2/7/2006 1:35:13 PM ET News Release Index
Vangold Engages European Investor Relations Firm
VANGOLD RESOURCES LTD. TSX-V:VAN
NEWS RELEASE
February 2, 2006 - Vancouver, BC - Vangold Resources Ltd. (“Vangold”) is pleased to announce that, subject to the approval of the TSX Venture Exchange (the “Exchange”), it has entered into an agreement to retain the services of Pre-Capital Markets AG (“Pre-Capital”). Pre-Capital, a German company, will provide investor relations services in Europe to replace the firm of Value Relations GmbH whose contract expired July 31, 2005. Vangold’s increased level of activity globally, together with the high level of European investor interest, necessitates representation in Europe. Vangold has agreed that in addition to a fee for services, Pre-Capital will be granted 200,000 incentive stock options at a price of $0.55 pursuant to Vangold’s Stock Option Plan and the policies of the Exchange. The stock options will vest equally over a term of 18 months.
Vangold’s shares are listed on the Frankfurt Stock Exchange under the trading symbol VAQ and the German securities code (WKN) 358668. The Frankfurt Stock Exchange is the largest of the eight German stock exchanges. Visit the Frankfurt Stock Exchange at http://www.deutsche-boerse.com.
Vangold Resources Ltd. is a unique natural resource company with a portfolio of 22 diverse advanced stage projects including revenue generating oil and gas projects. In the gold sector, drilling will commence early 2006 at Mt. Penck (Papua New Guinea) which has been compared to Nevada’s Round Mountain Mine (9 million ounces). Dr. David Lindley, VP Exploration has reported that at present, mobilization of the drill rig has been delayed in Customs clearance at the port of Kimbe and awaits transportation to the site at Mt. Penck.
Vangold’s oil and gas drilling programs in Alberta, Canada, include the Killam North oil field. Vangold and its partners are currently drilling a 16 well first phase program on its 26.25% owned Killam North oil field. Drilling of five new multi-leg horizontal wells is now complete. The first well is currently producing 270 barrels of oil per day. The second well is currently producing 275 barrels of oil per day and the third well is currently producing 315 barrels of oil per day. The fourth and fifth wells are currently being completed for production.
Vangold’s Alberta projects also include the Sarcee Gas Discovery, (the Sarcee 12-13-23-4W5M well is estimated to be 20 to 30 BCF [Sproule Associates Ltd.]). Another of Vangold’s Alberta gas projects is located in the Rocky Mountain House Deep Gas Basin which is close to Shell's trillion cubic feet pool.
Vangold recently announced the acquisition of five licences at the Kilo Moto prospect, covering 160 sq kms located in the West Nile region which borders the Democratic Republic of Congo and Sudan. The properties are within the geological continuation of the Kilo Moto gold province of northeastern Congo. Total production of the Kilo Moto goldfields by the early 1960’s was over 8.8 million ounces.
In addition to the above properties, Vangold has had interest in the Kafunzo area in Uganda since the 1990’s. This area is one 12 sq km license in southwest Uganda. The Kafunzo anomaly has been identified by a high amplitude aeromagnetic survey, reaching 1,700 nT.
Vangold Resources Ltd.
News Release
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This anomaly occurs in folded flysh-type sediments and granites of the mid-Proterozoic Karagwe-Ankolean-Burundian system (the Kibaran Fold Belt) which, in Burundi and Tanzania, is characterized by a belt of mafic/ultramafic bodies hosting nickel laterites, nickel sulphide, and PGE mineralization. This mineralized belt has borne a significant discovery that is being actively developed by Falconbridge which is known as the Kabanga nickel/cobalt deposit in Tanzania.
Vangold also has one 14 sq km license within the Fort Portal area, where Avmin, of South Africa, conducted airborne EM and magnetic survey over the license and has also completed ground geophysics and geochemistry on Kilembe type targets. Both Kafunzo and Fort Portal are drill ready targets.
To find out more about Vangold Resources Ltd. please visit our website at http://www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca.
On Behalf of the Board of
VANGOLD RESOURCES LTD.
“Dal Brynelsen”
Dal Brynelsen, President and CEO