Cangold Limited

Cangold Limited

June 24, 2009 15:41 ET

Cangold Acquires 100% of Argosy Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 24, 2009) - CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") announces that it has acquired the 49% interest in the Argosy Gold Mine in the Red Lake Mining Division of Ontario owned by its joint venture partner, Premier Gold Mines. The acquisition of Premier's interest gives Cangold a 100% interest in this past producing gold mine, subject to a 2.5% NSR. The Argosy Gold Mine closed in 1952 after producing 101,875 ounces of gold from 276,573 tons of ore at an average grade of 0.37oz/t (12.7g/t) gold and was only mined to a depth of 270 metres.

Since optioning the property, Cangold has drilled 4,200 metres in 17 holes on this high grade system and has demonstrated the continuity of the gold zones to depth and by further delineating several of the near-surface veins. Furthermore, a new gold zone was discovered on the property in the Casummit Creek area, where auriferous zones are characterized by quartz-ankerite veins in silicified, sericitized intermediate tuffs, argillite and mafic tuffs. Mineralization associated with the veining and altered host rock consists of disseminated arsenopyrite, pyrrhotite and pyrite, with traces of chalcopyrite and sphalerite.

Terms of the acquisition call for Cangold to issue to Premier a total of 2 million shares of Cangold at a deemed price of $0.10 and a cash payment of $10,000. Premier will retain a 0.5% NSR, which can be purchased for $500,000. An underlying 2% NSR will remain in force.

In the current environment of rising gold prices, the Argosy Gold Mine is a significant asset with potential for substantial resource delineation. Consolidating the ownership will allow Cangold the opportunity to better realize the advancement of the project.

Robert F. Brown, P. Eng and Vice-President of Exploration for Cangold is designated as the Qualified Person for the Argosy Gold Mine Project under the meaning of NI 43-101 and has reviewed this news release.


Robert A. Archer, P. Geo., President & 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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