Vanstar-Nelligan Project Update
LA PRAIRIE, QUEBEC--(Marketwired - May 6, 2016) - The management of Vanstar Resources Inc. (TSX VENTURE:VSR) provides an update of the exploration program currently underway on the Nelligan project, located in the Chapais-Chibougamau area. A campaign of 4,546 meters of diamond drilling, completed in recent days, comprising 13 holes was executed to test 1) the lateral and depth extensions of Liam and Dan mineralized zones, 2) some induced polarization anomalies (IP) north of the Liam zone and 3) some historical results of the Lac d'Eu gold zone located about 700 meters northeast of Liam and Dan zones.
North Sector
Drill holes NE-16-36 and NE-16-37 have identified new gold zones located north of the Liam area (see Press Release of April 5, 2016). The new zone intersected by hole NE-16-37 would correspond to an induced polarization anomaly identified during a geophysical survey done in 2015. To verify its potential, two other drill holes (NE-16-44 and NE-16-41), were drilled respectively 200 and 400 meters west of drill hole NE-16-37.
According to preliminary observations, both holes intersected several silicified and altered mineralized zones over large widths. Assay results are pending.
Liam and Dan Sectors
Drill holes NE-16-43 and NE-16-45 were positioned to test the ENE extension and at depth of the Liam and Dan gold zones. The extension of the Liam zone was recognized at a depth of 400 meters along the hole.
Several other areas containing altered and silicified mineralized zones were also intersected by the same two holes in the general extensions of the Dan Zone.
Assay results are pending.
"It is encouraging to see that these holes encountered strongly altered and mineralized zones at the expected depths. However, one cannot presume their gold content as we have not received the assay results for the entire drilling program. These should be available in the coming weeks." mentioned the CEO of the company, Mr. Guy Morissette.
Lac d'Eu Sector
Drill holes NE-16-40 and NE-16-42 were drilled on the Lac d'Eu gold showing, located about 700 meters northeast of Liam and Dan zones. These holes were intended to check certain historical results as well as to get a better geological understanding of this sector. Historical drilling also demonstrates the presence of gold in this sector (Lac d'Eu gold showing discovered in 1995 by drilling - 3.48 g / t Au over 10.1 meters in hole 95-01).
Assay results are still pending
Nelligan Agreement
The Nelligan property is 100 per cent owned by Vanstar. The project totals 84 designated cells for a total surface area of 4,705.4 hectares (or 47.1 square kilometres). The current exploration program is managed and supervised by IAMGold Corp. ("IAMGOLD").
Pursuant to an earn-in option agreement signed on Nov. 12, 2014, IAMGOLD may acquire up to an 80-per-cent interest in the Nelligan project. Terms include a first option to earn a 50-per-cent undivided interest in consideration for staged cash payments totaling $550,000 and the completion of $4-million in exploration expenditures over a period of 4.5 years ending on May 12, 2019.
Following the exercise of the first option, IAMGOLD can elect a second option to earn an additional 25-per-cent interest, in consideration for the delivery of a prefeasibility study and making further annual cash payments totaling $225,000, over a period of 3.5 years.
IAMGOLD can elect a third option to earn an additional 5-per-cent interest in consideration for the delivery of a feasibility study and a cash payment of $275,000.
Emile Project
The Company acquired from independent prospectors two blocks of cells adjacent to its Emile property having an area of ?ÿï?ÿïabout 1,850 hectares in consideration for the issuance of 1 million shares of the company. These agreements must be approved by the regulatory authorities.
The Emile project is adjacent of the Nelligan property.
With these new acquisitions along the Emile project Vanstar now controls, with the Nelligan and Miron (western edge of Nelligan) blocks, a major geological belt of over 19 kilometers in length having a total area of ?ÿï?ÿï8,400 hectares. These mining blocks are in a favorable environment for the presence of gold as evidenced by the Liam, Dan and Lake d'Eu gold showings on the Nelligan project or numerous nearby gold showings as the Philibert, Joe Man and Meston Lake gold deposits or the Lake Surprise gold showing further to the west.
This press release has been read and approved by Gilles Laverdière, independent geologist and Qualified Person under NI 43-101.
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.
Contact
Source :
Guy Morissette
CEO Vanstar
819-763-5096
gmvanstar@gmail.com
