3DIP Geophysics Delineates New Quartz Reef Targets at Vangold’s Fergusson Gold Project, PNG
VANGOLD RESOURCES LTD. TSX-V: VAN NEWS RELEASE
3DIP GEOPHYSICS DELINEATES NEW QUARTZ REEF TARGETS AT VANGOLD’S FERGUSSON GOLD PROJECT, PNG
July 7, 2010 – Vancouver, BC - Vangold Resources Ltd. ("Vangold" or the "Company") is pleased to report an update on the three dimensional induced polarization (“3DIP”) surveys on their three wholly owned gold properties in Papua New Guinea.
In April of 2010, Vangold retained SJ Geophysics from Delta, BC, to conduct 3DIP surveys at Fergusson, Mt Penck and Allemata gold projects. Geophysical field work at Fergusson project was completed at the end of May. Soil samples collected concurrently are to be dispatched for assays. The Allemata camps will be established next in preparation for the geophysics work after Mt Penck.
The 3DIP survey at Fergusson, Igwageta Prospect (0.8 square kilometre grid, 100m line spacing, 13 lines) was designed to test the continuity of the mineralized trends already identified through mapping, trenching, soil geochemistry and 52 historic shallow RC drill holes (averaging 40 meters depth) that encountered gold mineralization in an area of epithermal-style favourable alteration. The targeted quartz veins were expected to have high resistivity and chargeability responses, with the high resistivity caused by quartz and the high chargeability caused by sulphides associated with gold mineralization.
Preliminary results for the 3DIP survey at Fergusson show at least seven individual robust resistive anomalies trending to the northwest. The IP/resistivity high responses are considered to be targets for quartz-reef gold systems. Northeast striking faults offset some of the anomalies. Two of the resistivity anomalies correspond to known areas of gold mineralization, where historic shallow RC drilling by Union Mining in 1998 returned best assay results of 19m @ 3.73 g/t Au (IRC20) and 10m @ 5.94 g/t Au (IRC42). Five of the newly interpreted quartz reefs were previously unknown and represent completely new targets. In addition, the 3DIP identified a prominent resistivity high to the southeast of Igwageta, near the coastline, measuring approximately 300 meters in length and striking east-west. Mapping of the epithermal veins at Igwageta took place concurrent to the geophysical field survey and this work indicates the epithermal veins strike southeast and dip to the southwest.
Within the area of the interpreted quartz reefs, a chargeability high measuring approximately 600 by 300 meters in size is outlined through the 3DIP survey. It is exposed near surface and extends to more than 200 meters depth. High IP/chargeability responses potentially reflect higher sulphide content. It is situated at the intersection of several northeast and east striking faults. In 2009, Vangold geologists found visible gold in hydrothermally altered breccias in the same area. 2008 trench results for this zone assayed 12m @ 1.41 g/t Au, 15m @1.14 g/t Au (TR-07-08) and 21m at 2.51 g/t Au and 57m @ 1.23 g/t Au (TR-12-08). Historic RC drilling for this zone includes best results of 11m @ 7.47 g/t Au (IRC-07).
Danae Voormeij, P.Geo and VP exploration for Vangold states “The 3DIP programs on our PNG gold projects are proceeding as planned and the first results from Fergusson show exciting new targets for additional gold-bearing quartz reefs at Igwageta. The second survey, at Mt Penck, is now completed and we await those results with great anticipation. Due to its strategic position within the Kulu-Simi structural belt, Mt Penck has excellent potential for copper-gold porphyry mineralization and the 3DIP survey recently completed at Penck covered 10 square kilometres, a significant area.”
The Company will be receiving comprehensive reports from SJ Geophysics with processed results on the geophysical surveys conducted on each of the three gold properties, as they are completed. Peter Swiridiuk, a consulting geologist and member of the Australian Institute of Geoscientists and Australian Society of Exploration Geophysicists, will be interpreting the results.
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Papua New Guinea Properties:
Papua New Guinea (“PNG”) is strategically situated 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. Majors currently operating in PNG include Barrick, Xstrata, Harmony Gold and Newcrest.
Vangold has been actively exploring PNG since 2003, through a joint venture partnership with New Guinea Gold Corp (TSXV: NGG). In 2009, Vangold entered into a binding agreement with NGG, under which Vangold acquired from NGG, its remaining 50% to bring Vangold's ownership to 100% of three well-advanced gold properties in PNG along with equipment and two diamond core drill rigs.
These three properties are Mt Penck, Fergusson Island and Allemata. Each of the three gold properties offers a unique path to discovery.
Mt Penck Project (102.6 sq km)
Mt Penck is Vangold’s principal property and will be subject to a concerted exploration effort in 2010/2011 to further define resources. Access to the property is by road from the provincial capital of Kimbe. The property is favourably situated within a few kilometres of the coast. Mt Penck is a high sulfidation epithermal gold system with excellent potential for copper-gold porphyry mineralization. It is located at the northwestern end of the Kulu-Simi structural corridor, which is host to Coppermoly Ltd’s Mt Nakru copper gold porphyry and Simuku copper molybdenum porphyry systems. Barrick is currently drilling at Mt Nakru and Simuku, located less than 50km from Mt Penck (see news release June 24th, 2010).
Trenching at Mt Penck has delineated five gold prospects within an area 1.0 by 1.2 kilometres with assays that have included 55 meters grading 2.75 g/t gold at Koibua as well as 97 meters of 3.39 g/t, 131 meters of 2.36 g/t and 64 meters of 2.50 g/t gold at the Kavola East zone. More than 80 holes totalling over 6,000m have been drilled on the property to date. Further information on the Mt Penck Property is contained in the Technical Report entitled “Technical Report on the Mt. Penck Property, West New Britain Province, Papua New Guinea” dated October 15, 2009 recently filed on Sedar (October 30, 2009).
Kavola East Prospect 2009 drill results include 69.5m (from surface) at 1.82 g/t gold (MPD-039); 21m at 3.13 g/t gold from 2m depth (MPD-040); 133m from surface at 1.83 g/t gold (MPD-042); and 16m at 3.72 g/t gold (MPD-045). (See news releases dated June 4th, 2009; June 10, 2009 and July 10, 2009 for more details on drill results from Kavola East).
Fergusson Project (115 sq km)
The Fergusson Property is located on Fergusson 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.
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.
Igwageta Prospect is a zone approximately 1km by 0.5km of anomalous gold, which was defined with historic (1998) shallow drilling. Drill highlights include 26m at 1.06 g/t gold; 10m at 8.14 g/t gold; 12m at 5.88 g/t gold; 25m at 2.93 g/t gold; and 20m at 3.04 g/t gold. Areas with strong gold in soil from the 2007 soil program (28.1 g/t Au; 7.42 g/t Au and 9.47 g/t Au) coincide with anomalous trench results from the 2008 trench program (TR12: 21m@ 2.51g/t Au and 57m@ 1.23 g/t Au at 0.5 g/t cut-off). For more details on Igwageta, please see news release dated September 9, 2009.
Unagala Prospect is located some 4.5 km north of Igwageta and lies in a major east-west trending structural corridor. Accessed 1.5km from the coast, Unagala is situated in a subdued topography, favourable for exploration work. Gold-bearing low-sulfidation epithermal textured quartz carbonate veins up to 2.5 meters in thickness are hosted by metamorphic basement. An active hotspring is located on the Unagala prospect. Detailed exploration to date has included hand and bulldozer trenching, grid soil VANGOLD RESOURCES LTD. Page 3 of 6
sampling, detailed geological mapping and ground geophysics. Esso drilled ten diamond and 16 RC holes in 1982 with encouraging results, including 14.45m at 4.18 g/t gold starting at 9.5m depth (UND002). Vangold geologists have compiled the historical data for Unagala and re-interpreted the structural setting of the area.
Allemata Gold Project (148 sq km)
The Allemata property is located on the main island of Papua and contains the historic Milne Bay Goldfields and is easily accessible by a 20 kilometer all weather road from the port of Alotau and Gurney International Airport. Logging roads provide access throughout the property. 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.
Management believes that this project could be developed relatively easily. Drilling and geochemistry on the Allemata property has identified two gold zones (Ulo Ulo and Haluba) on which the Company is focusing their exploration.
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 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 Voormeij, M.Sc. P.Geo, VP Exploration for Vangold and a Qualified Person as defined by National Instrument 43-101.
To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email [email protected].
On Behalf of the Board of
VANGOLD RESOURCES LTD.
"Dal Brynelsen"
Dal Brynelsen, President and CEO
Disclaimer for 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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Figure 1. Location map of Vangold’s three gold properties, Mt Penck, Allemata and Fergusson in Papua New Guinea. Vangold VANGOLD RESOURCES LTD. Page 5 of 6
Figure 2. Simplified geological map of Fergusson Island showing Vangold concessions and location of Igwageta prospect, where the 3DIP Survey was conducted (see Figure 3).
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Figure 3. Results from three dimensional induced polarization (3DIP) geophysical survey completed at Igwageta prospect, Fergusson gold project, one of three gold properties in Papua New Guinea held by Vangold. All three properties are being surveyed by 3DIP. Fergusson is the first project to be completed. Shallow drilling by Union Mining (1998) had returned best intercepts of 11m at 7.47 g/t Au (IRC-07); 19m at 3.73 g/t Au (IRC-20) and 10m at 5.94 g/t Au (IRC-42). Note the new quartz reef targets defined through resistivity and the large chargeability anomaly at the intersection of major faults.