Dec 9 2015
The management of Vanstar Mining Resources Inc. wishes to announce that it has signed an option agreement with Vantex Resources Ltd. (TSX VENTURE:VAX) concerning certain mining blocks of the Galloway project located in the Rouyn-Noranda area, Abitibi.
Under this agreement, Vantex grants Vanstar the option to acquire a 50% interest in the Perron, Renault Bay and part of the Hurd blocks in return of an investment of $ 2 million in exploration work over a period of five years. An initial investment of $ 400,000 will give Vanstar a 20% interest in the property while each subsequent tranche of $ 400,000 will give Vanstar an interest of 7.5% each up to 50%.
Following the acquisition by Vanstar of its 50% interest in the property, Vantex and Vanstar will then enter into a standard "Joint Venture Agreement". A dilution clause may reduce a non-participating party to a 10% interest which will then be converted to a 2% NSR, half of which is redeemable in exchange for a sum of $1.5 M$. Vanstar will be the manager and the operator through this agreement. This agreement is subject to the approval of the TSX Venture.
"The management of Vanstar is very pleased to have reached this agreement with Vantex Resources. The Moriss zone is particularly interesting. Previous work shows an interesting potential, having intersected multiple gold zones with economic grades. The Moriss zone remains open both laterally and at depth. We are very proud to participate in the development of this promising project, " emphasized the President of Vanstar, Mr. Guy Morissette.
The Moriss zone includes three en-echelon gold structures and a fourth one (N1) associated with a stockwork of gold-bearing quartz veins and veinlets with the presence of visible gold. The N1 zone is located north of the Moriss zone and is also associated with tectonic breccias.
The management of the company plans a first phase diamond drilling program of about 4,000 meters to begin in January. Several geophysical and geochemical anomalies have been defined by the previous exploration programs. These targets will be drilled in the next year.
Also, the company plans to do some drilling in the Renault Bay area where some previous drill holes intersected gold copper and zinc values. This area is located near a VTEM anomaly detected by an airborne survey in 2011. It is also located near a NE-SW fault where numerous gold showings have been identified in the past. This same fault seems to be heading towards the Moriss area located a few kilometers south.