LA PRAIRIE, Québec, Jan. 10, 2019 (GLOBE NEWSWIRE) — The management of Vanstar Mining Resources Inc. (“Vanstar”) is very pleased to announce that IAMGOLD Corporation, Vanstar’s partner in the development of the Nelligan gold project, intersected a series of significant drill results from the Renard zone. These results come from 9 drill holes for a total of 4,497 metres.

The assay results reported herein are provided in Table 1 below as well as a location map and include the following highlights:

“We are very satisfied with the results generated and very optimistic on the gold potential of the Nelligan project. This project increasingly shows that it has the possibility to become one of the most promising gold projects in Quebec, if not in Canada. We are in the presence of 4 important gold zones, including the Renard zone, which are integrated within a vast hydrothermal gold system that remains open in all directions. We are excited to start the next season, which we hope will be as productive and encouraging as 2018.” stated Guy Morissette, CEO of Vanstar.

Craig MacDougall, Senior Vice President, Exploration for IAMGOLD, stated: “The 2018 drilling program has delivered encouraging results in all the drill holes completed this year, confirming and extending the wide zones of alteration and associated mineralization identified from previous programs. Four mineralized zones were outlined through the recent drilling campaigns, the most significant to date being the Renard system, and all zones remain open for potential extensions. These results will be used to refine a preliminary deposit model to help guide future drilling campaigns and support the completion of an initial resource estimate planned in the coming months.”

The 2018 diamond drilling program was meant to evaluate the resource potential of the Renard mineralization system, located immediately north of the previously known 36, Liam and Dan zones. The drill holes continue to intersect large gold zones within a vast hydrothermal system characterized by a carbonate, sericite, phlogopite alteration and an omnipresent silicification affecting the host meta-sedimentary sequence. The disseminated pyrite is widely spread within the alteration zones and varies locally from 1% to 15%. Traces of molybdenite and sometimes fine grains of visible gold are observed in different gold zones.

Next Steps

In winter 2019, a further 12,000 to 15,000 metres of diamond drilling program is planned to infill and further test continuity of the mineralized zones of the Renard system. Drill rigs are currently being mobilized to the property with the commencement of drilling activities expected by mid-January.

The drilling results, coupled with ongoing geochemical and structural studies, will be integrated to support the development and refinement of a deposit model with the objective of completing an initial NI 43-101 compliant resource estimate in 2019.

About the Nelligan Project

The Nelligan project is underlain by a portion of the Caopatina segment belonging to the North Volcanic Zone of the Abitibi Belt of the Superior Province. The property is centered on the E-W Druillette synclinal with sediments of the Caopatina Formation bounded to the north and to the south by volcanic rocks of the Obatogamau Formation. The North and South portions of the property are occupied by granodioritic to tonalitic intrusions. The project is transected by numerous regional and local structures and deformation zones which can be important in the localization of gold mineralization.

Gold showings of the area can be grouped according to their style of mineralization: Quartz-sulphide vein type mineralization and disseminated pyrite mineralization. On the local scale, the Nelligan project contains several interesting gold showings, including the Liam and Dan Zones discovered by drilling in 2013 and 2014, and the historical Lake Eu showing. Significant alteration and associated gold mineralization was intersected over wide intervals to the north of the known gold showings over a strike length of more than 1.0 kilometre, to a depth of over 300 vertical metres (Zones 36 and Renard). These prospective showings appear to fall within a structural corridor with a potential strike length of several kilometres associated to the Guercheville Deformed Corridor located 5 kilometres north of the property.

The Nelligan Project is held under an earn-in option to joint venture agreement with Vanstar. The Company holds an undivided 51% interest in the property, and holds an option to earn a further 24% undivided interest in exchange for cash payments totaling C$2,750,000 to Vanstar and the delivery of an NI 43-101 compliant Resource Estimate and Technical Report before March 2022. Once vested to an undivided 75% interest, IAMGOLD will have 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.

This press release was read and approved by Gilles Laverdière, Vanstar’s Geologist and Qualified Person under NI-43-101.

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Source : Guy Morissette
              CEO Vanstar Mining Resources Inc.
              [email protected]
              819-763-5096

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/08ea8bca-1589-4bde-b64c-e86ed30c380e