Vanstar Mining Resources Inc. is a gold exploration company with properties located in Northern Québec at different stages of development. One of their projects worth noting is their 25% interest in the Nelligan Gold Project operated by NYSE listed Iamgold Corporation.
Article Highlights
- Gold is well off its March 2022 high, but support may be in place to see a gold comeback.
- Gold is a well known hedge against uncertainty and inflation.
- Quebec is known as one of the world’s leading gold producing regions with some very good investment opportunities
Gold hit a high in March of $2078 per ounce before selling off to almost $1600. However, high inflation and fear of an economic downturn, conditions are in place to see gold comeback by the end of the year, and hit $1,800, says RBC analyst Josh Wolfson.
One gold-producing region investors should pay close attention to is the Province of Quebec in Canada. Quebec makes up almost 33% of Canada's gold production, and investors may be able to capitalize as gold prices rise.
With that in mind, let’s take a look at a few interesting options.
Vanstar Mining Resources (TSX.V:VSR) (OTC:VMNGF) (FRANKFURT:1V8)
Vanstar Mining Resources Inc. is a gold exploration company with properties located in Northern Québec at different stages of development. One of their projects worth noting is their 25% interest in the Nelligan Gold Project operated by NYSE listed Iamgold Corporation.
The Nelligan Project is located 60 miles southwest of Chibougamau, Quebec. This project is one of the largest gold projects in the province, containing a current mineral resource of 3.2 million ounces of gold which is expected to grow.
Nelligan Project Highlights
Joint venture is owned 75% by IAMGOLD (NYSE:IMG) and 25% by Vanstar Mining Resources (TSXV:VSR) and (OTC:VMNGF)
- IAMGOLD can acquire an additional 5% (80% total) by completing a feasibility study at its expense.
- Vanstar would retain a 20% undivided non-contributory carried interest until commencement of commercial production and a 1% Net Smelter Royalty for the life of mine over the entire project.
- IAMGOLD funds development through to production
The Nelligan project appears to have upside for Vanstar shareholders. Vanstar recently announced assay results from the 2022 winter diamond drill program. J.C. St-Amour, President and CEO, said “The winter drilling program has been a complete success, confirming that gold resources can be added at depth and along strike. Most encouraging is the fact that the deposit remains open in all directions, especially at depth, where we are seeing some holes return better than average grade and widths, suggesting there is ample room for additional expansion and growth.”
"Nelligan is a fantastic asset," he declared. "It continues to grow and I am confident that this will be developed into a mine."
Vanstar also has several other exploration projects in the Province of Quebec, with the most advanced being the Bousquet-Odyno Gold Project, which is an advanced exploration project within one of the world's most prolific mining districts.
Other companies operating in gold rich Quebec are
Amex Exploration Inc. (TDXV:AMX) (OTC:AMXEF) (FSE:MXO) Amex Exploration Inc. has made significant gold discoveries on its 100% owned high-grade Perron Gold Project, which consists of 117 contiguous claims covering 4,518 hectares and is located 110 kilometers north of Rouyn-Noranda, Quebec. Since January 2019, Amex has found large amounts of gold mineralization in multiple zones and two VMS zones with a lot of copper.
Wesdome Mines (TSE:WDO) (OTC:WDOFF) Wesdome is a Canadian-focused gold producer with two high-grade underground assets: the Eagle River mine in Ontario and the recently re-started Kiena mine in Quebec. Wesdome Gold Mines had its target price lifted by analysts at Canaccord Genuity Group from C$9.00 to C$10.00. Canaccord Genuity Group's price target shows that the company's price could go up by 7.99% from where it is now.
First Mining Gold Corp. (TSX:FF) (OTC:FFMGF) (FRANKFURT:FMG) is a gold developer with a portfolio of gold projects in northwestern Ontario and Quebec. First Mining owns the Duparquet, Duquesne, and Pitt gold projects, all advanced-stage gold projects in Ontario, and the Cameron project in Québec.
With a potential bounce in gold prices, Quebec gold mining stocks may provide investors with a profitable play.
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