Megastar Development Furthers Work on Its Epithermal Au-Ag Projects in Oaxaca, Mexico

Rhea-AI Summary

Megastar Development Corp. (OTC PINK:MSTXF) announced the resumption of exploration activities in Oaxaca after pandemic-related restrictions. The geologic team has identified new areas of interest showcasing favorable features akin to existing projects. Recent findings include ferruginous carbonate sinters and quartz veining at the Yautepec project, supporting the potential for significant Au-Ag mineralization. This expansion builds on earlier positive results and enhances the exploration drilling target list, indicating promising prospects for the company in the Au-Ag belt.

Positive

• Resumption of exploration activities in Oaxaca following pandemic restrictions.
• Discovery of new prospective areas with favorable geological features.
• Recent findings support the potential for significant Au-Ag mineralization.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / September 30, 2020 / Megastar Development Corp. ("Megastar", or the "Company") (TSXV:MDV)(Frankfurt:M5QN)(OTC PINK:MSTXF) is pleased to report that after limited access to its properties as a result of the Covid-19 pandemic, its geologic team is back on the ground in Oaxaca following up on its encouraging initial exploration work since the reopening of the region. As well, the team is exploring additional prospective areas in the proximity on trend with the Company's existing projects in the Oaxaca epithermal Au-Ag belt. Preliminary work has revealed new areas of interest with favorable geologic features similar to those seen at its principal projects and at producing mines along the trend. Geochemical samples from these new areas have been collected and sent off for analysis.

"Our expansion into new areas has yielded several highly prospective geologic finds consistent with those seen in producing mine regions elsewhere along the emerging Au-Ag mineral belt," said David Jones, Exploration Manager and Director of Megastar. "The systematic application of our exploration model continues to expand target areas within our existing projects and has guided us to previously unrecognized mineral districts with additional exploration potential."

In tandem with community re-engagement at the Yautepec and Magdalena projects, Megastar has taken the opportunity to expand ongoing exploration work to the southern portion of its Yautepec project. Based on the Company's caldera structural model, and supported by previously announced results, Megastar had speculated on a potential southern extension to the known epithermal system. Recent start-up field work has proven this concept correct with the discovery of highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters. Similar to the principal Yautepec sinter-vein complex (see prior NR's dated July 16, 2019 and August 22, 2019), these new areas represent the uppermost levels of a strong epithermal system with the potential for bonanza Au-Ag polymetallic grades fully preserved at depth. These finds add to the already considerable target list for exploration drilling that Megastar has assembled to date.

ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is engaged in the evaluation, acquisition and exploration of mineral properties in Mexico and Canada. Megastar has an option to acquire 100% interest in three epithermal Au-Ag mineral properties in Oaxaca, Mexico. Megastar also owns 100% interest in the Ralleau, VMS/lode gold mineral property in Urban Barry District, Lebel-sur-Quévillon area of Quebec, currently under 50% option to DeepRock Minerals Inc. (DEEP). 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.

SOURCE: Megastar Development Corp.

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FAQ

What recent exploration work has Megastar Development Corp. conducted in Oaxaca?

Megastar Development Corp. has resumed exploration work in Oaxaca, discovering new areas with promising geological features similar to existing projects.

What are the findings from Megastar's Yautepec project?

Recent fieldwork at the Yautepec project revealed promising ferruginous carbonate sinters and quartz veining, indicating potential for significant Au-Ag mineralization.

How has the Covid-19 pandemic affected Megastar Development Corp.'s operations?

The Covid-19 pandemic initially limited access to Megastar's properties, but operations have now resumed with ongoing exploration efforts.

What is the potential impact of Megastar's recent findings on its future drilling targets?

The discoveries from the recent exploration work add to Megastar's target list for exploration drilling, indicating promising prospects for mineralization.