08:41:52 EST Wed 07 Dec 2022
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Vangold Mining Corp (2)
Symbol VGLD
Shares Issued 104,587,351
Close 2020-10-07 C$ 0.26
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Vangold samples 55 m of 536.8 g/t AgEq at El Pinguico

2020-10-07 06:13 ET - News Release

Mr. James Anderson reports


Vangold Mining Corp. has released assays from channel sampling of an underground vein exposure encountered at its El Pinguico silver and gold project, located seven kilometres south of Guanajuato, Mexico.

Sampling of exposed underground vein

The company reports assays of channel samples taken from safely accessible pillars and stope walls within an ore shoot of the El Pinguico vein system between the fourth and sixth levels (from approximately 130 m to 185 m below surface), covering an area approximately 55 metres in height by 60 metres in width, and where the stoped out area, plus remaining vein material, ranges from 1.5 metres to 5.5 metres wide. This exposure is adjacent to the El Pinguico shaft where crews continue to remove material blocking access to the No. 7 adit level.

Sample No.            Sample length       Gold       Silver      AuEq*       AgEq*
                                         (g/t)        (g/t)      (g/t)       (g/t)

Q96141                        1.6 m       1.72        629.6       9.59       767.2
Q96230                        1.8 m       0.80        273.7       4.22       337.7
Q96231                        1.3 m       0.84        146.3       2.67       213.3
Q96232                        1.3 m       4.00        403.6       9.05       723.6
Q96233                        0.9 m       3.22        480.5       9.23       738.1
Q96235                        1.0 m       1.68        280.0       5.18       414.4
Q96236                        1.0 m       4.11        430.7       9.49       759.5
Q96237                        1.2 m       2.15        304.0       5.95       476.0
Q96238                        1.6 m       0.80        157.0       2.77       221.3
Q96239                        1.2 m       4.59        465.9      10.41       833.1
Q96240                        0.4 m       2.43        599.4       9.92       793.8
average grades                            2.50        363.0       6.71       536.8

* Gold equivalent and silver equivalent numbers are calculated at 80:1 silver 
to gold price ratio.  

This underground vein material was not extracted when the mine was operational from the late 1890s until 1913, despite it being immediately adjacent to the El Pinguico shaft, presumably because the material would not have exceeded the mine's extraordinary cut-off grade at that time of approximately 15 grams of gold equivalent per tonne. The results of this sampling have given the company added confidence that significant amounts of good grade material, left when mining ceased over a century ago, remain to be identified within and adjacent to the El Pinguico historic workings.

Said Vangold Mining director William Gehlen, geologist and epithermal system expert: "There are a lot of things to like about these results, and chief among them is the uniformity of good grades from what was historically considered waste rock. Historical geologic reports that discuss the El Pinguico vein system comment on the consistency of high-grade distribution within the veins. If Vangold continues to find these sorts of grades in the wall rocks left behind by previous mining, the residual material could represent a significant resource and the potential to find additional and wider vein zones of potentially economic grades in unexplored parts of the system seems possible."

Vangold county manager Gerardo Dorado Cantu commented: "We have always known that El Pinguico was a silver mine accompanied by high gold values; however, in this particular portion of the vein system, the silver to gold ratio is approximately 145:1, easily making silver the most important potentially economic component. When drilling commences in late November, we will be able to develop a better understanding of the grade distribution of both gold and silver within different parts of the El Pinguico vein, and within different vein systems that are present on the property."

Carlos Cham, Vangold consulting geologist, stated, "The sampled material was principally an oxidized, brecciated quartz vein composed of vuggy, open-space filling of quartz and calcite with a strong manganese overprint and locally disseminated pyrite."

As noted in the company's news release of Sept. 24, 2020, Vangold has purchased an underground drill rig, which is scheduled for delivery in the third week of November. The planned initial underground drill program will consist of approximately 14 drill holes, totalling approximately 2,230 m of HQ and/or NQ diamond drilling. Drilling will initially focus on the Don Ricardo target area immediately south of the area sampled and reported on in this news release.

Clearing of the El Pinguico shaft

The company continues to focus on clearing the remaining 15 m of material blocking access from the El Pinguico shaft to the No. 7 adit level. The pace of clearing of this material has now accelerated, as we have added a second shift to do this work. The company plans to sample the bottom of its underground stockpile once access is achieved. As noted in a prior news release, on Sept. 19, 2020, the company's winch system failed to operate properly due to a worn drive shaft. This malfunction has now been rectified and good progress is again being made on this undertaking.

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, shares of which 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, suggest 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 intersections of these major vein structures are excellent exploration targets and may result in zones of significant size and grades.

Methodology and quality assurance/quality control

The analytical work reported on herein was performed by SGS Mexico SA de CV, Durango, Mexico. SGS is an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) geoanalytical laboratory and is independent of Vangold and its qualified person. Channel samples were subject to crushing at a minimum of 70 per cent passing two millimetres, followed by pulverizing of a 250-gram split to 85 per cent passing 75 microns. Gold determination was via standard atomic absorption (AA) finish 30-gram fire assay (FA) analysis, in addition to silver and 34 elements using fire assay and gravimetry termination. Vangold follows industry-standard procedures for the work carried out on the El Pinguico silver-gold project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the sample sequence sent to the laboratory for analysis. Data verification of the analytical results included a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results. Vangold detected no significant QA/QC issues during review of the data and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

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 verified the data and approved the scientific and technical information contained in this news release.

Underground stockpile

Sampling the bottom of the 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.

We seek Safe Harbor.

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