VG Gold Corp.
TSX : VG
FRANKFURT : VN3
PINK SHEETS : VGGCF

VG Gold Corp.

February 03, 2010 08:01 ET

VG Gold Paymaster Results, Timmins, Ontario

37.3 metres of 2.3 gpt gold (122.5 feet of 0.067 opt)

Including 7.6 metres of 5.6 gpt gold (25 feet of 0.163 opt)

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) - VG Gold Corp. (TSX:VG)(FRANKFURT:VN3)(PINK SHEETS:VGGCF) is pleased to announce that expansion drilling from the Paymaster West Project in Timmins, Ontario continues to deliver positive results. The best diamond drill hole, VGP-09-45, returned a wide intersection of 2.3 gpt gold (0.067 opt) over 37.3 m (122.5 ft), including 5.6 gpt gold (0.163 opt) over 7.6 m (24.9 ft).

These deeper holes were designed to extend the mineralization that VG Gold's recent drilling targeted below the historical mine workings, including 5.0 gpt gold over 11.9 m and 4.8 gpt over 1.8 m (hole VGP-09-36) and 9.4 gpt over 4.6 m (hole VGP-09-23). The next phase of drilling will look to expand the mineralized zones at depth. Also, additional drilling is planned to further establish the potential for near surface open pit mineralization.

Drill Result Highlights

Hole # From   To   Width   Gold Grade  
  (m ) (m ) (m ) (gpt )
                 
VGP-09-45 397.8   435.1   37.3   2.29  
  including   7.6   5.6  
                 
VGP-09-38 355.4   366.4   11.0   1.21  
                 
VGP-09-44 295.0   297.3   2.3   3.95  

See more results in Table 1 below

Gold mineralization at the Paymaster West Project is hosted within and peripheral to strongly altered and well mineralized quartz feldspar porphyry. Alteration consists of pervasive ankerite and sericite with local tourmaline, both disseminated and in veins. Pyrite mineralization is disseminated throughout, with local concentrations to 20%. Drilling to date has intersected several intervals of altered and mineralized quartz-feldspar porphyry in each hole.

The Paymaster West Project is situated immediately to the west of Goldcorp's Dome Mine that has produced over 17 million ounces of gold from both underground and open pit mining.

VG Gold has the option to earn a 60% interest in the Paymaster West Property from Goldcorp by making $6.0 million in exploration expenditures by June 2012. Once VG Gold has given notice that is has earned its 60%, Goldcorp has six months to decide if it wishes to increase its ownership from 40% to 70% by paying VG Gold $710,000 and spending $8.25 million on the property within two years and then completing a feasibility study by the end of year three.

VG GOLD.....WE ARE GOLD!

QUALIFIED PERSON

All exploration work was conducted under Kenneth Guy, P. Geo., designated Qualified Person for VG Gold, who has reviewed this press release. All drilling was completed using NQ size core. Gold analysis of the samples collected by VG Gold was assayed by ALS Chemex. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over 10.0 gram per tonne Au are re-assayed with gravimetric finish. Samples noted to contain visible gold are analyzed via total metallic assay method. A rigorous Quality Control and Assurance Program (QA/QC) is in place, using control samples such as Blanks and duplicate checks. In addition, duplicate analyses of 10% of the samples are corroborated by check assays performed at a third party Laboratory.

To learn more about VG Gold (TSX:VG), visit our website: www.vggoldcorp.com

Table 1. Phase Two– Paymaster West Project

Hole # East North length (ft ) length (m ) dip az Assay(m) width (m ) Au-gpt
from to
VGP-09-38 6600 8600 1601.0   488.0   -70 160 222.5 224.3 1.8   1.88
                  263.3 264.9 1.5   1.80
                  355.4 366.4 11.0   1.21
                  439.0 444.4 5.4   1.22
                           
VGP-09-42 5797 8830 1246.7   380.0   -50 195 No significant assays
                           
VGP-09-43 5500 9300 1108.9   338.0   -52 175 276.6 277.7 1.1   1.15
                           
                           
VGP-09-44 5700 9300 1148.3   350.0   -51 175 284.3 286.1 1.7   1.99
                  295.0 297.3 2.3   3.95
                           
VGP-09-45 6400 9600 1453.4   443.0   -45 176 397.8 435.1 37.3   2.29
                  including 7.6   5.57
                           
VGP-09-46 6400 9600 1108.9   338.0   -60 176 Hole stop short – will be deepened

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/VG203fig1.pdf

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Contact Information

  • VG Gold
    Tom Meredith
    President
    416-368-0099