Positive drill results and commencement of ore processing could have a huge impact on Vangold’s stock price
Vangold Mining Corp. (TSXV: VAN) was founded in 1978 and is headquartered in Vancouver, Canada. Vangold is a Mexican focused, development stage, silver and gold mining company, with nine mining concessions in the Guanujuato mining district of Mexico.
The Guanujuato mining district of Mexico
Founded by the Spanish, Guanajuato became the world’s leading silver-extraction center in the 18th century, and at one time Guanajuato became the country’s richest town.
Vangold’s 100% owned historic El Pinguico silver and gold mine
In January 2018, the Company announced the initial diamond drilling program at its wholly-owned El Pinguico mine, located 10km from the City of Guanajuato Mexico. The El Pinguico project covers an area of 71 hectares and 43-101 trench results have proven historic high grade silver & gold values with 15 g/t Au and 1500g/t Ag = 36.12g AuEq. Vangold has engaged an independent drilling contractor with specialized experience in drilling underground. The modified drill rig is capable of operating within confined drifts and tunnels. The Company is drilling 15 holes from the 3 different drill stations to recover core samples of the broken material for grade and resource confirmation.
Cameron King, Vangold CEO advises: “The drilling program is to define and expand the potential mineralization at El Pinguico. We are fully aware of the historical cut off grade mined at 15 g/t AuEq, now it’s our job to prove it. With drill results, we can define a resource over the UG stockpile and document its value. Phase 2 drilling is the start of Vangold’s future growth strategy, proving the El Pinguico vein system continues at depth adds years of development and production.”
Cameron King, Vangold CEO. “Our database is very significant. All the assays, the tunnels, the method of mining, the grades, the old reports we have them all. That was basically why we acquired the property, was the historical data on the high-grade and the system that was all developed around here. Mining is in the DNA of this area that is for sure.”
Assays will define the existing mineralization of the broken material for a potential inferred resource estimation covering the entire 500,000 tonne material. Metallurgical tests will be performed to understand the recoveries of gold and silver respective to the local mill’s process and floatation chemistry. A Preliminary Economic Assessment (PEA) will follow the resource estimation and the metallurgical tests.
Over the past six months heavy equipment and work crews have been focused on rehabilitation of the old workings and constructing a headframe over the El Pinguico shaft, complete with electric hoist and drum gear. Hernan Dorado, Vangold Director states: “The advantages to operations are significant; time savings for crews, moving equipment and retrieving samples from the lowers levels will become extremely efficient. Moving the heavy drill equipment from surface into the Pachuca drift at Level 3 would have been impossible without these improvements.”
The El Pinguico mining claims are in close proximity to mining infrastructure; power, water, and road/highway access. Labor can come from the city of Guanajuato just 10 kilometres away, and milling facilities are only 2 kilometres from the mine. The installed hoist and personnel cage will become El Pinguico Mine’s primary access. Access into El Pinguico mine is now possible from surface to the top of the undeground stockpile located at Level 3 (110 metres below surface) to Level 6 (210 metres below surface).
Near term catalysts will be the granting of a permit to mine leftover ore and drill assay results. A benefit of the leftover ore is that Vangold can bring in some short term cash flow.
Vangold Mining Corp has a market cap of C$4m.
Given the region’s history and the low Company market cap, positive drill results and commencement of ore processing could have a huge impact on the stock price.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>