April 23, 2020 – Vancouver, British Columbia – VanGold Mining Corp (the “Company” or “VanGold”) (TSXV:VGLD) announces continued work and planning on its 2020 campaign to advance its El Pinguico silver and gold project, located just 7km south of the city of Guanajuato, Mexico.
Ongoing Operations Through the Covid-19 Pandemic:
VanGold continues to develop its El Pinguico project during the Mexican government’s curtailment of non- essential economic activities in response to the Covid-19 pandemic. The Company is actively engaged with three separate initiatives: processing a substantial bulk sample through a local mill, making accessible an additional 30 meters of vertical distance at the bottom of the El Pinguico shaft, and developing a compre- hensive drill plan to be initiated in late summer/early fall.
VanGold is in discussions with local contractors to deliver a substantial bulk sample from its surface min- eralized stockpile for processing at a local mill within the Guanajuato area. This material has remained in place since 1913 when mining ceased on the property due to the Mexican revolution. Processing the bulk sample will provide important information regarding metallurgy and precious metal recoveries to assess the economic viability of direct shipping both surface and underground material from the El Pinguico pro- ject on an ongoing basis. To date, no formal arrangements for processing a bulk sample have been finalized.
Re-establishing the El Pinguico Shaft:
In the early 1900’s, El Pinguico was mined on 10 levels and from four major shafts. The most central of these shafts, and the one located closest to the Company’s underground stockpile, is called the El Pinguico shaft. Crews will begin clearing the bottom of the El Pinguico shaft down to the 7th adit level (also known as the Sangria level) as soon as Mexico lifts Covid-19 work restrictions. Accessing the Sangria level will allow the Company to advance three important initiatives:
- First, the Company will conduct a sampling program of material at the bottom of its historic under- ground stockpile in order to gain confidence that the grade encountered by VanGold’s 2017 trench sampling program at the top of the stockpile (an average of 3.56 grams per tonne of gold equivalent) extends to the bottom of the stockpile (see VanGold Mining NI43-101 dated February 28, 2017 by Carlos Cham Domingues on SEDAR).
- Second, the Company will re-enter and sample previously mined stopes, especially the Colmillo This particular stope, located adjacent to and above the Sangria adit level is thought to be an area of potential high-grade vein material, as evidenced by assays from historical channel sampling.
- Third, Company contractors will re-enter the Sangria adit itself, and assess the condition of the adit and the competency of the rock formations that the adit cuts This will be a first step in understand- ing what refurbishing will need to be done should the Company decide to use the Sangria adit to bring mineralized material from the underground stockpile to surface in a safe and cost-effective manner.
Defining Drill Targets:
VanGold continues to compile all relevant historical and contemporary geological data from the El Pinguico project. Drill targets established in the Company’s 2017 NI 43-101 report are being augmented with drill targets that could be accessed using underground drilling equipment. In this way, the Company plans to target extensions of historically mined vein material from existing underground workings, in order to lessen the drilling distance needed to intercept those targets and thereby reduce drilling costs.
The Company also plans to assess regional information pertaining to the angle of dip associated with the Veta Madre (or Mother Vein), the region’s main controlling structural feature. The Veta Madre is respon- sible for the deposition of most of the over 1.2 Billion ounces of silver historically mined from the Guana- juato region, and is theorized by Company engineers to cross the El Pinguico project at depth. The Company plans to drill test the presumptive intersection of the El Pinguico vein systems and the Veta Madre, at approximately 500m in depth, this fall.
VanGold director Dan Oliver commented: Despite ongoing coronavirus considerations, this is an exciting time for the Company - we are working diligently at re-establishing the El Pinguico mine to its past glory.
The El Pinguico Project:
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1880s until 1913. The mining was done exclusively from the El Pinguico and El Carmen veins, which are thought to be splays off the Mother Vein, or ‘Veta Madre.’
The Veta Madre is associated with a mega fault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. The Veta Madre may cross Vangold’s property at depth, underneath the high grade El Pinguico and El Carmen veins, but very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.
Historic stockpiles of mineralized material exist on surface and underground at El Pinguico which may potentially provide feed to one of several operational mills in the Guanajuato area.
Hernan Dorado, a director of VanGold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information con- tained in this news release.
About VanGold Mining Corp.
VanGold Mining is an exploration company engaged in the exploration of mineral projects in the Guana- juato region of central Mexico. The Company’s flagship El Pinguico project is a significant past producer of high-grade gold and silver and is located just 7km south of the city of Guanajuato, Mexico. The Com- pany remains focused on the near-term potential for development and monetization of both its surface and underground stockpiles of mineralized material from El Pinguico.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman and CEO
For further information regarding VanGold Mining Corp, please contact:
James Anderson, Director, +1 (778) 989-5346
Continue to watch our progress at: www.vangoldmining.com
Neither the 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 re- lease.
This news release contains certain forward-looking statements, which relate to future events or future per- formance (including, but not limited to, the proposed work and exploration plans at the Company’s El Pinguico project in Mexico and the anticipated timing thereof and the potential for near term development and monetization of existing stockpiles of mineralized material at El Pinguico ) and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current be- liefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, currency rate fluctuations, actual results of exploration and development activities, environmental risks, future prices of gold, silver and other metals, operating risks, accidents, labor issues, delays in obtaining governmental or regulatory approvals and permits, and other risks in the mining industry. In addition, there is uncertainty about the spread of the COVID-19 virus and the impact it and governmental restrictions designed to curtail same will have on the Company’s operations, global supply chains, ability to procure equipment, contractors and other personnel and perform work on a timely basis, and economic activity in general. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclo- sure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.