Kafunjo

Location:	Southwest Uganda Along Rwanda and Tanzania Borders
Mineral:	Nickel, Copper, PGM
Property Size:	320 sq km
Stage of Development:	Exploration
Current Work Program:	Diamond Drilling and Ground Gravity Survey
Potential:	World Class Nickel Sulfide Deposit
Ownership:	100% Vangold

Drilling at Kafunjo

Overview: Vangold owns three adjacent licenses that are located in southwestern Uganda near the triple junction of Tanzania, Rwanda, and Uganda. A strong 4 km long conductor with coincident magnetic and gravity anomalies occurs on a trend which arcs from the ultramafic-hosted nickel-PGM deposits at Kabanga and Kagera in Tanzania. Vangold believes the long anomaly at Kafunjo may be such an ultramafic body at depth.

Barrick and Xstrata have entered into a 50/50 partnership to develop the Kabanga deposit which rivals the world class Voisey's Bay mine in Labrador in terms of size and grade. At the end of 2007, Barrick's share alone of the project had an indicated resource (NI-43-101 compliant) of 241.2 million pounds of nickel (9.7 Mt) at a grade of 2.37% nickel and an inferred resource of 1.2 billion pounds of nickel (36.3 Mt) at a grade of 2.8% nickel.

Geology: The anomaly at Kafunjo (pronounced Kafunzo) occurs in folded metasediments of the mid-Proterozoic Karagwe-Ankolean system (the 350 km long Mesoproterozoic Kibaran Orogenic Belt) which, in Burundi and Tanzania, is characterized by a belt of mafic/ultramafic bodies hosting nickel laterites, nickel sulphides, and PGE mineralization.

Previous Work Completed: In 2007 Vangold took part in an airborne geophysical program in several mineral rich areas in Uganda where licenses are owned. The program consisted of 700,000 line kilometers of magnetic and radiometric data collection with the selected high potential areas being flown by helicopter and fixed wing for advanced airborne EM.

In 1994 Vangold drill tested the anomaly to depths of approximately 350m. Reinterpretation of the geophysics and drill core suggests that the upper part of the causative body is 600-800m below surface. Study of pyrrhotite-silica veinlets found in drillcores from the 1994 drillprogram determined that they are of hydrothermal origin. Sulphur isotopes are similar to those from the massive copper- silver deposits at Mt. Isa, Australia. Possible deposit models include nickel - PGM in ultramafics, massive to disseminated copper sulphides, and IOCG (Iron oxide - copper - gold) of the Olympic Dam, Australia type.

In 2008 Vangold completed diamond drilling program, planned to test the central sector of a 4 km by 1 km anomalous zone at Kafunjo to depths of approximately 700 to 1000 metres (m). A total of 2,317 m was cored in three holes. The three drill holes did not locate potentially economic mineralization. Ultramafic rocks were not intersected in Phase 1.

In June 2008, a gravity survey was completed by a field crew from Kenya General Electricity ("KenGen"). A depth model of the gravity anomaly prepared by a geophysicist of KenGen shows a flat-lying dense body, with an upper surface 700 to 1,200 m below surface, extending 950 m in width northeast-southwest, 750-1250 m in vertical thickness, and with a flat to moderate northeasterly dip on both upper and lower surfaces. The specific gravity ("SG") of the dense body is estimated by the geophysicist to be 3.4 grams/cubic centimeter (g/cc), in comparison to a SG of 2.55-2.70 g/cc of the enclosing metasedimentary rocks.

Current Work and future work Programs: A preliminary test line of Mobile Metal Ion (MMI) geochemistry at Kafunjo presents clear and distinct peaks in geochemistry, which are indicative of a layered ultramafic intrusive burried at depth, potentially containing economic mineralization of nickel and copper sulfides. Based on these exciting results, Vangold is initiating a program at Kafunjo to cover the anomalous region by means of more MMI lines, with continued sample spacing of 50m and line spacing of 250m. MMI lines offer profile views with discrete peaks directly over top of the up dip side of the burried body; multiple MMI lines will result in an additional clear plan view of the body, providing the project with direct future drill targets.

Other future programs may include reinterpretation of the gravity model with incorporation of drill hole data, inspection of the new airborne surveys, and compilation of lithology and geochemistry into a 3-D model. Reverse circulation drilling, which is more able to complete holes in broken rock formations, may be considered for a subsequent program; equipment which can drill to +700 m is available in Tanzania.





News Releases

Geology og the Kafunjo concessions Click to Enlarge

February 12, 2009	Vangold Resources Announces Kafunjo Project Still Very Much Alive
July 10, 2008	Update of Geopyhsics and Diamond Drilling Kafunjo Nickel Project, Uganda
June 02, 2008	Drilling Commences at Kafunjo, Uganda