VanGold Mining Corp (TSX-V:VGLD) announces that it has engaged Behre Dolbear & Company Inc. to provide a Preliminary Economic Assessment in relation to its purchase of the El Cubo mine and mill complex located 8km by road northeast of the Company’s El Pinguico silver-gold project near the city of Guanajuato, Mexico from Endeavour Silver Corp. as announced on December 18, 2020.
Engages Behre Dolbear for PEA:
The Company has engaged the engineering consultancy firm of Behre Dolbear to provide third party engineering due diligence and guidance regarding the purchase, refurbishing, and operation of the El Cubo mine and mill and complete a NI 43-101 compliant PEA level study by early February 2021. This study will form part of VanGold’s submission to the TSX Venture Exchange for acceptance of the Company’s acquisition of El Cubo. Prior to signing its LOI with Endeavor and as part of VanGold’s initial due diligence, Behre Dolbear completed a 37 page ‘Desk Top Review’ of VanGold’s El Cubo / El Pinguico business plan. This review has helped form the basis of VanGold’s internal cash flow modelling and initial, high level mine planning for the combined operation.
VanGold Director Hernan Dorado Smith said: “Having spent four days in Guanajuato with the Behre Dolbear team in November 2020, both at El Pinguico and at El Cubo, we are impressed with their experience, hard work, and professionalism. We look forward to a long business relationship with them.”
About Behre Dolbear: One of the oldest mineral industry advisory firms in the world, continuously operating since 1911, Behre Dolbear specialises in performing impartial technical and strategic studies for mining companies, financial institutions, governments and international agencies. Typical studies include resource and reserve reviews, mineral property valuations, due diligence studies for bankability and acquisition purposes, and independent expert reports for capital raisings and valuations.
El Cubo Mine and Mill:
On December 18, 2020 the Company announced it had signed a binding LOI with Endeavour to acquire El Cubo. The El Cubo plant and tailings facilities are currently on short term care and maintenance and VanGold intends to re-start the mill at approximately 750 tonnes per day using mineralized material from its existing surface and underground stockpiles at El Pinguico as a significant portion of its estimated throughput for the first 36 months of operation.
As reported by Endeavour on January 29, 2020 i, as at December 31, 2019, El Cubo contained the following silver-gold resources:
|Resource||Tonnes||Ag g/t||Au g/t||Ag oz||Au oz||Ag Eq oz|
VanGold is not treating these estimates as current mineral resources as a qualified person on behalf of VanGold has not done sufficient work ii to classify these estimates as current resources. iii However, as such resources were derived from 19 different veins on the property, the Company believes El Cubo hosts excellent exploration possibilities for the future.
Under the Endeavour Agreement, VanGold will acquire the El Cubo mine, the El Cubo mill (known also as the El Tajo mill), and approximately 7,000 hectares of prospective mining concessions located adjacent to the El Cubo mill and within the greater Guanajuato mine region. The Acquisition remains subject to acceptance of the TSXV.
VanGold’s 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. Current geologic interpretation, based on regional mapping and projections from the Veta Madre developed at adjacent historic mine operations, suggest that the Veta Madre vein system 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 yet attempted to encounter the Veta Madre at depth. The intersection of these major vein structures are excellent exploration targets and may result in zones of significant size and grades.
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 7 kilometers 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 delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.
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