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

VG Gold Corp.

March 30, 2010 08:00 ET

VG Gold Results at Paymaster in Timmins, Ontario-8.7 Metres of 4.58 gpt Gold (28.5 Feet of 0.133 opt), Including 4.3 Metres of 6.22 gpt Gold (14 Feet of 0.181 opt)

TORONTO, ONTARIO--(Marketwire - March 30, 2010) - VG Gold Corp., (TSX:VG)(FRANKFURT:VN3)(PINK SHEETS:VGGCF) is pleased to announce that drilling at the Paymaster West Project in Timmins, Ontario continues to deliver positive results. 

The initial results of phase III drilling that began at the start of 2010 are shown below. 

The results from the first five phase III holes continue to indicate the potential of the Paymaster Property in terms of both a bulk tonnage target with a drill intercept of 26.0 metres of 2.26 grams gold per tonne (85.2 feet of 0.066 ounces gold per ton), as well as the potential for a higher grade underground mining scenario with a drill intercept of 8.7 metres of 4.58 grams gold per tonne (28.5 feet of 0.133 ounces gold per ton), including 4.3 metres of 6.22 grams gold per tonne (14.0 feet of 0.181 ounces gold per ton). Phase III drilling will continue to outline gold mineralization that can be potentially mined from surface, and to explore the potential of the gold mineralization at depths below the phase II drilling that was completed in December 2009.

Drill Result Highlights

Hole # From
(m)
To
(m)
Width
(m)
Gold Grade
(gpt)
 
VGP-10-63 152.1 160.8 8.7 4.58
 including 4.3 6.22
 
VGP-10-64 133.2 149.7 16.5 1.97
 
VGP-10-65 131.0 157.0 26.0 2.26

Intervals reported here are core lengths. True widths are not known at this time. See more results in Table 1 below.

Five holes, 1081 meters, were drilled targeting on extending the gold mineralization intersected during the drill program in the previous year on the West Porphyry Zone at the Paymaster Property. All holes intersected multiple zones of hydrothermally altered Quartz-Feldspar Porphyry hosting wide intervals of gold mineralization, including 16.5 metres of 1.97 gpt Au (hole 64), 26.0 metres of 2.26 gpt Au (hole 65), 7.5 metres of 1.04 gpt Au (hole 66), 25.5 metres of 1.15 gpt Au and 8.7 metres of 4.58 gpt Au.

On-going drilling will continue to target the expansion of the gold mineralized zones both at depth and along strike to the east and west, following the hydrothermally altered Quartz-Feldspar Porphyry. Geological and mineralization models are in progress in order to develop further exploration potential as well as to advance the project toward a resource estimation scheduled for the 3rd quarter of 2010.

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. Paymaster West Project – March 2010

Hole Number East North length (ft) length (m) dip az from (m) to (m) width (m) Au-gpt G x W gpt.m
                       
VGP-10-63 5900 8600 734.9 224.0 -45 175 110.6 116.1 5.5 2.51 13.8
  152.1 160.8 8.7 4.58 39.7
includes 4.3 6.22 26.5
                       
VGP-10-64 6100 8556 754.6 230.0 -52 170 80.4 81.9 1.5 8.01 12.2
  95.3 97.8 2.5 1.66 4.2
100.3 101.8 1.5 1.23 1.8
126.2 128.0 1.8 2.15 3.9
133.2 149.7 16.5 1.97 32.5
 
VGP-10-65 6100 8556 793.9 242.0 -67 180 94.2 95.7 1.5 1.64 2.5
  124.7 126.5 1.8 1.11 2.0
131.0 157.0 26.0 2.26 58.7
165.8 167.4 1.6 1.34 2.1
 
VGP-10-66 6224 8550 606.9 185.0 -45 168 106.8 114.3 7.5 1.04 7.8
 
VGP-10-67 6224 8550 656.2 200.0 -67 171 100.3 101.8 1.5 1.87 2.8
  112.5 118.3 5.8 1.97 11.4
133.8 159.3 25.5 1.15 29.2
 
5 holes     3546.5 1081.0              
      feet metres              

To view Figure 1, please visit the following link:

http://media3.marketwire.com/docs/VGGoldPaymasterWest.pdf.

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