Megastar Samples 308g Silver and 1.07g Gold Along 530-Meter Vein System at Yautepec

New Mining Claim on Open Ground Added to Cover Highly Prospective Geology

Multiple Outlying Targets Have Seen Only Preliminary Work

Property Lies Within the Known Oaxaca Au-Ag Epithermal Belt

VANCOUVER, BC / ACCESSWIRE / August 22, 2019 / Megastar Development Corp. (“Megastar”, or the “Company”)(TSXV: MDV)(Frankfurt:M5QN), an early stage mineral exploration company focused on its properties in Oaxaca, Mexico, is pleased to announce recently received sample results from a second period of reconnaissance fieldwork at its Yautepec Project in Oaxaca state, Mexico.

A total of 162 samples were taken of prospective rock types, with a focus on high potential areas identified during the first period of work as discussed in a prior news release dated July 16, 2019. Significant new results include:

Yautepec Project: Significant 2nd period sample results (ALS Labs)

Element

Maximum value

Lithology of highest value

Samples with Significant values

Precious metals

Ag

308 grams

Quartz vein bounding silica sinter complex

11 > 10 grams

Au

1.07 grams

Quartz vein bounding silica sinter complex

11 > 0.20 grams

Base metals

Cu

99 ppm

Sinter complex: silica-carbonate

12 > 50 ppm

Pb

464 ppm

Quartz vein – brecciated

17 > 100 ppm

Zn

548 ppm

Quartz vein bounding silica sinter complex

14 > 100 ppm

Mo

102 ppm

Quartz vein – brecciated

3 > 50 ppm

Pathfinder elements

As

9.26 %

Felsic intrusion – brecciated

18 > 1000 ppm

Ba

3780 ppm

Hydrothermal breccia

17 > 1000 ppm

Hg

29.5 ppm

Sinter: silica – carbonate

18 > 1 ppm

Sb

307 ppm

Sinter complex: breccia

8 > 100 ppm

Se

16.7 ppm

Felsic intrusion – brecciated

30 > 2 ppm

Te

5.27 ppm

Quartz vein bounding silica sinter complex

19 > 0.20 ppm

Tl

3.35 ppm

Sinter complex: silica

10 > 1 ppm

David M. Jones, exploration manager and director of Megastar, says: “Our second round of sampling at Yautepec has not only confirmed our first round of results but surpassed them, yielding silver values up to 308 grams and gold values to 1.07 grams in an historically undocumented quartz vein system of impressive length with structural widths up to 7 meters, based on surface mapping to date. In tandem with the adjacent mineralized hot springs complex (sinter), we have generated a series of high priority drill targets after only two periods of fieldwork. This is a remarkable accomplishment for our small and highly motivated team, all of whom have had significant exploration discoveries in their careers. The targets identified to date represent a small portion of the greater Yautepec project; multiple outlying exploration targets await further work which could potentially yield similar encouraging results.”

The majority of new samples were collected from a quartz vein system exposed along a 530-meter northwest-southeast trend, and as well from an immediately adjacent fossil hot springs system (sinter), developed along the same trend for 770 meters with widths up to 215 meters (~95,000 square meters minimum surface area). These and prior results show that both the quartz vein system and sinter complex are mineralized and are logically genetically related. The presence of sinter indicates that the full vertical extent of potential bonanza style epithermal mineralization is conserved at depth, this inferred from the fact that most known systems of this style are not well mineralized within 150 meters of documented ‘paleo’ surfaces (Sillitoe, 2015*). The northwest-southeast structural trend of the quartz vein and sinter complex is similar to that of nearby producing mines on the Oaxaca epithermal Au-Ag belt, such as Gold Resource Corp’s [NYSE: GORO] Arista-Switchback mine, and Fortuna Silver Mines’ [TSX: FVI] San Jose mine.

*Sillitoe, R.H., Epithermal Paleosurfaces: Miner Deposita (2015) 50: 767-793

A new mining claim was recently filed on open ground based on highly prospective geology discovered during the first period of work at Yautepec. Previously noted outlying target areas have yet to receive follow up mapping and sampling, but remain a priority for further evaluation.

Company President & CEO, Dusan Berka added: “We are all very pleased and excited with what we have been able to demonstrate to date. Success of this nature, so early into a program, is rare. Megastar will continue to aggressively advance the work on its Oaxaca assets, and opportunistically add properties as we have done here. With precious metal prices firming and interest coming back to the sector, we believe Megastar’s advancements will be of interest to our shareholders and investors in general.”

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-Quévilion 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.

SOURCE: Megastar Development Corp.

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