May 15, 2020 – Vancouver, British Columbia – VanGold Mining Corp (the “Company” or “VanGold”) (TSXV:VGLD) announces plans to conduct a 1000 tonne bulk sample from its El Pinguico silver and gold project, located 7km south of the city of Guanajuato, Mexico.
1000 Tonne Bulk Sample
VanGold has entered into an agreement with Endeavour Silver Corp. (Endeavour) (TSX:EDR) to process 1000 tonnes of mineralized material from the Company’s El Pinguico silver and gold project.
By conducting this large test, the Company will gain valuable metallurgical and precious metal recovery information pertaining to the mineralized material on the El Pinguico property. As well, the Company will gather critical economic data regarding the potential for direct shipping of this material from El Pinguico to one of several operating mills in the Guanajuato area.
This bulk sample will be sent to Endeavour’s Bolanitos mill, located to the north of Guanajuato and approximately 28 km from El Pinguico. Endeavour and VanGold plan to conduct this test at the start of Bolanitos’ commercial operations, and after the lifting of Mexico’s national “stay at home” order relating to the Covid 19 pandemic.
CEO James Anderson stated, “We would like to thank everyone at Endeavour Silver Corp. for working with us to conduct this bulk sample. In the future we look forward to co-operating with them on other initiatives in the Guanajuato area.”
VanGold will perform a floatation metallurgical test where the final product will be a concentrate that will show metallurgical recoveries, as well as give the Company accurate costs associated with the processing of this material. The Company has engaged with local contractors in Guanajuato to haul approximately 70 fifteen tonne truckloads of this material to Bolanitos. All of the material for this test will be taken from the Company’s surface stockpile which was left in place when mining ceased at El Pinguico in 1913. This stockpile contains an exploration target of 175,000 to185,000 tonnes grading 1.25 to 1.35 gpt AuEq. These figures are conceptual in nature.1
1 The potential quantity and grade of the surface stockpile is conceptual in nature and derived from a 2012 study by the then owner of El Pinguico calculating the volume of the stockpile as 92,849.5 m3, with a surface of 15,769.40 m2, and 10 holes dug into the stockpile by VanGold in 2017 with a backhoe at different locations and depths (top and bottom). VanGold’s backhoe samples confirmed there was no movement of economic values from surface to bottom of the stockpile due to weathering and rains, with the average sample results as follows:
|Au ppm||Ag ppm||AuEq ppm|
There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the stockpile being delineated as a mineral resource.
Mining engineer and Vangold Director Hernan Dorado Smith said “It has been 107 years since the El Pinguico mine closed. It is heartening for our stakeholders to know that gold and silver may once again be produced from mineralized material from this property.”
The El Pinguico Project:
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s 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. 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 Smith, 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 contained in this news release.
About VanGold Mining Corp.
VanGold Mining is an exploration company engaged in the exploration of mineral projects in the Guanajuato 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 Company 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 release.
This news release contains certain forward-looking statements, which relate to future events or future performance (including, but not limited to, the commencement of the Company s 1,000 tonne bulk sample and potential for near term development and monetization of existing stockpiles of mineralized material at the Company s El Pinguico project in Mexico) and reflect management s current expectations and assumptions. Such forward-looking statements reflect management s current beliefs 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 will have on the Company s operations, supply chains, ability to procure equipment, contractors and other personnel on a timely basis or at all 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 disclosure 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.