Mr. Dal Brynelsen reports
VANGOLD REPORTS UPDATE ON GOLD PROJECTS IN PAPUA NEW GUINEA
Vangold Resources Ltd. has appointed Mike Syka, BSc (honours), as exploration manager for the company and is providing an updateon the active exploration programs under way on the company's highly prospective properties in Papua New Guinea (PNG).Vangold owns a 95-per-cent interest in three exploration licences: Fergusson, Allemata and Mount Penck.
Exploration activity is continuing at Mount Penck, and plans are underway for an eight- to nine-hole diamond drill program at Fergusson totest the high-grade gold potential discovered in the trenches. AtAllemata, the 3-D induced polarization (IP) iscomplete, with a report expected in the near future.
Dal Brynelsen, Vangold's president and chief executive officer,commented: "Mike Syka brings to the company 24 years of high-levelindustry expertise,including 13 years of experience in Southeast Asia, primarily PNG. Mikehas a particular knowledge of both high- and low-sulphide epithermalgold and porphyry copper deposits. His ability to take a project fromreconnaissance to prefeasibility will bea significant contribution to Vangold's success as it accelerates itsPNG exploration programs."
Please see the attached table for preliminary results from the diamond drill holes at Mount Penck.
Diamond drill hole MPD073 was drilled on the western shoulder of one ofthe many 3-D IP anomalies within the Mount Penckproperty (refer to Vangold's previous Stockwatch news releases) andintersected up to three metres of 2.8 grams per tonne gold withinarsenopyrite sulphides(refer to the attached table). Additional zones of gold mineralizationextend from 41 to 266 metres in depth. This hole was drilled adjacent toan IP anomaly to determine if the gold mineralization extended beyondthe actual IP anomaly.
Diamond drill hole MPD075 was drilled near the centre of this anomaly todetermine if the gold and copper mineralization isdirectly related to the IP anomaly, as it is at the nearby Mount Nakruproperty of Coppermoly. Vangold is a significant shareholder inCoppermoly. Results from this drill hole show sulphide (pyrite andarsenopyrite) mineralization throughout the entire hole. Inlight of the close association of gold mineralization with arsenopyrite,the sulphides associated with the 3-D IP anomaly inMPD075 demonstrate significant tonnage potential of gold and coppermineralization. Assay results for MPD075 are pendingand expected in April, 2011.
The Mount Penck project is within a four-hour drive (56 kilometres) from an existing deepwater port at the provincial capital ofKimbe on New Britain Island. Existing infrastructure surrounding the oil-palm-dominated industry at Kimbewill be essential for future development of the project.
MINERALIZED INTERCEPTS IN DRILL HOLE MPD073
(cut-off grade of 0.5 g/t Au)
Depth from Depth to Intercept width Gold
(m) (m) (m) (g/t)
41 44 3 0.67
148 151 3 2.80
164 167 3 0.92
172 174 2 1.01
251 252 1 1.43
261 263 2 1.65
264 266 2 0.75
The technical information in this release was prepared under the direction of Robert D. McNeil,a fellow of the Australian Institute of Mining and Metallurgy, and a qualified person as definedby National Instrument 43-101. Mr. McNeil has read and approves the information containedherein.
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