04:53:50 EDT Tue 20 Oct 2020
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Vangold Mining Corp (2)
Symbol VGLD
Shares Issued 104,507,351
Close 2020-09-15 C$ 0.165
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Vangold samples 40 m of El Pinguico shaft vein

2020-09-16 06:58 ET - News Release

Mr. James Anderson reports

VANGOLD MINING PROVIDES EXPLORATION UPDATE

Vangold Mining Corp. is providing an update on progress from its continuing exploration of the El Pinguico silver and gold project located seven kilometres south of Guanajuato, Mexico.

El Pinguico shaft/sampling of exposed vein

The excavation of the El Pinguico shaft was paused during the week of Sept. 7 to allow crews to safely access and sample material from exposed areas of the El Pinguico vein in the vicinity of the shaft. Crews have observed and sampled approximately 40 metres of vertical extent of the vein extending from the fourth to the sixth level and in close proximity to the company's underground stockpile. This vein exposure has now been channel sampled every four m along the vertical extent of the exposure. Samples are being sent to SGS Labs in Durango, Mexico, for analysis; assay results will be released once they are received and interpreted by Vangold geologists and engineers. Excavation of the remaining material that continues to block access to level 7, where it intersects the El Pinguico shaft, will continue during the week of Sept. 21, 2020.

Clearing access of No. 7 adit portal

Access to the No. 7 adit is also blocked approximately 75 m from its portal by what the company thinks is a relatively superficial rock fall, as it occurs at a mapped fault, and at a change of rock type (andesites to rhyolites). The company is utilizing a mechanized scoop tram to aid in the removal of this material and will begin to re-enforce the back or roof of the adit with steel beams at the area of the collapse. Company director and mining engineer Hernan Dorado commented: "If this cave-in is indeed superficial in nature, and if the No. 7 adit resembles the No. 4 adit above it, we may be able to access approximately 1.2 km of open adit all the way to the intersection of the No. 7 adit and the El Pinguico shaft. Accessing this level will also allow greater flexibility in choosing drill targets in the months ahead and would open potential alternatives for the future extraction of the underground stockpile."

Additional geological tasks

Crews have undertaken several other tasks to explore the property and to prepare for underground and surface drilling planned for later in the season. These tasks include:

  1. Generating a 3-D model of the underground workings: Work has advanced quickly in generating a 3-D model of the various vein structures observed on surface and underground at the El Pinguico property. A survey contractor has been engaged to perform a detailed geo-referenced location survey within the underground workings, in order to add the 3-D location of these adits and stopes to the computer model. This will help greatly in drill targeting for vein material while avoiding open voids in the mine.
  2. Sampling of No. 4 adit: High-grade silver and gold material is not always easily discerned visually at El Pinguico. Therefore, crews have also begun sampling the wall rock of the No. 4 adit at 10-metre intervals. The adit is open for 800 m from its portal to the underground stockpile, and therefore extensive sampling is necessary to adequately test it and the numerous stopes, crosscuts, and galleries extending from the No. 4 level. The company has therefore developed a procedure whereby all of these channel samples will first be crushed and then analyzed with an XRF (X-ray fluorescence) scanner. XRF technology does not reliably detect gold so the company will focus on silver and arsenic values, the latter of which acts as a consistent trace element indicator for precious metals in low sulphidation epithermal vein systems. XRF sample results will be reviewed to determine what constitutes significant anomalous values of silver and arsenic. The samples with high XRF readings will then be fire assayed, and areas where samples return high silver and gold assays will be revisited to take additional samples at one-metre intervals.
  3. Trenching of additional adits: On the south side of the property, there exist several old workings that access several veins located southeast of the main Pinguico vein with names such as La Joya, La Joyita and El Pirul. These veins exhibit good, though erratic, precious metals values and either represent unique exploration targets or are direct extensions of the El Carmen/El Pinguico vein system. In order to gain a greater understanding of these veins, Vangold is conducting a series of trenches in these areas to sample and assay vein material and measure the veins' apparent strike and dip taken. The company plans to drill test these veins (the Don Ernesto target area) at the same time it drills to test the extension of the Veta Madre regional fault system later in the season.

The El Pinguico project

El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. Toward the end of that period it was mined exclusively by the Pinguico Mines Company of New York; its shares traded on the Boston and New York stock exchanges. The mining was done principally 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 megafault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. Current geologic interpretation, based on regional mapping and projections from the Veta Madre developed at adjacent historic mine operations, suggests that the Veta Madre vein system may cross Vangold's property at depth, underneath the high-grade El Pinguico and El Carmen veins. Very limited drilling has been done on the property and no drilling has yet attempted to encounter the Veta Madre at depth. The intersection of these major vein structures are excellent exploration targets and may result in zones of significant size and grades.

Hernan Dorado Smith, 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.

Underground stockpile

The underground (UG) stockpile consists of material that in 2012 the Mexican Geological Survey agency determined to be 148,966 tonnes in size. In 2017, Vangold conducted a trenching program at the top of the UG stockpile. This program resulted in a weighted average of all of the trench samples of 1.75 g/t Au and 183 g/t silver.

About Vangold Mining Corp.

Vangold Mining is an exploration and development company engaged in reactivating high-grade past producing silver and gold mines near the city of Guanajuato, Mexico. The company's El Pinguico project is a significant past producer of both silver and gold located just seven km south of the city. The company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.

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