3.2 ounces to grams

Vanstar Signs LOI with IAMGOLD to Acquire the Calder Bousquet Property and Provides Update on Nelligan Project

Vanstar Mining Resources Inc. (TSXV: VSR (OTCQX: VMNGF) ("Vanstar", or the "Company") is pleased to announce that it has signed a letter of intent ("LOI") with IAMGOLD Corporation ("IAMGOLD") to acquire a 75% interest in the Calder-Bousquet property (the "Property") also referred as the Bousquet-Odyno project. The Property consists of 37 contiguous mining claims covering approximately 1,490 ha and is located directly south of highway 117 between the towns of Rouyn-Noranda and Malartic. The Property lies within the Abitibi greenstone gold belt, along the Cadillac break, a prolific gold bearing regional structure that has produced 100 million ounces of gold since 1900. Historical drilling on the property prior to IAMGOLD has identified a number of gold zones, including the Calder-Bousquet Zones No. 2, No. 4 and No. 5. Historical drilling has been relatively shallow, down to approximately 250 metres ("m").

From 2010 to 2016, IAMGOLD engaged in successive exploration programs including surface geological mapping and outcrop stripping to develop and refine structural controls relating to the historical gold zones, geophysics and geochemistry surveys to guide drilling programs and the completion of just over 20,000 m of diamond drilling to test historical gold zones and other exploration targets. Selected results from IAMGOLD's drilling programs include:

  • 27.9 g/t Au over 6.5 m (from 140.0 to 146.5 m depth in hole BO-16-56)
  • 29.3 g/t Au over 3.3 m (from 389.0 to 392.3 m depth in hole BO-12-32)
  • 9.6 g/t Au over 16.5 m (from 164.0 to 180.5 m depth in hole BO-11-06)
  • 5.8 g/t Au over 4.4 m (from 135.3 m to 139.7 m depth in hole BO-13-40)

Note: the drilling results referenced above are historical and have not been independently verified and validated by the Company and should not be relied on.

Vanstar believes that there is good gold potential at depth, with the deepest intersection cutting an interval of 2.3 g/t Au over 14.0 m (core length) at a vertical depth of 600 m (Hole BO-15-49A). In addition, the Cadillac break extends another 1 km to the west on the property where only a few holes have been drilled.

Under the terms of the LOI, Vanstar can earn a 75% interest in the property by spending $4 million over 4 years and will be the operator. In the first earn-in period, the Company can earn a 25% interest by spending $2 million on or before the 2nd anniversary of signing a definitive agreement, with a minimum of $500,000 as firm expenditures to be spent in the first year. In the second option period, the Company may earn an additional 50% interest by spending a further $2 million prior to the 4th anniversary date. IAMGOLD will have a right to earn back a 50% interest in the property by spending 4 times the exploration expenditures made on the property since the completion of the second earn-in period within a time period of 3 to 5 years depending the amount to invest.

Figure 1: Calder-Bousquet location map

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/8185/105403_b82943dbf4282ba9_002full.jpg

  

Figure 2: Calder-Bousquet Gold Zones

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/8185/105403_b82943dbf4282ba9_003full.jpg

Nelligan Update

The planned drilling program on the Nelligan Project has now finished and IAMGOLD is completing the logging and sampling of the last drill holes completed to evaluate the western extension of the Nelligan resources area. Results from the 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 5,000 m of drilling.

Qualified Person

Mr. Gilles Laverdière, consultant geologist and qualified person under NI 43-101 has read and approved this press release.

About Vanstar

Vanstar Mining Resources Inc. is a gold exploration company with properties located in Northern Québec at different stages of development. The Company owns a 25% interest in the Nelligan project (3.2 million inferred ounces Au, NI 43-101 October 2019) and 1% NSR. The Nelligan Project won the "Discovery of the Year" award at the 2019 Quebec Mineral Exploration Association Xplor Gala. 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 Amanda, a 7,679 ha property located on the Auclair formation with historic gold showings up to 12.1 g/t Au over 3 meters.

The TSX Venture Exchange and its Regulation Services Provider (as that term is defined in the TSX Venture Exchange Policies) do not accept any responsibility for the truth or accuracy of its content.

SOURCE :

JC St-Amour
President and CEO
+1 (647) 296-9871
jc@vanstarmining.com

www.vanstarmining.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105403

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Cautionary Statements

This press release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, statements regarding the completion of the Offering and the timing thereof, and the anticipated use of proceeds of the Offering are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "should" or "would" or occur. Forward-looking statements are based on certain material assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including, but not limited to, that the Company will complete the Offering on the terms disclosed, that the Company will receive all necessary regulatory approvals for the Offering, that the Company will use the proceeds of the Offering as currently anticipated; and assumptions relating to the state of the financial markets for the Company's securities. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the Company may not be able to raise funds under the Offering, as currently anticipated, that the Company may fail to receive any required regulatory approvals for the Offering, that the Company will not use the proceeds of the Offering as anticipated, market volatility, unanticipated costs, changes in applicable regulations, and changes in the Company's business plans. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

SOURCE Quimbaya Gold Inc.

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