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VANGOLD RESOURCES LTD.
TSX-V:VAN
NEWS
RELEASE
TECHNICAL REPORTS FILED ON ALLEMATA & FERGUSSON
PROPERTIES
Vancouver 17th July 2007. New Guinea Gold Corporation
(NGG:TSX-V) (?NGG?) and Vangold
Resources Ltd. (VAN:TSX ) (?Vangold?) (collectively the ?Companies?) have
previously announced a corporate restructuring whereby, a separate company,
Pacific Kanon Gold Corp. (?Kanon?), will acquire all the shares of Kanon
Resources Limited (?KRL?), currently owned 50% by NGG and 50% by 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.
As a part of the restructuring, NI 43-101
technical reports have been completed on the properties. Reports for the Allemata and Fergusson
properties have been on SEDAR (www.sedar.com) and posted to the Companies? websites (www.newguineagold.ca, and www.vangold.ca), with the
remaining reports expected to be filed in the near future.
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. In each case, the Independent Qualified
Persons recommend exploration programs for the projects and express the opinion
that the properties are of sufficient merit to justify the proposed investment
in exploration.
?We
are pleased to be able to announce concrete progress in the corporate
restructuring related to Kanon? said Bob McNeil Chairman and CEO of New
Guinea Gold and Dal Brynelsen, President and CEO of Vangold. ?Both Companies look forward to continued
progress over the coming weeks.? Concluded the two CEO?s.
SUMMARY DESCRIPTION OF
PROPERTIES
ALLEMATA PROPERTY (KRL
100%)
The Allemata Property is owned by KRL and will be
financed in future separately from the Companies. Allemata EL (1322) covers
24.3km2 and is located in the Suau Peninsula on the southeast tip of
the Papuan mainland in Milne Bay Province.
An all weather road connects the tenement area to Gurney International
Airport and on towards Alotau. Numerous agricultural and logging tracks provide
good access to within a few hundred metres of many of the prospects. Alotau is
an important shipping port and most supplies can be sourced there. Gurney International Airport is 15km
from the license by sealed road (? hours drive) and the main administrative
centre and port, Alotau is 20km to the north-east (one hour?s drive). Alotau is
serviced by Coastal Shipping or chartered barge to a wharf. Equipment such as drill rigs can be
transferred by truck on-site then pulled on skids on existing bulldozer
tracks. The prospect areas are
uninhabited, with minor gardens in the area. Local creeks are used for drinking
water.
The property covers the Milne Bay Goldfield, which
was proclaimed in 1899, and was a productive area for alluvial gold, producing
approximately 14,320 oz to 1926 when mining lapsed. Alluvial platinum was
discovered and mined from 1933 for approximately eight years, and produced a
total of 6kg (193 oz) of platinum.
Three small-scale mines were brought into
production in 1938/39 being the Louise (Ulo Ulo), Jumbo/Juno and Rough Ridge
Mines, with total production of approximately 30kg (960oz) of gold. The Rough
Ridge Mine appears to have been the most viable, producing 22kg (700oz) of gold
from 1,320 tonnes of ore (~17g/t Au).
Mineralisation on the Allemata property is
associated with emplacement of intrusives of Oligocene/Miocene age into
Cretaceous age sediments (mainly shales). The intrusions have caused argillic
and silicic alteration, which is closely associated with the various styles of
mineralisation. Skarn
mineralisation may also be present as sediments in the area including carbonate
units.
At Mt Haluba gold is
associated with a series of moderate to steeply dipping structures. Gold mineralisation in the oxidized zone
is disseminated in argillically altered minor silica/mangano ? carbonate
stockworked zones.
At Ulo Ulo the mineralisation is confined to
mineralized structures of up to 10m widths of sulphidic veins. Gabbro has been intruded by granodiorite
and aplite dykes. The emplacement
of the dykes brought heat and accumulated gold and base metal sulphides along
the margins of the dyke-gabbro and duke-fine grained volcanics. It is thought that the gold source is
both the volcanics and gabbro.
Intrusive rock types observed ranging from syenite
through monzonite and gabbro, with breccia, imply a complex intrusive history
and fractionation. The rocks are of
alkaline type and similar to those associated with gold mineralisation in
southeast PNG. Gold and possibly
platinum mineralisation in pyritic shear zones and quartz-pyrite veins, indicate
the development of mineralized hydrothermal systems. Skarn mineralisation potential is also
present as the country rocks are known to include carbonate bearing
units.
In 2005 KRL drilled six holes totaling 764.9m. All holes encountered gold
intersections, mainly at depths of less than 50m down-hole.
At the Ulo Ulo prospect,
several relatively narrow intersections were encountered such as 1.0 m of
17.65g/t gold, 1.55m of 5.87g/t gold, 1.9m of 9.39g/t gold, 0.5m of 6.02g/t
gold, 0.1m of 32.2g/t gold, 33g/t silver, 2.35% copper and 0.11% zinc, plus
other intersections of up to 7m in width at gold grades of less than 5g/t
gold.
At
Ulo Ulo, the drilling has defined numerous relatively narrow and wider high
grade zones, lower grade gold zones which will require further drill testing to
evaluate their economic potential.
The drilling and surface geochemistry shows that anomalous gold occurs
over a 2 square kilometer area and much of this area remains to be drill tested.
The
controls on mineralisation at Ulo Ulo are not fully
understood.
The drilling at Mt Haluba has confirmed
significant mineralisation within 60 metres of the surface and within a 100 m by
100 m area, high on the slopes of Mt Haluba. Further trenching and drilling will be
required to obtain an estimate of the amount of such mineralisation and this
will be carried out after all surface and drill information have been completely
evaluated.
FERGUSSON PROPERTY (KRL
100%)
The Fergusson Property is owned by KRL and will in
future be financed separately from the companies.
Fergusson Island lies within the D?Entrecasteaux
Island Group that is located just to the north of the south- eastern tip of
mainland Papua New Guinea, within the Milne Bay Province.
The D?Entrecasteaux
Islands consist largely of complexly deformed metamorphic basement which forms
mountainous domes, and which are intruded by bodies of granodiorite. The metamorphic basement is surrounded
by curved, shallow dipping faults (less than 45? dip). Below these faults, parallel shear zones
are developed in the basement.
Fault slices of ultramafic and mafic rocks overlie the basement. Where
these slices of rock are large (more than a few metres in diameter) they are
undeformed, except near their boundaries.
Areas of volcanism are spatially associated with
faulting.
Previous exploration on Fergusson Island focused
on epithermal style gold and silver mineralisation, localised within detachment
fault zones (?DFZ?) in metamorphic rocks.
The model reflects the presence of multiple,
stacked zones of gold mineralisation associated with the DFZ. These stacked horizons formed from the
imbricate playing off of blocks of earth which slid down to become lodged upon
the in-situ DFZ. This compounding
of the DFZ by gravity-slide faults is due to the continual domal uplifting of
the young, emerging island group and allows for multiple ore
horizons.
In the D?Entrecasteaux Islands, mineralisation
related to the dome bounding faults, at gold deposits such as Gameta and Wapolu
(not Kanon properties), is not directly related to nearby magmatism, whereas at
Kanon?s main projects, Igwageta and Unagala, mineralisation is likely to be
directly associated with nearby volcanic centers. Consequently, different
alteration assemblages and structural controls can be expected in these
different mineralisation styles.
Gold mineralisation at Igwageta and Unagala
prospects is associated with Pleistocene to Recent volcanism and specific
structural zones.
At Igwageta Prospect the basement
metamorphics host up to three metre wide, epithermal quartz-carbonate
veins. Previous exploration by
others (Union Capital), and confirmed in 2006 by Kanon, outlined a 1,500m long
by 500m wide zone of anomalous gold from geochemical soil sampling. Examples of Union?s trench results, now
confirmed by Kanon are:
Line/Trench |
Intercept
(m) |
Au
g/t |
Trench
7
incl. |
46
8 |
1.00
3.14 |
Trench
14
incl. |
84
6 |
0.97
7.87 |
Trench
22
incl.
incl.
incl. |
38
24
6
4 |
3.28
4.86
8.44
12.30 |
The trenching revealed an epithermal quartz
stockwork zone developed within sericite altered, flow banded, volcanic tuff
which trends east west over a distance of at least 70m. It is open-ended to both the east and
west, is up to 15m to 20m wide and appears to dip to the south at 30-50 degrees.
The high-grade intervals obtained from Trenches 14 and 22 are associated with
altered volcanics containing vein breccia stringers.
Reverse circulation drilling by Union encountered
the following results (hole locations are shown at www.newguineagold.ca).
Hole
No |
From ?
to
(m) |
Best Intercept
(m) |
Au
(g/t) |
001 |
0 -
19 |
19 |
0.51 |
002 |
2 -
6 |
4 |
1.78 |
002a |
2 -
5 |
3 |
1.20 |
003
incl. |
0 -
44
0 -
26 |
44
26 |
0.70
1.06 |
005 |
0 -
13 |
13 |
0.27 |
007
incl. |
0 -
10
0 -
3 |
10
3 |
8.14
20.82 |
008 |
23 -
27 |
4 |
0.28 |
009
incl. |
0 -
6
4 -
5 |
6
1 |
2.81
11.20 |
010 |
0 -
14 |
14 |
0.46 |
010a
incl. |
0 -
12
7 -
8 |
12
1 |
5.88
64 |
011 |
15 -
16 |
1 |
1.56 |
020
incl. |
0 -
25
3 -
6 |
25
3 |
2.93
19.84 |
021 |
5 -
6 |
1 |
2.33 |
023 |
1 -
9 |
8 |
1.02 |
025a |
3 -
13 |
10 |
1.12 |
041 |
32 -
33 |
1 |
1.93 |
042
incl.
incl.
incl. |
0 -
20
10 -
20
14
-19
14 -
15 |
20
10
5
1 |
3.04
5.83
10.83
42.18 |
044 |
10 -
11 |
1 |
1.02 |
046
incl.
|
8 -
14
10 -
12
27 -
30 |
6
2
3 |
1.41
3.16
1.30 |
At the Unagala prospect, 4.5km north of the Igwageta
Prospect, Esso in the 1980?s intersected 9.55m averaging 4.18g/t gold in
UND2. A second mineralised interval
in this hole yielded 8m averaging 1.70g/t gold from a depth of 68.0m.
A number of the RC drill holes also intersected
gold mineralisation, the best values being UNR4 with 2m at 1.18g/t gold and
UNR13 with 2m at 1.11g/t gold.
All drilling results are summarized in the
technical report.
Approximately 20 other prospects have been located
within the property.
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.
On Behalf of the Board
of
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.