Papua New Guinea is considered by many to be vastly under-explored and highly prospective for the discovery of new mineral deposits. Papua New Guinea is strategically situated along the Pacific Rim of Fire, the active circum-Pacific volcanic belt that is host to large copper-gold porphyry systems (Grasberg, Ok Tedi, Panguna and Frieda River) and a number of world-class epithermal gold deposits including Porgera and Lihir. These enormous and largely untapped natural resources offer excellent investment opportunities.

With the Government's positive attitude to foreign investment through the granting of incentives and concessions, and the recognition of the private sector's important contribution to the economic growth, it is clear why many international companies have invested in Papua New Guinea. Majors currently operating in PNG include Barrick, Xstrata, Newmont, Ok Tedi Mining, Harmony Gold, Nautilus Minerals, Lihir Gold and Newcrest.

Vangold has been actively exploring Papua New Guinea since 2003, through a joint venture partnership with New Guinea Gold Corp (TSXV: NGG). In 2009, Vangold entered into a binding agreement with NGG, under which Vangold acquired from NGG, its remaining 50% to bring Vangold's ownership to 100% of three well-advanced gold properties in PNG along with equipment and two diamond core drill rigs. These three properties are Mt Penck, Fergusson Island and Allemata. Each of the three gold properties offers a unique path to discovery.

On February 1st, 2010, Vangold completed its acquisition from NGG of three gold properties - Mt. Penck, Allemata and Fergusson.


Mt. Penck (Gold-Silver - 102.8 sq km)

Mt. Penck (EL1322) is situated 55km west of Kimbe, the Provincial Capital of West New Britain Island. The property covers a large, eroded extinct stratovolcano. Small villages and a loading dock are located at the base of Mt Penck.

Historical work by Placer Dome (1986) and BHP Havana (1970) were targeting copper mineralization systems. Soil sampling (1986-1987) indicated anomalous arsenic geochemistry and a float rock sample from Kavola River yielded 49.4 g/t gold. Indo Pacific Mining (1994-1997) drilled 7 DDH totaling 1098.5m into the Koibua, Peni Creek and Kavola East prospects.

Kanon acquired the property in 2003. Vangold and NGG became joint owners of Kanon in 2004. By 2007 Kanon had completed 38 DDH totaling more than 4700m. Results were encouraging with near surface drill intersections such as 72m at 1.79 g/t gold, 14m at 2.82 g/t gold and 2m at 36.7 g/t gold. Trenching by bulldozer and by hand by Kanon yielded intersections including 18m at 3.79g/t gold; 8m at 7.72 g/t gold; 18m at 1,72 g/t gold; 3m at 16.32 g/t gold and 3m at 180 g/t gold.

In 2009 a 4,212.7m diamond drill program was completed, focusing on Kavola East and the main prospects. Results for Kavola East include 69.5m at 1.82 g/t gold and 133m at 1.83 g/t gold, both starting from surface. Encouraging results were also returned from Koibua, Peni Creek and Kavola South, expanding the area of known mineralization. Learn more

Fergusson Property (Gold - 115 sq km)

The Fergusson Property is located on Fergusson Island; an island adjacent to NGG's Imwauna property on Normanby Island. Access is by boat or fixed wing aircraft.

Fergusson Island is host to two advanced-stage gold deposits, Wapolu and Gameta, which are held by Gold Aura Ltd from Australia. Non 43-101 compliant resources for Wapolu are 7.6Mt at 1.55 g/t Au for 373,100 oz gold and for Gameta 7.75 Mt at 2 g/t Au for 500,000oz.

Epithermal gold mineralization on Fergusson is controlled by deep-seated detachment faults (DFZ) separating metamorphic basement (gneissic fault-bounded core complexes) and slices of younger ultramafic volcanics and sediments (limestones, sandstone). Gold is localized by the DFZ and is hosted by epithermal quartz-carbonate veins and argillic-silicic altered breccias associated with Pliocene to Recent volcanism. This exploration model has similarities to the 4 million ounce Misima Island gold mine to the southeast of Fergusson Island.

Exploration work to date on Vangold's concessions has defined six areas of gold mineralization. The two most advanced gold projects are Igwageta and Unagala. Learn more


Allemata Property (Gold - 148 sq km)

The Allemata property is located on the main island of Papua and contains the historic Milne Bay Goldfield. From 1899 to 1926, the Goldfield produced 14,320 ounces of gold, mainly from alluvial deposits. In 1931, mining commenced with high-grade hard rock mining. Platinum was discovered and mined from 1933 to 1941, producing a total of 6 kilograms of platinum. 1,000 ounces of gold was produced in 1938 and 1939 from the Louise/ Ulo Ulo, Jumbo/Juno and Rough Ridge Mines. This property has not been mined since World War II. The Allemata property is easily accessible by a 20 kilometer all weather road from the port of Alotau and Gurney International Airport. Logging roads provide access throughout the property. Management believes that this project could be developed relatively easily. Drilling and geochemistry on the Allemata property has identified two gold zones (Ulo Ulo and Haluba) on which the Company is focusing their exploration. Other geochemically anomalous zones remain to be explored.

Ulo Ulo Prospect hosts vein style gold mineralization in a 400m by 400m area. Much of the gold is in relatively narrow high grade gold zones or wide, lower grade zones. The Company believes the Ulo Ulo target may be a high-grade vein system similar to NGG's Imwauna Property on Normanby Island. Trench results from 2008 program define a series of northwest trending quartz-limonite veins that average 1 to 3m in width and 100m up to 600m in length. A drilling and trenching program commenced at Ulo Ulo in March 2009 with drill intercepts of the veins include 1m@ 17.65g/t Au (UDH001); 1.9m@ 9.39g/t Au (UDH003); 1m@ 58.3g/t Au (UDH012) and 2m@ 7.55g/t Au (UDH013).

Haluba Prospect hosts disseminated and stockwork gold mineralization greater than 0.5g/t over a 400 meter by 300 meter area. This prospect has geological similarities to the Kavola East deposit at Mt Penck. Learn more

Fact Sheet Vangold Papua New Guinea Properties 2010 Fact Sheet

Presentations Vangold Golden opportunities Papua New Guinea 2010