New Found Gold Neighbor Canstar Resources Might Be Sitting on Canada’s Next Big Gold Discovery

Canstar Resources (TSXV: ROX) might have discovered the biggest gold deposit in Canada’s hottest mining province, Newfoundland. The small-cap junior gold miner is currently drilling in a region that turns out to sit alongside the same tectonic boundary as another recently discovered billion-dollar gold project.

While many new gold discoveries have emerged in recent years, few have remained surprisingly unnoticed by the broader mining community. One of which is the flagship gold project of Canstar Resources, Golden Baie. In some samples, early testing has seen gold concentrations as staggeringly high as 4,485 g/t.

Despite this, Canstar Resources is still operating under the radar at the moment. However, given the other billion-dollar gold projects located nearby in the province, it’s only a matter of time before it starts gaining a lot more attention from the mining community.

Is Newfoundland the New ‘El Dorado’ for Canadian Gold Miners?

In recent years, Newfoundland has emerged as one of the most exciting areas for gold discoveries. Millions of years of tectonic activity created geological conditions ripe for high-grade gold mineralization. 

However, the area has remained largely unexplored. Whether due to a lack of technology or technical knowledge, past prospectors dismissed what would later turn out to be multiple, massive gold deposits all along the province.

There are a few notable examples, but one of the most recent was the Queensway project, a 1,510km area owned by New Found Gold. This was a company that went it went public back in September 2020 at just $1.4 per share. 

Thanks to the excitement surrounding the Queensway project, shares quickly surged to over $10 earlier this year, with the company boasting a $1.2 billion valuation.

However, by the time most investors heard about New Found Gold and its gold project, shares had already shot up substantially. For those who felt like they missed the train on Newfound Gold, the good news is that history might be repeating itself, but this time with Canstar Resources.

New Found’s Queensway project and Canstar’s Golden Baie are frequently compared side by side. Not only are both just a couple of hours drive away from each other, but both happen to be located on the same tectonic boundary. In layman’s terms, multiple deposits are likelier to be found on a tectonic boundary due to how plates shift over thousands and millions of years.