Vanstar Identifies the Presence of New Mineralized Gold-Bearing Zones on Nelligan
LA PRAIRIE, QUEBEC--(Marketwired - Apr 5, 2016) - The management of Vanstar Mining Resources Inc. ("Vanstar") (TSX VENTURE:VSR) announces an update on the drilling campaign on the Nelligan project, located in the Chibougamau-Chapais area, in Northwest Québec, Canada. The initial assay results from holes NE-16-35, 36 and 37 identify the presence of new mineralized gold-bearing zones North of the Liam and Dan zones. The mineralization is hosted in strongly silicified and carbonated fine sediments bearing between 5% up to 30% of disseminated and semi-massive pyrite bands.
Highlighted drill intersections include:
- Drillhole NE-16-36: 35.84 metres grading 1.90 g/t gold from 138.00 metres depth
- Includes: 17.97 metres grading 3.20 g/t gold from 149.00 metres depth
- Includes: 1.99 metres grading 9.44 g/t gold from 156.00 metres depth and
- Includes: 4.20 metres grading 6.78 g/t gold from 162.50 metres depth
- Drillhole NE-16-37: 23.02 metres grading 1.23 g/t gold from 229.00 metres depth
- Includes: 10.34 metres grading 2.02 g/t gold from 238.50 metres depth
- Drillhole NE-16-37: 7.39 metres grading 2.13 g/t gold from 283.50 metres depth
- Includes: 2.95 metres grading 3.69 g/t gold from 285.00 metres depth
Results from drill holes NE-16-33 and 34 targeting the Liam zone intersected only weak mineralization.
This first campaign of 2016 is designed to complete between 2,500 to 4,500 metres of drilling, under the management and supervision of its partner IAMGold Corp. ("IAMGOLD"). The drilling program is targeting selected structural and geophysical (IP) anomalies as well as evaluating lateral and depth extensions of the previously drilled Liam and Dan zones. A total of 4,546 meters in 13 holes have just been completed and ended this phase of drilling.
Assay results have been received and validated for the first five (5) holes and are reported herein. Assay results from drill holes NE-16-38 to NE-16-45 are pending and will be released as soon as they become available. The table below summarizes the assay results received to date and a surface plan can be found on the following link: http://media3.marketwire.com/docs/1049461_Map.pdf.
In addition to the drilling program, a further 10 km of Induced Polarization ("IP") survey was completed to the west of the Liam zone. Results from this survey will be used to guide future drilling as merited.
« We are very happy with the progress of the exploration program implemented by our partner IAMGOLD and this drilling program has identified a new mineralized area with very encouraging initial results» points out the president of Vanstar Mr. Guy Morissette.
| Nelligan Project Drilling Results - 2016 Winter Drilling program |
| Hole No. | UTM NAD83 Zone18 | AZ | DIP | EOH | from | To | Interval | True Width (1) | Au (2) | NOTE | |||
| Easting | Northing | Elevation | (°) | (°) | (m) | (m) | (m) | (m) | (m) | (g/t) | |||
| NE-16-33 | 523066 | 5473446 | 380 | 330 | 50 | 242.40 | 181.50 | 183.00 | 1.50 | 1.45 | 1.25 | LIAM ZONE | |
| NE-16-34 | 523156 | 5473660 | 373 | 330 | 45 | 309.00 | 28.40 | 33.18 | 4.78 | 4.49 | 1.12 | LIAM ZONE | |
| 46.60 | 49.60 | 3.00 | 2.82 | 1.49 | LIAM ZONE | ||||||||
| NE-16-35 | 523019 | 5473904 | 380 | 330 | 50 | 114.00 | 61.50 | 99.00 | 37.50 | 36.22 | 0.42 | NORTH SECTOR | |
| Including(3) | 70.50 | 72.00 | 1.50 | 1.45 | 1.62 | ||||||||
| NE-16-36 | 523438 | 5473750 | 380 | 330 | 45 | 306.00 | 138.00 | 181.75 | 43.75 | 35.84 | 1.90 | NORTH SECTOR | |
| Including(3) | 149.00 | 169.75 | 20.75 | 17.97 | 3.20 | ||||||||
| Including(3) | 156.00 | 158.30 | 2.30 | 1.99 | 9.44 | ||||||||
| Including(3) | 162.50 | 167.35 | 4.85 | 4.20 | 6.78 | ||||||||
| Including(3) | 173.00 | 175.00 | 2.00 | 1.73 | 1.27 | ||||||||
| NE-16-37 | 523087 | 5473802 | 380 | 330 | 50 | 417.00 | 229.00 | 253.50 | 24.50 | 23.02 | 1.23 | NORTH SECTOR | |
| Including(3) | 238.50 | 249.00 | 10.50 | 10.34 | 2.02 | ||||||||
| 283.50 | 291.00 | 7.50 | 7.39 | 2.13 | |||||||||
| Including(3) | 285.00 | 288.00 | 3.00 | 2.95 | 3.69 | ||||||||
| 298.50 | 309.00 | 10.50 | 9.09 | 1.06 | |||||||||
| 313.50 | 315.00 | 1.50 | 1.23 | 2.80 | |||||||||
| 334.50 | 336.00 | 1.50 | 1.23 | 2.46 | |||||||||
| 354.00 | 357.00 | 3.00 | 2.46 | 1.69 | |||||||||
| 366.00 | 369.00 | 3.00 | 2.30 | 1.64 | |||||||||
| 373.50 | 376.50 | 3.00 | 2.30 | 2.72 | |||||||||
| 390.00 | 391.50 | 1.50 | 1.15 | 5.85 | |||||||||
| TOTAL 1388.40 m | |||||||||||||
| Notes: |
| 1. True widths are estimated at 82 to 98% of the core interval. |
| 2. Drill hole intercepts are calculated with a lower cut of 0.50 g/t Au. |
| 3. Assays are reported uncut but high grade sub-intervals are highlighted. |
About the IAMGOLD Agreement
The Nelligan property is owned 100% by Vanstar. The project totalizes 84 designated cells for a total surface area of 4,705.4 hectares (or 47.1 km²).
Pursuant to an earn-in option agreement signed on November 12th 2014, 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.
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.
The technical data presented in this press release has been released to the Company by IAMGOLD. Gilles Laverdière, geologist and Qualified Person under NI 43-101 has reviewed IAMGOLD's data files and approved the reported technical data reported in this press release.
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.
Management also announces the resignation for personal reasons, of Mr. Pierre Lefebvre as director of Vanstar. We wish to thank Mr. Lefebvre for his contribution to the development of the company.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecasted or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.
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.