Vanstar Mining Resources Inc (TSX-V:VSR, OTCQX:VMNGF) has released encouraging drill results from partner IAMGOLD from its Nelligan project joint venture in northern Québec, which show the potential for the asset's future growth.
The assays hail from IAMGOLD's winter diamond drill program, which comprised eight holes, for 4,714 metres (m). Almost all the holes hit 'multiple' wide intercepts of gold mineralization at higher-than-average grades, noted Vanstar.
"The winter drilling program has been a complete success, confirming that gold resources can be added at depth and along strike," said J.C. St-Amour, the CEO of Vanstar, in a statement.
"Most encouraging is the fact that the deposit remains open in all directions, especially at depth, where we are seeing some holes return better than average grade and widths, suggesting there is ample room for additional expansion and growth," he added.
READ: Vanstar Mining Resources welcomes latest results from ongoing drilling at Bousquet-Odyno project in Quebec
Notably, one hole hit 7.9 metres (m) of the precious metal at a grade of 6.71 grams per ton (g/t) gold starting from 79m depth in the Liam Zone, and 69m at 2.24 g/t of the yellow metal starting from 496.5m depth in the so-called Renard zone.
Another hole intercepted 13.9m at 4.71 g/t gold from 314m depth, and 48m at a grade of 1.08 g/t gold starting from 723m depth.
Vanstar noted that the summer exploration program was now underway at the Nelligan project, which will evaluate other priority targets with focused geological mapping programs supported by geochemical and geophysical surveys.
An updated resource estimate for the project is projected for the end of 2022.
Vanstar owns a 25% interest - IAMGOLD owns 75% - in the Nelligan project, which hosts, according to a 2019 NI 43-101 report, 3.2 million ounces of inferred gold. Vanstar also holds a 1% net smelter returns (NSR) royalty.
Contact the writer at giles@proactiveinvestors.com