Vangold Resources Ltd.
TSX VENTURE : VAN

Vangold Resources Ltd.

August 02, 2006 14:47 ET

Vangold Resources Ltd.: Mt. Penck Program Defines Gold Mineralisation: 23m at 2.3g/t Gold in Drill Hole; 36m at 4.2g/t Gold in Trench

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2006) - 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. ("Kanon") in Papua New Guinea, has provided an update on the Mt. Penck project. Kanon is owned 50% Vangold and 50% NGG. The Mt. Penck property is beneficially owned 40% by Vangold and 60% by NGG.

The initial diamond core drill holes at Mt. Penck, in the present program, have been successful in defining gold mineralisation to the east of the previously drilled mineralisation at the Kavola East prospect. Best intersections included 23m at 2.3g/t gold, 4m at 4.0g/t gold and 4m at 2.3g/t gold. All intersections are shown below.

Trenching to the south of Kavola East in an area of high soil gold results (previously untested) showed significant gold in the near surface environment and suggests a possible major extension to the south of the Kavola East mineralisation. Best result was 3m at 27g/t gold within 36m at 4.2g/t gold (of 61 three (3) metre long trench samples 24 were greater than 0.5g/t gold).

The drill assay results from holes MPD 8 through MPD 10 are in the accompanying table (0.5g/t gold cut-off). Of note is that the gold mineralisation commences at surface in hole MPD 8, and the 4m intersections in holes MPD 9 and MPD 10 may represent the same mineralised zone. The intersections would be slightly greater than true width.

Assay Results Summary



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Hole Northing Easting EOH AZI Dip From To Inter- Au
No (amg) (amg) (m) (mag) (deg) (m) (m) val g/t
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MPD 8 9388558 79082 190.5 135 -45 0 23 23 2.3
Including -----------------------------------------------------------
6 7 1 11.7
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31 32 1 1.1
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52 56 4 2.5
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60 61 1 3.7
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69 70 1 4.4
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140 142 2 1.0
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170 174 4 1.1
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MPD 9 9388500 790844 103 135 -45 68 70 2 1.6
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96 100 4 4.0
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MPD 10 9388454 790871 100.5 135 -45 24 25 1 2.3
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40 41 1 3.9
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45 46 1 2.7
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53 57 4 2.3
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The trench results (see Figures - Contours of Gold in Soils and Kavola East Soils for location) are also very encouraging with two separate intersections (cut off used was 0.5g/t gold) of 36m at 4.17g/t gold and 27m at 1.25g/t gold, separated along trench by a low grade zone of 57m averaging approximately 0.1g/t gold.

The drill and trench locations are shown on the accompanying figures together with contours of gold in soil geochemistry. As can be seen from this plan only a small part of the Mt. Penck system has been tested by drilling. The arsenic in soil geochemistry has previously been released.

The soil and arsenic results are regarded as a guide only to gold mineralisation. We note that trenching in some areas where gold geochemistry is low still yielded significant gold in trench samples, thus all the 1.5 sq km area within Figure - Contours of Gold in Soils, will require assessment by trenching and drilling.

Drilling is now focused on resource definition within the gold anomalous zone to the south of holes MPD 6 and MPD 8, and within the newly trenched area, with holes being drilled to nominal depths of 100m on 25 to 50m centers. Holes MPD 011 to MPD 17 have been completed with holes MPD 11 through 15 sampled (core sawed in half) and 142 half core samples dispatched for assay. Results should be available within about 3 weeks.

The core samples were sawed in half on site and the half core bagged in one or two metre sections. Sample preparation was carried out by accredited laboratory, Intertek Caleb Brett in their laboratory in Lae, Papua New Guinea, and analyses in their laboratory in Jakarta, Indonesia. Core recovery exceeded 90%. Core logging was carried out on site and all core photographed prior to splitting. Laboratory standards were used for every 10th sample and 10% of the mineralised samples will be checked independently by re-assay for accuracy.

The relationship of mineralisation to structure is still uncertain although there appear to be both sub-horizontal and sub-vertical controls. Mineralisation is concentrated in NE trending structural zones within the eroded Mt. Penck stratovolcano.

The trenches were channel sampled over 2 or 3m lengths within a shallow hand dug trench (1m or less in depth).

Samples were 2 to 4kg in size, sample preparation was carried out in Lae, Papua New Guinea and analyses in Jakarta as per the core samples. The trench samples are regarded as an accurate assessment of the gold in the near surface environment.

Cut-off grade used for both core and trench samples was 0.5g/t gold.

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, CEO of New Guinea Gold Corporation. 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 is a diversified natural resource company with a portfolio of 29 diverse advanced stage projects including revenue generating oil and gas projects.

In addition to the above projects in PNG a program is also planned for 2006 at the Feni Islands (50% Vangold). In Uganda, Vangold recently announced an acquisition of 90% of seven rare metal mines through its subsidiary Horn Rare Metals Ltd. Vangold also has licenses covering over 60 sq km in the prospective Kilembe copper/cobalt belt, licenses covering over 300 sq km in the Kilo Moto region and licenses covering over 287 sq kms in the Kafunzo area. The Ugandan government is currently spending US$42 million of airborne geophysics in the area of Vangold's licenses.

Vangold's oil and gas drilling programs in Alberta, Canada, include the Killam North oil field. Vangold is currently planning high impact gas well drilling on three other projects this summer. As a result of Vangold's oil and gas investments, Vangold has reported its 2006 first quarter revenues was $948,764, an increase of 875% over the same period for 2005. Vangold is continuing to expand its oil and gas interests.

On Behalf of the Board of VANGOLD RESOURCES LTD.

Dal Brynelsen, President and CEO

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.

To view the maps accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/VANmaps.pdf

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