Breaking News: Vanstar’s Partner IAMGOLD Continues to Intersect Wide Zones of Gold Mineralization at the Nelligan Gold Project, Quebec

Vanstar Mining Resources Inc. (OTC: VMNGF) (TSX-V: VSR) is pleased to report that IAMGOLD Corporation (“IAMGOLD” or the “Company”) today announced first assay results from its ongoing 2018 drilling program completed at its Nelligan joint venture project (IAMGOLD Corporation: 51%, Vanstar Mining Resources Inc. (“Vanstar”): 49%), located 60 kilometres southwest of Chibougamau, Quebec, Canada. The company is reporting assay results from 12 diamond drill holes, totaling 4,471 metres.  Results are pending from a remaining 20 drill holes, totaling 8,889 metres, and will be reported once the results are received, validated and compiled.

Figure 1
Nelligan drill hole plan map and highlighted 2018 assay results

The assay results reported herein are provided in Table 1 below and include the following highlights:
(A drill hole plan map is attached to this news release.)

Liam Zone:

  • Drill hole NE-18-71:  7.6 metres grading 2.39 g/t gold
    • Includes 1.86 metres grading 6.68 g/t Au
  • Drill hole NE-18-74: 39.9 metres grading 1.38 g/t gold
    • Includes 1.50 metres grading 8.91 g/t Au

Renard Zone:

  • Drill hole NE-18-69: 56.6 metres grading 1.81 g/t gold
    • Includes 30.8 metres grading 2.66 g/t gold
  • Drill hole NE-18-73: 28.1 metres grading 1.40 g/t gold
    • Includes 3.8 metres grading 4.65 g/t gold
      and 32.3 metres grading 0.89 g/t gold
  • Drill hole NE-18-75: 23.3 metres grading 1.51 g/t gold
    and 23.1 metres grading 2.59 g/t gold

    • Includes 2.0 metres grading 5.91 g/t gold
      and 22.1 metres grading 2.08 g/t gold
      and 66.3 metres grading 1.18 g/t gold
    • Includes 0.8 metres grading 17.05 g/t gold
  • Drill hole NE-18-79: 33.9 metres grading 1.76 g/t gold

The 2018 diamond drilling program was designed to evaluate the resource potential of the recently discovered mineralization system, referred to as the Renard Zone, located immediately north of the previously known Liam and Dan zones.  The drilling continues to intersect wide zones of hydrothermal alteration characterized by variable carbonatization, sericite, phlogopite and pervasive silicification affecting the hosting meta-sedimentary sequence. Disseminated pyrite is associated with the alteration zones and varies from 1% to more than 15% locally. Trace molybdenite and rarely visible gold are also observed.

Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: “The 2018 exploration drilling program continues to delineate wide zones of alteration and mineralization, allowing us to advance a preliminary deposit model and evaluate the resource potential of this large hydrothermal system. The results are encouraging and we are optimistic that we can advance this project to an initial resource estimate in the future.”

Guy Morissette, CEO of Vanstar stated: “We are very pleased with these results from the winter program and we can’t wait to receive the drill results from the current summer campaign. Our partner is doing an excellent job and we remain very optimistic for the future of the project.”

Next Steps

An additional 20 diamond drill holes, totaling 8,889 metres have been completed for which assay results are pending and will be reported once they are received, validated and compiled. These results, coupled with ongoing geochemical and structural studies, will continue to support the development and refinement of a geological and deposit model. The objective of the 2018 drilling program is to evaluate the resource potential of the project with the aim of declaring an initial National Instrument 43-101 (“NI 43-101) compliant resource estimate.

About the Nelligan Project

The Nelligan project covers a small area of the large 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 synclinal 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 affected by several structures and deformed zones.

Gold showings of the area can be grouped according to their style of mineralization: Quartz-sulphide vein type mineralization and disseminated pyrite mineralization. On the local scale, the Nelligan project contains several interesting gold showings including Liam and Dan Zones discovered by drilling in 2013 and 2014 and the historical Lake Eu showing. New gold zones were intersected to the north of the known gold showings and revealed the widespread presence of gold over a strike length of more than 1.0 kilometre, over a width of a few hundred metres and a depth of over 300 vertical metres (Zones 36 and Renard). These prospective showings appear to fall within a structural corridor with a potential strike length of several kilometres associated to the Guercheville Deformed Corridor located 5 km 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 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.

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1 Comment
  1. Oscar Reynolds 4 years ago

    I throw a bit every month at silver and gold miners because I can wait and this market is insane.

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