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