VANCOUVER, British Columbia, Jan. 13, 2023 (GLOBE NEWSWIRE) — Vanstar Mining Resources (TSXV:VSR) (OTCQX:VMNGF) (FSE:1V8), a gold exploration company with a number of properties at various stages of development in Northern Quebec, released an updated Mineral Resource Estimate for the Nelligan Gold project. The Nelligan Gold project, a joint venture with Vanstar owning a 25% interest and a 1% NSR, with IAMGOLD holding the other 75%, is located 60 km southwest of Chibougamau, Quebec.
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The new MRE reports 72.2 million tonnes of Indicated Mineral Resources averaging 0.85 grams per tonne gold for 1.97 million ounces of gold, along with 114.1 million tonnes of Inferred Mineral Resources averaging 0.88 grams per tonne gold for 3.24 million ounces of gold. These figures are calculated using a US$1,500 per ounce gold and a 0.35 grams per tonne cut-off grade.
Mineral Resources have increased by 92% in tonnage, with a 15% decline in gold grades, for an overall gain of 63% in metal content relative to the 2019 Mineral Resource estimate. Additional infill drilling completed from 2020 to 2022 and refinement of the deposit and structural models contributed to the conversion of 62% of Inferred Mineral Resources to an Indicated Mineral Resource category. The updated NI 43-101 technical report will be filed on Sedar by IAMGOLD, within 45 business days.
Craig MacDougall, Executive Vice President, Growth for IAMGOLD, stated: “We are very pleased to see that our drilling programs have confirmed the anticipated expansion potential at Nelligan resulting in a significant increase of Mineral Resources within a wide and persistent mineralized system. This Mineral Resource estimation has not only resulted in a significant increase in resources, but also resulted in upgrading nearly 2 million ounces from Inferred to an Indicated resource classification. Potential for further resource expansion appears favourable, noting that the deposit has areas within the resource pit shell, along strike and at depth that remain open for further drilling. Our exploration efforts continue to highlight the significance of this pure grass-root discovery. I also want to commend the exploration team which has conducted the recent drilling programs safely and through challenging times with the wide ranging impacts of the COVID-19 pandemic, including costs increases and service availability across our industry. We also thank all of our service providers who have worked with us to contribute to the success of this project.”
The updated MRE for the Nelligan Project included results from the 2020 to 2022 drilling programs, which comprised of 53 holes for a total of 22,045 metres, as well as an additional 24 historic drill holes previously located outside mineralized domains, for a total of 84,490 metres in 267 diamond drill holes.
IAMGOLD has an 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 the 20% undivided interest becomes participating, and Vanstar will be required to 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 has several properties located in Northern Québec at different stages of development. Vanstar is earning 75% into the Bousquet-Odyno project located along the Cadillac Break. Vanstar also owns 100% of the Felix property in the Chicobi Group, the Amanda property, a 7,306 ha property located on the Auclair formation with historic gold showings up to 12.1 g/t gold over 3 metres, and the Frida and Eva properties located in the James Bay area.
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