Vanstar Mining Resources Inc (TSX-V:VSR, OTCQX:VMNGF) has welcomed the latest results from ongoing drilling at its Bousquet-Odyno project in Quebec, which it said have underlined the asset's potential.
The assays come from seven holes and confirmed that mineralization exists beyond the main zone and continues at depth.
One hole hit nine metres (m) starting at 59.5m depth grading 3.96 grams per ton (g/t) gold south-west of the main zone and may indicate a new, higher-grade zone.
Vanstar can earn 75% in the Bousquet-Odyno project from major IAMGOLD by spending C$4 million over four years.
READ: Vanstar Mining Resources reports encouraging results from first two holes drilled at Bousquet-Odyno project in Quebec
"The current drill program is progressing very well and today's results are improving our understanding of the gold zones on the property, Vanstar CEO J.C. St-Amour told investors in a statement.
"Hole BO-22-76 is interesting as historical drilling in the area had not returned significant results and it is possible that this is a new ore shoot. We plan to follow up with additional drilling in this area," he added.
Other holes were in "a lower-grade area," which seems to connect the higher-grade gold shoots of the main zone, allowing for a bulk tonnage target to be developed, he added.
"Again, more drilling is needed to confirm, but the project's proximity to infrastructure and operating gold mills would reduce future development capital expenditure."
Other new drill assays reported included 18m at 1.07 g/t gold starting from 209.5m depth and 6.6m at 1.39 g/t gold, from 220.9m depth.
Results reported to date represent around 2,500m of a planned 9,000m program, which is ongoing.
Bousquet-Odyno comprises 37 contiguous claims covering around 1,492 hectares (Ha) within the Abitibi greenstone gold belt, along the Cadillac break. IAMGOLD will have the right to back-in to 50% of the project.
Vanstar also owns a 25% interest in the Nelligan project, which hosts, according to a 2019 NI 43-101 report, 3.2 million ounces of inferred gold. Here, the firm also holds a 1% net smelter returns (NSR) royalty.
Contact the writer at giles@proactiveinvestors.com