|By Marketwired .||
|January 20, 2014 09:30 AM EST||
LA PRAIRIE, QUEBEC -- (Marketwired) -- 01/20/14 -- The management of Vanstar Mining Resources Inc. (TSX VENTURE:VSR) announces that it will resume drilling on the Liam showing of the Nelligan project. Holes will be drilled 50 metres apart and will assess the Liam showing extensions along strike.
Each of the initial drill holes (see November 26 and December 18, 2013 PR) performed in this area intersected gold grades showing great potential. The Liam zone seems to be closely associated with a low magnetic anomaly present on a length of more than 900 metres.
More to the east, another low magnetic anomaly was identified in the 2013 survey. A drill hole that was done in this area (Mila zone) also intersected gold grades (see November 26, 2013 PR). This anomaly could be the extension of the Liam zone, intersected by a major fault.
Also, the management of the Company sold its 100% interest in 4 mining cells located 4 kilometres from the Nelligan project in exchange for $5,000 and 160,000 common shares of Stellar Africagold Inc.. Vanstar retains a 1.5% NSR royalty on those cells. Vanstar also acquired by map designation, a block of 21 cells covering an area of 1,176 hectares located in the Monster Lake area, owned by Tomagold Inc.
The Liam showing
The Liam gold showing was discovered in November 2013 with drill hole NE13-04 (See November 26, 2013 press release). This hole was testing a low magnetic anomaly recognized on a length of more than 900 metres. This important gold structure was intersected at shallow depths and could result in an open pit exploitation.
The Liam gold zone lies within an intensive deformation corridor which is interpreted to coincide with a NE-SW low mag anomaly. Hosted in a meta-sedimentary environment, the core of the zone is strongly silicified with 1-2% finely disseminated pyrite. A sericite-fuschite schist unit along with a sheared and mineralized Iron Formation are observed along the south contact. A horizon of amphibolite hosting 5-10% silicified and mineralized veinlets, with traces of molybdenum, is observed along the north contact. Following a second inspection of the drill cores, visible gold was observed in two of the four drill holes so far completed on this showing.
The newly discovered structure remains open along strike and at depth.
The 100% owned Nelligan property now consists of 98 cells covering an area of 5,488 hectares. It is located approximately 45 kilometers south of the village of Chapais and is accessible year round by several forestry roads. A power line crosses the area some 4 kilometers to the east of the project. No constraints such as protected parks or ecological reserve limit mining exploration on the property.
The Nelligan property is located 15 km SSE of Tomagold's Monster Lake project where Iamgold Corp. recently agreed to exploration work commitments of $16,000,000 over a period of 5 years.
In the same area, you can also find the Philibert (Soquem), Meston Lake and Joe Mann deposits. The Chevriers deposits and the Murgor showings are located north-east of the Nelligan project.
The work will be performed under the supervision of Daniel Kelly, consulting engineer and Qualified Person under NI 43-101. This press release was read and approved by Daniel Kelly.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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