VG Gold time for me today.. Another Rob McEwen play.. :)
vggoldcorp.com
vggoldcorp.com
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NEWS RELEASE
VG GOLD DRILLS 30.99 GPT GOLD OVER 24.7 METERS OR 0.90 OZ OVER 81 FEET
PAYMASTER WEST PROJECT, TIMMINS ONTARIO
July 12, 2010, Toronto, Ontario, Canada VG Gold Corp., (TSX: VG), (FRANKFURT: VN3), (OTC:
VGGCF) is pleased to announce additional results, including a significant new hole from the Paymaster
West Property, located in Timmins. This intersection returned 30.99 grams per tonne (gpt) gold over 24.7
meters (m), including 366.0 gpt gold over 2.0 m. The Paymaster West Project is situated next to Goldcorp’s
Dome Mine, which has produced 17 million ounces of gold.
HIGH-GRADE, NEAR SURFACE & OPEN TO THE EAST
30.99 gpt gold over 24.7 meters
Drilling to define an open pit resource has encountered the most significant result to date from the
Paymaster West Project. As drilling progresses to the east and closer to Goldcorp’s Dome Mine, VG Gold’s
exploration has been encountering wide intervals of significant mineralization. This most recent result is
significant because it starts at a vertical depth of only 50 ft (15 m) and the zone remains open to the east.
The hole successfully extended the mineralization up-dip by approximately 30 m (Fig 1). The intercept
occurs within the main porphyry zone, which is the primary target of VG Gold’s drilling.
In addition, two other holes intersected encouraging gold mineralization. Both holes were designed to better
define the near surface mineralization in preparation for the resource estimate due at year-end. Highlights
are shown below.
Hole Number Gold Grade Interval From To
(gpt) (m) (m) (m)
VGP-10-79 1.17 18.8 122.5 141.3
And 2.38 14.2 155.5 169.7
And 0.80 29.1 278.6 307.7
VGP-10-80 4.02 5.1 102.2 107.3
And 1.58 8.5 119.2 127.7
VGP-10-83 30.99 24.7 34.7 59.4
Including 65.31 11.4 34.7 44.6
Including 366.0 2.0 44.2 44.6
Intervals reported here are core lengths. True widths are not known at this time. All depth
reported as down hole. See more results in Table 1 below.
2
Regional Exploration Update
VG Gold has three drills operating in Timmins. In addition to Paymaster, one drill is operating at Davidson-
Tisdale. This drill is expected to be mobilized to Paymaster over the coming weeks. The third drill is located
at Buffalo Ankerite looking for deep high-grade mineralization. The first hole being drilled is an extension of
VG-07-106 from 2,018 metres (1,550 m below surface) to a target depth of 2,375 metres (1,850 m or 6,000
feet below surface) in order to intersect and significantly extend the main zone, that was the primary
source of 1 million ounces of gold production at the Buffalo Ankerite Mine. Other deep targets include
following up previous known high-grade, including a hole drilled by VG Gold in 2007 that returned 12.45 gpt
gold over 9.1 m, including 72.07 gpt gold over 1.5 m.
Geotechnical Description of Paymaster West
Gold mineralization at the Paymaster West Project is hosted within and peripheral to strongly altered and
well mineralized quartz feldspar porphyry (QFP). Alteration consists of pervasive ankerite and sericite with
local tourmaline, both disseminated and in veins. Pyrite mineralization is disseminated throughout, with
local concentrations to 20% within sections of pyrite rich fractures and veining. Drilling to date has
intersected several intervals of altered and mineralized quartz feldspar porphyry in each hole, with 3
separate porphyry units showing continuity along strike and downdip.
The Main QFP corresponds to the historic mining which took place over a strike length of 1100 feet (330
metres) and to a depth of 600 feet (180 metres) below surface. VG has subsequently traced the altered
QFP along strike for a distance of 2000 feet (600 metres) and to a depth of 2000 feet (600 metres) below
surface. The adjacent, sub parallel north and south porphyry units, while not as well mineralized as the
Main Porphyry body, have returned scattered assays values along similar dimensions.
The Paymaster West Project is adjacent to the west boundary of Goldcorp's Dome Mine. The project is well
situated being located 750 m (2500 ft) to the edge of the Dome Mine and Mill which has been in operation
since 1910 and has produced 17.1 million ounces of gold from both a large open pit and the currently
operating underground mine. The company plans to continue to advance the Paymaster West project
through aggressive exploration and gold resource development.
Goldcorp Option Agreement
VG Gold has the option to earn a 60% interest in the Paymaster West Property from Goldcorp by making
$6.0 million in exploration expenditures by June 2012. Once VG Gold has given notice that is has earned
its 60%, Goldcorp has six months to decide if it wishes to increase its ownership from 40% to 70% by
paying VG Gold $710,000 and spending $8.25 million on the property within two years and then completing
a feasibility study by the end of year three.
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