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VanGold Signs Agreement for 100% Interest In Historic El Pinguico Mine

Mining News - Published on Wed, 11 Jan 2017

Image Source: SteelGuru
Vangold Resources Ltd announced that it has entered into an asset acquisition agreement made effective December 16, 2016, with Exploraciones Mineras Del Bajio SA de CV ("EMDB") to acquire a 100% interest in the El Pinguico property. The Property consists of two mining concessions covering 71 hectares, located approximately 5km southeast of the City of Guanajuato in Guanajuato State, Mexico, and contains the historic El Pinguico-Carmen silver-gold mine. The acquisition is at arm's length.

The historic El Pinguico Mine is on strike with the Veta Madre (Mother Lode), and is located approximately 4.5 km from Endeavor Silver's El Cubo mine and 2.5 km from Mina Las Torres, Fresnillo. The Property has excellent access routes, communications, basic mining infrastructure and proximity to processing plants. In 2012, the Mexican Geological Service (SGM) estimated the presence of 320,000 mt of broken mineralized rock underground with an average grade of 1.66 g/t Au and 167 g/t Ag (the "Stockpile") - see also Table of sampling results below 1. EMDB has been conducting a geological assessment of the historic mine with the aim of bringing it back into production and liberating the Stockpile.

Under the terms of the agreement, Vangold will pay US$20,000 on execution, US$30,000 on receipt of TSXV approval, issue 5,000,000 common shares on closing, and make a final payment of US$50,000 on the date that is six months after TSXV approval. Vangold has further granted EMDB royalties equal to (i) 4% NSR and 15% NPI on minerals recovered from the Stockpile; and (ii) 3% NSR (of which Vangold can repurchase one-third (ie. 1% NSR interest) for US$1,000,000) and 5% NPI on all newly mined mineralization. In connection with the acquisition, Vangold has agreed to pay a finder fee equal to 10% of the acquisition value up to $300,000 and 7.5% of the acquisition value in excess of $300,000. The agreement and payment of the finder fee remain subject to a number of conditions, including the approval of the TSX Venture Exchange. All securities issued will be subject to a four month hold period.

Guanajuato Mining District is considered to be one of the top three historic silver mining districts in Mexico, having produced an estimated 1 to 1.2 billion oz silver and 5 to 6 million oz gold [General Direction of Mining Development]. At their peak during the 1700's, the silver mines of Guanajuato were thought to be the largest and richest silver mines in the world.

The historic El Pinguico mine was one of the richest gold and silver mines at the beginning of the 20th Century. It was operated by The Pinguico Mines Company with grades over 50 g/t Au and 700 g/t Ag [1]. First put into production in 1890, the historic El Pinguico Mine was in full production by 1906 (approximately 250 tpd), one of the largest in its day [1]. The mineralization is a classic, low sulfidation epithermal vein system, consisting of disseminations and fracture-fillings of pyrite, pyrargygrite, polybasite and electrum in quartz-calcite veins ranging from 1 to 30 metres thick but averaging 2 to 3 m wide. Multiple historic mineralized zones (now stopes) formed steep-plunging shoots 100 to 500 m long that were mined down to depths of 200 to 600 m [Prof. Robert T. Hill, 1910, Report upon the Properties of The Pinguico Mines Company, The Securities Corporation Ltd. NY, NY].'

Vangold intends to commission a 43-101 report to establish a work program and budget for the Property, which is expected to include data compilation, mapping and sampling. The results of this work will be used to outline priority targets to be tested by a phase two, with further mapping and sampling continuing during phase two.

Dal Brynelsen, CEO, states "We are extremely pleased with the opportunity represented by the historic El Pinguico mine. The location and historical reports show significant promise. We are looking forward to a more detailed and systematic exploration of the Property and its potential."

The Company also reports that Ms. Anna Serin has resigned from the office of Corporate Secretary. The Company would like to thank Ms. Serin for her years of devoted service, and wishes her well in her future endeavours.

Source :

Posted By : Rabi Wangkhem on Wed, 11 Jan 2017
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