple areas on its Yautepec project. The exploration efforts are being focused on a 22-kilometer zone consisting of a geological structure similar to those known to host bonanza type epithermal systems at the nearby producing San Jose (Fortuna Silver Mines Inc., TSX: FVI) and Arista-Switchback (Gold Resource Corp., NYSE: GORO) mines.
“It is remarkable to have defined such highly prospective geology so soon after the start of our field program.,” said David Jones, exploration manager and director of Megastar. “The work to date supports our initial interpretation and looks as promising as the early stages of other exploration programs in the region which are now producing mines. The goal now is to expand known areas and discover additional new targets. We await pending results with great anticipation.”
Laboratory results have been received from the first 146 rock chip samples, the more significant results of which are compiled in the following table:
|Element||Maximum value (ppm)||Samples with Significant values||Lithology|
|Ag||62.20||6 > 10 ppm||Quartz vein within 6-7m wide vein swarm|
|Au||0.862||9 > 100 ppb||Quartz vein|
|Cu||639||5 > 100 ppm||Sinter: silica-carbonate|
|Pb||863||6 > 100 ppm||Sinter: silica-carbonate|
|Zn||215||10 > 100 ppm||Sinter: silica-carbonate|
|Mo||648||8 > 100 ppm||Quartz vein|
|As||6290||12 > 1000 ppm||Quartz vein|
|Ba||4590||9 > 1000 ppm||Sinter: silica|
|Hg||7.79||12 > 1 ppm||Sinter: silica|
|Se||7.80||12 > 2 ppm||Carbonate veins w/ sulfides|
|Te||1.06||3 > 0.20 ppm||Quartz vein|
|Tl||2.75||9 > 1 ppm||Breccia: silicified and veined|
These highly anomalous results are from quartz veins, silicified breccias, and siliceous sinter deposits in multiple areas that, to date, have seen little detailed evaluation. They are found in multiple distinct centers along a north-northwest striking 8.4 km trend of prospective rocks that trace a volcanic caldera margin.
An additional 175 rock samples are currently undergoing laboratory analysis, results for which will be announced in a subsequent news release.
Company President & CEO, Dušan Berka commented: “I am very pleased with the results to date and with the firming metal prices, these truly are exciting times for Megastar shareholders and investors. Megastar will continue to be aggressive in exploring and advancing its land holdings, in order to establish their potential quickly and efficiently.”
The technical content of this news release has been reviewed and approved by Robert Johansing, M.Sc., Economic Geologist, and a Qualified Person pursuant to National Instrument 43-101.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. 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% interest in three epithermal Au-Ag mineral properties in Oaxaca, Mexico. Megastar also owns 100% interest in Ralleau mineral property in Urban Barry District, Lebel-Sur-Quévilion area of Quebec, currently under 50% Option to DeepRock Minerals Exploration Inc. For further information, investors and shareholders are invited to visit the Company’s website at www.megastardevelopment.com or call the office at 604-681-1568, or toll free at 1-877-377-6222.
ON BEHALF OF THE BOARD OF DIRECTORS
Dusan Berka, P. Eng.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements:
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.