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Vangold Mining Corp (2)
Symbol VGLD
Shares Issued 60,067,729
Close 2020-04-22 C$ 0.045
Market Cap C$ 2,703,048
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Vangold hopes to process Mexican historical stockpile

2020-04-23 08:28 ET - News Release

Mr. James Anderson reports

VANGOLD MINING PREPARES FOR 2020 EXPLORATION AND DEVELOPMENT

Vangold Mining Corp. is continuing work and planning on its 2020 campaign to advance its El Pinguico silver and gold project, located just seven kilometres south of the city of Guanajuato, Mexico.

Continuing operations through the COVID-19 pandemic

Vangold continues to develop its El Pinguico project during the Mexican government's curtailment of non-essential economic activities in response to the COVID-19 pandemic. The company is actively engaged with three separate initiatives: processing a substantial bulk sample through a local mill, making accessible an additional 30 metres of vertical distance at the bottom of the El Pinguico shaft and developing a comprehensive drill plan to be initiated in late summer/early fall.

Bulk sample

Vangold is in discussions with local contractors to deliver a substantial bulk sample from its surface mineralized stockpile for processing at a local mill within the Guanajuato area. This material has remained in place since 1913 when mining ceased on the property due to the Mexican revolution. Processing the bulk sample will provide important information regarding metallurgy and precious metal recoveries to assess the economic viability of direct shipping both surface and underground material from the El Pinguico project on a continuing basis. To date, no formal arrangements for processing a bulk sample have been finalized.

Re-establishing the El Pinguico shaft

In the early 1900s, El Pinguico was mined on 10 levels and from four major shafts. The most central of these shafts, and the one located closest to the company's underground stockpile, is called the El Pinguico shaft. Crews will begin clearing the bottom of the El Pinguico shaft down to the seventh adit level (also known as the Sangria level) as soon as Mexico lifts COVID-19 work restrictions. Accessing the Sangria level will allow the company to advance three important initiatives:

  • First, the company will conduct a sampling program of material at the bottom of its historic underground stockpile in order to gain confidence that the grade encountered by Vangold's 2017 trench sampling program at the top of the stockpile (an average of 3.56 grams per tonne of gold equivalent) extends to the bottom of the stockpile (see Vangold Mining National Instrument 43-101 dated Feb. 28, 2017, by Carlos Cham Domingues on SEDAR).
  • Second, the company will re-enter and sample previously mined stopes, especially the Colmillo stope. This particular stope, located adjacent to and above the Sangria adit level, is thought to be an area of potential high-grade vein material, as evidenced by assays from historical channel sampling.
  • Third, company contractors will re-enter the Sangria adit itself, and assess the condition of the adit and the competency of the rock formations that the adit cuts through. This will be a first step in understanding what refurbishing will need to be done should the company decide to use the Sangria adit to bring mineralized material from the underground stockpile to surface in a safe and cost-effective manner.

Defining drill targets

Vangold continues to compile all relevant historical and contemporary geological data from the El Pinguico project. Drill targets established in the company's 2017 NI 43-101 report are being augmented with drill targets that could be accessed using underground drilling equipment. In this way, the company plans to target extensions of historically mined vein material from existing underground workings, in order to lessen the drilling distance needed to intercept those targets and thereby reduce drilling costs.

The company also plans to assess regional information pertaining to the angle of dip associated with the Veta Madre (or Mother vein), the region's main controlling structural feature. The Veta Madre is responsible for the deposition of most of the over 1.2 billion ounces of silver historically mined from the Guanajuato region, and is theorized by company engineers to cross the El Pinguico project at depth. The company plans to drill test the presumptive intersection of the El Pinguico vein systems and the Veta Madre, at approximately 500 m in depth, this fall.

Vangold director Dan Oliver commented, "Despite continuing coronavirus considerations, this is an exciting time for the company -- we are working diligently at re-establishing the El Pinguico mine to its past glory."

The El Pinguico project

El Pinguico is a high-grade gold and silver deposit that was mined from the early 1880s until 1913. The mining was done exclusively from the El Pinguico and El Carmen veins, which are thought to be splays off the Mother vein, or Veta Madre.

The Veta Madre is associated with a mega fault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. The Veta Madre may cross Vangold's property at depth, underneath the high-grade El Pinguico and El Carmen veins, but very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth. Historic stockpiles of mineralized material exist on surface and underground at El Pinguico which may potentially provide feed to one of several operational mills in the Guanajuato area.

Hernan Dorado, a director of Vangold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

About Vangold Mining Corp.

Vangold Mining is an exploration company engaged in the exploration of mineral projects in the Guanajuato region of central Mexico. The company's flagship El Pinguico project is a significant past producer of high-grade gold and silver and is located just seven km south of the city of Guanajuato, Mexico. The company remains focused on the near-term potential for development and monetization of both its surface and underground stockpiles of mineralized material from El Pinguico.

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