Vangold plans development on gold property at Rossland

An underground development program is being planned by Vangold Resources (VSE) for the North Belt gold property at Rossland, B.C.

T.The company holds a 66% interest in the property after spending an aggregate of about $979,000. The original option agreement gave the company the right to earn a 60% interest in the project from owners Antelope Resources (VSE) and Bryndon Ventures (TSE) by spending $750,000 and issuing a total of 200,000 shares.

Vangold earned the additional 6% interest by exceeding the spending requirements by $229,000.

The company is now planning a $250,000, 2-phase development program to focus on the Iron Colt vein and prove up a minable reserve. Drilling has outlined an oreshoot over a vertical extent of 400 ft., bounded at either end by two dykes about 150 ft. apart

The first phase of the program consists of driving a 50 raise from the existing number six adit up about 28 ft. to drill intersection UGIC #4. The raise will then be extended along the vein structure a further 30-ft. to the intercept in hole UGIC #2 which returned 8.2 ft. grading 0.48 oz. gold per ton.

The second phase of the program will drive the raise to surface through two surface drill-intercepts. The first leg includes a 98-ft. extension of the raise to the vein intercept in hole 89-115 which returned 6.5 ft. grading 1.1 oz. gold. The raise will then knuckle back, and extend about 82 ft. to the intersection in hole 89-87 which assayed 7.1 oz. gold over 8.4 ft. The intersection in hole 89-87 lies about 160 ft. below surface. Dal Brynelsen, president of the company, noted that Antelope and Bryndon will not be providing any funding for the program. As a result, he estimated Vangold will hold a 75-80% interest in the Iron Colt area on completion of the program.

Leber Mining of Nelson, B.C., a mining contractor for the company, started work in the beginning of March and Brynelsen expects the entire program to be finished within three months.

The company is negotiating with a mill to handle the mine’s ore on a custom basis. Although the material will require fine grinding and cyanidation, Brynelsen notes that recoveries are expected to be in the order of 95%. Vangold is well funded for the 2-phase program with over $300,000 in working capital.