Vanstar Mining Resources Inc (TSX-V:VSR, OTCQX:VMNGF) said it has struck another earn-in deal with mining major IAMGOLD Corp (TSX:IMG), this time for the Calder-Bousquet property in Quebec, which sits on the Cadillac break.
The smaller company has inked a letter of intent (LOI) with the major to acquire a 75% interest in the project, which is also known as Bousquet-Odyno. Vanstar will become the operator.
The company also updated on the latest work on its Nelligan project in Quebec, at which Vanstar owns 25% and IAMGOLD is the operator, earning a 75% stake.
The Calder-Bousquet property on the Abitibi greenstone consists of 37 contiguous claims covering approximately 1,490 hectares (Ha) and lies between the towns of Rouyn-Noranda and Malartic.
READ: Vanstar Mining initiates drilling program on its Felix property in Quebec
A number of gold zones have been identified, including the Calder-Bousquet Zones No. 2, No. 4 and No. 5. Historical drilling has been relatively shallow, down to just around 250 meters (m).
From 2010 to 2016, IAMGOLD carried out successive exploration programs, including mapping, stripping and about 20,000m of diamond drilling. Highlight drill results included 9.6 grams per ton (g/t ) gold over 16.5m, from 164m to 180.5m depth.
Vanstar believes that there is good gold potential at depth, while the Cadillac break extends another 1 km to the west on the property where only a few holes have been sunk.
Under the terms of the Calder-Bousquet LOI, Vanstar can earn 75% by spending C$4 million over four years. In the first earn-in period, it can earn 25% by spending C$2 million on or before the second anniversary of signing a definitive agreement, with a minimum of C$500,000 to be spent in the first year.
Meanwhile, at Nelligan, the planned drilling program by IAMGOLD has now finished, said Vanstar, and logging and sampling of the last drill holes are being completed to evaluate the western extension of the Nelligan resources area.
Results from infill drilling are expected in the next few weeks and results from the west extension drilling phase will be available in the coming months.
IAMGOLD is currently making preparations for a winter drilling program that will include a minimum of 5,000m of drilling, it added.
Vanstar also owns 100% of the Felix property under development in the Chicobi Group (Abitibi mining camp, 65km East of Amex Perron property) and 100% of the Amanda asset, a 7,679 ha 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