Fri, 23 Aug 2019

Property lies within the known Oaxaca Au-Ag epithermal trend

VANCOUVER, BC / ACCESSWIRE / 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:

Yautepec Project: Significant first period sample results (ALS Labs)

Element

Maximum value (ppm)

Samples with Significant values

Lithology

Precious metals

Ag

62.20

6 > 10 ppm

Quartz vein within 6-7m wide vein swarm

Au

0.862

9 > 100 ppb

Quartz vein

Base metals

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

Pathfinder elements

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-Quevilion 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"

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.

Contact:

#1450 - 789 W. Pender Street, Vancouver, BC, Canada V6C 1H2
Tel.: (604) 681-1568, Fax: (604) 681-8240
Toll Free: 1-877-377-6222
www.megastardevelopment.com

SOURCE: Megastar Development Corp.



View source version on accesswire.com:
https://www.accesswire.com/552070/Megastars-Efforts-Identify-Multiple-High-Potential-Targets-At-Yautepec

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