VANCOUVER, BC / ACCESSWIRE / July 21, 2020 / VanGold Mining Corp (the “Company” or “VanGold“) (TSXV:VGLD) has arranged a non-brokered private placement financing of up to 15,800,000 units (“Units“) at a price of $0.155 per Unit for gross proceeds of approximately $2,450,000 (the “Financing“). Each Unit will consist of one common share of the Company and one half (1/2) of a common share purchase warrant (each whole warrant a “Warrant“); with each Warrant entitling the holder to purchase one common share of the Company at a price of $0.25 within two years of closing, subject to acceleration in certain events.
VanGold intends to use the net proceeds from the Financing to accelerate the development of the El Pinguico silver and gold project in Guanajuato, Mexico, and for general corporate and working capital purposes. Specifically, the Company intends to initiate an underground drilling campaign to target extensions of high-grade in-situ silver and gold epithermal veins and stockworks. These vein and stockwork features are exposed in the old mine workings from when mining ceased in 1913. The Company is currently developing a computer model of the deposit to assist in generating specific underground drill targets.
The targets being generated are separate and distinct from drilling that may intersect the confluence of the Veta Madre (Mother Vein) and the El Pinguico/El Carmen vein structures. The Company plans to drill these deeper, high impact, conceptual targets from surface later in the year.
The Company intends to conduct the underground drilling program in parallel with its work to clear the El Pinguico shaft and sample the bottom of its underground stockpile, in preparation for the possible haulage of the underground stockpile material to surface for onward delivery to a nearby mill for processing. No contract for processing this material on a long-term basis has as yet been formalized by the Company. Further details of these plans will be discussed by the Company in subsequent news releases.
In May, 2020 the Company sent 1,039 tonnes of material from its surface stockpile to Endeavour Silver Corp.’s (TSX:EDR) Bolanitos mill, located approximately 28km from El Pinguico. The recalculated head grade from that bulk sample was 1.23 gpt AuEq at a 96:1 silver to gold ratio. Please see VanGold’s June 9, 2020 news release.
Vangold’s surface stockpile contains an exploration target of 175,000 to 185,000 tonnes grading 1.25 to 1.35 gpt AuEq. These figures are conceptual in nature. The underground (UG) stockpile consists of material that the Mexican Geological Survey agency in 2012 determined to be 148,966 tonnes in size. In 2017, VanGold conducted a trenching program at the top of the UG stockpile. This program resulted in a weighted average of all of the trench samples of 1.75 gpt Au and 183 gpt Ag.
The Financing is subject to acceptance of the TSX Venture Exchange (the “TSXV“) and may close in tranches, with an initial closing anticipated for on or about August 4, 2020. All securities issued pursuant to the Financing will be subject to a four month hold period from the date of closing. The Company may pay finder’s fees in cash, shares and/or warrants to certain finders in connection with the sale of Units in accordance with the policies of the TSXV.
The El Pinguico Project:
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. Toward the end of that period it was mined exclusively by The Pinguico Mines Company of New York City, whose shares traded on the Boston and New York Stock Exchanges. The mining was done principally 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.
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 and development company engaged in reactivating high-grade past producing silver and gold mines near the city of Guanajuato, Mexico. The Company’s El Pinguico project is a significant past producer of both silver and gold located just 7km south of the city. The Company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in developing silver and gold resources through underground and surface drilling on projects located in this historic mining camp.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman and CEO