Vanstar Mining Resources Inc.
TSX VENTURE : VSR

Vanstar Mining Resources Inc.

April 26, 2012 09:15 ET

Vanstar Signs Exploration and Option Agreement with Murgor Resources

LA PRAIRIE, QUEBEC--(Marketwire - April 26, 2012) - Vanstar Mining Resources Ltd. (the "Company") (TSX VENTURE:VSR) is pleased to announce the signing of an exploration and option agreement with Murgor Resources Inc. ("Murgor") for Murgor's wholly-owned Fancamp project, located in the Chapais-Chibougameau mining camp, in the province of Québec, and consisting of 43 mining claims covering approximately 1,712.69 hectares (the "Fancamp Property").

Under the terms of the option agreement, Vanstar will have the option to earn a 70% ownership interest in the Fancamp Property by paying an aggregate amount of $150,000 in cash and issuing an aggregate of 1,000,000 common shares over a period of three years, and incurring exploration expenditures on the Fancamp Property in the aggregate amount of $1,200,000 over a period of four years. During the option period, Vanstar will be the operator on the Fancamp Property. The transaction is subject to regulatory approvals, including that of the TSX Venture Exchange.

When Vanstar will earn the 70% interest, a joint venture will be formed with each party having the right to maintain its respective interest by funding its share of exploration costs.

"We are pleased to have signed this agreement with Murgor. It gives us the opportunity to acquire an important interest in their Fancamp project which is located within the Fancamp deformation corridor in the Chapais-Chibougamau mining camp. We are convinced that this area will become a privileged area for gold project exploration and development. Many gold showings and gold deposits are known in this area which makes us very positive about its potential. Murgor's Fancamp property also contains many promising gold showings," said Mr. Guy Morissette, CEO of Vanstar.

To view location map: http://media3.marketwire.com/docs/Vanstar_Chapais_property.pdf

The option agreement also provides that Murgor shall receive, subject to certain conditions, up to a maximum of 2,000,000 additional common shares of Vanstar, in the event Vanstar discloses gold resource on the Fancamp Property compliant with the standards of National Instrument 43-101 Standards of Disclosure for Mineral Projects. The foregoing additional Vanstar shares would be issued in tranche of up to 200,000 shares for each 250,000 ounces of new gold resources disclosed by Vanstar.

The Fancamp Property

Location:

The Fancamp Property is located approximately 30 kilometers southeast of the town of Chapais, and 55 kilometres south of the town of Chibougamau, in north-western Québec.

Geology:

The Property lies in the Archean, Abitibi Greenstone belt and is underlain by NE-striking mafic to intermediate/felsic volcanic rocks that are flanked to the east by the syntectonic Verneuil Pluton (granodiorite/tonalite) and, to the west, by the smaller Chico Stock. The Property covers a six kilometre strike length of the Fancamp Deformation Zone (FDZ) and subsidiary shear zones. The NE-trending, 20 kilometres long, FDZ, is host to at least 15 gold deposits and occurrences, including the Chevrier (1.1 Mt @ 6.4 g/t Au) and Chevrier South (230 Mt @ 0.3 g/t Au) deposits (located 5 kilometers northeast and on strike with the Fancamp Property). Other important gold deposits in the area include the Joe Mann Mine (6.65 Mt @ 8.54 g/t Au) 12 kilometers to the southeast.

Mineralization:

Five (5) gold mineralized zones have been discovered to date on the Fancamp Property. In the mid-80's, Murgor identified Zones "A" and "B" through drilling and underground development.

Results included:

Zone "A": 8.22 g/t Au over 6.10 m, 5.14 g/t Au over 3.36 m and 4.60 g/t Au over 3.05 m

Zone "B": 9.3 g/t Au over 8.2 meters

Following the current compilation of previous works, Vanstar will plan a drilling program for the coming months.

Current Drilling Update

Vanstar also holds two additional projects in this area: the Nelligan and Little Monster projects. Little Monster is a joint-venture with Northcore Resources. A drilling campaign is currently underway on the Nelligan project and Vanstar is planning a drilling program on Little Monster following the Nelligan drilling.

Mr. Daniel Kelly, Engineer and Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects read and approved this press release. The Nelligan drilling program is under his supervision.

This news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Vanstar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Vanstar's expectations are exploration risks detailed herein and from time to time in the filings made by Vanstar with securities regulators.

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

Contact Information

  • Guy Morissette
    CEO
    514-712-9753
    www.vanstarmining.com

    Momentum Public Relations Inc.
    Maxence Gagne-Godbout
    450-332-6939