To keep this brief, results are in from the preliminary Nancy April drill program: Canstar Intersects 93.7 meters of 1.00 zinc, 3 g/t silver, and 5.33 meters of 1.21% copper, 4.9 g/t silver in Nancy April Zone on its Mary March Project. This is of major significance ironically the project is now getting less attention with a higher statistical likelihood of an ore body than ever before.
 
Here is why:  I believe it’s because of these recent drill results and also the inherent complexity of VMS systems.

Let me explain:  The key to this project is that it’s been theorized that it is analogous to Buchan’s (previously for only the similar regional geology, close proximity etc). However, for a bit of background, to our dismay, the initial “discovery” is perhaps now what has been the project’s downfall to date. You see, Canstar began its exploration of the deposit by hitting what appears to be an “ore clast” or “xenolith” which, as you know, is high grade (in their case very high grade) but of little economic significance (small tonnage). In specific, Canstar’s initial hole returned 9MM of ~11% Zinc, 122.1 g/T Ag, 4.2g/T Au etc. What followed next was an unfortunate event. The individual who discovered Voisey’s Bay (along with Robert Friedland) got word of this “discovery” and proceeded to bring action against the legitimacy of the boundaries which hosted Canstar’s discovery hole. Through the power of his deep pockets he successfully tied the property up in the courts for 10 years. Eventually the Supreme Court ruled in Canstar’s favour returning the property to them – a big win. In some ways it’s a good thing because when they do discover the deposit, it will be virtually impossible to dispute their ownership or claim boundaries…..
 
Fast forward to today…..Canstar restarts the project focusing on what we now know to be an ore clast (mentioned earlier) and to the disappoint of the market, a follow-up drill program, returned less than spectacular results (still decent but not incredible).
Danniel, the newly appointed CEO, saw a bigger picture of what was potentially at play. Using today’s technology he commissioned a survey on the adjacent  Nancy April discovery – a system 2KM to NE that also showed mineralization but unlike the Mary March was slightly lower grade but a wider intersection. Therefore not the immediate priority when at the time, the market only cared about the initial Mary March discovery hole (as an aside, we see this all the time with unsophisticated investors who get hung-up on a “theory” as if there is only one way a mine is discovered - but that’s another topic). What was interesting however, was that the Nancy April deposit showed geology more becoming to something bigger and the following IP survey (see attached) returned something remarkable – the potential of three horizons and further support that the Mary March was an ore clast of the Nancy April system.

In short, through this IP recognisance, we now have a 500M long by 150M wide anomaly – whereas before we only had a discovery hole. This alone is very exciting but what I’m trying to draw attention to is that “naysayers” will hypothesize that IP alone is not conclusive and that Nancy April is just one big deposit of magnetite or some other less interesting rock (hence the stock price) – But here is where the recent drill results come into play: they show serious length and mineralization in what appears to be the stockwork zone of a much larger system.  What’s more important is it proves the efficacy of the IP and to those that know that VMS systems are complex and evolve with drilling  - something much more interesting is unfolding. The point of inflection is right around the corner if they continue to show higher grade metal – which we believe is very likely as they move closer the center of the system.
 
In conclusion, the way I see it, is that this story is unfolding in way that the Lucky Strike mine could have unfolded. In that, if you approached the “plum” of the Lucky Strike deposit first by hitting an ore clast, then by surveying the regions geology and locating the approximate location of the main deposit, drilling the stockwork zone and following along strike, and then up into the high grade. Remember Lucky Strike was a visible out-crop, so they had a short cut – Canstar’s potential deposit sits slightly below the surface so it will unfold differently. But the analogy so far remains intact.
 
For a more intelligent explanation please see Danniel’s comments on what is unfolding below:
 
Danniel Comments on the Push Back since Discovery Holes were supposed to be the bread & butter, however he is finding out that the Nancy April is where the stock works system is.

Yes, I think the historic results have set a precedent which, if not duplicated, result in market pushback. That being said, the project has actually had a significant increase in potential in the past year based on recent data. I don't think the slumping markets are offering any respite either. The real story developing is from  the chargeabilities on the IP attached.  Zinc, or rather sphalerite which is the mineral that contains zinc, is typically non-conductive and does not respond to electromagnetic ("EM") geophysics.  This is why the 2012 airborne survey did not yield any targets.  Induced polarization integrates a different methodology.  Whereas EM measures conductivity, and therefore requires continuity in a conductive mass (e.g. think of a length of copper wire--it must be intact in order for electricity to channel through it, if we cut it into pieces, the conductivity is limited). Induced polarization induces a charge into individual mineral grains and does not rely on conductivity.  It essentially ionizes each mineral grain whether connected to another grain or not.  What occurs when a charge is sent through the ground is the mineral grain is polarized--one side with a positive charge the other side is a negative charge.  The magnitude of this polarization is measured as chargeability. Metallic minerals have a high polarization potential, including zinc.  But inducing polarization we bypass the non-conductivity problem. Mind you, non-metallic minerals can also be induced (e.g. clay), so there are always caveats as with all exploration and geophysical methods.  If we return to our copper wire analogy with IP: if one were to cut a copper wire into small pieces, conductivity would no longer occur. However, with IP, each piece would be induced with a polarized charge, and thus would still have a chargeability.  As long as a mineral has electric potential it can be induced. IP is a preferred method for zinc exploration in carbonate lead-zinc deposits (known as "Mississippi Valley Type" or MVT). While these have a different genetic origin than VMS, the geophysical properties are the same, and thus we have applied these methods on the Mary March Project.  
 
I sympathize with your situation with investors--adhering to a junior stock given how investors are much more savvy with investing, must be a chore unto itself. If one were to track Canstar along with many of its peers, I think you'd see a similar performance in terms of the charts, as all the markets have been down.  Even Juniors with proven assets have been halved in the past 18 months.   However, a key difference with Canstar compared to many of our peers is that we've been actively exploring and not only exploring but increasing the potential of our flagship prospect. I always have appreciated your support, and I also understand your position and your responsibility to your clientele. I can only emphasize that Mary March actually has greater upside now than a year ago based on the latest IP results.  A year ago we had a single 8m wide drill intersect as a lone geological target that had been drilled updip and along strike in one direction.  While Mary March proper is proving difficult as per yesterday's release, we now have a 500m long by 150m wide high chargeability anomaly that has never been drill tested (which extends further at lower chargeabilities). As an exploration geologist, I've never been more excited for the property, which when I took the reins of this project I had considered viable for one more drill program.  If our next batch of results prove the efficacy of the IP survey in finding zinc mineralization, these anomalies suddenly have much more credibility.