Jan 28 2016
The management of Vanstar Mining Resources Inc. ("Vanstar") announces the resumption of drilling on the Nelligan project, located in the Chibougamau-Chapais area, in Northwest Québec, Canada. This first campaign of 2016 will consist of 2,500 to 4,000 metres of drilling under the supervision of its partner IAMGOLD Corporation ("IAMGOLD"). The drill holes will test certain structural and geophysical (IP) anomalies as well as lateral and in-depth extensions of the Liam and Dan zones.
The Liam zone was discovered in 2013 with drill hole NE13-04 that intersected an important gold structure grading 1.81 gt/Au over 31 metres including a zone over 20.7 metres at 2.04 gt/Au (see Nov 13, 2013 PR).
The Lake Eu zone could also be drilled in order to verify this gold area. This gold showing is located 400 metres NNE of the Liam-Dan zones and is within the same structural corridor. The 95-01 historical drill hole returned 3.48 gt/Au over 10.1 metres. Drill hole NE14-03, possibly located in the NNE extension of the Liam and Dan zones, returned a grade of 1.31 gt/Au over 30 metres including 5.12 gt/Au over 6 metres.
About the IAMGOLD Agreement
The Nelligan property is owned 100% by Vanstar. The project totalizes 92 designated cells for a total surface area of 6,051.2 hectares (or 60.5 km²).
Following an earn-in option agreement signed on November 12th 2104, IAMGOLD may acquire up to an 80% interest in the Nelligan project. Terms include a first option to earn a 50% undivided interest in consideration for staged cash payments totalling $550,000, and the completion of $4,000,000 in exploration expenditures over a period of four and a half (4 1/2) years ending on May 12, 2019. The Agreement provides for a firm commitment to pay $200,000 in cash payments before November 12, 2015 and complete $900,000 in exploration expenditures before November 12, 2016. These terms were met by IAMGOLD. Following the exercise of the first option, IAMGOLD can elect a second option to earn an additional 25% interest, in consideration for the delivery of a pre-feasibility study and making further annual cash payments totalling $225,000, over a period of three and half (3 1/2) years. IAMGOLD can elect a third option to earn an additional 5% interest in consideration for the delivery of a feasibility study and a cash payment of $275,000, at the election of IAMGOLD to pursue and complete the feasibility study following.
About the Nelligan Project
This project is located 45 km to the south of Chapais. Access to the property is easy by the paved highway 113 N that links Chapais to Chibougamau and by forestry gravel roads reaching directly to the center of the property.
The Property is located in the northeastern part of the Abitibi Greenstone Belt of the Superior Province. It contains several interesting gold showings including Liam, Dan (discovered by drilling in 2013 and 2014) and Lake Eu. These new gold structures were intersected to date over a length of 400 meters at a depth of over 200 vertical meters. The presence of gold is constant throughout the drilling. These zones remain open along strike and at depth.
The board of directors awarded today a total of 150,000 stock options to 2 directors of Vanstar. These options are priced at $0.07 and are valid for a period of 5 years.