Last week, the Federal Reserve announced that they would hold interest rates at zero over the next five years and potentially beyond. The Fed has openly admitted that they are hoping to have inflation run above the 2% target to make up for past shortfalls regarding achieving that target.
This serves as a significant catalyst moving forward for precious metals as they have always been reliable hedges when inflation runs rampant.
The timing could not be more perfect for VanGold Mining to restore the high-grade El Pinguico Mine. In fact, the company is well on its way to doing that. The company has already conducted a bulk sample of its surface stockpile, which was a major success. VanGold sent 1039 tonnes of mineralized material to Endeavour Silver’s nearby mill for processing and testing. This test was done with material that was considered waste 100 years ago when El Pinguico was known as the highest grade silver and gold mine in a 450-year-old mining camp.
The Result:
- 75% gold recoveries
- 61% silver recoveries
- Processed head grade: 1.23 grams per tonne AuEq
At times during the milling process, the company observed even higher gold and silver recoveries – up to 77.68% for gold and 67.19% for silver.
VanGold recently raised nearly $4 million, which puts the company in a strong position to aggressively pursue the mine’s restoration.
Since the closing of the financing, the company announced an option agreement to re-purchase three underlying royalties on the El Pinguico silver and gold project. This puts the company in an extremely strong position moving forward as it has streamlined the mine’s ownership structure before it aggressively begins to re-establish the asset as one of the highest-grade silver and gold projects in the historic silver-rich Guanajuato camp.
Guanajuato’s history with regards to its deep-rooted history of silver production was pointed out in our first article. (CLICK HERE to reread)
The next step for VanGold is to clear 30m of material to provide further access to the underground stockpile and areas of high-grade vein exposures within the mine – a process that is already underway.
Here is a fantastic video of the company’s CEO James Anderson providing an in-depth overview of how those efforts are going alongside providing milestones shareholders and followers of the story can expect in the weeks and months to come, which includes plans of conducting a underground drill program within 90 days:
We also invite our readers to review the VanGold infographic, here: https://www.goldtelegraph.com/company-spotlight-vangold-mining/
The infographic will walk you through VanGold’s full story from the top down.
In the next few weeks, we will be following up with VanGold CEO James Anderson for another Q/A interview to provide another update on this exciting and fast-moving project.
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