VG Gold has new partner for Davidson-Tisdale project
2009-10-13 06:25 PT - News Release
Mr. Tom Meredith reports
VG GOLD WELCOMES NEW DAVIDSON-TISDALE PARTNER SAN GOLD
VG Gold Corp.'s partner San Gold Corp. has signed a letter of intent to acquire Laurion Minerals' 31.5-per-cent interest in the Davidson-Tisdale project located in Timmins, Ont., as reported in Stockwatch news under SGR on Oct. 8, 2009. VG Gold owns 68.5 per cent of Davidson-Tisdale, one of four key properties that VG Gold holds in the Timmins camp.
"VG Gold welcomes the opportunity to have San Gold as a partner. The strategic investment in VG Gold by Rob McEwen's Lexam Explorations and now San Gold's purchase of the Laurion Minerals' Davidson-Tisdale interest are statements of VG's strong asset base and exploration potential in one of the world's premier gold mining camps," stated Tom Meredith, president and chief executive officer of VG Gold.
Davidson-Tisdale property
The Davidson-Tisdale property is a high-grade gold deposit located in the heart of the Timmins gold camp, where 70 million ounces of gold have been produced to date. The property is on trend between several producing and former-producing gold mines. Previous drilling indicates that the Davidson-Tisdale deposit has potential for additional high-grade gold mineralization.
The table presents previously announced VG Gold drill results that intersected high-grade mineralization in the central part of the resource. These results indicate significant resource potential at Davidson-Tisdale, which remains open to depth. Neighbouring Timmins mines have been developed to depths exceeding 6,000 feet. Deeper drilling by VG Gold down to 275 metres (900 feet) successfully encountered encouraging gold mineralization. These holes represent some of the deepest exploration to date at Davidson-Tisdale and they demonstrate that the high-grade could extend further at depth.
PREVIOUS VG GOLD DRILL RESULTS
Hole No. Gold grade Interval Gold grade Interval
(g/t) (m) (oz/t) (ft)
03-310 341.1 3.4 9.95 11.2
04-318 64.18 4 1.87 13.1
04-326 30.05 8.5 0.88 27.9
05-354 17.28 2.5 0.5 8.2
05-355 12.83 7.5 0.37 24.6
Qualified person
All exploration work was conducted under Kenneth Guy, PGeo, designated qualified person for VG Gold, who has reviewed this press release. Gold analysis of samples collected by VG Gold was assayed by Laboratoire Expert in Rouyn-Noranda, Que. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over one gram per tonne Au are reassayed with gravimetric finish. Samples noted to contain visible gold are analyzed via total metallic assay method. A rigorous quality control and assurance program is in place, using control samples such as blanks and Rocklabs standards and duplicate checks. In addition, duplicate analyses of 10 per cent of the samples were corroborated by check assays on sample performed by Bourlamaque Laboratory of Val d'Or, Que.
