Vangold Resources Commences Drill Program at Its Allemata Project, Appoints VP of Exploration and Closes Financing
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/18/12 -- Vangold Resources Ltd. (TSX VENTURE: VAN) (the "Company" or "Vangold") today announced that it has commenced core drilling at its Allemata Project, located in Milne Bay Province, Papua New Guinea.
The current 10-hole drill program will test two prospects, Huluba and Ulo Ulo, where significant gold mineralization has been identified in earlier work programs. Holes will be drilled to up to 300m in depth and have been targeted using a combination of surface geochemistry, geophysical surveys and historic work, including previous drilling. Results from the current drill program are expected early in 2013.
"This is an important milestone in advancing the Allemata Project", commented Bruce Counts, President of Vangold Resources Ltd. "The presence of gold has been firmly established on the property and this drill program is aimed at expanding the gold mineralization laterally and vertically on both prospects."
Allemata
The 148 sq-km Allemata property encompasses the historic Milne Bay Goldfield which produced 15,000oz of gold from alluvial and high grade lode mines prior to WWII. The property is easily accessible by a 45km all-weather road from the port and provincial capital of Alotau. Previous geochemistry, trenching and drilling at Allemata has identified two main gold prospects, Haluba and Ulo Ulo located 3.5km apart along a northwest trending structural zone.
Haluba Prospect
The Haluba prospect hosts disseminated and stockwork gold mineralization. Rock chip sampling, trenching and drilling programs have been completed with promising results including 20m at 2.17g/t gold, 16m at 2.87g/t gold and 45m at 1.51g/t gold in trenches. Five holes have previously been drilled at Haluba to a maximum vertical depth of 160m; the drilling results included: 24m at 1.90g/t gold; 29.7m at 1.59g/t gold; 14m at 1.64g/t gold and 24m at 1.54g/t gold.
Ulo Ulo Prospect
The Ulo Ulo prospect hosts vein style gold mineralization and is the site of an historic lode mine. Previous drilling results include: 3m at 19.59g/t gold; 2.0m at 7.55g/t gold; 0.5m at 10.85g/t gold; 21m at 1.31g/t gold and 11.65m at 2.01g/t gold. Only 3 holes were deeper than 100m; no deep drill testing has been undertaken to date. Anomalous values for copper, lead and zinc were also intersected including: 8m at 0.22% copper, 0.34g/t gold & 1.9 g/t silver; 2.35m at 0.33% copper and 0.5m at 0.23% copper, 0.49% lead & 0.45% zinc.
In addition, Vangold is pleased to announce the appointment of David Kelsch as Vice President of Exploration. David brings to the company an unparalleled ability to conceptualize, design and execute comprehensive, technically focused exploration programs that are systematic, efficient and cost effective.
Mr. Kelsch's involvement in the mineral exploration industry spans more than 25 years. He has been active on programs ranging from grass roots through to development both locally and internationally, on commodities ranging from gold to base metals to diamonds. His tenure at Rio Tinto (1992 to 1997) saw Mr. Kelsch as an integral member of the team responsible for the discovery of what was to later become the Diavik diamond mine in remote northern Canada. Mr. Kelsch later became a consultant to junior explorers until 2004 when he assisted in the start-up of Bluestone Resources and took the position of Director and V.P. Exploration. Mr. Kelsch holds a degree in geology from the University of British Columbia.
Finally, Vangold announces the private placement of 2,850,000 units at $0.115 per unit, each unit consisting of a share and one half of a four year share purchase warrant exercisable at $0.25 per share. The placement is slightly less than originally announced because the TSX Venture Exchange did not accept $0.115 subscriptions from persons who were not incoming directors (or companies associated with incoming directors) in accordance with private placement policies respecting "part and parcel" pricing.
On behalf of the Board
Bruce Counts, P. Geoph., President
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to use of proceeds, future exploration programs and the completion of financings, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Vangold operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, Bluestone expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Disclaimer for Forward Looking Information
This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation 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.
Contacts:
Vangold Resources Ltd.
Bruce Counts, P. Geoph.
President
604-684-1974
604-685-5970 (FAX)
www.vangold.ca
