LA PRAIRIE, Quebec, March 20, 2019 (GLOBE NEWSWIRE) -- 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 Company expects that 35 drill holes should be completed by the end of this winter program.
The current drill holes intersected large mineralized and silicified zones that correspond to the expected targets and the results from these drill holes combined with previous ones will allow us to produce an initial gold resource estimate of the Renard Zone.
Assay results will be released as soon as they are available
« 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 refine our first gold deposit model. » mentioned Mr. Guy Morissette, CEO of Vanstar.
Summary of holes targeting mainly the upper area of Renard Zone.
This hole ended at 447.00m in a wacke unit hosting 3% of disseminated pyrite. The Renard Zone, that comprises several silicified and well mineralized areas (3-7% pyrite), was intersected on 76.70 m core length from 102.20 m.
Ended at 300.00 m. This hole exposed wacke to mudrock units, interbedded with silicified intervals mostly from 48 to 66m & from 96 to 118 m.
Completed at 375 m in a wacke unit. The Renard zone was intercepted at 74.85m and exposed wacke to mudrock units, interbedded with several well mineralized silicified intervals (5-15m).
This hole ended at 280 m, intersected units of wacke interbedded with a major silicified area (Renard Zone) from 52.3 to 155.6 m hosting 3-7% pyrite.
This hole ended at 330 m in a mudrock unit. It was targeting the upper area of Renard Zone close to the fault area. This hole intersected several strongly sheared and folded units associated with 1-5% pyrite. Silicified and well mineralized units are reported from 48 to 55.5 m and from 140.8 to 151 m.
The Renard Zone is reported from 98 to 140 m, with silicified unit hosting 3-4% pyrite, interbedded with metric phlogopite areas from 101 to 102.2 m and from 133.5 m to 140 m. This hole ended at 252 m in a unit of wacke and mudrock.
Completed at 225 m in a gabbro, a silicified area is reported from 40 to 51.1m (beginning of the hole), hosting 3-5% pyrite and associated to a strong weathering.
This hole ended at 285.00 m in a wacke unit. Several strongly sheared areas are reported thus far, strongly fractured, hosting 1-3% pyrite - a major area of 8.2 m CNR is reported from 66.8 m.
This hole ended at 330.00 m in a wacke unit. A wide interval from 42 to 214.20 m reported several well silicified units hosting 5% to 10% pyrite from 145.5 to 179.9 m, interbedded with 5-10m sedimentary units usually well mineralized and deformed.
Ended at 177.00 m, this hole reported from 44.00 to 49.70m a silicified unit hosting 3% pyrite, then 127.30 m of wacke and mudrock units.
This hole ended at 222.00 m in a mudrock unit. No silicified area is reported, only wacke and mudrock units are reported.
An interval from 63.00 to 113.80 m reported several silicified units hosting 3-5% pyrite, interbedded with 5-10m wacke and mudrock units mineralized and deformed. This hole ended at 168.00 m in a mudrock unit.
This hole ended at 174.00 m in a wacke-mudrock unit. The hole intersected from 47.70 to 55.90 m a silicified unit hosting 3% pyrite cut by 1m of CNR, then 118.10 m of wacke and mudrock units.
This hole ended at 312.00 m. After several deformed and brecciated sedimentary unit, the hole reported from 95.50 to 143.40 m a silicified unit hosting 10% pyrite cut by 4.00m of mudrock unit. Then 58.80 m of phlogopite area hosting disseminated 1-3%Py reported just before a new silicified area.
This hole ended at 552.00 m in a wacke unit. Two silicified area are reported from 239.00 to 255.70 m (hosting 5-10% Py) and from 309.70 at 390.10m (hosting 5-7%Py). Those two zones are interbedded with sedimentary unit, iron formation and breccia unit.
Ended at 279.00 m, the hole reported several silicified units mainly from 125.00 to 165.70 m hosting 5-7% pyrite, interbedded with sedimentary units.
This hole ended at 252.00 m. The hole reported several sedimentary and iron formation units. One silicified area is reported from 128.60 to 166.00 m hosting 5% pyrite.
Completed at 402.00 m , this drill 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.
Ended at 372.00 m in a wacke, this hole started in a tectonic breccia followed with by a mylonite at 121.20 and a major silicified zone from 125.00 to 157.37 m. A second silicified unit was intercepted from 213.90 to 281.30 m, merging with the phlogopite zone and some dyke occurrences.
This hole ended at 381.00 m. 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 230.15 m with a silicified unit and the phlogopite zone at footwall.
This hole ended at 552.00 m 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.
This hole ended at 300.00 m in a basalt unit. The Renard Zone was intercepted from 127.90 to 193.50m with a silicified unit and the phlogopite zone at footwall.
NE-19-122 and NE-19-123
These holes are under progress.
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.
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The map associated with this press release is available at the following address: