Vangold Resources Ltd.

Vangold Resources Ltd.

September 09, 2010 14:56 ET

Vangold Resources Ltd.: 3D IP Survey Report for Fergusson and 3D IP Survey Update for Mt Penck Papua New Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2010) - Vangold Resources Ltd. ("Vangold" or the "Company") (TSX VENTURE:VAN) is pleased to report it has completed a three dimensional induced polarisation (3D–IP) geophysical survey conducted at Mt Penck EL 1322 (area 102 sq km) located on New Britain Island and the Igwageta Prospect, EL 1324 - Fergusson (area 115 sq km), Milne Bay Province, Papua New Guinea. The 3D-IP preliminary reports at Mt Penck define five geophysical targets which are interpreted to related sulphides including pyrite, chalcopyrite and arsenopyrite. An association of arsenopyrite with gold occurs in drillholes at Kavola. The 3D–IP survey at the Igwageta Prospect (Fergusson) EL 1324 defines the presence of excellent new targets for bulldozer trenching and drilling, shows significant mineralisation depth potential, and has confirmed the existing gold mineralisation and structural interpretation. 

A seven week exploration program at the Igwageta Prospect, which commenced in April and was completed in late May 2010, covered an area of approximately 1.0 km2 (1.2 x 0.8 km). The area of interest was cut with access/soil sampling lines at nominal 100m spacing. A three dimensional induced polarisation (3D-IP) chargeability and resistivity survey was completed over the gridded area.

To view Figure 1, please click here:

The 3D-IP survey was designed to test for geophysical responses related to the Igwageta Prospect and to locate additional, potentially gold and silver epithermal mineralised trends. The modelled resistivity results are being used as a diagnostic tool to interpret silica flooding targets, which management believes may be related to gold mineralisation. The chargeability defines anomalies related to sulphide mineralisation, and is potentially associated with gold veining and gold mineralisation.

A total of nine targets have been identified that are either associated with gold mineralisation, or are potentially related to additional gold bearing quartz reefs. The Igwageta gold vein assemblage (IG1) occurs as an elongated 430m long zone of slightly anomalous resistivity (300 to 400 ohm.m) trending west-northwest. The eastern section of this vein assemblage is interpreted to be faulted to the north and re-occur as an anomaly (IG7).

Within the gold anomalous areas of Igwageta at IG 1, 3, 4, 5 & 6, higher chargeability values occur over an area of 400m by 250m and extend to more than 200 meters in depth. These zones of higher chargeability potentially reflect gold mineralisation associated with arsenopyrite sulphides.

The Igwageta vein systems (IG 1, 2 and 3) and associated 'historic' gold in soil geochemistry, correlate with a linear zone of magnetite alteration (destruction due to hydrothermal fluid flow, that is, it is a gold mineralising environment) in the airborne geophysical data. A similar magnetic low lineament to the Igwageta vein that has not been investigated is located about 600m to the northeast. These areas occur in a broader (3 1/2 sq. km) circular zone of alteration, and are evident as anomalously low airborne magnetic and radioelement signatures.

The Igwageta vein system, the magnetic lineament to the northeast, and the surrounding zone of magnetite alteration, are proposed as locations for a future expanded soil sampling and 3DIP geophysics survey. These surveys are recommended to cover 1.4 km by 1.6 km and may delineate further drill targets by defining anomalies related to concentrations of gold vein and gold sulphide related mineralisation. As discussed above, the resistivity component of the survey is expected to help delineate areas of silica flooding that may be related to gold mineralisation. Gold in trench samples also correlate with arsenic, which may be detected as sulphide related anomalies in the IP component.

For part of the survey, five pits were dug and sampled and visible gold were observed from weathered C-horizon rock collected from the base of the pits that was panned. In addition, a zone of soil and drill hole gold anomalism shows visible gold in the altered rhyolitic volcanics. Several occurrences were noted by macroscopic evaluation at the locality, but the occurrences are too fine grained for standard photography.

Within the next ten days, Vangold expects to receive comprehensive reports from SJ Geophysics with processed results on the geophysical surveys conducted on each of the Company's three gold properties (Mt. Penck, Fergusson and Allemata). Peter Swiridiuk, a consulting geologist and member of the Australian Institute of Geoscientists and Australian Society of Exploration Geophysicists, will be interpreting the results.

Vangold also announces that it has received preliminary results from it 95% owned prospect on New Britain Island, Mt Penck. The 3D-IP which has recently been completed indicates the presence of an IP anomaly located in the area of Kavola South. This geophysical anomaly expands at depth. The Company expects elevations and sections of the 3D IP work conducted at Mt Penck within a week. At which time it will issue a comprehensive Press Release.

Vangold's three gold properties (Mt. Penck, Fergusson and Allemata) are located in Papua New Guinea along the "Pacific Rim of Fire", the active circum-Pacific volcanic belt that is host to large copper-gold porphyry systems (Grasberg, Ok Tedi, Panguna and Frieda River) and to a number of world class epithermal gold deposits including Porgera and Lihir.

On Behalf of the Board of VANGOLD RESOURCES LTD.

Dal Brynelsen, President and CEO

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