VANGOLD RESOURCES LTD.
TSX-V:VAN
NEWS
RELEASE
TECHNICAL REPORT FILED ON
MT PENCK PROPERTY
Vancouver 23rd July 2007. New Guinea Gold Corporation
(NGG:TSX-V) (?NGG?) and Vangold Resources Ltd. (Van: TSX ? V) (?Vangold?)
(collectively the ?Companies?) have recently filed on SEDAR, technical reports on four properties
owned by Kanon Resources Ltd (?KRL?). KRL is currently owned 50% NGG and 50%
Vangold.
The Companies have today filed on SEDAR a final
KRL technical report on key gold property, Mt Penck. Up to date technical
reports have now been filed on five KRL properties and posted to Company websites (www.newguineagold.ca and www.vangold.ca).
The companies have recently announced a corporate
restructuring whereby, a separate company, Pacific Kanon Gold Corp. (?Kanon?),
will acquire all the shares of Kanon Resources Limited (?KRL?), from NGG and
Vangold. Further details of the restructuring including details of retained
equity in and of the financing for, Kanon, are expected to be announced in the
near future. The restructuring is effectively an alternate method of financing
five of the properties owned by Kanon
(the ?Properties?) rather than issuing further shares in the parent companies.
Bob McNeil, Chairman and CEO of NGG and Dal
Byrnelsen, President and CEO of Vangold commented: ?The Mt Penck property is the key property
at present in the KRL and ultimately the Kanon portfolios and a major
exploration program to define a NI 43-101 resource will re-commence as soon as
financing arrangements are completed.
We would also like to remind shareholders that very high grade gold
results were recently announced in a hand dug trench in a previously relatively
unexplored part of Mt Penck property.
This trench, which is partly along strike of the mineralised zone returned 24m at 34g/t gold including a 3m interval which averaged 180g/t gold. Mt Penck is a very exciting
property?.
The Technical Reports were jointly prepared by Ralph
Stagg, BSc. MSc. FAusIMM, MIMMM, CE, and Peter Swiridiuk BSc. (Hons), Dip Ed.
MAIG, Independent Qualified Persons for the purposes of NI 43-101. The
Independent Qualified Persons recommend exploration programs for the project and
express the opinion that the properties are of sufficient merit to justify the
proposed investment in exploration.
SUMARY DESCRIPTION OF THE
PROPERTY
Mt Penck Gold Project (KRL 80%, NGG
20%)
The Mt Penck property is in West New Britain
Province, Papua New Guinea. It is
relatively accessible being situated within a few kilometers of the north coast
of New Britain. The property is
owned 20% by New Guinea Gold and 80% by KRL.
The project is summarized below:
?
Epithermal gold system
within an eroded stratovolcano
- Drilling with the objective to define a resource
will recommence later in 2007.
- Several zones of mineralisation defined, all
open in most directions.
- Drill intercepts in 2005 of 72m of 1.79g/t gold,
14m of 2.82g/t gold, 2m of 36.7g/t gold, 6m of 3.67g/t gold.
- Bulldozer trench intercepts in 2004/05 of: 18m
of 3.7g/t gold, 8m of 7.72g/t gold, 18m of 1.72g/t gold, 3m of 16.32g/t gold,
and 13m of 2.65g/t gold.
- Large areas of geochemical anomalous gold in
soils define additional prospects.
- Recent hand dug trench of 24m at 34g/t
gold.
The Mt Penck Property is the principle property of
KRL and Kanon and after the proposed financing, exploration will be considerably
enhanced.
The Mt Penck
hydrothermal system is located within the eroded, dissected edifice of a Plio-Pleistocene strata-volcano (Mt Penck volcano), which is defined by an
irregular magnetic high with approximate dimensions of 5.0km by 3.8km, elongated
north-west, south-east. The area is
transected by west, northwest trending, possibly deep-seated, structures of the
Kulu-Fulleborn Trend. Less
prominent northwest trending structures are also present. The tenement area is underlain by a
volcanic sequence consisting of andesitic to dacitic pyroclastics and lavas and
epiclastic sediments. Minor
calcareous mudstone is also present.
The eroded spines of Mt Penck and Mt Karouk represent high-level
hypabyssal intrusives of the central vent association.
Mineralisation on the Mt Penck Property is
associated with the emplacement of a presumed Plio-Pleistocene intrusive(s) into
sub-volcanic levels of the Mt Penck volcano. A combination of both structure and
contrasting host rock permeability appear to have controlled fluid flow in the
carapace of the intrusive. Units of
hornblende porphyry lava have, in response to strain, brittle-fractured forming
an open stockwork receptive to haematite-quartz-gold mineralisation. By
contrast, epiclastic rocks have behaved in a ductile manner, absorbing strain
with little or no development of brittle fracturing. Such rocks, with their inherent primary
porosity, have absorbed fluids and they commonly host pervasive argillic (illite-smectite-pyrite) alteration.
With few loci for mineral deposition, epiclastic rocks are host to only
weak, low grade (generally <0.5g/t gold mineralisation.
Several gold prospects are known within an area of
approximately 1.5km x 0.9km, including Kavola East-Uit Creek, Central Zone,
Koibua, Peni Creek, Peni Creek South and Kavola South. The prospects are located
within or peripheral to a central zone of intense phyllic alteration that is
coincident with clearly defined geophysical anomalies comprising a
reduced-to-the-pole aeromagnetic low and potassium radiometric high. Argillic alteration outside the main
central zone is confined to linear zones that appear to be variously controlled
by either north, northeast or northwest structures.
A special study analyzing soil samples indicated
the presence of white mica (mostly illite), halloysite/kaolinite, chlorite,
pyrophyllite, nontronite, montmorillonite and goethite. The spectral data clearly show distinct
alteration zones and confirmed the field mapped central Kavola phyllic
zone. Phyllic zones are
characterized by the development of white mica. Goethite also appears to map out the
approximate extent of the alteration zoning being strongly developed in
association with phyllic alteration, which also occurs in the southeast of the
soil grid. The occurrence of
pyrophyllite is proximal to the Lumui fault zone, suggesting that the fault may
be a pathway for higher temperature acidic fluids.
Sphalerite, galena and vuggy silica is locally
present at Mt Penck and may indicate a porphyry-related epithermal style of
mineralisation located in closer proximity to the main heat source. A mesothermal vein system would be
consistent with a possible nearly underlying intrusive porphyry.
28 Diamond core holes were completed during 2006
and early 2007, which defined widespread 2g/t to 3g/t gold mineralisation at the
Kavola East prospect. All results
have been released in Press Releases and some of the better results were: 7m at 2.3g/t gold, 13m at 2.1g/t gold,
2m at 19.1g/t gold, 7m at 2.07g/t gold, 2m at 19.1g/t gold, 7m at 2.07g/t gold,
7m at 2.95g/t gold, 4m at 5.71g/t gold.
Hole MPD22, to the west of Kavola East, intersected high grade zinc and
lead (2m at 2.1g/t gold, 43g/t silver, 7.4% zinc and 4.3% lead; and 4m at 7.5g/t
gold, 41g/t silver; 1.6% zinc and 0.3% lead).
Two prospects were recently up-graded by hand trenching (see Press
Release dated 21 February, 2007).
At upper Peni Creek separate trench intersections above
0.5g/t cut off were:
- 24m at 33.7g/t gold including 3m at 180g/t
gold
- 12m at 4.07g/t gold
- 33m at 1.73g/t gold
- 18m at 1.82g/t gold
At Kavola South separate trench intersections above
0.5g/t cutoff were:
- 30m at 4.42g/t gold
- 48m at 4.01g/t gold
- 24m at 2.82g/t gold
- 12m at 1.49g/t gold
The nearest drill hole to the Kavola South Zone is MPD038 located 160m to
the east.
With the conclusion of the financing for Kanon, exploration will be
enhanced with the continuous operations of two Diamond core drill
rigs.
The
technical data in this release was prepared by or under the supervision of
Robert D. McNeil, CEO of New Guinea Gold Corporation. Mr McNeil has an MSc in Geology, 44
years mining industry experience, is a Fellow of the Australian Institute of
Mining and Metallurgy, and meets the requirements of NI 43-101 for a qualified
person.
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 brynelsen@vangold.ca.
VANGOLD RESOURCES LTD.
?Dal Brynelsen?
Dal Brynelsen, President and CEO
The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy of
the content of this news release.
The statements made in this News Release may contain certain
forward-looking statements. Actual
events or results may differ from the Company?s expectations. Certain risk factors may also affect the
actual results achieved by the Company.
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Memo From Investor
Relations
(Note: This is not
part of the Press Release)
Now that you have read
the press release and/or the Technical Report, please review the following
website link found on New Guinea Golds' website. The following link will
redirect you to their website. http://www.newguineagold.ca/projects/penck/MtPenck.html
Everyone knows the
saying: "Every picture tells a story!" Please note the picture on the
upper right hand corner of the aforesaid link. It's a picture of panned gold
from the Peni Creek area at Mt Penck, Papua New Guinea. The aforesaid was
not on their website prior to Vangolds AGM held on June 8, 2007. Please
note the pictures of the gold nuggets have not been assayed yet.
Obviously, trenching has continued at Mt Penck subsequent to moving the jointly
owned drill rig to the Feni Island Gold Project. We anticipate an update
on the Feni Island drill program shortly.
For those investors who
have not understood the meaning of the Horn Rare Metal Reverse Take Over Transaction with Janina Resources (JAN-V:TSX), and/or the Kanon Resources Ltd
Initial Public Offering, please note as follows. Both transactions will
allow investors to value those transactions independently once they are
public. As those entities go public, you will note a bump to the asset
base of Vangold. If you refer to page 19 of the Annual Report you will
find the Consolidated Balance Sheets. Note 5 is the Carrying Value of
Kanon and at year end 2006 the value was $1,894,667 of the Total Asset Value
$15,461,268. By the same token, Note 4 reflects the value of the Mineral
Properties and include Uganda and Brazil (the beryllium properties are valued at
approximately $580,000 of the Total Value of $2,225,015 in Note
4.
We anticipate a press
release from Janina Resources shortly announcing the closing of a Private
Placement financing completed at $.50 with a warrant at $.75. Its is our
understanding the financing was oversubscribed by several million dollars, and
then cut back. It is also our understanding we anticipate Janina to change
its name to International Beryllium Corporation, obtain a new trading symbol,
and then resume trading.
A part of the reverse
take over transaction involves Janina issuing 50 Million shares of which Vangold
is anticipating 51% or 25.5 Million shares. Those shares will be booked on
Vangolds Balance Sheet under Assets. That will be a new entry on our
balance sheet. Please review your copy of the Annual Report (if you do not
have one, we will send one to you,) or simply go to the Vangold Website located
at http://www.vangold.ca and click on the
Financial Statement tab. Its anyones guess as to what price JAN will
reopen, but if it opens at the price of the last Private Placement (or
$.50) then the 25.5 M shares will have a value independent of Vangolds share
price. As Firebird advanced $500,000 to Horn initially in 2006, they too
are entitled to their shares or 49%. So you have it, Vangold put little or
no money into the transaction and stands to increase its asset base considerably once Janina returns to trade. We understand further
transactions are pending in Janina/Horn.
In regards to the Kanon
Transaction, we anticipate the IPO to take place in September 2007. For
those shareholders, investors, fund managers, etc who previously indicated their
interest level to Investor Relations, your name is entered on the Presidents
List. If you told Vangolds President or any of the directors about
your interest level, make certain you inform Investor Relations. We
anticipate the Kanon financing might be oversubscribed in much the
same way the Janina financing was oversubscribed.
As per the Vangold Annual
Report you will find reference to the Kanon transaction on the very last
page, under Subsequent Events, Note 11 (the last paragraph). In essence,
Kanon will issue 25 M shares to each of Vangold, and its partner New Guinea
Gold. Concurrently, an IPO for an additional allotment will
occur. We anticipate 25 Million IPO units at a price of at least $.40 per
share with a half warrant at $.50 (or higher). If $10 M is raised, then
you would have 87.5 M shares Fully Diluted. If you are planning on selling
your shares in Vangold to invest in Kanon, Investor Relations cautions you on
that strategy, rather we doubt you will be able to
participate in the IPO. We caution investors that the unit price
of the financing may change at any time and might be subject to a higher evaluation. Once Kanon is public you will be able to value the 25
Million shares Vangold receives. If it opens at $.40 or $.50 or higher, do
the math and you will find a second bump to the asset base of Vangold. The
25 Million shares that Vangold, and New Guinea Gold each obtain from Kanon will
have a 12 month hold on them.
The bottom line is both
transactions (Janina/Horn, and Kanon) should at least double or
triple Vangolds' Year End 2006 asset base once they crystallize. We
anticipate further bumps to the asset base from the Alberta Oil and Gas
Properties upon successful drilling, completion and tieing in at Sarcee,
Strachan, Deep Basin, and/or Killam North. There is no reason for
Vangolds' share price to be trading at $.68 Cdn, it should trade higher but lets
not forget we have already doubled the share price this year and are trading in
a new range. There is no doubt in Investor Relations that one future
bright spot for Vangold is in Africa. There is no reason why Vangold
can not repeat the successful efforts of the drilling
programs Heritage Oil Corporation and/or Tullow Energy had in Uganda and
elsewhere in Africa. We also look forward to drilling programs on the
mining side in Africa, especially at Kilo Moto, Kilembe, Fort Portal and in
particular Kafunzo (which might be the northern extension of the nickel
sulphide deposit that Barrick and Xstrata have a few miles away in
Tanzania). For those investors who have not read about the Bill Clinton
Foundation and their involvement in Africa, we recommend you do so.
We look forward to
further updates from the company.
Robin Moriarty,
BSc
Investor Relations for
Vangold
Toll Free in North
America 1 877 361 0002
Cell
1
778 899 1583
Cc: Market Smart
Communications, Maria Da Silva
Cc: Russ
Millward
If you have received this
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please use the link remove@vangold.ca and
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to indicate whether you are a shareholder or not. Investor Relations
tracks the share ownership, thus if we have not heard from you in regards to
your position, please let us know. Retail shareholders currently hold 55
M, Firebird Management 11 M, Rab Capital still hold a position, and insiders and
directors the balance. If you receive this email twice, it might be due to
a technical glitch in MicroSofts Outlook Express program, nothing more than
that. We thank all shareholders for your tremendous support, and
PATIENCE.&NBSP; THANKYOU.