VG Gold Corp Symbol VG Shares Issued 178,897,112 Close 2010-07-09 C$ 0.295 Recent Sedar Documents VG Gold drills 24.7 m of 30.99 g/t Au at Paymaster West 2010-07-12 07:10 CT - News Release Mr. Tom Meredith reports VG GOLD DRILLS 30.99 GPT GOLD OVER 24.7 METERS AT THE PAYMASTER WEST PROJECT IN TIMMINS, ONTARIO VG Gold Corp. has released additional results, including a significant new hole from the Paymaster West property, located in Timmins. This intersection returned 30.99 grams per tonne gold over 24.7 metres, including 366.0 grams per tonne gold over two metres. The Paymaster West project is situated next to Goldcorp's Dome mine, which has produced 17 million ounces of gold. High grade, near surface and open to the east 30.99 grams per tonne gold over 24.7 metres Drilling to define an open-pit resource has encountered the most significant result to date from the Paymaster West project. As drilling progresses to the east and closer to Goldcorp's Dome mine, VG Gold's exploration has been encountering wide intervals of significant mineralization. This most recent result is significant because it starts at a vertical depth of only 50 feet (15 metres) and the zone remains open to the east. The hole successfully extended the mineralization up dip by approximately 30 metres. The intercept occurs within the main porphyry zone, which is the primary target of VG Gold's drilling. In addition, two other holes intersected encouraging gold mineralization. Both holes were designed to better define the near-surface mineralization in preparation for the resource estimate due at year-end. HIGHLIGHTS Hole No. Gold grade Interval From To (g/t) (m) (m) (m) VGP-10-79 1.17 18.8 122.5 141.3 And 2.38 14.2 155.5 169.7 And 0.80 29.1 278.6 307.7 VGP-10-80 4.02 5.1 102.2 107.3 And 1.58 8.5 119.2 127.7 VGP-10-83 30.99 24.7 34.7 59.4 Including 65.31 11.4 34.7 44.6 Including 366.0 2.0 44.2 44.6 Intervals reported here are core lengths. True widths are not known at this time. All depth reported as downhole. Regional exploration update VG Gold has three drills operating in Timmins. In addition to Paymaster, one drill is operating at Davidson-Tisdale. This drill is expected to be mobilized to Paymaster over the coming weeks. The third drill is located at Buffalo Ankerite looking for deep high-grade mineralization. The first hole being drilled is an extension of VG-07-106 from 2,018 metres (1,550 metres below surface) to a target depth of 2,375 metres (1,850 metres or 6,000 feet below surface) in order to intersect and significantly extend the main zone that was the primary source of one million ounces of gold production at the Buffalo Ankerite mine. Other deep targets include following up previous known high grade, including a hole drilled by VG Gold in 2007 that returned 12.45 grams per tonne gold over 9.1 metres, including 72.07 grams per tonne gold over 1.5 metres. Geotechnical description of Paymaster West Gold mineralization at the Paymaster West project is hosted within and peripheral to strongly altered and well-mineralized quartz feldspar porphyry (QFP). Alteration consists of pervasive ankerite and sericite with local tourmaline, both disseminated and in veins. Pyrite mineralization is disseminated throughout, with local concentrations to 20 per cent within sections of pyrite rich fractures and veining. Drilling to date has intersected several intervals of altered and mineralized quartz feldspar porphyry in each hole, with three separate porphyry units showing continuity along strike and down dip. The Main QFP corresponds to the historic mining which took place over a strike length of 1,100 feet (330 metres) and to a depth of 600 feet (180 metres) below surface. VG has subsequently traced the altered QFP along strike for a distance of 2,000 feet (600 metres) and to a depth of 2,000 feet (600 metres) below surface. The adjacent, subparallel north and south porphyry units, while not as well mineralized as the main porphyry body, have returned scattered assays values along similar dimensions. The Paymaster West project is adjacent to the west boundary of Goldcorp's Dome mine. The project is well situated being located 750 metres (2,500 feet) to the edge of the Dome mine and mill which has been in operation since 1910 and has produced 17.1 million ounces of gold from both a large open pit and the currently operating underground mine. The company plans to continue to advance the Paymaster West project through aggressive exploration and gold resource development. Goldcorp option agreement VG Gold has the option to earn a 60-per-cent interest in the Paymaster West property from Goldcorp by making $6.0-million in exploration expenditures by June, 2012. Once VG Gold has given notice that is has earned its 60 per cent, Goldcorp has six months to decide if it wishes to increase its ownership from 40 per cent to 70 per cent by paying VG Gold $710,000 and spending $8.25-million on the property within two years and then completing a feasibility study by the end of year three. Qualified person All exploration work was conducted under Kenneth Guy, PGeo, designated qualified person for VG Gold, who has reviewed this press release. All drilling was completed using NQ-sized core. PAYMASTER WEST PROJECT -- JULY, 2010 Width Au Hole No. From (m) To (m) (m) g/t G by W VGP-10-76 40.8 56.5 15.7 0.52 8.14 incl 3.5 0.80 2.81 104.2 108.1 3.9 0.73 2.83 VGP-10-77 39.9 41.8 1.8 0.63 1.14 47.2 50.9 3.7 1.11 4.06 VGP-10-78 35.4 39.0 3.7 0.66 2.41 VGP-09-46 558.4 561.1 2.7 3.57 9.68 extended 594.7 597.1 2.4 2.55 6.06 638.6 646.4 7.9 1.15 9.04 669.6 670.6 0.9 3.21 2.94 679.7 680.7 1.0 0.51 0.51 VGP-10-79 115.8 118.0 2.1 0.65 1.39 122.5 141.3 18.8 1.17 22.00 155.5 169.7 14.2 2.38 33.80 278.6 307.7 29.1 0.80 23.29 incl 11.1 1.07 11.90 VGP-10-80 102.2 107.3 5.1 4.02 20.58 incl 1.3 10.20 13.26 119.2 127.7 8.5 1.58 13.48 VGP-10-81 45.7 49.1 3.4 1.69 5.72 117.7 119.0 1.3 1.22 1.63 138.5 140.7 2.2 0.90 2.00 VGP-10-83 34.7 59.4 24.7 30.99 765.10 incl 11.4 65.31 746.52 incl 2.0 366.00 725.12 Intervals reported here are core lengths. True widths are not known at this time.