VANGOLD RESOURCES LTD. ("Vangold" or "the Company") (TSX VENTURE:
VAN) is pleased to announce that the Company and New Guinea Gold
Corporation ("NGG") have agreed to make the letter of intent,
previously announced on August 20, 2009, a fully binding agreement
(the "Agreement"). On August 27, 2009, Vangold advanced a
US$500,000 loan to NGG, in addition, after the separation of assets
to the shareholders, Vangold will issue from treasury 19.9% of the
issued capital of Vangold to NGG as the remainder of the purchase
price. Under the Agreement, Vangold will acquire from NGG 100% of
four well advanced gold properties in Papua New Guinea ("PNG")
along with equipment and drill rigs. Extensive drilling and labour
completed on the Mt Penck property over the last six years have
produced excellent indications of a large low-grade gold deposit.
As a priority, the Company will aggressively pursue its exploration
program on Mt Penck to exploit results to date.
Vangold would also like to clarify that under its proposed
unbundling of assets, Vangold's shareholders, as of record date for
the separation of assets, will receive common shares of a newly
incorporated public company (VanOil) which will hold Vangold's oil
and gas assets in Kenya, Rwanda and Alberta. The Company will be
offering to eligible shareholders rights to acquire additional
common shares in VanOil.
All of the above information is subject to TSX Venture Exchange
and shareholder approval. The Company is consulting with its
advisors and will be sending out an information circular for a
special meeting for shareholders to approve.
New Guinea Properties
Mt Penck Property (102.6 sq km)
Mt Penck will be Vangold's principal gold property and will be
subject to a concerted exploration effort in 2009/2010 to define
resources.
More than 80 holes totalling 6,000m have been completed with
intervals such as 72m at 1.79g/t gold, 2m at 36.7g/t gold and 43m
at 2.35g/t gold. Bulldozer trenching has yielded results such as
40m at 8.89g/t gold, 97m at 3.39g/t gold and 5m at 60g/t gold.
Results are available in a NI 43-101 report lodged at Sedar.
The Mt Penck property is located in West New Britain Province,
Papua New Guinea. Access to the property is by road from the
provincial capital of Kimbe. The property is within a few
kilometers of the coast.
Mt Penck is an eroded strata-volcano with gold mineralization
associated with an intrusive complex. The Company has identified a
4 square kilometer arsenic/gold geochemical anomaly within the 100
square kilometer license. Most of the license is yet to be
explored.
Five prospects have been identified through soil geochemistry,
trenching and drilling: Kavola East, Kavola South, Peni Creek, Big
Bend and Koibua. Together they cover an area 1.2km by 0.5km.
2009 drill results for Kavola East (0.5 g/t Au cut-off) include
25m at 2.43g/t Au; 9m at 1.05g/t Au; 32.3m at 1.57 (MPD039); 21m at
3.13g/t Au (MPD040); 47m at 2.06g/t Au, 19m at 1.64g/t Au; 19m at
1.17g/t Au and 10m at 3.14g/t Au (MPD042); 21m at 1.85g/t Au and 8m
at 1.52g/t Au (MPD044); 11m at 1.06g/t Au and 13m at 4.52g/t Au
(MPD045) and 8m at 4.25g/t Au (MPD048).
Feni Island Property (30.8 sq km)
The Feni Project is part of the Lihir Corridor; a chain of
islands composed of subaerial extinct stratovolcanoes that are host
to Simberi (5 Moz Au) and Lihir (45 Moz Au) gold mines.
Feni shows very similar geology, including widespread known
(drilled) gold mineralisation, similar alteration styles and
similar alkaline intrusives to the Lihir Islands. Active geothermal
systems at Feni are depositing up to 30g/t Au. Five main prospects
have been identified on Feni: Dome, Saddle, Kabang, Kapkai and
Natong.
Over 14 million Canadian dollars has been invested in
exploration including 180 drillholes (16,000m). Most of the focus
has been on Kabang Structure, a northeast trending break that
cross-cuts the central caldera. Drill results for Kabang include
188.5m @ 1.0g/t Au (MAD001) from surface and 98m @ 0.94g/t Au
(MAD005).
Fergusson Property (115 sq km)
Fergusson Property is on Fergusson Island an island adjacent to
NGG's Imwauna property on Normanby Island. Access is by boat or
fixed wing aircraft. Previous explorers completed 86 drill holes
for approximately 6,000 meters of drilling and defined several
prospects with significant gold in drill hole.
At the Igwageta Prospect a zone approximately 1km by 0.5km of
anomalous gold was defined with historic (1998) drilling highlights
such as 26m at 1.06g/t gold; 10m at 8.14g/t gold; 12m at 5.88g/t
gold; 25m at 2.93g/t gold; and 20m at 3.04g/t gold. Sampling of
surface trenches by the company has confirmed comparable intervals
of gold at depth. Areas with strong gold in soil from the 2007 soil
program (28.1g/t Au; 7.42g/t Au and 9.47g/t Au) are coincident with
anomalous trench results from the 2008 trench program (TR12: 21m @
2.51g/t Au and 57m @ 1.23g/t Au at 0.5g/t cut-off).
Allemata Property (148 sq km)
The Allemata property was once known as the Milne Bay Goldfield.
From 1899 to 1926, the Goldfield produced 14,320 ounces of gold,
mainly from alluvial deposits. In 1931, mining commenced with
high-grade hard rock mining. Platinum was discovered and mined from
1933 to 1941, producing a total of 6 kilograms of platinum. 1,000
ounces of gold was produced in 1938 and 1939 from the Louise/ Ulo
Ulo, Jumbo/Juno and Rough Ridge Mines. This property has not been
mined since World War II.
The Allemata property is easily accessible by a 20 kilometre all
weather road from the port of Alotau and Gurney International
Airport. Logging roads provide access throughout the property.
Management believes that this project could be developed relatively
easily. Drilling and geochemistry on the Allemata property
identified two gold zones (Ulo Ulo and Haluba) on which the company
is focusing their exploration. Other geochemically anomalous zones
remain to be explored.
Ulo Ulo Prospect hosts vein style gold mineralization in a 400m
by 400m area. Much of the gold is in relatively narrow high grade
gold zones or wide, lower grade zones. The company believes the Ulo
Ulo target may be a high-grade vein system similar to NGG's Imwauna
Property on Normanby Island. Trench results from 2008 program
define a series of northwest trending quartz-limonite veins that
average 1 to 3m in width and 100m up to 600m in length. A drilling
and trenching program commenced at Ulo Ulo in March 2009 with drill
intercepts of the veins include 1m @ 17.65g/t Au (UDH001); 1.9m @
9.39g/t Au (UDH003); 1m @ 58.3g/t Au (UDH012) and 2m @ 7.55g/t Au
(UDH013).
Haluba Prospect hosts disseminated and stockwork gold
mineralization greater than 0.5g/t over a 400 meter by 300 meter
area. This prospect has geological similarities to the Kavola East
deposit at Mt Penck.
All technical information in this news release has been reviewed
and approved by Danae A. Voormeij, M.Sc., P.Geo., VP Exploration
for Vangold and a Qualified Person as defined by National
Instrument 43-101.
All of the above information is subject to TSXV approval as well
shareholder approval at a special meeting. The Company is
consulting with its advisors and will circulate information
circular once meeting and record dates are set.
Caution Regarding Forward-Looking Information
Information in this news release respecting the proposed
spin-off and the transaction with NGG constitutes forward-looking
information. Statements containing forward-looking information
express, as at the date of this news release, the Company's plans,
estimates, forecasts, projections, expectations, or beliefs as to
future events or results and are believed to be reasonable based on
information currently available to the Company.
Forward-looking statements and information are based on
assumptions that financing and personnel will be available when
required and on reasonable terms, and all necessary regulatory
approvals and shareholder approval will be obtained, none of which
are assured and are subject to a number of other risks and
uncertainties.
There can be no assurance that forward-looking statements will
prove to be accurate. Actual results and future events could differ
materially from those anticipated in such statements. Readers
should not place undue reliance on forward-looking information.
To find out more about Vangold Resources Ltd. please visit our
website at www.vangold.ca.
On Behalf of the Board of VANGOLD RESOURCES LTD.
Dal Brynelsen, President and CEO
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
Contacts: Vangold Resources Ltd. Dal Brynelsen 604-684-1974
604-685-5970 (FAX) brynelsen@vangold.ca www.vangold.ca
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