SOURCE: Vangold Resources Ltd.

November 02, 2007 14:10 ET

Vangold Signs Technical Evaluation Agreement in Rwanda With Commitment to Enter Into Production Sharing Agreement

VANCOUVER, BC--(Marketwire - November 2, 2007) - Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") reports that at a signing ceremony with the Rwandan Minister of State in Charge of Energy and Communications, Albert Butare, it has signed a Technical Evaluation Agreement for the East Kivu Graben Basin Area located in the Kivu Graben. A one year technical study has narrowed the evaluation area to 1,631 sq kms. Under the terms of the agreement, Vangold will conduct a detailed and comprehensive study of the area for the evaluation of the hydrocarbon potential and the identification of those areas of greatest prospective interest. The aeromagnetic and gravity surveys will be conducted over a period of 18 months by either plane or helicopter. The cost of the surveys is estimated to be US$1.2M. Vangold is also granted a Right of First Option to negotiate and execute a Contract for the Exploration and Exploitation of Hydrocarbons. Furthermore, the Agreement also provides for dispute resolution by way of a Conciliation Committee which shall consist of three members. Each party shall appoint a member to the Committee with the third appointed by those members.

The area in the Kivu Graben, dubbed the White Elephant, is part of the great western East African Rift System. The graben, approximately 90km wide and 200km long, trends NNE-SSW and straddles both Rwanda and the Democratic Republic of Congo. Structurally, Kivu Graben is the southern extension of the Albertine Graben in Uganda, where there has been major oil discoveries by Tullow Oil and Heritage Oil.

Favorable petroleum systems exist supporting the generation, migration, accumulation and entrapment of hydrocarbons in the graben. Based also on structural similarity, it follows that the paleo-tectonic setting and graben-fill environment established in the Albertine Graben may have extended to Kivu Graben. Therefore, according to Francis Karanja, Vangold's geologist, "It is reasonable to conclude that the favorable petroleum systems resulting in the generation and entrapment of the hydrocarbons in Albertine Graben may have also existed in Kivu Graben."

The technical study shows positive indicators of hydrocarbons generation in Kivu Graben include the existence of methane and other higher molecular aliphatic hydrocarbons in deep waters of Lake Kivu. The higher molecular gases include ethane, propane, iso-butane and traces of n-butane. Evidences to the existence of Miocene deep lakes and sedimentary basins where oil generating source rocks may have accumulated include the lacustrine sedimentary sequence outcrop of Gisakura Formation at Gisakura place and further the observed sub-lacustrine alteration of the Miocene basalts in Kivu graben. The basalts [pillow lavas] erupted sub-aqueous suggesting possibility of deep lakes in the Miocene time in Kivu Graben. Other evidence of the existence of Miocene lakes includes the shore-line deposited volcaniclastics sequences outcropping at Gisakura place. Sedimentary basins development in Kivu Graben includes East Kivu, West Kivu and Burundi's Rusizi basins with a zone of structural culmination [accommodation zone] located between the basins.

To ensure that these prospective basins are sufficiently developed Vangold plans to immediately undertake a reconnaissance aerial-geophysical survey covering the concession area using the magnetics, gravity and gamma. The survey would delineate the sedimentary basin areas and detect any oil seepage and will be the beginning of Vangold's new venture programme to explore for hydrocarbons in the Rwanda concession area. Historically, Rwanda has never been explored for hydrocarbons and this will be the first time in that country's history that the private sector will undertake exploration activities designed to find oil.

The hypothesis for oil and gas exploration says that whenever there is a leak or seepage in a water body it comes out in the form of bubbles and plumes. Near to Lake Kivu, Lake Victoria and adjoining areas has shown proven occurrence of petroleum and natural gas in contact zone of Precambrian and Miocene clay. Further adjoining area of Kivu Lake the possibility of oil pool can be confirmed along the contact zone of Precambrian and Miocene clay along the specific locations like Bisesero, Kibuye, Kayove and Nyamyumba etc.

Dal Brynelsen, President and CEO, told The East African, "There are indications of possible development of prospective sedimentary basins in Kivu Graben. However, details in terms of actual basin-fill thicknesses of the individual basins in the graben area and their petroleum potential is unknown. Vangold is committed to and prepared to underwrite this risk for the next 18 months."

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

  • 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