Mr. James Anderson reports
VANGOLD ENGAGES BEHRE DOLBEAR FOR PEA ON EL CUBO PURCHASE
Vangold Mining Corp. has engaged Behre Dolbear & Company Inc. to provide a preliminary economic assessment (PEA) in relation to its purchase of the El Cubo mine and mill complex located eight kilometres by road northeast of the company's El Pinguico silver-gold project near the city of Guanajuato, Mexico, from Endeavour Silver Corp., as announced on Dec. 18, 2020.
Engages Behre Dolbear for PEA
The company has engaged the engineering consultancy firm Behre Dolbear to provide third party engineering, due diligence and guidance regarding the purchase, refurbishing and operation of the El Cubo mine and mill; and complete a National Instrument 43-101-compliant PEA-level study by early February, 2021. This study will form part of Vangold's submission to the TSX Venture Exchange for acceptance of the company's acquisition of El Cubo. Prior to signing its LOI with Endeavour and as part of Vangold's initial due diligence, Behre Dolbear completed a 37-page desktop review of Vangold's El Cubo/El Pinguico business plan. This review has helped form the basis of Vangold's internal cash flow modelling and initial, high-level mine planning for the combined operation.
Vangold director Hernan Dorado Smith said: "Having spent four days in Guanajuato with the Behre Dolbear team in November, 2020, both at El Pinguico and at El Cubo, we are impressed with their experience, hard work and professionalism. We look forward to a long business relationship with them."
El Cubo mine and mill
On Dec. 18, 2020, the company announced it had signed a binding LOI (letter of intent) with Endeavour to acquire El Cubo. The El Cubo plant and tailings facilities are currently on short-term care and maintenance and Vangold intends to restart the mill at approximately 750 tonnes per day using mineralized material from its existing surface and underground stockpiles at El Pinguico as a significant portion of its estimated throughput for the first 36 months of operation.
As reported by Endeavour on Jan. 29, 2020 (i), as at Dec. 31, 2019, El Cubo contained the silver-gold resources in the attached table.
Resource Tonnes Ag g/t Au g/t Ag oz Au oz AgEq oz
Measured 19,000 224 1.89 140,000 1,200 236,000
Indicated 32,000 209 2.03 214,000 2,100 382,000
Inferred 463,000 163 1.89 2,419,000 28,200 4,675,000
Vangold is not treating these estimates as current mineral resources as a qualified person on behalf of Vangold has not done sufficient work (ii) to classify these estimates as current resources (iii). However, as such resources were derived from 19 different veins on the property, the company believes El Cubo hosts excellent exploration possibilities for the future.
Under the Endeavour agreement, Vangold will acquire the El Cubo mine, the El Cubo mill (known also as the El Tajo mill), and approximately 7,000 hectares of prospective mining concessions located adjacent to the El Cubo mill and within the greater Guanajuato mine region. The acquisition remains subject to acceptance of the TSX-V.
Vangold's 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, whose 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, 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 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.
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.
(i) Extracted from Endeavour's news release dated Jan. 29, 2020.
(ii) These figures are historical in nature, have not been verified by Vangold and should not be relied upon. A thorough review by Vangold's qualified person of all historic data, along with additional exploration and validation work to confirm results and estimation parameters, would be required in order to produce a current mineral resource estimate for El Cubo.
(iii) Endeavour reported that its El Cubo mineral resource estimates were (a) calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and CIM Standards on Mineral Resources and Reserves, (b) cut-off grades were based on a 196-gram-per-tonne silver equivalent for area II (that comprises Dolores mine) of El Cubo and 238 g/t silver equivalent for areas I and IV (that comprises Santa Cecilia and San Nicolas mines) of El Cubo, (c) silver equivalent grades and ounces are based on 80:1 silver:gold ratio and calculated using only silver and gold, and (d) price assumptions were $16.34 (U.S.)/oz for silver and $1,279 (U.S.)/oz for gold.
We seek Safe Harbor.
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