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Vangold Mining Corp (2)
Symbol VGLD
Shares Issued 104,587,351
Close 2020-09-24 C$ 0.185
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Vangold purchases underground drill rig for El Pinguico

2020-09-24 16:21 ET - News Release

Mr. James Anderson reports

VANGOLD TO PURCHASE UNDERGROUND DRILL RIG

Vangold Mining Corp. has purchased an underground drill for use on its El Pinguico silver/gold project, located seven kilometres south of Guanajuato, Mexico.

Purchase of underground drill rig

After examining numerous alternatives, the company has ordered an Explorer 75E core drill rig from Grupo Ingetrol SA de CV of Torreon, Mexico. Among other desirable attributes, this drill is small enough to fit into many of the adits, drifts and galleries of El Pinguico's old workings, while still being able to target the broad strike length of potential new in situ material of the main El Carmen/El Pinguico vein system. The machine is rated capable for drilling 200 metres of HQ-size core, or 430 metres of NQ-size core. Therefore, the company has also ordered 200 m and 430 m, respectively, of the corresponding drill casing in order to have the capability of drilling holes to those lengths.

Vangold expects to receive delivery of the drill within 60 days and that drilling will commence toward the end of November, 2020. Though the rig can also drill from surface, the company will focus drilling initially from underground into the Don Ricardo target area from crosscuts off of the No. 4 adit level.

Clearing of the El Pinguico shaft

The company is currently focused on clearing 30 m of material blocking access from the El Pinguico shaft to the No. 7 adit level. The company plans to sample the bottom of its underground stockpile once access is achieved. On Sept. 19, 2020, the company's winch system failed to operate properly due to a worn drive shaft. Replacement parts have been ordered and are due to arrive in Guanajuato on Sept. 28. Because of this and additional brief delays, the company estimates that it is 16 days behind schedule in its plans to remove material from the El Pinguico shaft. The company also estimates that there has been no material change in the budget for this undertaking and that costs are materially on plan.

The El Pinguico project

El Pinguico is a high-grade gold/silver deposit that was mined from the early 1890s until 1913. Toward the end of that period, it was mined exclusively by Pinguico Mines Company of New York; Pinguico Mines' shares are 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 (Veta Madre).

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 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 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, 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 stockpile consists of material that, in 2012, the Mexican Geological Survey determined to be 148,966 tonnes in size. In 2017, Vangold conducted a trenching program at the top of the underground stockpile. This program resulted in a weighted average of all of the trench samples of 1.75 grams per tonne gold and 183 grams per tonne 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 kilometres 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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