Vanstar Mining Resources Inc. Provides Update on Nelligan Project in Quebec
May 26 15
Vanstar Mining Resources Inc. provided update of the exploration program currently being conducted by its partner IAMGOLD
Corporation, on the Nelligan Project, located in the Chibougamau-Chapais region in Northwestern Quebec, Canada. During the last two months, IAMGOLD has completed a winter drilling program and seven holes had been drilled for a total of 2, 519 meters. Selected core samples have been sawn and sent to the assay laboratory. Assay results will be reported once they are received and validated by the
project operator IAMGOLD. A total of 1,124 samples have been sent for analysis. Most of the drill holes intersected the targeted structures of the Liam and Dan Zones and have also identified a new geological structure that needs further assessment. Planning continues for a summer exploration program which will include completion of a ground geophysical survey with the objective to characterize the alteration and mineralized zones. A 4- line orientation survey will be conducted on the Liam showing involving a deep Induced Polarization survey. If the results are successful a similar survey will be considered to attempt to delineate potential extensions of the Liam showing to support future drilling on the property. The Nelligan project contains several interesting gold showings including Liam, Dan and Lake Eu.
John Harvey Resigns as Director of Vanstar Mining Resources Inc
Apr 15 15
Vanstar Mining Resources Inc. announced that Director John Harvey has resigned from the Board of Directors of the corporation effective April 13, 2015.
Vanstar Mining Resources Inc. Announces Execution of an Option and Joint Venture Agreement with IAMGOLD Corporation for the Nelligan Gold Project
Nov 17 14
Vanstar Mining Resources Inc. announced the execution of an Option and Joint Venture Agreement with IAMGOLD Corporation for the Nelligan gold project. Under the terms of the Agreement, Vanstar has granted IAMGOLD an option to earn up to an 80% interest in the Project, which is comprised of 92 mining claims and located 45 km south of the village of Chapais in the Province of Quebec. Initially, IAMGOLD has a first option to earn a 50% undivided interest in the Nelligan Project in consideration for: (a) staged cash payments totaling $550,000, and (b) the completion of $4,000,000 in exploration expenditures (the "Expenditures") on the Project over a period of four and a half (4 ½) years ending on May 12, 2019. The Agreement provides for a firm commitment to pay $200,000 in cash payments before November 12, 2015 and complete $900,000 in exploration expenditures before November 12, 2016. Following the exercise of the first option, IAMGOLD can elect a second option to earn an additional 25% undivided interest, to hold a 75% interest in the Project, in consideration for the delivery of a pre-feasibility study and making further annual cash payments totaling $225,000, over a period of three and half (3 ½) years following the exercise of the first option. IAMGOLD can elect a third option to earn an additional 5% undivided interest, to hold a 80% interest in the Project, in consideration for the delivery of a feasibility study and a cash payment of $275,000, at the election of IAMGOLD to pursue and complete the feasibility study following the exercise of the second option. Following this work, Vanstar will retain a 20% net interest, which will be free carried. However, IAMGOLD will have the right to acquire this interest based on an independent valuation once a feasibility study has been completed. Should Vanstar's interest be purchased, Vanstar would retain a 1.5% net smelter return royalty on the Project. In addition to the cash payments outlined above, IAMGOLD will, from the time Vanstar holds a free carried interest, make annual cash payments of $50,000 to Vanstar until such time a production decision is made. The agreement also provides for the formation of a joint venture should IAMGOLD elect not to proceed with either the second or third option which includes provisions related to operatorship, project funding, dilution, conversion of Vanstar's interest to a free carried interest at its election and an interest buyback of the IAMGOLD interest as subject to specified terms and conditions. IAMGOLD is currently finalizing program planning and design for an initial exploration drilling program to be initiated before year end.