Blue Star Reports Initial Five Drill Hole Results from Hood River Concessions in Nunavut

Highlights:

  • Drilling confirms high-grades of surface samples with first intersections of;

    • 31.1 grams/tonne gold ("g/t Au") over 1.0m,

    • 15.37 g/t Au over 5.0m, and

    • 6.92 g/t Au over 3.0m

  • Eleven core holes completed for a total 1,540 meters ("m")

  • Target mineralization intersected in all holes

Toronto, Ontario--(Newsfile Corp. - October 9, 2019) - Blue Star Gold Corp. (TSXV: BAU) (FSE: 5WP) ("Blue Star" or the "Company") is pleased to announce the first analytical and assay results for the 2019 drill program on the Company's Hood River concessions. The program that focused on the North Fold Nose (the "NFN") gold zone concluded on September 29th and consisted of eleven completed holes for approximately 1,540 meters ("m") of core. A prospecting and sampling program ran in parallel with the drilling resulted in 698 samples being sent for analyses.

Stephen Wilkinson, the Company's CEO and President commented, "We have seen a very successful conclusion to our 2019 exploration work of diamond drilling with detailed surface mapping and sampling. The Hood River concessions' NFN gold zone and associated areas of gold mineralization have been confirmed to hold the potential of new and accretive gold resources."

The 2019 Diamond Drill Program was started on September 4th with the collaring of hole, HR-19-001. The first hole was designed to test the far western limb of the Ulu fold and to assist the drillers in procedures for drilling the complex geology of the NFN gold zone. Interestingly, this first hole intersected a 13m zone of anomalous gold between 107m and 120m, including 1.0m of 1.11 g/t Au between 113m and 114m within strongly silicified fine schist. Holes, HR-19-002 to -010, were drilled on the east fold limb to test the potential NFN gold zone, north of the historical (1990 and 1991) drilling of BHP (please see the Company news release, NR 2019 - 08, dated September 5, 2019). The final hole, HR-19-011, was completed on September 27th some 280m south of the first ten holes. Over the course of the last week and with the field work of the Program safely completed, the camp was prepared for winter and closed. The last crew members were flown out by October 5th.

Significant gold intersections were encountered in drill holes HR-19-002 to HR-19-005. HR-19-002 intersected an average 15.37 g/t Au over 5.0m (including 1.0m of 25.40 g/t Au and 1.0m of 48.70 g/t Au), while HR-19-003 intersected 31.1 g/t Au over 1.0m. HR-19-004 returned an average of 6.93 g/t Au over 3.0 metres. All assaying was conducted by ALS Global, an independent analytical laboratory. The drill intersections are displayed in Table One below.

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Table One: Summary of the results of the gold assays and the silver analyses for the mineralized sections of the NFN gold zone for drill holes HR - 19 - 002 to HR - 19 - 005. Note additional assays are pending for samples taken in the footwall and the hanging wall of the reported zones. See Figure One for the locations of the drill holes within the NFN gold zone area.

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Within the NFN gold zone the intersected lithologies are composed by poorly foliated dark-green mafic meta-volcanic units, gabbro sills, granitic dikes and micaceous meta-sedimentary schists. Meta-sediments are moderate to well-foliated, fine- to medium-grained biotite schists and may be interbedded with basaltic meta-volcanics. Grain sizes vary from a lithic wacke to siltstone and argillite equivalents. Cordierite and garnet porphyroblasts produce a knotty texture suggesting a high metamorphic grade. Drill holes HP-19-002, -003, -004 and -005 intersected the same meta-sedimentary unit in the nose and east limbs of a synclinal structure of NFN.

Alteration consists of veining and quartz flooding throughout the meta-volcanic succession. It consists of hairline to 0.1m irregularly oriented veinlets of quartz, carbonate and calc-silicates. Chlorite-biotite accompanies the veining selvages. Crackle micro-brecciation occurs with strong silicification.

Polymetallic mineralization is generally located along a shear, which commonly does not exceed 0.8m on the hanging wall in strongly silicified, flooded by quartz, partially brecciaed basaltic meta-volcanic units. This shear zone is developed on the boundary of two major lithologies: massive, very competent, poorly foliated dark green meta-volcanic at hanging wall versus well foliated, less competent, micaceous meta-sediments at footwall. Pyrrhotite, pyrite, sphalerite, chalcopyrite, and less arsenopyrite occur ribbon-concentrated at quartz veining edges.

Blue Star will further report on the results of the drilling and surface sampling upon receipt of the assays and analyses in a timely manner. The Company believes that these results will be arriving over the course of the next three to four weeks and may be announced in one or more releases.

In addition, the Company appreciates and wishes to thank the territorial and federal agencies that facilitated the permits to conduct our 2019 programs. In particular, Blue Star is grateful for the guidance and collaborativeness of the Nunavut Water Board, the Kitikmeot Inuit Association and the Nunavut Tunngavik Inc. Furthermore, it was through the outstanding efforts of our major contractors; Matrix Kitikmeot Inc., Northtech Drilling Ltd. and Summit Helicopters Ltd. working under the difficult conditions of approaching winter that Blue Star was able to achieve such a successful inaugural drill campaign.

QA/QC Program for the 2019 Exploration Work

The Company in addition to the QA/QC protocols of ALS Global maintains its own program of inserting Standard Reference material in the form of standards and blanks into the sampling stream, prior to being shipped to ALS's preparation facility in Yellowknife.

Qualified Person

Warren Robb P.Geo. is a Qualified Person under National Instrument 43-101 ("NI 43-101"), and has reviewed and approved the geological information contained in this news release.

About Blue Star Gold Corp.

Blue Star is a Vancouver-based gold and silver exploration company focused on exploration and development within Nunavut, Canada. The Company through its subsidiary, Inukshuk Exploration Inc., owns the highly prospective 8,015 ha Hood River gold property located contiguous to the Ulu mining lease. Blue Star has recently exercised its option to acquire the Ulu, an advanced gold and silver project and awaits regulatory approvals for the transmittal of the lease and assignment of the permits and licenses. (Please see Blue Star's news dated - July 29, 2019)

Blue Star has 129.6 million shares outstanding and is listed on the TSX Venture Exchange with the symbol: BAU and on the Frankfurt Exchange with the symbol: 5WP. For information on the Company and its projects, please visit our website: www.bluestargold.ca.

For further information, please contact:

Stephen Wilkinson, President and CEO
Telephone: +1 778-379-1433
Email: info@bluestargold.ca

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Figure 1: Aerial photograph of the North Fold Nose gold zone area. The co-ordinates of the center of the photo are: Lat.66°56' 55.17''N; Long.110°59' 12.55''W. The arcuate shape of the fold is quite noticeable due to the shadow of the scarp that has developed on the metavolcanic and metasediments contact where the NFN gold zone occurs.

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