Mr. Cameron King reports
VANGOLD MINING ACQUIRES SEVEN MINING CLAIMS IN MEXICO; EXPANDING EXPOSURE IN THE MEXICAN SILVER BELT
Vangold Mining Corp.’s wholly owned subsidiaries have entered into agreements to acquire seven mining claims, totalling 2,798 hectares, located in the states of Guanajuato and Queretaro, Mexico. The claims are grouped in three separate blocks, all located within a six-hour drive of Guanajuato city, which is now the company’s base of operations for engineering, data storage, mapping and support staff.
The Patito I and II claims (646 hectares, located 10 kilometres southeast of Guanajuato city) will be acquired and held by Obras Mineras El Pinguico SA de CV, due to their proximity and expected synergy to the existing El Pinguico project. The claims are strategically located 1,500 metres west of the El Pinguico project, providing a possible extension of the mineralized zone and bringing the total land package of the project to 747 hectares.
The Analy I and II claims and El Ruso claim (1,215 hectares, located 50 kilometres east of Guanajuato city), and Camilla and Ysabela claims (937 hectares, located 175 kilometres East of Guanajuato city) will be acquired and held by CanMex Silver SA de CV. These claims are at the exploration stage and lie within the prolific Mexican silver belt.
Under the terms of the agreements, Vangold’s subsidiaries will acquire a 100-per-cent interest in the respective claims in consideration of an aggregate of $10,000 and 3,375,000 common shares of Vangold. The vendors will also receive a 2.5-per-cent net smelter return (NSR) royalty, of which each of Obras Mineras and CanMex Silver can repurchase one-half (1.25-per-cent NSR royalty) of the royalty on their respective claims for $500,000. The acquisition is at arm’s length and remains subject to TSX Venture Exchange approval.
Cameron King, president and chief executive officer, reports: “We are very pleased to come to an agreement with the co-owners of these claims. The acquisition of these mining claims provides a tremendous opportunity to expand the El Pinguico project through the additional exposure to the Veta Madre vein system provided by the Patito I and Patito II claims, as well as bringing several other prospective assets for exploration and diversification of our land package. These properties are consistent with the company’s focus of building assets within the Mexican silver belt, with excellent roads and access to electrical and water supplies.”
Significance of the Patitos I and II claims
- On strike with Veta Madre (mother vein), several vein/lode structures are present, providing a possible parallel vein system of the Veta Madra and El Pinguico veins.
- The host rocks are subaerial acid volcanics. Numerous gold-silver rock chip anomalies have been identified by historical sampling;
- The mineralization is associated with brecciation and mesothermal/epithermal quartz veining/stockwork and silicification controlled by narrow structures 0.3 metre to 1.5 metres wide at surface and potential to open at depth, proven by historical mining.
- Historical assay results (non-compliant with National Instrument 43-101) include:
- 65 grams per tonne gold and 79 grams per tonne silver in a 30-kilogram bulk sample (cone and quarter split down to 200 grams for assay) from one old working;
- Nine rock chip samples collected by the vendor in 2008 assayed greater than one gram per tonne Au, including six greater than 18 grams per tonne Au (aqua regia extraction and atomic absorption analysis);
- Three four-kilogram bulk samples collected by the vendors from old workings in 2010 were tested by the metallurgical laboratory at the Guanajuato School of mines; the results were:
- 23.4 grams per tonne Au and 81 grams per tonne Ag;
- 37.4 grams per tonne Au and 185 grams per tonne Ag;
- 35.2 grams per tonne Au and 50 grams per tonne Ag.
These results indicate that these claims have a great potential for exploration due the proximity of the Veta Madre vein system. The company cautions that a qualified person has not verified the sampling data as the original samples were unavailable, and new samples will need to be obtained.
Significance to exploration
The five claims acquired by CanMex Silver SA de CV offer exploration and development opportunities for the company over the next several years.
Analy I (title No. 240892, 247 hectares) and Analy II (title No. 241589, 476 hectares):
- The Analy I and II claims represent a total land area of 723 hectares, located within 50 kilometres of Guanajuato, Mexico, and in the middle of the prolific silver belt and have hosted historical high-grade silver and zinc operations.
- The area is an old silver-lead-zinc mining field which has never been explored using modern methods.
- An old adit and shaft, La Jedionda, which has not been mined for some decades, is located just on the boundary of the Analy I claim. The adit exposes a 0.5-metre to 2.5-metre-wide lode of limonitic brecciated silicified rock with strongly vuggy sacchariodal quartz cut by later quartz veins.
- On the slope near the adit — and extending into the Analy I claim block — there is abundant scree/float of limonitic silicified/brecciated/quartz veined volcanics and strongly silicified hydrothermal breccia.
- Airborne magnetic anomalies occur on the western edge of Analy I and northern boundary of Analy II, which may indicate mineralized intrusives.
The company cautions that a qualified person has not verified any historical sampling data as the original samples were unavailable, and new samples will need to be obtained.
EL Ruso (title No. 240808, 493 hectares):
- The claim area is located adjacent to an old mercury prospecting pit and several other small historical mercury and gold-silver mines are present in the area, including the EL Nacimiento skarn deposit. No historical production/grade records are available.
- Sampling of old workings nearby the tenement in 2008 yielded one assay result of 16.1 grams per tonne Au.
- From a site visit by Vangold in October, 2016, a surface vuggy quartz boulder assayed residual arsenic, antimony and zinc.
- The area has never been explored using modern exploration methods and has never been drilled.
- The company cautions that a qualified person has not verified the historical sampling data as the original samples were unavailable, and new samples will need to be obtained.
Ysabela (title No. 240876, 438 hectares) and Camila (title No. 240865, 500 hectares):
- Ysabela was granted in an old silver-lead-zinc-gold mining field in the Sierra Madre Oriental.
- The Camila claim boundary is located on the abandoned Santa Ana silver-lead-zinc mine, a manto or skarn deposit that operated intermittently from the late 1800s to 1995. No historical production records are available; however, geological sections from maps drawn by Consejo De Recursos Minerales show assay samples on historical mine adits and shafts which include one metre at 1,750 grams per tonne Ag, 0.12 gram per tonne Au, 17.6 per cent lead, 7.2 per cent zinc plus 0.12 per cent copper and two metres at 1,400 grams per tonne Ag, 0.25 gram per tonne Au, 16.2 per cent Pb, 4.8 per cent Zn plus 0.08 per cent Cu.
- Assay samples collected by Vangold in a due diligence review in October 2016 of the Santa Ana ore samples outside the existing adit assayed 588 g/t Ag + 5.24% Zn + 6.77% Pb + 0.2 g/t g Au, trace antimony and trace copper.
- From a historical 1956 map, within the Camila claim exists historical mines including Las Cuevas, Mina El Cobre (copper mine) and Los Reyes.
- Several other abandoned silver-lead-zinc mines are located on claim boundary. The Guadalupe mine was a silver-lead-zinc mine that operated intermittently from late 1800s to about 1985; its maximum production prior to closure was 1,000 tonnes per day. A 200-metre-deep shaft is connected to a lower 530-metre-long ore haulage and ventilation tunnel. The lode width and grade are unknown but are projected to extend to over a 150-metre depth beneath the existing shaft/adit intersection. From specimens collected from an old mullock heap near the tunnel entrance, the lode material consists of very hard massive quartz carrying several per cent pyrite plus galena plus sphalerite. An inactive mill plant occurs within the claim.
- Samples collected by Vangold site visit in October, 2016, of the Guadalupe mine ore dump outside the adit assayed 1,585 grams per tonne Ag, 4.71 per cent Pb and over 1 per cent antimony, trace copper, trace bismuth, and trace zinc.
- The unprocessed samples at the mill within the Camila claim assayed 453 grams per tonne Ag, trace zinc, 0.7 per cent lead and trace antimony.
- The area has never been explored using modern exploration methods and has never been drilled, offering significant mineralization potential with minimal exploration investment.
- The area is easily accessible by road and the terrain is amenable to rapid screening by conventional reconnaissance exploration techniques.
The company cautions that a qualified person has not verified the historical sampling data as the original samples were unavailable, and new samples will need to be obtained.
The disclosure of historical information in this news release has been reviewed and approved by Hernan Dorado, a director of the company. Mr. Dorado is a member of the Mining and Metallurgical Society of America and is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the contents of this news release.
We seek Safe Harbor.