LA PRAIRIE, Quebec, Aug. 13, 2019 (GLOBE NEWSWIRE) — The management of Vanstar Mining Resources Inc. (“Vanstar”) is pleased to announce that its partner IAMGOLD Corporation (“IAMGOLD”) has intersected in hole NE-19-138 a gold zone of 123.7 meters grading 1.26 g / t Au on the Nelligan joint venture project (IAMGOLD Corporation: 51%, Vanstar Mining Resources Inc.: 49%) and located 60 kilometers southwest of Chibougamau, Quebec, Canada. The Company’s management is also reporting results of the remaining twenty-eight (28) diamond drill holes totaling 10,558 metres completed as part of the 2019 drilling program. The table below shows the main results of the last 28 surveys from the 2019 winter campaign: Renard Zone:
Additional tables accompanying this announcement are available at: http://ml.globenewswire.com/Resource/Download/d9532fca-7f73-4cfb-b364-aade0de5835f The 2019 diamond drilling program was designed to infill and test the continuity of the mineralized zones of the Renard mineralized system. The program specifically targeted the shallower part of this broad mineralized corridor to confirm and define its extension to the surface. Most of the drilling has achieved the objectives desired by the program. “This 2019 winter program has generated a set of results that are highly consistent with our expectations, and to date, we remain very confident that the current and future work being done on Nelligan will materialize into a high quality gold deposit,” said the CEO of the company, Mr. Guy Morissette. In a separate press release on the recent results, Craig MacDougall, Senior Vice President, Exploration for IAMGOLD stated: “We are very pleased to have all of the 2019 drilling results in hand and we are now working to incorporate the new results into our deposit model to support the completion of a mineral resource estimate expected in the second half of the year. Once completed, this will mark an important milestone for the project and a significant achievement by our exploration team. It is also important to note that there is considerable potential to expand the mineralized zones as the Renard zone remains open at depth and to the west along strike.” Nelligan Project: https://www.globenewswire.com/NewsRoom/AttachmentNg/733c05ef-2a76-49a0-a771-6c38b439fea5 Next Steps Together with ongoing geological, geochemical and structural studies, assay results from the 2019 drilling totaling 17,558 meters will be integrated to support the development and refinement of a deposit model with the objective of completing an initial 43-101 compliant resource estimate in the second half of 2019. Initial metallurgical tests are also in progress and the results will be used to design future testing programs. Field activities for the summer season have commenced and will focus on a geological mapping program within the larger property holdings surrounding the Renard discovery to improve the understanding of the structural regional framework and to prospect various geophysical and structural features identified for follow up. About the Nelligan Project The Nelligan project is underlain by a portion of the Caopatina segment belonging to the North Volcanic Zone of the Abitibi Belt of the Superior Province. The property is centered on the E-W Druillette syncline with sediments of the Caopatina Formation bounded to the north and to the south by volcanic rocks of the Obatogamau Formation. The North and South portions of the property are occupied by granodioritic to tonalitic intrusions. The project is transected by numerous regional and local structures and deformation zones which can be important in the localization of gold mineralization. Gold showings of the area can be grouped according to their style of mineralization: 1) Quartz-sulphide vein type mineralization and 2) associated with zones of disseminated pyrite mineralization in hydrothermally altered units. On the local scale, the Nelligan project contains several known gold showings, including the Liam and Dan Zones discovered by drilling in 2013 and 2014, and the historical Lake Eu showing. Subsequent exploration undertaken by IAMGOLD discovered significant alteration and associated gold mineralization over wide intervals in metasedimentary units intersected in drilling to the north of the known gold showings. Mineralization has now been intersected in drilling over a strike length of more than 1.0 kilometre, and to a depth of over 350 vertical metres (referred to as the Renard Zone and Zone 36). The mineralized zones and showings fall within a structural corridor with a potential strike length of several kilometres possibly associated with the Guercheville Deformation Corridor located 5 kilometres north of the property. The Nelligan Project is held under an earn-in option to joint venture agreement with Vanstar. The Company holds an undivided 51% interest in the property, and holds an option to earn a further 24% undivided interest in exchange for cash payments totaling C$2,750,000 to Vanstar and the delivery of an NI 43-101 compliant Resource Estimate and Technical Report before March 2022. Once vested to an undivided 75% interest, IAMGOLD will have a further option to acquire an additional interest of 5%, to hold an 80% interest in the Nelligan project by completing and delivering a Feasibility Study. Vanstar would then retain a 20% undivided non-contributory carried interest until the commencement of commercial production, after which: (1) the 20% undivided interest becomes participating; and (2) Vanstar will pay its attributable portion of the total development and construction costs to the commencement of commercial production from 80% of its share of any ongoing distributions from the Joint Venture. Vanstar will also retain a 1% NSR royalty on selected claims of the project. This press release has been read and approved by Mr. Gilles Laverdière, P.Geo. and Qualified Person under National Instrument 43-101. The TSX Venture Exchange and its Regulation Services Provider (as that term is defined in the TSX Venture Exchange Policies) do not accept any responsibility for the truth or accuracy of its content. THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES Source : Guy Morissette, 819-763-5096 CEO Ressources Minières Vanstar Inc. [email protected] www.vanstarmining.com
