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Vangold Update(Marketwire Via Acquire Media NewsEdge) VANCOUVER, BC, November 13 / MARKET WIRE/ -- Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") recognizes the global financial crisis is affecting countries and companies. These are extraordinary and troubling times for all of us including our shareholders. We are determined to survive. We have cash on hand of $7.5 M (Cdn) and we have no debt. Thus, preservation of capital is our key goal! All projects in our portfolio were evaluated on the basis of cash outlay, projected cash flow, and time lines. We conclude our immediate area of concentration will be our gas projects in Alberta. The first program is due to spud in January 2009. We believe these projects will give us the earliest cash flow. Head Office Stock Option Plan An amendment to the Stock Option Plan is planned to decrease the allowed numbers of options of common shares from 20% to 15% of the issued and outstanding common shares. We presently have granted stock options equal to about 8% of our issued and outstanding shares. The proposed amendment to the plan is subject to the approval of the TSX Venture Exchange and our shareholders. Warrants Outstanding December 2007 An application is being made to the TSX Venture Exchange to extend the December 2007 warrants for a further year and to reprice them from $0.60 to $0.465. This proposed amendment requires the approval of our shareholders. Resignation Mr. Tim Mills tendered his resignation to the Vangold Board of Directors, effective October 31, 2008, to pursue other interests. We thank Mr. Mills for his contribution. Pacific Kanon Gold Corp. Initial Public Offering ("IPO") The amended prospectus for the IPO is in the final stages and we expect to be filed shortly. We expect to take it into market Q1 of 2009 provided the market is responsive to an IPO at that time. Alberta, Natural Gas and Petroleum Resource Update Vangold is pleased to announce that it has recently opened an office in Calgary, Alberta to facilitate management of its Canadian and International oil and gas assets. The office is manned by Mr. Jonathan Schroeder, P.Geoph., who was recently appointed Director of Oil and Gas Operations by Vangold. The office is located at Suite 2600, 144-4th Avenue SW, Calgary Alberta, Canada T2P 3N4. The telephone number is: 403-571-0853. Mr. Schroeder is pleased to report that Vangold's long awaited Strachan Leduc gas prospect (aka Deep Basin) will commence drilling operations during the first week of January 2009. The well is anticipated to encounter significant remaining attic gas reserves in an existing natural gas pool that has produced in excess of 80 BCF of natural gas to date. Vangold holds a 35% working interest in the well before payout and 21% working interest after payout. International Oil Concessions Kenya, Blocks 3A & 3B Update Chevron previously shot seismic data (1975) which was forwarded from their Iron Mountain storage site (Houston) to seismic processing company Sensor Geophysical, Calgary ("Sensor"). Reprocessing of the data, estimated to be completed on or about November 30, 2008, will result in better definition and structural control of the regional Cretaceous play. At Block 3, 11 prospects/leads were identified through interpretation of Chevron (1975) seismic data along with integration and interpretation reviews of Amoco (1986), Total (1990), Beicip (1980, 1984), Western International Atlas/CORELAB (1994), and AIconsult (1998). The probabilistic productive areas covered by Vangold's prospects range from 4713 to 37,498 acres with an average of 21,000 acres and aggregating to 202,025 acres. Evidence of a working petroleum system in Block 3A, which forms part of the Anza Graben Basin, are oil shows in Sirus-1 well (drilled by Amoco in Block 10 A), Lundin Petroleum AB ("Lundin"). Block 10A lies to the northeast of Block 3A. China National Oil Company, (CNOOCs) Block 9 lies in between Block 10A and Block 3A. All are situated in the Anza Graben Basin. Please refer to the map on Vangold's website located at http://www.vangold.ca (See Asset Tab, Kenya Block 3A and 3B). The gross unrisked prospective resources estimate in Block 3 are being evaluated in house by our Geotechnical Team with parameters being derived/estimated from the look-alike Melut Basin in Southern Sudan (the largest oil field in the Melut Basin is the Great Palogue Field with estimated reserves of 900 million barrels). Lundin reported they completed an aerogravity survey over Block 10 A, and have targeted one exploratory well to be drilled at the Bogal Prospect, Block 9, in the first quarter 2009. The Bogal prospect in Block 9 is 120 km from Vangold's Block 3. Preliminary reprocessing of two seismic lines over Blocks 3A and 3B show stacked, amplitude anomalies on one structural prospect. AVO analysis on one seismic line by Sensor further appears to show three P Wave Impedance and Fluid Factor anomalies that may further lower the perceived exploration risk. Vangold's Geotechnical team has planned an infill seismic survey, likely to be undertaken early next year, to incorporate longer spread lengths to optimize seismic attribute analysis and display. Vangold's technical team acquired gravity and magnetic data from Edcon-PRJ Gravity & Magnetics, and recently completed in-house digitization of the same. This data will be integrated with the Leicester gravity data, and Paterson, Grant & Watson's ("PGW") magnetic data purchased by Vangold. Integration of all data will be performed after Sensor Geophysical reprocesses Chevrons data at the end of November 2008. The reprocessed data will be re-interpreted by consultants shortly thereafter. Rwanda Oil Concession Update The aerial survey for the measurement of the earth's gravity and magnetic fields over Lake Kivu and South West of Rwanda has been concluded. A total of 2,088 line km has been flown against 3,100 km planned, linearly achieving 70% coverage of the East Kivu Graben. The apparent lack of completion of the planned survey is primarily due to political unrest in the Democratic Republic of Congo region, despite the best efforts from the Rwandan side and Vangold. Despite this difficulty, the contractor, South African based New Resolution Geophysics ("NRG"), was able to complete 100% of the southern survey covering Block 2 and 100% of Block 4 over Lake Kivu. Additionally NRG was able to achieve important coverage of the east-west flight lines over Block 1, and the southern and northern regions of the East Kivu Graben. The flight line coverage in Block 1 traverses across the dip geometry of the East Kivu Graben in the Northern area and Southern areas that mitigates border areas not covered. The data quality is good, having met all survey and contractual specifications. The geological and geophysical objectives of covering the whole of Rwanda concession area have been partially met in Block 1, and 100% accomplished in the Block 2 survey areas. Further, gravity and magnetic data 5 km from the border with DRC in the northern lake area has not been collected as it was within the turning area of the airplane. This is however, mitigated by two east-west dip flight lines that cross the northern area and a further three lines in the southern part of the Lake. The sedimentary basin development cannot be directly adduced from raw field data. The data needs topographical corrections in the rugged mountains/hills in the south and the bathymetry corrections of the water depth in the lake. Therefore, computer data room processing of the raw field data in Johannesburg has just been completed by NRG. In Toronto, Vangold's consultant, PGW, have embarked on interpretation and modeling of the data. In-house processing and interpretation by Vangold's geotechnical team is also currently in progress. Both work programs will be merged and integrated with the 1981 aeromagnetic survey data, and previously conducted ground gravity surveys. The expected result will be a depth and area model of the sedimentary basin in East Kivu Graben. This will be integrated with geology, ASAR study and geochemical data recently gathered from Rubona gas geochemical gas study for the evaluation of the hydrocarbon prospectively of Lake Kivu. Uganda Mineral Properties Vangold currently holds more than 2,200 square kilometers in exploration licenses in Uganda that are grouped into 6 projects: Kafunjo (Ni, Cu, Pt), West Nile (Au), Kilembe (Cu, Co), Kamwenge (Cu, Au), Fort Portal (Cu, Au) and Bugiri (Au). Vangold's website lists the current status, work completed to date, and proposed work programs for each of these exciting areas. Current exploration work on the Ugandan mineral properties involves continued geological mapping and prospecting of concessions, including newly acquired licenses in West Nile, and soil geochemistry across highly prospective zones at West Nile (Kilo-Moto style host rocks), Bugiri (Banded Iron-Formations or BIFs) in Lake Victoria Greenstone Gold Belt and Kafunjo (Kabanga-style nickel sulphide potential) to delineate high potential mineral targets. The Ugandan team consists of national geologists and local laborers. Work is overseen by Danae A. Voormeij, M.Sc., P. Geo. QP under NI 43-101 and VP of Exploration for Vangold. Kafunjo Drill Program Phase 1 Drill Program Completed * Vangold Resources Ltd. holds three adjacent licences which are located in southwest Uganda near the triple junction of Tanzania, Rwanda, and Uganda. At Kafunjo strong coincident low magnetic and high gravity anomalies occur on a magnetic trend which arcs from the ultramafic-hosted nickel-PGM deposits at Kabanga and Kagera in Tanzania. Similarities to the local geology and low magnetic anomalies at the Kabanga deposit strongly suggest that the anomalies at Kafunjo may be caused by an ultramafic body. * A 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) has been completed. 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. * The drill is now being demobilized and the site recontoured. * Each of three holes crossed metasedimentary mica schist and silty mudstone. Sedimentary facies appear to change rapidly: crossbedding, scour channels, and soft-sediment slumps mark stratigraphic disruptions. Concordant metasedimentary graphite-pyrrhotite iron formation occurs in true widths of 30-40 m, with maximum pyrrhotite concentration of 10% in intervals of several metres. Occasional specks of chalcopyrite occur on the margins of pyrrhotite bands. Occasional kink folds indicate positions on fold limbs. Fracturing on bedding/foliation creates blocky zones of difficult drilling. Transcurrent faults are interpreted as both steeply and flat dipping. A potential host for nickel sulphide mineralization was not encountered. * A ground magnetic survey was completed in early 2007 by personnel from the Geophysical Department of the Uganda Geological Survey in order to verify the results of previous surveys. The position and intensity of the magnetic low corresponds to the earlier information. Modelling of the magnetic low by various geophysicists has suggested the upper portion of the anomaly to be between 200 and 600 m below surface. The quantities of pyrrhotite which are present do not account for the intensity of the magnetic anomaly. * 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. * A SG test of 1.0 m of core from 655.75 to 656.75 m in hole K-03-08 of pyrrhotite iron formation was performed by a technician in the laboratory of the Geological Survey of Uganda. The core is representative of the highest average quantity of pyrrhotite in the hole and generally in all of the drilling, visually estimated at 10%. The SG is determined by the difference in weight in air and weight while immersed in water to be 2.90 g/cc. This compares with a first approximation calculation which substituted 10% of mica schist (SG 2.70 g/cc) by 10% of pyrrhotite (SG 3.65 g/cc), to arrive at a SG of 2.89 g/cc. The quantities of pyrrhotite that have been intersected do not explain the gravity high. * The geophysical anomalies indicate the presence of a large, dense, and intensely magnetic body. * The first hole, K-01-08, was drilled to 943 m prior to the collection and interpretation of gravity data. It was sited over the magnetic low, and as later determined is above the central portion of the gravity anomaly. At this location the top of the dense body is shown to be approximately 1,000 m below surface, and thus the hole may have been short of the target. * K-02-08 was positioned to cross the centre of the gravity anomaly at approximately 700 m below surface and to continue to cross the magnetic low at approximately 1,000 m. The hole was ended at a length of 635 m because of caving of wall rocks. * K-03-08 was drilled above the south central part of the gravity anomaly, oriented to enter the upper surface of the gravity profile at approximately 700 m below surface, and to continue to cross the magnetic anomaly at approximately 1,050 m. The vicinity of the gravity target was entered at approximately 680 m below surface. Walls of the hole began to cave and drilling had to be terminated at 739 m in the hole. Silty iron formation from 610-700 m in the hole contains the mineral chiastolite (andalusite) and small sheared fragments of garnetite, both of which indicate a slightly higher grade of metamorphism and are known to be present in the metasediments at Kabanga. * Samples taken at regularly spaced intervals of the drill core will be analyzed geochemically for multiple elements. A 3-dimensional plot of values may indicate new or refined target locations. * All core from the Kafunjo project, including the 1995 core from the first phase of drilling, will be stored at the Geological Survey in Entebbe. A storage container on cement pillars will house core for convenient future reference. * Airborne geophysical surveys were funded by international monetary banking sources coordinated through the Geological Survey of Uganda. During 2007 and 2008, airborne surveys flown covered a majority of Uganda including areas where Vangold holds licences. The program consists of 700,000 line kilometers of magnetic and radiometric data collection, with selected high potential areas flown by helicopter and fixed wing aircraft for advanced electromagnetics. Flights over the Kafunjo licences during August and September 2008 included all three geophysical sensors. When the data is made available Vangold will acquire the CDs and commission services for interpretation. * 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. * Dal Brynelsen, President and CEO of Vangold states, "Kafunjo continues to be an exciting project with good potential for a world-class nickel-sulfide deposit. Our team remains on the ground in Uganda and our exploration efforts carry on. Once the core is interpreted and assays are received, Vangold's geological team will determine the next appropriate step(s)." To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email [email protected]. On Behalf of the Board of VANGOLD RESOURCES LTD. "Dal Brynelsen" Dal Brynelsen, President and CEO The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. Distributed by Filing Services Canada and retransmitted by Marketwire Contact: Dal Brynelsen 604-684-1974 email Email Contact Copyright ? 2008 Marketwire |