VanGold Signs Agreement for 100% Interest In Historic El Pinguico Mine
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VANGOLD RESOURCES LTD.
NEWS RELEASE TSXV: VAN
VanGold Signs Agreement for 100% Interest In Historic El Pinguico Mine
January 5, 2017; Vancouver, B.C. -- Vangold Resources Ltd . (TSXV:VAN; “Vangold” or the
“Company”) is pleased to announce that it has entered into an asset acquisition agreement made effective
December 16, 2016, with Exploraciones Mineras Del Bajio SA de CV (“EMDB”) to acquire a 100%
interest in the El Pinguico property (the “Property”). The Property consists of two mining concessions
covering 71 hectares, located approximately 5km southeast of the City of Guanajuato in Guanajuato State,
Mexico, and contains the historic El Pinguico- Carmen silver -gold mine. The acquisition is at arm’s
length.
The historic El Pinguico Mine is on strike with the Veta Madre (Mother Lode) , and is located
approximately 4.5 km from Endeavor Silver’s El Cubo mine and 2.5 km from Mina Las Torres, Fresnillo.
The Property has excellent a ccess routes, communications, basic mining infrastructure and proximity to
processing plants. In 2012, the Mexican Geological Service (SGM) estimated the presence of 320,000 mt
of broken mineralized rock underground with an average grade o f 1.66 g/t Au and 167 g/t Ag (the
“Stockpile”) – see also Table of sampling results below 1. EMDB has been conducting a geological
assessment of the historic mine with the aim of bringing it back into production and liberating the
Stockpile.
Under the terms of the agreement, Vangold will pay US$20,000 on execution, US$30,000 on receipt of
TSXV approval, issue 5,000,000 common shares on closing , and make a final payment of US$50,000 on
the date that is six months after TSXV approval. Vangold h as further granted EMDB royalties equal to
(i) 4% NSR and 15% NPI on minerals recovered from the Stockpile; and (ii) 3% NSR (of which Vangold
can repurchase one- third ( ie. 1% NSR interest) for US$1,000,000) and 5% NPI on all newly mined
mineralization. In connection with the acquisition, Vangold has agreed to pay a finder fee equal to 10%
of the acquisition value up to $300,000 and 7.5% of the acquisition value in excess of $300,000. The
agreement and payment of the finder fee remain subject to a number of conditions, including the approval
of the TSX Venture Exchange. All securities issued will be subject to a four month hold period.
1 SGM, 2012, Certificacion de Reservas Mineral Quebrado en la mina “El Carmen -El Pinguico” Municipio de
Guanajuato, Gto. The SGM estimate is considered a historical estimate and was not prepared pursuant to CIM
definitions for mineral resources. Vangold has not conducted an independent review of the data and methodology
employed, but believes the estimate is reliable as SGM is an agency of the Mexican government. The SGM estimate
assumes:
• specific weight: 1.4 ton/m3
• area of vertical influence is considered zero (0) because it is a lying mineral and is not in situ
• abundance factor: 35%
• in the calculation of the metric tonnage, area and volume based on the average length of the trenches (width
of the recess)
Vangold is not aware of any more recent estimates or data regarding the Stockpile. In order to verify the historical
estimates, additional sampling and mapping will be required. A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources or mineral reserves, and Vangold is not treating the
historical estimate as current mineral resources or reserves.
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Guanajuato State; El Pinguico Mine
Guanajuato Mining District is considered to be one of the top three historic silver mining districts in
Mexico, having produced an estimated 1 to 1.2 billion oz silver and 5 to 6 million oz gold [General
Direction of Mining Development]. At their peak during the 1700's, the silver mines of Guanajuato were
thought to be the largest and richest silver mines in the world.
The historic El Pinguico mine was one of the richest gold and silver mines at the beginning of the 20 th
Century. It was operated by The Pinguico Mines Company with grades over 50 g/t Au and 700 g/t Ag [1].
First put into production in 1890, the historic El Pinguico Mine was in full production by 1906
(approximately 250 tpd), one of the largest in its day [1]. The mineralization is a classic, low sulfidation
epithermal vein system , consisting of disseminations and fracture -fillings of pyrite, pyrargygrite,
polybasite and electrum in quartz -calcite veins ranging from 1 to 30 metres thick but averaging 2 to 3 m
wide. Multiple historic mineralized zones (now stopes) formed steep-plunging shoots 100 to 500 m long
that were mined down to depths of 200 to 600 m [Prof. Robert T. Hill, 1910, Report upon the Properties
of The Pinguico Mines Company, The Securities Corporation Ltd. NY, NY].
The following table shows the sampling done by the SGM in 2012. A qualified person has not verified
the sampling data , as the original samples were unavailable and new samples will need to be obtained .
Although this work was not performed under NI 43- 101 and not tested in a cer tified laboratory, there is
considerable exploration potential at the historict El Pingüico mine. Further work is required in these
areas, including sampling and mapping.
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Vangold intends to commission a 43-101 report to establish a work program and budget for the Property,
which is expected to include data compilation, mapping and sampling. The results of this work will be
used to outline priority targets to be tested by a phase two, with further mapping and sampling continuing
during phase two.
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Dal Brynelsen, CEO, states “We are extremely pleased with the opportunity represented by the historic El
Pinguico mine. The location and historical reports show significant promise. We are looking forward to
a more detailed and systematic exploration of the Property and its potential.”
The Company also reports that Ms. Anna Serin has resigned from the office of Corporate Secretary. The
Company would like to thank Ms. Serin for her years of devoted service, and wishes her well in her future
endeavours.
On behalf of the Board Directors
Dal Brynelsen
Chief Executive Officer
For more information, refer the Company website at www.vangold.ca and please contact:
Corporate Finance
604.499.6545
The disclosure of scientific or technical information regarding the Property in this news release has been
reviewed and approved by Mr. Carlos Cham, P.Eng., CPG, who is considered an independent qualified
person under National Instrument 43-101. Mr. Cham received a Bachelors of Geologist Engineering from
the Universidad Autónoma de San Luis Potosí in 2003, and has also completed an MBA (specializing in
finance) from the Universidad Tec Milenio and a Diploma in Mining and Environment from the
University Miguel de Cervantes. Mr. Cham has 13 years experience working as a geologist or geologist
engineer, including exploration on several precious and base me tal projects in Mexico, and is a Certified
Professional Geologist (exploration) of the American Institute of Professional Geologists as well as a
member of the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México.
Neither the TSX Venture E xchange nor its Regulations 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.
This news release contains forward-looking statements. Any statements that are not historical fact are to
be considered forward -looking statements. Forward-looking statements cannot be guaranteed and
involve assumptions and are subject to a variety of risks and uncertainties which could cause actual
events or results to mat erially differ from those reflected in the forward -looking statements. Readers are
advised to rely on their own evaluation of such risks and uncertainties and not place undue reliance upon
forward-looking statements. Any forward-looking statements herein are made as of the date hereof, and
the Company disclaims any intention and assumes no obligation to update or revise any forward-looking
information and statements except as required by applicable laws.