Vangold hits high grade in PNG

Vancouver — Trenching and soil sampling have outlined two systems of gold mineralization on the Mt. Allemata gold-silver-platinum property in Papua New Guinea.

An equal joint venture between Vangold Resources (VAN-V) and New Guinea Gold (NGG-V), the project comprises 243 sq. km and is connected by a 15-km, all-weather-road to the city of Alotau.

Mt. Allemata includes 13 prospects, of which only Uloulo and . Haluba have been explored. Historically, the property has produced 14,000 oz. gold and 6 kg platinum. In the latest exploration, 131 samples of trenches and soils were collected from the Uloulo project and 233 from the Haluba prospect.

Soil sampling at Uloulo outlined an anomalous area measuring 1.3 by 0.6 km, which contains several, sub-parallel, anomalous zones up to 375 metres wide. The soil sampling encountered zones above 4 grams and wide zones of more than 1 gram gold.

Limited trenching extended the zone, which is 4 metres wide overall and averages 18.7 grams gold per tonne. Follow-up sampling resulted in 4 metres grading 17.6 grams gold per tonne.

The highest grade (100 grams gold per tonne over 4 metres) was in a clay-silica zone in a trench dug 20 metres along strike from a 1.4-metre-wide zone that averaged 71.9 grams gold. The zone is 5 metres along strike from a creek exposure containing 1.4 metres grading 70 grams gold and 10 metres northeast of a trench containing 4 metres of 8.77 grams gold.

Plans for further exploration include excavator trenching to penetrate deep soils and colluvium, followed by drilling.

The Mt. Haluba prospect includes a series of northeast-trending anomalous gold-in-soil zones that extend over a 2.2-by-1.2-km area. The largest anomaly is 1.8 km long and up to 0.45 km wide.

Hand-trenching of the gold-in-soil anomaly resulted in encouraging intersections, including 4 metres of 2.48 grams gold, 8 metres of 1.15 grams gold, 4 metres of 1.15 grams gold, and 4 metres of 1.02 grams gold. Also discovered was a 100-metre-wide zone averaging 1.36 grams gold per tonne (including 20 metres at 3.83 grams gold and 4 metres at 16.75 grams gold).

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