Vanstar Mining (VSR.V) has acquired additional claims contiguous to the Eva gold project in Quebec’s James Bay Region.
The company made the decision after seeing the results from a high resolution airborne magnetic survey completed on the Eva and Friday projects. That survey confirmed the existence of what Vanstar calls a ‘prominent’ iron formation, and those iron formations in that specific setting have been known to host gold mineralization elsewhere in Quebec. While the project obviously still has to be drill-tested (perhaps this winter, or in 2022), Vanstar Mining seems to be sufficiently encouraged to already expand the project to make sure it covers all bases.
Most of the value backing Vanstar Mining is its 25% stake in the Nelligan joint venture where IAMgold (IAG.TO, IAG) is the operator. IAMgold has recently announced it will start a 9-10,000 meter drill program in June which will focus on expanding the currently known 3.2 million ounce resource while another portion of the drill program will focus on converting some of the inferred resources into a higher resource category. As a reminder, Vanstar will end up with a 20% carried interest upon IAMgold completing a feasibility study and will be allowed to repay its share of the eventual development and construction expenses from its attributable cash flows. A good deal, and one could wonder if IAMgold would be interested in carrying a 20% partner through construction and production…
Disclosure: The author has a long position in Vanstar Mining. Please read our disclaimer.
