Vengold shareholders await results

The annual meeting of Venezuelan Goldfields (TSE) was a low-key affair, with little news conveyed about the junior’s properties in Venezuela’s Kilometre 88 district.

So far, 20 holes have been drilled to test targets on several of those properties, and all of these have intersected mineralization. Results are to be released sometime before mid-August.

Vengold, as the junior is called, has one of the largest land positions in the district and one of the largest market capitalizations ($250 million) of any junior active in South America. It plans to spend about $8 million on exploration this year.

President Ian Telfer said drillers will test as many as 20 targets this year, including those on the Oro Uno concession. The cost of acquiring Oro Uno was $37.6 million ($30.6 million paid to the vendors and $6.5 million for rights held by Ivanhoe Capital).

Vengold has gained further exposure to Kilometre 88 through joint ventures and back-in rights with Carson Gold (VSE), Bolivar Goldfields (VSE) and Queenstake Mining (TSE).

With a full plate of exploration properties, Vengold is turning its attention to acquiring another project in the development stage, Telfer said, adding that it may also acquire some production. “We have looked for 12 months, and are still looking.”

The junior had little to report about its stalled plans to acquire a 10% interest in the Lihir gold deposit in Papua New Guinea. Although the PNG government has yet to grant a mining lease to majority owner RTZ of London, Vengold is hopeful that talks between these parties will be concluded shortly. Vengold’s new chairman is John Walton, a former president of Placer Dome.