Canstar amends agreement on McFauld’s Lake

Canstar Resources Inc. will receive 2,500,000 shares of United Reef Limited from Geocanex as part of the option agreement announced on April 14 between Canstar, Geocanex and United Reef Limited on the Company’s 100%-owned McFauld’s Lake 1 property and the McFauld’s Lake 3 property, which is currently under option from Geocanex.

The agreement gives United Reef the option to earn a 50% interest in the McFauld’s 1 and 3 properties, with Canstar owning the remaining 50%, after which a joint venture will be formed. The original option terms to United Reef remain unchanged, subject to regulatory approval.

The McFauld’s 1 and 3 properties comprise 70 contiguous, unpatented mining claims in the McFauld’s Lake area of Ontario’s James Bay Lowlands. The area has attracted significant interest since 2002 with the discovery of high-grade base metal volcanogenic massive sulphide (VMS) deposits by Spider Resources and, more recently, high-grade nickel-copper-PGE magmatic massive sulphide (MMS) deposits by Noront Resources. The project is located immediately south of the VMS discoveries and approximately 20 kilometres east of the Eagle One nickel discovery.