Vangold Drills 10m at 2.98 g/t Gold Including 3.2m at 6.68 g/t Gold at Mt Penck
September 16 2009 - 2:45PM
Marketwired Canada
Vangold Resources Ltd. (TSX VENTURE:VAN) ("Vangold" or "the Company") is pleased
to provide further results from the 2009 diamond drill program at Mt Penck.
Vangold entered into a fully binding agreement (the "Agreement") with New Guinea
Gold ("NGG"), under which Vangold will acquire from NGG, the remaining 50% to
bring their ownership to 100% of four well-advanced gold properties in Papua New
Guinea ("PNG") along with equipment and two drill rigs. These four gold
properties are: Mt Penck, Feni Island, Fergusson and Allemata. For details on
the Agreement, which is subject to the approval of the TSX Venture Exchange and
description of the four properties, please see our news release dated September
2, 2009.
Mt Penck is an extinct stratovolcano with gold mineralization associated with an
intrusive complex. Mineralization is found on surface and extends to at least
130 meters in places. Historic work by Indo Pacific and BHP in the 1980s and
1990s included trenching, mapping and 22 drill holes totalling 1300m. Extensive
drilling and labour has been completed on the Mt Penck property over the last
six years and have produced convincing indications of a large low-grade gold
deposit. To date, five main prospects are identified at Mt Penck: (1) Kavola
East, (2) Kavola South, (3) Koibua, (4) Big Bend and (5) Peni Creek. Combined,
they cover an area of 1.2km by 0.8km. Figure 1 shows the location of the five
prospects. Visible gold and nuggets have been panned in the Big Bend and Peni
Creek prospects.
From April 27, 2009 to August 10, 2009, a 4,111.6m diamond drill program was
conducted at Mt Penck. Kavola East drill holes, MPD-039 to MPD-049, included
high grade intervals of 69.5m from surface at 1.82 g/t gold (MPD039); 21m at
3.13 g/t gold from 2m depth (MPD040); and 66m from surface of 1.91 g/t gold
(MPD042) and some higher grade intervals such as 6.9m at 3.97 g/t gold (please
see news release dated June 4, 2009). Further drilling in Kavola East returned
assay results of 133m at 1.83 g/t gold (MPD042); including 8m at 3.85 g/t gold
(see news release dated June 10, 2009). MPD045 returned 16m at 3.72 g/t Au and
20.37 g/t silver (see news release dated July 10, 2009). MPD-050 through to
MPD-072 drilled targets generated from strong gold-in-trench results in Peni
Creek, South Kavola and Koibua, and also tested new zones, such as Koibua South
and Kavola Central. Drilling was carried out by two company-owned diamond core
rigs (TGD500s), staffed and operated by the Company. The drills were supported
by one 20t excavator and two crawlers.
Table 1 lists assay results from drill core samples taken from holes drilled
into Kavola East and several other gold prospects at Mt Penck. Table 2 lists the
drillhole collar information. Results from the last five holes drilled in the
2009 drill program at Mt Penck (Peni Creek, Kavola South, and Koibua) are still
pending.
MPD046 to MPD049 were drilled into Kavola East, where drill holes continue to
return wide intervals with low-grade gold mineralization (see Table 1), such as
10m at 2.98 g/t gold, including 3.2m at 6.67 g/t gold. MPD050 to MPD059 were
drilled into a new zone, Kavola Central. Assays from these holes returned 3.3m
at 5.32 g/t gold (MPD-052), including a 0.9m section of massive sulfide running
15.45 g/t gold. MPD061 drilled into Big Bend, an area where gold nuggets have
been panned from the creek. Big Bend returned encouraging results of 5.5m at 1.8
g/t gold and 2.8m at 2.86 g/t gold. MPD066 drilled into Kavola South and aimed
at a gold and arsenic in soil anomaly as well as a trench result of 11m at 1.77
g/t gold. The hole reached its target and returned 6.4m at 1.51 g/t gold.
Danae A. Voormeij, M.Sc., P.Geo., VP Exploration for Vangold and Qualified
Person under CIM's National Instrument 43-101 standards reports: "Mt Penck
shares many similarities with the multi-million ounce gold deposits at Lihir.
They both have epithermal vein systems associated with young alkaline porphyry
intrusives; both are located within an inactive volcanic crater; they contain
numerous phases of brecciation, which act as permeable hosts for gold
deposition; the gold is fine and the majority of the gold is contained in
sulphides; and gold mineralization is strongly structurally controlled. We have
expanded out our drilling to test new prospects surrounding Kavola East. The new
results from Kavola South indicate further continuity of the mineralized systems
to the south. These prospects together cover an area of 1.2km by 0.8km. Keeping
in mind that the extinct volcano hosting the hydrothermally altered porphyry
gold system has a surface area of approximately 38 square kilometres (see Figure
1), one can see that we have barely scratched the surface at Mt Penck. We are
fortunate in that there is currently active logging taking place at Mt Penck,
which is opening up the mountain for us to explore, sample and make new
discoveries."
Mt Penck is located 55km west of the town of Kimbe, Provincial Capital of West
New Britain Island, PNG. Figure 1 shows the license location. Access is along
regularly upgraded logging access roads to the exploration base camp and one way
travel takes approximately three hours by vehicle. A Bell Longranger helicopter
is based in Kimbe (Niugini Helicopters). EL1322 area covers the rugged slopes of
Mt Penck, an extinct stratovolcano with maximum elevation of 643 meters above
sea level (masl). The project area sits at 300-400 masl with moderate relief.
Hills are jungle covered with second growth forest and is currently being logged
in parts. Mt Penck is situated on the coast and there are several small coastal
villages (including Poi, Airipi, Makati and Meto) located along its base. Just
east of Mt Penck, at Silivuti, is a port with a loading dock for barges. Kimbe
has a deep water port and is serviced by daily jet passenger flights from Port
Moresby to Hoskins Airport, less than an hour's drive from Kimbe.
The Mt Penck project is located on the former Mt Penck volcano, which was active
during the Pliocene-Pleistocene. The stratovolcano consists of a series of
andesites and volcaniclastics, pebble dykes, diatremes and possible pillow
basalts. Calcareous mudstones have been identified at the Koibua prospect. At
the base of the extinct volcano there are outcrops of limestone. The diameter of
the Mt Penck volcano is approximately 8km by 5km. The area of past and current
exploration is about 5% of the volcano, which leaves a lot of open ground for
exploration.
As seen from the extensive trench samples collected across the five main
prospects, low to medium gold grades (0.5-3 g/t Au) are widespread throughout,
often where quartz veining or mineralized breccias occur, and at intersections
of major through-going deep-seated structures such as faults and shears. There
is strong structural control on the gold mineralization, as is evident from
Figure 1, which shows gold-in-trench results and structural lineaments as
interpreted from air photos. Kavola East and Peni Creek each are located at the
intersection of major north-northeast normal faults with northeast trending and
east-west trending extensional faults.
PNG has an extensive history of exploration and mining. Deposits of gold,
gold-copper and nickel are being developed. There are currently seven gold and
gold-copper mines operating in PNG. World class gold deposits such as Porgera
(7.8 Moz gold), Simberi (5 Moz gold) and Lihir (45 Moz gold) are being mined.
Major gold producers, such as Barrick, Harmony Gold, Allied Gold and
Anglo-American are active in PNG. As a result of exploration during the last 30
years, a well-established exploration service sector has emerged. There is a
substantial labour pool comprised of geologists, drillers, field assistants and
miners with years of practical experience. Foreign investment is welcomed and
encouraged by the local government.
Dal Brynelsen, President and CEO of Vangold states: "Vangold is now focused on
becoming a major exploration company in PNG. The Company has four highly
prospective properties with strong local management and infrastructure support.
We are confident based on exploration results to date that our properties
provide the potential for a major gold discovery. Management is committed to
making that a reality."
To view Location Map please click on the following link:
http://media3.marketwire.com/docs/Fig1VAN.jpg
TABLE 1. DRILLHOLE ASSAY RESULTS FOR MT PENCK
-------------------------------------------------------------------------
Drillhole ID Prospect From (m) To (m) Interval (m) Grade (g/t Au)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD046 Kavola East 15 22 7 1.16
-------------------------------------------------------------------------
32 33 1 0.58
-------------------------------------------------------------------------
38 41 3 0.55
-------------------------------------------------------------------------
48 49 11 0.76
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD047 Kavola East 95 99 4 0.60
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD048 Kavola East 0 10 10 2.98
-------------------------------------------------------------------------
14 23 9 0.57
-------------------------------------------------------------------------
26 28 2 0.93
-------------------------------------------------------------------------
53.5 55.5 2 0.90
-------------------------------------------------------------------------
65 67 2 0.72
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD049 Kavola East 0 6 6 0.71
-------------------------------------------------------------------------
33 39 6 0.59
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD050 Kavola Central 145 148 3 1.24
------------------------------------------------------------------------
150 153.5 3.5 0.71
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD052 Kavola Central 14 17 3 0.61
-------------------------------------------------------------------------
152.7 156 3.3 5.32
-------------------------------------------------------------------------
incl 153.6 154.5 0.9 15.45
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD053 Kavola Central 95 97 2 1.39
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD054 Kavola Central 7 9 2 0.59
-------------------------------------------------------------------------
13.9 15.4 1.5 0.77
------------------------------------------------------------------------
51 52 1 0.64
-------------------------------------------------------------------------
122 126 4 1.19
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD055 Kavola Central 62 64 2 0.67
-------------------------------------------------------------------------
67 68.4 1.4 2.57
-------------------------------------------------------------------------
98.5 105 6.5 0.75
-------------------------------------------------------------------------
113.5 115.4 1.9 4.99
------------------------------------------------------------------------
incl 113.5 114.4 0.9 6.38
-------------------------------------------------------------------------
116.4 120 3.6 0.65
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD056 Kavola Central 34.2 36.7 2.5 0.61
-------------------------------------------------------------------------
51 52.5 1.5 0.66
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD057 Kavola Central 39 41 2 0.71
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD058 Koibua South 136 137.4 1.4 3.72
-------------------------------------------------------------------------
138.5 140.8 2.3 0.51
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD059 Kavola Central 208 209 1 0.82
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD061 Big Bend 2 7.5 5.5 1.8
-------------------------------------------------------------------------
32.2 35 2.8 2.86
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD062 Kavola Creek 45 46 1 0.65
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD063 Kavola South 4 5 1 0.55
-------------------------------------------------------------------------
7 8 1 0.99
-------------------------------------------------------------------------
9 13 4 1.16
-------------------------------------------------------------------------
24 25 1 0.49
-------------------------------------------------------------------------
-------------------------------------------------------------------------
MPD066 Kavola South 3 4 1 2.17
-------------------------------------------------------------------------
46 47 1 1.32
-------------------------------------------------------------------------
54.6 61 6.4 1.51
-------------------------------------------------------------------------
66.4 67.5 1.1 0.69
-------------------------------------------------------------------------
77 78 1.0 0.77
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TABLE 2. LIST OF DRILLHOLES FOR MT PENCK 2009 DRILL PROGRAM
------------------------------------------------------------------------
RL Date
Drillhole ID Prospect Easting Northing (m) Azimuth Dip EOH Drilled
------------------------------------------------------------------------
MPD046 Kavola 790744 9388451 245 120 -75 109.7 17-May-09
East
------------------------------------------------------------------------
MPD047 Kavola 790777 9388594 243 250 -50 119.5 25-May-09
East
------------------------------------------------------------------------
MPD048 Kavola 790767 9388489 256 90 -50 179.9 22-May-09
East
------------------------------------------------------------------------
MPD049 Kavola 790609 9388482 186 145 -50 120 28-May-09
East
------------------------------------------------------------------------
MPD050 Central 790703 9388784 210 151 -50 153.5 3-Jun-09
Kavola
------------------------------------------------------------------------
MPD051 Central 790655 9388800 234 151 -50 120 3-Jun-09
Kavola
------------------------------------------------------------------------
MPD052 Central 790647 9388817 233 151 -50 156 9-Jun-09
Kavola
------------------------------------------------------------------------
MPD053 Central 790676 9388767 221 151 -50 120 9-Jun-09
Kavola
------------------------------------------------------------------------
MPD054 Central 790662 9388755 227 151 -50 141 17-Jun-09
Kavola
------------------------------------------------------------------------
MPD055 Central 790613 9388699 210 151 -50 156 18-Jun-09
Kavola
------------------------------------------------------------------------
MPD056 Central 790565 9388646 184 245 -50 90.2 24-Jun-09
Kavola
------------------------------------------------------------------------
MPD057 Central 790624 9388702 218 151 -50 159.1 28-Jun-09
Kavola
------------------------------------------------------------------------
MPD058 Koibua 790536 9388897 228 294 -50 140.8 29-Jun-09
South
------------------------------------------------------------------------
MPD059 Central 790624 9388702 218 61 -60 241.5 14-Jul-09
Kavola
------------------------------------------------------------------------
MPD060 Koibua 790382 9389135 208 230 -50 81 5-Jul-09
------------------------------------------------------------------------
MPD061 Big Bend 790524 9388768 165 209 -50 154 13-Jul-09
------------------------------------------------------------------------
MPD062 Peni 790390 9388793 149 209 -50 87 17-Jul-09
Creek
------------------------------------------------------------------------
MPD063 South 790704 9388222 251 179 -60 87 20-Jul-09
Kavola
------------------------------------------------------------------------
MPD064 Peni 790067 9388756 122 150 -50 66 17-Jul-09
Creek
------------------------------------------------------------------------
MPD065 Peni 790035 9388780 127 224 -50 99 25-Jul-09
Creek
------------------------------------------------------------------------
MPD066 South 790987 9388260 327 309 -50 98 25-Jul-09
Kavola
------------------------------------------------------------------------
In undertaking exploration in PNG, it is essential to liaise continually with
local landowners in planning the early stages of exploration through to
potential mine development. Vangold has established an excellent relationship
with the local landowners of Mt Penck through mutual respect, clear
communication and a common goal: to develop Mt Penck into a mineable deposit.
Many of the local landowners' chiefs and their sons work on the Mt Penck
property.
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 NI 43-101.
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
Disclaimer for Forward-Looking Information
Information in this news release respecting 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.
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