La Prairie, March 20, 2019 – The management of Vanstar Mining Resources Inc. (« Vanstar ») provides a new update in the development of the Nelligan gold project, located in the area of Chapais-Chibougamau, Northern Quebec.
The winter 15,000-meter drilling program performed by our partner IAMGOLD Corporation is running its course with a total to date of 7,336 metres drilled over 21 completed drill holes and 2 in progress. The current program is targeting the superior part of the Renard zone. This will allow us to support an initial 43-101 resource estimate and to refine an initial gold deposit model. The Company expects that 35 drill holes should be completed by the end of this winter program.
« We are very happy with the progression of the works so far. The summary description of the completed drill holes show for the most parts, that the targets were hit as expected. We remain confident to obtain more significant results within this vast hydrothermal gold system that will allow us to build a first gold resource and to prepare the next phase of drilling. » mentioned Mr. Guy Morissette, CEO of Vanstar.
Summary of holes targeting mainly the upper area of Renard Zone.
NE-19-100
This hole ended at 447.00m in a wacke unit hosting 3% of disseminated pyrite. The Renard Zone intersected several silicified and well mineralized areas (3-7% pyrite) running on 76.70m core length from 102.20m, interbedded with a small silicified wacke.
NE-19-101
This hole ended at 300.00m in a conglomerate unit. This hole exposed wacke to mudrock units, interbedded with silicified intervals mostly from 48 to 66m & from 96 to 118m.
NE-19-102
This hole ended at 375m in a wacke unit. Renard zone was intercepted at 74.85m. The hole exposed wacke to mudrock units, interbedded with several well mineralized silicified intervals (5-15m).
NE-19-103
This hole ended at 280m in a mudrock unit. The hole exposed mostly wacke units, interbedded with a major silicified are (Renard Zone) from 52.3 to 155.6m hosting 3-7% pyrite.
NE-19-104
This hole ended at 330m in a mudrock unit. It was targeting the upper area of Renard Zone close to the fault area. This hole exposed several strongly sheared and folded units, with some core loss, associated to a fine grained pyrite 1-5%. Silicified well mineralized units are reported from 48 to 55.5m and from 140.8 to 151m.
NE-19-105
This hole ended at 252m in a mudrock to wacke unit. Renard Zone is reported from 98 to 140m, with silicified unit hosting 3-4% pyrite, interbedded with metric phlogopite areas from 101 to 102.2m and from 133.5m to 140m.
NE-19-106
This hole ended at 225m in a gabbro. The silicified area is reported from 40 to 51.1m (beginning of the hole), hosting 3-5% pyrite, associated to a strong weathering.
NE-19-107
This hole ended at 285.00m in a wacke unit. Several strongly sheared areas are reported thus far, strongly fractured, hosting 1-3% pyrite – a major area of 8.2m CNR is reported from 66.8m.
NE-19-108
This hole ended at 330.00m in a wacke unit. A wide interval from 42 to 214.20m reported several well silicified units hosting 5% pyrite and up to 10% from 145.5 to 179.9m, interbedded with 5-10m sedimentary units usually well mineralized and deformed.
NE-19-109
This hole ended 177.00m in a mudrock unit. The hole reported from 44.00 to 49.70m a silicified unit hosting 3% pyrite, then 127.30m of wacke and mudrock units.
NE-19-110
This hole ended at 222.00m in a mudrock unit. No silicified area is reported, only wacke and mudrock units are reported.
NE-19-111
This hole ended at 168.00m in a mudrock unit. An interval from 63.00 to 113.80m reported several silicified units hosting 3-5% pyrite, interbedded with 5-10m wacke and mudrock units mineralized and deformed.
NE-19-112
This hole ended at 174.00m in a wacke-mudrock unit. The hole reported from 47.70 to 55.90m a silicified unit hosting 3% pyrite cut by 1m of CNR, then 118.10m of wacke and mudrock units.
NE-19-113
This hole ended at 312.00m. After several deformed and brecciated sedimentary unit, the hole reported from 95.50 to 143.40m a silicified unit hosting 10% pyrite cut by 4.00m of mudrock unit. Then 58.80m of phlogopite area hosting disseminated 1-3%Py reported just before a new silicified area.
NE-19-114
This hole ended at 552.00m in a wacke unit. Two silicified area are reported from 239.00 to 255.70m (hosting 5-10% pyrite) and from 309.70 at 390.10m (hosting 5-7%Py). Those two zones are interbedded with sedimentary unit, iron formation and breccia unit.
NE-19-115
This hole ended at 279.00m in a wacke-mudrock unit. The hole reported several silicified units mainly from 125.00 to 165.70m hosting 5-7% pyrite, interbedded with sedimentary units.
NE-19-116
This hole ended at 252.00m. The hole reported several sedimentary and iron formation units. One silicified area is reported from 128.60 to 166.00m hosting 5% pyrite.
NE-19-117
This hole ended at 402.00m in a wacke-mudrock unit. The hole started in a strongly weathered unit, moderately mineralized, followed by wacke and mudrock units interbedded with some tectonic breccia occurences. The Renard Zone was intercepted from 209.85 to 279.70 with a strongly silicified unit (different kind of protolith) and the phlogopite zone at footwall.
NE-19-118
This hole ended at 372.00m in a wacke unit. The hole started in a tectonic breccia followed with by a mylonite at 121.20 and a major silicified zone from 125.00 to 157.37m. A second silicified unit was intercepted from 213.90 to 281.30m, merging with the phlogopite zone and some dyke occurrences.
NE-19-119
This hole ended at 381.00m. The hole started with magnetic mudrock interbedded with wacke and tectonic breccia units, moderately to strongly hematized. The Renard Zone was intercepted from 148.45 to 230.15m with a silicified unit and the phlogopite zone at footwall.
NE-19-120
Located on ice field, this hole ended at 552.00m in an iron formation. It was targeting the extension west of Renard zone at the surface. The hole reported several sedimentary units (mudrock, wacke, conglomerate and iron formation). One silicified area is reported from 230.50 to 272.50 m hosting 7-10% disseminated pyrite.
NE-19-121
This hole ended at 300.00 m in a basalt unit. The hole started with mudrock interbedded with wacke and tectonic breccia units. The Renard Zone was intercepted from 127.90 to 193.50m with a silicified unit and the phlogopite zone at footwall.
NE-19-122 et NE-19-123
These holes are under progress.
Miron Block
Our partner IAMGOLD Corporation also completed an aerial geophysics survey on the east part of the property (Miron Block). This block that was integrated to the Nelligan project has been covered by an heli-borne High Resolution magnetic survey carried out by Geo Data Solutions. The results are of high quality. ( see attached map )
IMG- VSR Agreement
According to the 2018 amended agreement, IAMGOLD Corporation can acquire a 75 % interest in the Nelligan project in exchange for providing a 43-101 resource estimate and cash payments for a total of $2,750,000 comprising of 3 annual payments of $400,000 and a residual payment of $1,550,000 on or before 2022. IMG can also acquire an additional 5% interest by delivering a feasibility study. Vanstar would then own a non-contributary 20 % undivided interest (Net Carried Interest), despite the sums to be invested in an eventual production phase.
When a production decision is achieved, IAMGOLD Corporation (IMG) would pay for all the expenses required to complete this ultimate phase. Although, Vanstar would have to participate, prorated to its auto-generated revenues from the Nelligan project, to the reimbursement of the portion of the production phase cost relative to its undivided 20 % interest in the project. In addition, Vanstar owns a 1% NSR royalty on some mining cells that are part of the main gold showings. This royalty was acquired from the original owners.
Also, if Vanstar would sell its 20 % undivided interest to IMG in exchange for an offer based on 2 independent evaluations, Vanstar would obtain, in addition of the sale proceeds of its 20% interest, a 1.5 % NSR royalty on the whole property and a 2.5% NSR royalty for the portion from the original owners.
Vanstar has also received from its partner IAMGOLD a cash payment of $400,000 earlier this month, as part of the 2018 agreement. Since January 1st, 2019, stock options were exercised for proceeds of $104,240 and warrants were exercised for proceeds of $172,500 for Vanstar. The company has more than $2,600,000 in cash.
As part of its operations, the company continues to evaluate different projects and opportunities to improve shareholder value.
This press release was read and approved by Gilles Laverdière, Vanstar’s Geologist and Qualified Person under NI-43-101.
Forward Looking Statement
This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “to earn”, “to have’, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to meet expected, estimated or planned gold production, cash costs, margin expansion, capital expenditures and exploration expenditures and failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, changes in world gold markets and other risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
Neither 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 release.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
Source : Guy Morissette
CEO Vanstar Mining Resources Inc.
819-763-5096
