Now the fire bans have been lifted in the area of the Nelligan project (where joint venture partner IAMgold (IMG.TO, IAG) is earning an 80% interest), the drill program has now resumed. As a reminder, Vanstar Mining (VSR.V) and IAMgold plan to complete 10,000 meters of drilling this year, and about 1/3rd of that drill program was already completed earlier this year and the results were disclosed in July).
The second part of the drill program will consist of a minimum of 5,000 meters of infill and expansion drilling in the central and western parts of Nelligan. Two drill rigs have been dispatched to site and each rig will drill one of the two main zones. As the mineralization remains open in all directions, the potential to expand the current resource of 2 million ounces in the indicated resource category and 3.6 million ounces in the inferred resource category doesn’t appear to be a pipe dream.
Additionally, the companies plan to complete about 1,500 meters of exploration drilling to evaluate other gold targets on the Nelligan property.
Disclosure: The author has a long position in Vanstar Mining. Vanstar is a sponsor of the website. Please read our disclaimer.
