Vangold Resources Ltd.
TSX VENTURE : VAN

Vangold Resources Ltd.

September 02, 2009 11:00 ET

Vangold Advances to a Binding Agreement With New Guinea Gold and Provides Update on Major Acquisition Along With Proposed Separation of Assets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 2, 2009) - VANGOLD RESOURCES LTD. ("Vangold" or "the Company") (TSX VENTURE:VAN) is pleased to announce that the Company and New Guinea Gold Corporation ("NGG") have agreed to make the letter of intent, previously announced on August 20, 2009, a fully binding agreement (the "Agreement"). On August 27, 2009, Vangold advanced a US$500,000 loan to NGG, in addition, after the separation of assets to the shareholders, Vangold will issue from treasury 19.9% of the issued capital of Vangold to NGG as the remainder of the purchase price. Under the Agreement, Vangold will acquire from NGG 100% of four well advanced gold properties in Papua New Guinea ("PNG") along with equipment and drill rigs. Extensive drilling and labour completed on the Mt Penck property over the last six years have produced excellent indications of a large low-grade gold deposit. As a priority, the Company will aggressively pursue its exploration program on Mt Penck to exploit results to date.

Vangold would also like to clarify that under its proposed unbundling of assets, Vangold's shareholders, as of record date for the separation of assets, will receive common shares of a newly incorporated public company (VanOil) which will hold Vangold's oil and gas assets in Kenya, Rwanda and Alberta. The Company will be offering to eligible shareholders rights to acquire additional common shares in VanOil.

All of the above information is subject to TSX Venture Exchange and shareholder approval. The Company is consulting with its advisors and will be sending out an information circular for a special meeting for shareholders to approve.

New Guinea Properties

Mt Penck Property (102.6 sq km)

Mt Penck will be Vangold's principal gold property and will be subject to a concerted exploration effort in 2009/2010 to define resources.

More than 80 holes totalling 6,000m have been completed with intervals such as 72m at 1.79g/t gold, 2m at 36.7g/t gold and 43m at 2.35g/t gold. Bulldozer trenching has yielded results such as 40m at 8.89g/t gold, 97m at 3.39g/t gold and 5m at 60g/t gold. Results are available in a NI 43-101 report lodged at Sedar.

The Mt Penck property is located in West New Britain Province, Papua New Guinea. Access to the property is by road from the provincial capital of Kimbe. The property is within a few kilometers of the coast.

Mt Penck is an eroded strata-volcano with gold mineralization associated with an intrusive complex. The Company has identified a 4 square kilometer arsenic/gold geochemical anomaly within the 100 square kilometer license. Most of the license is yet to be explored.

Five prospects have been identified through soil geochemistry, trenching and drilling: Kavola East, Kavola South, Peni Creek, Big Bend and Koibua. Together they cover an area 1.2km by 0.5km.

2009 drill results for Kavola East (0.5 g/t Au cut-off) include 25m at 2.43g/t Au; 9m at 1.05g/t Au; 32.3m at 1.57 (MPD039); 21m at 3.13g/t Au (MPD040); 47m at 2.06g/t Au, 19m at 1.64g/t Au; 19m at 1.17g/t Au and 10m at 3.14g/t Au (MPD042); 21m at 1.85g/t Au and 8m at 1.52g/t Au (MPD044); 11m at 1.06g/t Au and 13m at 4.52g/t Au (MPD045) and 8m at 4.25g/t Au (MPD048).

Feni Island Property (30.8 sq km)

The Feni Project is part of the Lihir Corridor; a chain of islands composed of subaerial extinct stratovolcanoes that are host to Simberi (5 Moz Au) and Lihir (45 Moz Au) gold mines.

Feni shows very similar geology, including widespread known (drilled) gold mineralisation, similar alteration styles and similar alkaline intrusives to the Lihir Islands. Active geothermal systems at Feni are depositing up to 30g/t Au. Five main prospects have been identified on Feni: Dome, Saddle, Kabang, Kapkai and Natong.

Over 14 million Canadian dollars has been invested in exploration including 180 drillholes (16,000m). Most of the focus has been on Kabang Structure, a northeast trending break that cross-cuts the central caldera. Drill results for Kabang include 188.5m @ 1.0g/t Au (MAD001) from surface and 98m @ 0.94g/t Au (MAD005).

Fergusson Property (115 sq km)

Fergusson Property is on Fergusson Island an island adjacent to NGG's Imwauna property on Normanby Island. Access is by boat or fixed wing aircraft. Previous explorers completed 86 drill holes for approximately 6,000 meters of drilling and defined several prospects with significant gold in drill hole.

At the Igwageta Prospect a zone approximately 1km by 0.5km of anomalous gold was defined with historic (1998) drilling highlights such as 26m at 1.06g/t gold; 10m at 8.14g/t gold; 12m at 5.88g/t gold; 25m at 2.93g/t gold; and 20m at 3.04g/t gold. Sampling of surface trenches by the company has confirmed comparable intervals of gold at depth. Areas with strong gold in soil from the 2007 soil program (28.1g/t Au; 7.42g/t Au and 9.47g/t Au) are coincident with anomalous trench results from the 2008 trench program (TR12: 21m @ 2.51g/t Au and 57m @ 1.23g/t Au at 0.5g/t cut-off).

Allemata Property (148 sq km)

The Allemata property was once known as the Milne Bay Goldfield. From 1899 to 1926, the Goldfield produced 14,320 ounces of gold, mainly from alluvial deposits. In 1931, mining commenced with high-grade hard rock mining. Platinum was discovered and mined from 1933 to 1941, producing a total of 6 kilograms of platinum. 1,000 ounces of gold was produced in 1938 and 1939 from the Louise/ Ulo Ulo, Jumbo/Juno and Rough Ridge Mines. This property has not been mined since World War II.

The Allemata property is easily accessible by a 20 kilometre all weather road from the port of Alotau and Gurney International Airport. Logging roads provide access throughout the property. Management believes that this project could be developed relatively easily. Drilling and geochemistry on the Allemata property identified two gold zones (Ulo Ulo and Haluba) on which the company is focusing their exploration. Other geochemically anomalous zones remain to be explored.

Ulo Ulo Prospect hosts vein style gold mineralization in a 400m by 400m area. Much of the gold is in relatively narrow high grade gold zones or wide, lower grade zones. The company believes the Ulo Ulo target may be a high-grade vein system similar to NGG's Imwauna Property on Normanby Island. Trench results from 2008 program define a series of northwest trending quartz-limonite veins that average 1 to 3m in width and 100m up to 600m in length. A drilling and trenching program commenced at Ulo Ulo in March 2009 with drill intercepts of the veins include 1m @ 17.65g/t Au (UDH001); 1.9m @ 9.39g/t Au (UDH003); 1m @ 58.3g/t Au (UDH012) and 2m @ 7.55g/t Au (UDH013).

Haluba Prospect hosts disseminated and stockwork gold mineralization greater than 0.5g/t over a 400 meter by 300 meter area. This prospect has geological similarities to the Kavola East deposit at Mt Penck.

All technical information in this news release has been reviewed and approved by Danae A. Voormeij, M.Sc., P.Geo., VP Exploration for Vangold and a Qualified Person as defined by National Instrument 43-101.

All of the above information is subject to TSXV approval as well shareholder approval at a special meeting. The Company is consulting with its advisors and will circulate information circular once meeting and record dates are set.

Caution Regarding Forward-Looking Information

Information in this news release respecting the proposed spin-off and the transaction with NGG constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.

Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca.

On Behalf of the Board of VANGOLD RESOURCES LTD.

Dal Brynelsen, President and CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

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