As readers of the reports know, I’m very bullish on gold and even more bullish on quality gold stocks. I don’t mean just any gold stocks, I mean quality which is harder to find. Vanstar Mining Resources (VSR.V) is a company I’ve been following for a few months. Today they announced an impressive initial resource, it is a pit-constrained inferred resource totalling 96,990,000 tonnes averaging 1.02 grams of gold per tonne for 3,193,900 ounces of gold.
The Nelligan project is a joint venture partnership between IAMGOLD with 51% and Vanstar with the remaining 49% of the project. IAMGOLD can earn an additional 24% 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. That would give IAMGOLD a 75% interest, they can increase it to 80% by completing a feasibility study. If IAMGOLD increases their interest to 80%, then Vanstar would have a 20% carried interest through to commercial production and a 1% NSR royalty.
This kind of resource, especially in a pit-constrained shell, and multi million ounces at a healthy gold grade is not easy to find. Especially in close proximity to a mining town in Quebec. I’m a big fan of Quebec, it is one of the top jurisdictions worldwide for exploration and mine development, and this is shaping up to be a future mine.
They currently have 48 million shares issued, and at the current price Vanstar’s valuation is under $15 million. Based on the quality of the project, this resource that has room to grow, their partner and the reality of how hard it is to find quality juniors, I can see Vanstar’s getting a higher valuation in the near term.
Gold is primed to go higher and quality gold stocks will outperform, have a look at Vanstar, I think their timing is ideal to outperform.
All the best,
Allan Barry Laboucan
Allan Barry Reports
Advance Gold (AAX.V)
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.