Underground Drilling Starts at Vangold’s El Pinguico Mine
January 18, 2018 (Source) — Vangold Mining Corp. (TSX: VAN) (OTC: VGLDF) (“Vangold” or “the Company”) is pleased to announce that the Phase One underground drill program has commenced on the Company’s 100% owned, El Pinguico Mine, located 10km from the City of Guanajuato, Mexico. The drill program will include a minimum of 15 holes through the El Pinguico standing stock pile.
EL PINGUICO PHASE ONE DRILLING PROGRAM:
Vangold’s Phase One drill program will be the first ever drilling program to penetrate into the rich mineralization that endows the property. The drill program is designed to recover up to 1,000 metres of core samples from 15 to 20 NQ drill holes. The drill holes will intersect and penetrate through the underground (“UG”) stockpile collecting core samples when the drill bit is passing through the broken rock. Three drill pad locations are constructed in the Pachuca drift, a parallel tunnel to the UG stockpile. Assay results are expected within three to four weeks of receipt by local lab in Guanajuato, Mx. Target completion of Phase One is February 15,2018. The rig will be dismantled and mobilized down to Level 7 (250 ft below surface) and begin Phase Two drilling targeting the El Pinguico vein extension and depth.
Cameron King, Vangold CEO states, “This historic Phase One drill program is the first step in quantifying our assets, providing real time grade and quantity of AuEq ounces attributed to the stockpile. The core samples will provide confirmation of El Pinguico’s high grade historical production and support the earlier geological work, where trenching sample assays exceed in some areas, grades in the range of 15 g/t gold and 1,400 g/t silver. Upon completion of Phase One drilling, the core assays will significantly contribute with the 43-101 resource calculation and value of the UG stockpile.”
CLOSING NON-BROKERED PRIVATE PLACEMENT:
Further to previous news releases dated November 9 and December 19, 2017, the Company is pleased to announce that it has raised gross proceeds of $1,294,342, pursuant to the closing of the first and second tranches of a non-brokered private placement of 18,490,600 units (the “Units”) at $0.07 per Unit (the “Offering”).
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Vangold has issued a total of 18,489,600 Units, with each Unit consisting of one common share and one non-transferable common share purchase warrant. Each Warrant entitles the holder to purchase one additional common share, exercisable at $0.25 per share for a period of 48 months from closing. The securities issued under the Offering and any shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.
The Company paid aggregate finders’ fees of $39,837 cash and issued 516,600 Finders’ warrants, having the same terms and conditions as the Warrants.
Vangold intends to use the proceeds to fund additional geological programs, including underground and surface drilling, building infrastructure for the development of the Pinguico Mine and meeting our production obligations, as well as general working capital.
About Vangold Mining Corp.
Vangold is a development-stage silver and gold company with nine mining concessions in the Guanajuato, Mx mining district. Vangold is aggressively pursuing its production plans by bringing the historic El Pinguico mine back online. Having an acquisition focus, targeting advanced mineral properties and the pursuit of near production opportunities will continue to fuel our growth.
Mr. Hernan Dorado, a director of Vangold Mining Corp. is a member of the Mining and Metallurgical Society of America and is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical contents of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
“Cameron S. King”
President, CEO and Director
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looking statements. These forward-looking statements are identified by their use of terms and phases such as “believe,” “expect,” “plan,” “anticipate” and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Vangold’s expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, limited operating history, proposed exploration and/or drill programs and other factors which may cause the actual results, performance or achievements of Vangold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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