Vangold Resources Ltd.

Vangold Resources Ltd.

February 28, 2005 13:41 ET

Vangold Resources Ltd.: 140,000 oz Gold Inferred Mineral Resource at Mt. Penck




FEBRUARY 28, 2005 - 13:41 ET

Vangold Resources Ltd.: 140,000 oz Gold Inferred
Mineral Resource at Mt. Penck

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Vangold
Resources Ltd. ("Vangold") (TSX VENTURE:VAN) announces that its joint
venture partner, New Guinea Gold Corporation ("NGG"), manager of the
projects owned by Kanon Resources Ltd. in Papua New Guinea, has issued a
report on the Kavola East prospect at the Mt. Penck Property (EL 1322)
which is 101.4 sq kilometres in area, and situated in West New Britain
Province, approximately 55km west of the Provincial capital and port of
Kimbe. Mt. Penck is owned 40% Vangold and 60% NGG.

The initial inferred resource at the Kavola East prospect is 1,500,000
tonnes at 2.9g/t gold for 140,000 ozs of contained gold. The average
"discovery cost" of resources at Mt Penck is, to date, a very low,
approximately CAD$4 ounce of gold.

The new resource at Kavola East is expected to increase in size with
further exploration drilling later in 2005. Kavola East is a small part
of the Mt. Penck mineralized system and the partners believe, with
further exploration, that resources will be defined at other prospects
as well as Kavola East (see section District Potential described on the
next page).

It is important that investors recognise that an Inferred Mineral
Resource is that part of a Mineral Resource at which tonnage and grade
estimated is the first stage of an on-going progress. An Inferred
Resource is considered too speculative geologically to have economic
considerations applied to them that would enable them to be categorized
as mineral reserves. These Inferred Resources will require further
exploration to upgrade them to the higher Measured and Indicated
categories which respectively have reasonable and high levels of

The Inferred Mineral Resource has been calculated in accordance with
guidelines from National Instrument 43-101. A confirmation report by an
independent qualified person in compliance with National Instrument
43-101, will be filed on SEDAR within 30 days.

The total surface area of gold mineralisation at Kavola East, as
interpreted from trenching is 10305sq m. This mineralisation has an
average grade of 2.6g/t gold. The total number of trench channel samples
within the mineralised zone was 302. Nominal cut-off grade was 1g/t gold.

Eight drill holes totalling approximately 1,000m in length had total
composite intersections of 146m averaging 3.1g/t gold. The average
composite drill intersection, width was 19m.

There appears to be both steeply dipping and near horizontal components
to the mineralisation. Confidence in continuity is good between surface
and 30m vertical depth, but confidence in continuity decreases with
depth. Deepest intersections were 6m @ 4.7g/t gold at a vertical depth
of 120m in hole MPD003 and 13m @ 3.06g/t gold (inc. 2m @ 15.35g/t gold)
at a vertical depth of 105m in hole MPD005.

The surface average gold grade of 2.6g/t and the average grade of
mineralisation in drill hole of 3.1g/t gold (both at a nominal 1g/t cut
off) are comparable and suggest that secondary enrichment of gold at
surface has not occurred.

In the case of the Kavola East prospect, the resource is inferred from
geological evidence, approximately 1,000m of surface bulldozer trenching
and 1,000m of diamond core drilling within a zone approximately 150m in
width, 250m in length and to a depth of 100m. A specific gravity of 2.5m
has been assumed. The limits of mineralisation are not yet known. Grade
continuity is assumed but requires further drilling to be confirmed.

District Potential

The Kavola East prospect is one of six named prospects that occur within
a northerly trending structural zone on the northwest flank of Mt. Penck
(see Vangold Press Release dated December 18th 2003). Mt. Penck is an
extinct, partly eroded, Pliocene strata volcano.

The northerly trending structural zone contains linear zones of gold
mineralisation. This mineralisation appears to have both sub-vertical
control in structures and sub-horizontal control within favourable
volcanic units. Mineralisation occurs within zones of argillic/quartz
alteration that individually vary from 200 to 800m in length and 15 to
100m in width. Kavola East is one such alteration zone.

The Kavola East prospect is thus only a small part of the Mt. Penck
mineralised system. The potential to define additional resources at
Kavola East and elsewhere in the 101sq km exploration licence is
regarded by the partners as excellent. For example, at the Koibua
prospect, approximately 1km northwest of Kavola East, previous drilling
by earlier explorers gave results such as 33m @ 2.41g/t gold (inc. 12m @
5.05g/t gold); 10m @ 2.37g/t gold, and 14m @ 3.31g/t gold. Other
prospects have had very limited trench/drill exploration and have
widespread gold in soil and stream samples. The Kavola East and Koibua
mineralisation may be part of the same semi-continuous zone and jointly
could represent major gold potential.

Ongoing Program

The partners in the Mt. Penck project, Vangold Resources and NGG, are
finalising the ongoing exploration program for 2005. Before any
development can be considered at Mt Penck additional resources need to
be defined and the existing resources upgraded to Indicated and/or
Measured status by additional drilling.

In addition to this drilling the partners also intend to commence a
district survey to encompass all known gold mineralised occurrences.
This survey could include a comprehensive geochemical survey, supported
by focused geophysical surveys to define drill targets outside the
limits of the Kavola East prospect.

The technical data in this release has been compiled by and prepared by
or under the supervision of Robert D. McNeil, CEO of New Guinea Gold
Corporation and has been reviewed by an independent qualified person.
Mr. McNeil has an MSc in Geology, 44 years mining industry experience,
is a Fellow of the Australian Institute of Mining and Metallurgy, and
meets the requirements of NI 43-101 for a qualified person.

Vangold has ongoing revenues from its interests in the East Corning
Field in the Sacramento Basin, California and Killam Oil Field in
Alberta, Canada. In 2005, Vangold plans an aggressive development
program for its oil and gas interests in Alberta as well as numerous
exploration projects in Papua New Guinea. In addition to oil and gas
investments, Vangold is one of the dominant gold exploration companies
in Papua New Guinea and currently holds interests in six gold projects
and one copper/gold project. Most of these properties are considered
advanced stage projects with significant known gold in trench and drill
hole with further drill ready targets. The properties total 1,700 sq kms
in area.

On Behalf of the Board of


Dal Brynelsen, President and CEO


Contact Information

    Vangold Resources Ltd.
    Dal Brynelsen
    President and CEO
    (604) 684-1974
    (604) 685-5970 (FAX)
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