logo-loader

Vanstar Mining Resources reveals that IAMGOLD poised to begin drilling at Nelligan project in June

Published: 07:35 10 May 2021 EDT

Vanstar Mining Resources Inc -
Nelligan already boasts a resource estimate of 3.2 million of inferred ounces of gold at a grade of 1.02 grams per ton

Vanstar Mining Resources Inc (CVE:VSR) has told investors that its joint venture partner and project operator IAMGOLD (TSE:IMG) is expected to begin a drill program on the Nelligan project in Quebec in June this year.

Between 9,000 metres (m) and 10,000m will be sunk, to include both definition drilling in the main resource area as well as step-out drilling, focusing on the west extension known mineralization ahead of a potential updated resource estimate.

In addition, exploration will also continue to identify and evaluate new targets, Vanstar said.

READ: Vanstar Mining Resources is a Quebec-focused low-risk, exploration play

"Preliminary results from a partial glacial till sampling survey completed in November 2020 and from an IP survey executed this winter have been received and have defined new exploration targets elsewhere on the joint venture property. Additional till sampling is planned and the defined targets will be field-checked this summer in conjunction with a detailed geological and structural mapping program," it added in a statement.

Mining major IAMGOLD owns 75% of the near 6,000 hectare Nelligan project, while Vanstar owns 25%. The bigger company can earn 80% by funding and publishing a feasibility study.

Nelligan already boasts a resource estimate of 3.2 million of inferred ounces of gold at a grade of 1.02 grams per ton (g/t). Nelligan is open along strike to the west and at depth.

IAMGOLD is funding the project's development to production and Vanstar would retain a 20% carried interest until the start of commercial output and a 1% net smelter returns royalty (NSR) on the eight original project claims.

Vanstar also owns 100% of the Felix property and 100% of Amanda, a 7,679 hectare property on the Auclair formation with historic gold showings up to 12.1 g/t gold over 3m.

Contact the author at giles@proactiveinvestors.com

ARway.ai announces multiple new SaaS developer contracts in both the United...

ARway.ai (CSE:ARWY, OTCQB:ARWYF) Chief Executive Officer Evan Gappelberg joined Steve Darling from Proactive to announce multiple new SaaS developer sign-ups for its augmented reality experience platform, focusing on AR indoor navigation. These partnerships represent significant milestones in...

1 hour, 38 minutes ago