SOURCE: Vangold Resources Ltd.

January 29, 2008 14:37 ET

2007 Drill Program at Feni Islands Completed

VANCOUVER, BC--(Marketwire - January 29, 2008) - Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") and New Guinea Gold Corporation ("NGG") report that the 2007 diamond drill program to test new targets at the Feni Project has been completed. Consulting Geologist, Doug Hutchison has provided his preliminary report concluding that no significant results were obtained in this drilling program.

A total of six diamond holes for a total meterage of 691.6m were drilled during 2007. One hole was sited at the Dome Prospect within the Kabang Caldera. The other five holes tested the Dan Magal area located outside the caldera to the southwest, a previously untested target. Planned drill targets and 2007 drill hole locations are shown in the attached map.

To view map, please follow the link below: http://www.usetdas.com/maps/vangold/vangoldMAPjan29.pdf

In addition, surface mapping and rock chip/channel/grab sampling was undertaken along some drill access tracks at Dan Magal. A total of 569 drill core, 106 chip channel and 32 grab samples were collected.

Initially 10 holes were planned for a total meterage of 1000-1500m. However, due to a combination of continual rig and machinery breakdown, bad weather, difficult ground conditions at some holes, and difficult logistics, the planned program proved to be far too ambitious.

At the Dome Prospect, one hole was completed, VDH001 to 123m. The hole intersected 122m of relatively fresh to weakly clay altered trachyte lava beneath 1m of tephra. No significantly altered or mineralised ground was intersected. All assay results are less than 0.1g/t Au with low copper values. No further work is justified.

At the Dan Magal Prospect, five holes were completed to depths between 69.3m and 162.3m (downhole). All five holes intersected weakly to strongly altered, sheared and locally brecciated trachyte and andesite intruded locally by syenite porphyry. Alteration styles include silicic, phyllic, argillic, propylitic and locally potassic. Silicified hydrothermal and structural breccias are present, particularly at structural intersections. Veining and mineralisation includes quartz-carbonate-anhydrite-pyrite-alunite; quartz-hematite-pyrite; and carbonate-quartz-pyrite. Disseminated pyrite, < 1% to 10%, is widespread with local trace chalcopyrite. Similar lithologies were mapped along drill access tracks.

The geology and alteration at Dan Magal is very similar to the Lodolam deposit on Lihir Island. However, the surface and drill assay results are universally low for gold, < 0.1g/t Au. Holes VDH002 & VDH005 contained moderately anomalous copper with average values of 249ppm Cu and 215ppm Cu, respectively. No further drill testing is recommended at Dan Magal.

Mr. Dal Brynelsen, Vangold's CEO and President, commented: "Although these results are disappointing it is important to note that this program only tested two new areas so the information obtained from this program only relates to these areas. There are many other areas to be tested on Feni. Therefore, we plan to have an independent geologist review the results from all programs and make recommendations on a further drill program. Certainly the potential for the Feni Islands has not been extinguished by the 2007 program."

The Feni Project lies within the Lihir Corridor which is a structural-volcanic arc extending from Allied Gold's Simberi gold project on Simberi Island through the Lihir Islands to Bougainville Island. Two major ore bodies (in addition to Allied Gold's Simberi project) occur within this arc including the Lihir Mine with approximately 50 million ounces of gold mined and in current resources and the Panguna porphyry copper/gold system on Bougainville Island.

The technical data in this release was prepared by or under the supervision of Douglas Hutchison. Mr. Hutchison has an MSc in Geology, 28 years mining industry experience, is a Member of the Australian Institute of Geoscientists, and meets the requirements of NI 43-101 for a qualified person. The Feni Project is presently owned 50/50 NGG and Vangold with Vangold solely funding exploration to increase its holding to 75%.

To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca.

On Behalf of the Board of

VANGOLD RESOURCES LTD.

"Dal Brynelsen"
Dal Brynelsen, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

Contact Information

  • Contact:
    VANGOLD RESOURCES LTD.
    P.O. Box 11622, 1730 - 650 West Georgia Street
    Vancouver, BC
    Canada, V6B 4N9
    Phone: 604-684-1974
    Fax: 604-685-5970
    www.vangold.ca