Vanstar Mining Resources Inc. [VSR-TSXV] is totally focused on mineral-rich Quebec with five gold projects in La Belle Province: Nelligan, Felix, Amanda, Frida and Eva. Vanstar's projects are located in one of the world`s most prospective and pro-mining jurisdictions and the company is well on its way to grow existing gold resources and expand its discoveries.
The Nelligan Gold Project, located 45 km south of Chapais and 280 km northeast of Val d’Or, is held under an earn-in option/joint venture agreement as to Vanstar 25% and IAMGOLD 75%. IAMGOLD can acquire an additional 5% interest by completing and delivering a Feasibility Study. Vanstar would then retain a 20% undivided non-contributory carried interest until start of commercial production, after which time the 20% undivided interest becomes participating; and Vanstar will pay its attributable portion of the total development and construction costs to the commencement of commercial production. Vanstar will also retain a 1% NSR royalty on selected claims of the project. The Nelligan Project saw an 8,000-metre drilling campaign to verify the western and deep extension of the Renard Zone as well as to improve resource classification. The first results, reported in June included 10.5 metres grading 10.5 g/t gold confirming the west extension of the mineralization. August assays included 39.1 metres grading 2.14 g/t gold and recent assays included 17.3 metres of 7.62 g/t gold. Drilling extended the Nelligan deposit to the west by approximately 700 metres, representing a sizable step-out and extension of the known deposit area. Partner IAMGOLD noted that the mineralization and associated alteration intersected appears similar to that observed in the current estimated resource. The next drilling campaign is expected to begin in Q1, 2021. The 5,806.6-hectare Nelligan property hosts four major gold zones: the Renard, Liam, Dan and 36. Initial Inferred Resources stand at 3.2 million ounces, 96.9 million tonnes grading 1.02 g/t gold with the deposit still open for expansion. Visible gold is evident in the Renard Zone where drilling has returned 5.04 g/t gold over 12.12 metres. For Q1 2021, a winter drill program is planned as well as geochemical and geological surveys and metallurgical studies. Over $15 million has been spent at Nelligan since 2013. Vanstar’s 100%-owned Felix property is in the Abitibi mining camp of Quebec, 86 km northeast of Rouyn-Noranda along the trend of Amex Exploration’s Perron property along the Chicobi Gold Belt, a prospective gold belt within the larger Abitibi Gold Belt. Felix is also adjacent to the south of BMEX Gold’s King Tut property on which it was recently announced that visible gold was intersected in two drill holes. The property has been explored intermittently since the 1940s. Past exploration included a gold discovery by Amax in the 1980s. Various geophysical surveys were also completed. Current work includes a high-resolution Mag survey and compilation of previous exploration results. A 2,500-metre drill program is underway. Vanstar recently acquired 31 mining claims from Osisko Metals to expand the Felix property to 3,259.6 hectares. The claims cover the Chicobi Group formation along the Abitibi Gold Belt. The objective of the current drill program is to verify gold mineralization in a historical drill hole that intersected nine intervals of 1.5 metres each, taken along a of 70 metres section , which reported gold grades ranging from 0.9 to 1.8 g/t gold. At the 100%-owned Amanda Project, located 275 km northeast of Chibougamau, this past summer’s sampling program has discovered a number of gold showings. A total of 576 samples were taken from the 7,677-hectare property. Four new showings – the Raphy, Marko, Jako and Rock Hammer – returned sample assays up to 3.43 g/t gold in mineralized sediments during this first-pass geological survey. Vanstar plans to conduct a high-resolution aerial Mag survey in the near future to map the property and uncover structural discontinuities in iron formations that may prove to be the site of gold deposits. The company also plans to carry out stripping and sampling work next summer followed by a drill program in fall 2021. At the 100%-owned Frida and Eva properties in the James Bay area of Northern Quebec, the company is planning exploration to follow up on earlier encouraging gold values.
Management and Financial
Vanstar Mining Resources has a new President and CEO – J.C. St-Amour. Most of the management team has decades of exploration and development experience. The company has 55,416,318 shares outstanding and approximately $5,800,000 in the treasury.