Vanstar Mining Resources Inc. Announces the Results of its Annual General Meeting and Provides an Update on the Nelligan Project
The following 5 new directors were elected: Mr. Claude Dufresne, Mrs. Wanda Cutler, Mr. Jonathan Gagn?, Mr. Victor Cantore, Mr. Albert Contardi. The following 2 incumbent directors were re-elected: Mr. Jonathan Hamel and Mr. Luc Gervais.
The 2020 summer drilling campaign has just ended on the Nelligan property. In total, nearly 2,600 meters of drilling have been completed. Work has tested the Renard and Renard Ouest zones mainly and focused on infill drilling to improve resource classification as well as on exploration drilling for potential extensions at depth and along strike of the deposit. “We are very pleased to see the progress of work on the Nelligan project. Despite the difficult conditions imposed by the new reality of sanitary measures, the IAMGOLD team was able to deploy and complete a drilling program that will allow us to know a little more about the deposit. " says Jonathan Hamel, Interim President and CEO of Vanstar. The results of the summer campaign are expected to be released in the coming weeks. A drilling campaign for the winter of 2021 is currently in the planning stages and metallurgical tests will be carried out in the coming months.
About Nelligan Project
As of December 31, 2019, IAMGOLD reported (on a 100% basis) inferred mineral resources of 97.0 million tonnes grading 1.02 g/t Au for 3.2 million contained ounces (see news releases dated October 22, 2019 and February 18, 2020).
The Nelligan Gold Project is held under an earn-in option to joint venture agreement with Vanstar (IAMGOLD: 75%; Vanstar: 25%) where IAMGOLD has a further 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: (1) the 20% undivided interest becomes participating; and (2) Vanstar will 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 will also retain a 1% NSR royalty on selected claims of the project.
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Interim President and CEO