LA PRAIRIE, QUEBEC–(Marketwired – Feb. 24, 2016) – Vanstar Mining Resources Inc. (TSX VENTURE:VSR)
The ongoing works on the Nelligan project under the supervision of our partner IAMGOLD Corporation, allowed us to better understand different IP anomalies located North of the Liam and Dan zones. More than 900 metres of drilling are now completed on the planned 2,500 to 4,000-metre program.
Drill hole NE-16-35 intersected a new mineralized zone containing between 20 and 30% of pyrite. This mineralization explains very well the IP anomaly found in this sector. This drill hole was abandoned at a depth of 114 metres due to the presence of an important fault that made it too difficult to go through. Drill hole NE-16-37 was located behind the abandoned hole in order to test the continuity of this new zone and try to go through the fault more at depth. Vanstar did not yet receive the geological information from this hole.
Drill hole NE-16-34 also intersected many mineralized structures containing up to 15 % pyrite. Many zones similar to Liam were intersected in this drill hole. Drill hole NE-16-33 was done to verify the extension at depth of the Liam west zone. Similar mineralization to the Liam zone was possibly intersected at a depth of more than 150 metres.
All drill holes are being prepared for the lab and assays are pending.
A 10 km IP survey (Induced polarization) is also underway to the west of the Liam zone. Results from this survey will determine the location of the coming drill holes in this area.
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.
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