Company OverviewVangold's goal is to maximize shareholder value through the creation of a diversified portfolio of sustainable global resource ventures. Vangold has taken giant steps toward this goal by compiling an impressive portfolio of world class assets.
There are two necessary conditions for Vangold to achieve its goal: the first is raising the necessary financing to develop our expansive asset base, and the second is assembling experienced management and exploration teams with the knowledge of each project including their surrounding geo-political environments. Given Vangold's diverse portfolio of projects the best way to bring these two elements together is to first acquire large attractive projects then spin them off into new public companies for further exploration and development. This unique approach to the advancement of Vangold's exploration assets provides investors with a means of identifying and choosing areas of interest such as precious metals in Papua New Guinea, or base and rare metals in Uganda.
This sophisticated way of managing risk creates several positives for Vangold and its shareholders. It maximizes upside by attracting highly skilled and motivated management and exploration teams with extensive experience and knowledge of the projects they will be responsible for and the countries they will be operating in. In addition to attracting world class talent, this approach allows financing for projects to take place with minimal dilution to both Vangold share holders and the share holders of the newly created subsidiary company.
Coppermoly Limited (COY:ASX)
On January 31, 2008, the planned reorganization of the Papua New Guinea exploration assets, Mt Nakru and Simuku copper molybdenum projects, was realized with the successful Initial Public Offering of Coppermoly Limited which raised AU$8M on the Australian Securities Exchange.
Vangold directly holds a significant stake in Coppermoly.
Barrick can spend A$20m to earn a 72% stake of all of Coppermoly's existing three tenements.Major exploration and drilling programs were successfully completed in Coppermoly's first year. Highly significant assay and exploration results were returned, that demonstrated excellent high-grade primary and secondary mineralised zones at the three prospect areas investigated. Drill highlights included 27.7m grading 1.90% copper including 6.7m at 3.8% copper from 25m depth in a high grade copper lens. This lens at Nakru-2 is associated with surface trench results of 19m grading 4.3% copper and an I.P. geophysical anomaly yet to be fully tested by drilling.
The creation of specialized subsidiary companies to develop several of Vangolds assets allows the company to focus its resources on the exploration and development of other key projects around the world.
On the mineral front Vangold is focusing its efforts on the development of key properties in Papua New Guinea. The Company holds three advanced gold properties that are positioned along the Pacific Rim of Fire, the active circum-Pacific volcanic belt that is host to a large copper-gold porphyry systems (Grasberg,Ok,Tedi Panguana and Frieda River) and a number of world class epithermal gold deposits including Porgera and Lihr . Mt Penck is the Company's flagship property .Mt Penck is a high sulfidation epithermal gold system with potential for copper-gold porphyry mineralization.
In Uganda, the company is one of the largest holders of concessions.The properties of greatest interest include the Kafunjo, West Nile, and Kilembe licenses. At Kafunjo, an MMI (Mobile Metal Ions) program was completed with the goal of identifying targets for a future drill program that will explain the strong 4 km long conductor with coincident magnetic and gravity anomalies occurring on a trend which arcs from the ultramafic-hosted nickel-PGM deposits at Kabanga and Kagera in Tanzania. At West Nile, Phase I reconnaissance work has been completed and consisted of prospecting, geological mapping and sampling across the 9 licenses.