Vangold Resources Ltd ("Vangold") (TSX VENTURE: VAN) is pleased to
announce encouraging results from the 2007 soil and 2008 trench
programs conducted by Kanon Resources Ltd. ("Kanon"), which were
previously un-announced.
Fergusson is one of three gold projects (Mt Penck, Allemata and
Fergusson) owned by Pacific Kanon Gold Corp's ("PKGC") wholly owned
subsidiary Kanon. Vangold has recently executed a full and binding
agreement to acquire New Guinea Gold's ("NGG") share of PKGC which
through Kanon owns (Mt Penck, Allemata and Fergusson gold projects)
and NGG's share of the Feni Island property (see press release
dated September 2, 2009). (The Agreement with NGG is subject to TSX
Venture Exchange approval.)
Fergusson EL1324 (115.2 sq km across two blocks) is located on
Fergusson Island, Papua New Guinea. The property is positioned
along the Pacific Rim of Fire, the active circum-Pacific volcanic
belt that is host to large copper-gold porphyry systems (Grasberg,
Ok Tedi, Panguna and Frieda River) and a number of world class
epithermal gold deposits including Porgera and Lihir.
Kanon's recent focus of the exploration work at Fergusson has
been on Block 1, the Igwageta prospect (Figure 1). The area of gold
mineralization at Igwageta, as identified by soil, trench and
historic drilling, is 700m by 250m.
Epithermal gold mineralization on Fergusson is controlled by
deep-seated detachment faults (DFZ) separating metamorphic basement
(gneissic fault-bounded core complexes) and slices of younger
ultramafic volcanics and sediments (limestones, sandstone). Gold is
localized by the DFZ and is hosted by epithermal quartz-carbonate
veins and argillic-silicic altered breccias associated with
Pliocene to recent volcanism. This exploration model has
similarities to the 4 million ounce Misima Island gold mine to the
southeast of Fergusson Island.
In April of 2009, assay results from 2007 soil sampling and 2008
trenching done by Kanon at Fergusson were compiled and interpreted.
Hereby listed are the highlights of 2007 soil and 2008 trench
programs conducted by Kanon, previously un-announced. Table 1 lists
highlights of trench results, Figure 2 shows trench locations and
historic drill hole locations; Table 2 lists highlights from
historic drilling of shallow (average depth of 40m) RC drill holes
by Union Mining in 1998. In May of 2009, a site visit was made to
try and explain the anomalous zones as evident from the soils and
trench assays at Igwageta.
Gold in soil anomalies generally correspond well with areas with
elevated gold in trenches and drillcore. A particularly strong gold
in soil anomaly, with values of 28.1 g/t Au; 7.42 g/t Au and 9.47
g/t Au consecutive, over 60m, is located approximately 150m to the
south of the main mineralized trend.
Trenching in 2008 by Kanon consisted of sampling in 12 trenches
at 3m intervals for a total of 821 samples. 139 of these samples
assayed greater than 0.5 g/t Au with a high value at 8.83 g/t Au
over 3m. Highlights of these results from trench samples are listed
in Table 1. Typical trench results include 30m at 1.01 g/t Au and
12m at 1.41 g/t Au (Table 1). Gold in trench results from this
program define a zone approximately 700m by 250m, trending
northwest (Figure 2).
Encouraging gold assay results returned from Trench 12, located
to the south of the known mineralized zone, with trench results of
21m at 2.51 and 57m at 1.23 g/t Au (Figure 2). This zone is also
marked by the very strong gold in soil anomaly from Kanon's 2007
program, with gold in soils of 28.1 g/t Au; 7.42 g/t Au and 9.47
g/t Au in a north-south line over 60m. This same zone was
intersected in a 1998 RC drill program by Union Mining and returned
11m at 7.47 g/t Au, including 3m at 20.82 g/t Au (IRC-07 see Table
2). Field investigation by Vangold's geologist in May 2009 revealed
the area is underlain by argillically altered siliceous breccias
that contain fine free visible gold. Historic drilling at Igwageta
was limited to shallow (average 40m) depth RC holes. This high
grade zone is open in all directions and is a hot target for
further exploration.
Vangold plans to correlate this information, and commence a
diamond drill program at Fergusson in the last quarter of 2009 or
first quarter of 2010.
Dal Brynelsen, President and CEO of Vangold, states: "Vangold is
very pleased to see results like these from Fergusson, particularly
since we have entered into a full and binding agreement with NGG
where (subject to TSX Venture approval) we will acquire 100% of
four promising gold exploration projects, equipment, drill rigs and
a very talented team in Papua New Guinea, which, we believe,
represents an extraordinary opportunity to create significant
shareholder value and the potential for one or more significant
gold discoveries."
All technical information in this press release has been
reviewed by Danae A. Voormeij, M.Sc., P.Geo. and Qualified Person
as defined by National Instrument 43-101.
Further to the news release of September 2, 2009, Vangold would
like to declare that the reference to US dollars was in error and
all amounts for the agreement with NGG are in Canadian funds.
For more information on Vangold's mineral exploration projects
in Papua New Guinea, including Fergusson, Mt Penck, Feni Island and
Allemata, please visit our website at www.vangold.ca or contact Dal
Brynelsen at 604-684-1974 or by email Brynelsen@vangold.ca.
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 view Figures 1 and 2 please click on the following link:
http://media3.marketwire.com/docs/VAN0909.pdf
--------------------------------------------
Interval Gold
Trench No (m) (g/t)
--------------------------------------------
TR-01-08 12 1.27
--------------------------------------------
TR-03-08 27 0.76
--------------------------------------------
TR-04-08 6 0.91
--------------------------------------------
TR-05-08 30 1.01
--------------------------------------------
TR-06-08 9 0.63
--------------------------------------------
TR-07-08 12 1.41
------------------------
15 1.14
--------------------------------------------
TR-08-08 3 1.44
--------------------------------------------
TR-09-08 3 3.16
------------------------
3 1.43
--------------------------------------------
TR-10-08 21 0.79
--------------------------------------------
TR-12-08 21 2.51
------------------------
12 0.67
------------------------
57 1.23
--------------------------------------------
Table 1. Kanon 2008 Trench results highlights
(0.5 g/t Au cut-off)
-------------------------------------------------------------
Drill Hole From To Interval Gold
ID (m) (m) (m) (g/t)
-------------------------------------------------------------
IRC 02 0 8 8 1.20
-------------------------------------------------------------
IRC 03 0 12 12 1.12
----------------------------------------------
15 26 11 0.94
-------------------------------------------------------------
IRC 07 0 11 11 7.47
----------------------------------------------
incl 3 20.82
-------------------------------------------------------------
IRC 09 0 5 5 3.34
-------------------------------------------------------------
IRC 10a 6 9 3 21.83
----------------------------------------------
incl 1 64.00
-------------------------------------------------------------
IRC 20 3 6 3 19.84
----------------------------------------------
incl 1 42.9
----------------------------------------------
7 15 8 0.78
-------------------------------------------------------------
IRC 25 2 7 5 0.99
----------------------------------------------
8 15 7 0.94
----------------------------------------------
23 27 4 0.86
-------------------------------------------------------------
IRC 42 10 21 11 5.44
----------------------------------------------
incl 1 42.18
-------------------------------------------------------------
Table 2. RC drilling at Igwageta prospect, Fergusson, by Union
Mining in 1998. Drill result highlights (0.5 g/t cut-off).
Average drill depth 40m.
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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