Corporate News

Vangold samples 34.11 g/t AuEq at El Pinguico

June 15th 2017 | by Vangold

Mr. Cameron King reports

VANGOLD MINING CORP. REPORTS EXPLORATION RESULTS: ASSAYS UP TO 34 G/T AUEQ FROM SAMPLES AT EL PINGUICO MINE

Vangold Mining Corp. has provided results from its current exploration program on the El Pinguico mine property, located 15 kilometres from Guanajuato, Mexico. For the past four months, the company has engaged FindOre SA de CV, a geological exploration services company, to conduct extensive surface and underground mapping, surveying, rock sampling, and trenching. The results of the geological exploration program have provided extensive information about the structure and geological origins of the epithermal vein systems across the property. The results of the four-month sampling and mapping program will be used to identify grid spacing and drill locations, increasing the highest probability of achieving an inferred resource.

Exploration highlights:

  • Collected a total of 452 rock samples taken from surface grab samples and outcrops, historical workings, and adits;
  • Consistent assays over 10 grams per tonne gold equivalent at surface and underground, proving extensive multivein mineralization;
  • Underground samples total 310, from exposed veins, hangingwall and footwall locations;
  • Confirmation of extending mineralization over 1.5 kilometres from underground stockpile location to southern claim limit;
  • Completion of detailed mapping illustrates multiple parallel and perpendicular vein systems across the property;
  • Significantly derisked drill site locations.

By analyzing all the historical mining records, maps, production techniques and now using modern-day geological controls, the company can now engage in planning and advancing the potential of the in situ mineralization and liberating the underground stockpile.

“We are excited by the results of the first systematic exploration program carried out at El Pinguico and the surrounding properties. Historical production of gold and silver at the mine came from the El Pinguico/El Carmen vein. What this program confirms [is], the El Pinguico/El Carmen vein extends to the Southern claim limit, connecting with the La Joya, La Joyita and El Pirul vein systems. This discovery extends mineralization over 1.5 kilometres from the midpoint of the property. The logical next steps are to plan a drilling program, delineate the veins below the stockpile, and define the width and depth of these new targets,” stated Cameron King, president and chief executive officer of Vangold Mining.

Pinguico sampling demonstrates 2,000 metres of mineralization up to 36.94 grams per tonne gold equivalent.

Vangold has completed a total of 452 rock samples both at surface and underground along the El Pinguico/El Carmen system of veins, which demonstrates anomalous gold and silver mineralization over a total strike length over 2,000 metres from the northern underground stockpile to the south-southeastern La Joyita vein.

In addition to the samples taken in January, 2017, for the National Instrument 43-101 report (samples F-001 to F-066), 383 new assay results have been collected from the El Pinguico concessions taken from both surface vein exposures and from veins exposed in underground workings and are highlighted in the attached table.

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El Carmen/El Pinguico vein: Assay highlights realized: 36.94, 20.23, 14.52, 11.82 and 11.54 grams per tonne gold equivalent from the underground stockpile. The stockpile channel sample results were announced in the National Instrument 43-101 report earlier this year and shows anomalous samples along a 346-metre strike length of stockpiled ore from the shrinkage mining method. The gold/silver veins of El Carmen/El Pinguico are composed of quartz veined breccia and have the same strike as the Veta Madre gold and silver vein in the region. Mineralization consist of a mixture of native gold and silver, polybasite, pyargyrite, tetradedrite, marcasite, sphalerite, galena, pyrite and chalcopyrite. Outcrops in the area consist of the Tertiary formations called Calderones and Bufa. The oldest unit, the Bufa formation, consists of rhyolites, tuffs and rhyolitic breccias. The Bufa formation consists of massive andesite, tuffs and andesitic breccia of green colour. The El Carmen-Pinguico vein was emplaced in a fault/fissure with average width of 7.0 metres.

San Jose vein system: Realized assays were 34.11 and 11.29 g/t gold equivalent from underground samples within quartz veined breccia, at the El Carmen mine, a further 480 metres south-southeast along strike from the El Carmen-Pinguico vein structure. The San Jose vein system samples show anomalous gold and silver mineralization, along two subparallel vein systems over a combined length of 638 metres striking southeast and dipping to the northeast. The vein system ends at the Caida del Agua adit entrance. Anomalous samples were collected from white quartz veinlets with crustiform texture, quartz breccia, banded quartz veins and rhyolitic breccia in the footwall.

La Joya vein system: Assays sampled included 10.73 grams per tonne gold equivalent from the underground La Joya vein a further 570 metres southeast along strike from the San Jose vein system. Sampling demonstrates gold and silver mineralization over at least 290 metres along two parallel southeasterly trending veins dipping to the northeast. Anomalous gold and silver rock samples were collected from quartz veined breccia with disseminated sulphides and vein widths of 0.8 to 1.7 m.

El Pirul vein: A further 137 metres along a southeasterly strike from the La Joya vein system, the EL Pirul vein/adit was sampled with 33 assays over a strike length of 82 m. The vein changes dip direction to the southwest compared with the El Carmen-Pinguico vein system, farther north, which dips to the northeast. Sample F-272 returned 10.1 g/t gold equivalent from an underground fault-related quartz-fragmented vein. Other anomalous samples were taken from sporadic quartz fragments in veins ranging in width from 0.3 to 1.1 m.

La Joyita vein: Assays were consistent in range of 17.95, 13.17 and 11.4 g/t gold equivalent from a surface quartz vein. The La Joyita vein, in the southern extent of the Pinguico concessions, forms part of a complex network of vuggy and collofom-banded quartz veins and carbonate lattice blades forming over different age periods. The La Joyita area is host to numerous historical adits and stopes, which are required to be reopened and tested at depth by drilling.

Anomalous samples were collected at surface from quartz vein fragments and vein breccia to a 1.5-metre width of quartz amethyst with vuggy texture. Underground samples were collected from strongly oxidized quartz breccia at the El Chichote stope, where the vein is dipping 45 degrees to the southwest.

Hernan Dorado, director and qualified person, stated: “The potential intersection of the historic Veta Madre (Mother vein) with La Joya and La Joyita veins at depth will be studied and assessed in the next exploration program. The Mother vein has been the local ore resource for the last 500 years in the area and produced over a billion ounces of silver since the Spanish established the mining district. Companies such as Fresnillo PLC, Endeavour Silver and Great Panther have mined this vein in the last decade.”

Surface stockpile dump: Located at the El Pinguico shaft, a total of 20 samples were taken ranging from a low of 0.14 g/t gold equivalent to 4.36 g/t gold equivalent. The surface stockpile is an estimated 211,000 metric tonnes of mineralized rock with a specific gravity (SG) of 2.6 at 1.7 g/t gold equivalent.

The exploration program will continue, covering the adjacent land and Patito I and Patito II properties. Results will be published once completed within the next few weeks.

Appointment: chief financial offer

The company is pleased to announce that Kurt Bordian has accepted the position of chief financial officer, effective immediately, and he replaces Sandy Huntingford.

Mr. King stated: “I would like to thank Sandy for his substantial contribution to Vangold over the years and for making this transition as smooth as possible. We all wish him great happiness in his retirement.” In addition, “I look forward to working with Kurt in his new capacity as CFO. His experience and knowledge of the mining industry makes him the perfect fit to step into this role as Vangold is accelerating its growth plans.”

Mr. Bordian is a designated chartered professional accountant in Canada and holds a bachelor of commerce (honours) degree from the University of Manitoba. He has worked primarily in the mineral and exploration and oil and gas industries over the past 20 years, and has held a variety of positions with many entities: chief financial officer, controller or director. He has managed all aspects of the accounting and finance operations, and compliance. He was the chief financial officer of Alpha Minerals Inc. when it was acquired by Fission Energy Corp. in December, 2013, for $189-million.

About Vangold Mining Corp.

Vangold is a development-stage silver and gold company focused on developing its mining assets in Guanajuato, Mexico. Vangold is aggressively pursuing its business plan of becoming a producer by bringing the historical El Pinguico mine back into production, advancing the development of the company’s surrounding mineral property assets and the pursuit of growth through acquisition. Vangold is focused on achieving its strong corporate growth and realizing value for its shareholders.

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 (MMSA), is a qualified person (QP) as defined in National Instrument 43-101, and has reviewed and approved the contents of this news release.

The company and its contractors strictly adhere to NI 43-101 quality controls to ensure best practice in sampling and analysis. Bulk samples are transported in security-sealed bags and shipped to ALS Chemex Guadalajara facilities for pulping and shipped to ALS North Vancouver for fire assay with AA finish and by gravimetric methods. ALS Chemex is an ISO 9001-2000- and ISO 17025-registered laboratory.

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