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 include:

Yautepec Project: Significant 2nd period sample results (ALS Labs)                                              
                   ElementMaximum valueLithology of highest value                Samples with Significant values
Precious metals    Ag     308 grams    Quartz vein bounding silica sinter complex11 > 10 grams                  
                   Au     1.07 grams   Quartz vein bounding silica sinter complex11 > 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 complex14 > 100 ppm                   
                   Mo     102 ppm      Quartz vein - brecciated                  3 > 50 ppm                     
Pathfinder elementsAs     9.26 %       Felsic intrusion - brecciated             18 > 1000 ppm                  
                   Ba     3780 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 complex19 > 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 7 meters, 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-meter northwest-southeast trend, and as well from an immediately adjacent fossil hot springs system (sinter), developed along the same trend for 770 meters with widths up to 215 meters (~95,000 square meters 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 inferred from the fact that most known systems of this style are not well mineralized within 150 meters of documented ‘paleo’ surfaces (Sillitoe, 2015*). The northwest-southeast structural trend of the quartz vein and sinter complex is similar to that of nearby producing mines on the Oaxaca epithermal Au-Ag belt, such as Gold Resource Corp’s [NYSE: GORO] Arista-Switchback mine, and Fortuna Silver Mines’ [TSX: FVI] San Jose mine.

*Sillitoe, R.H., Epithermal Paleosurfaces: Miner Deposita (2015) 50: 767-793

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 & CEO, 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, M.Sc., Economic Geologist, and a Qualified Person pursuant to National Instrument 43-101.


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-Quevilion area of Quebec, currently under 50% Option to DeepRock Minerals Exploration Inc.