Vangold reports on Uganda properties

Vangold Resources Ltd. holds 20 Exploration Licences in Uganda through Rwenzori Copper & Nickel Limited, a wholly owned subsidiary. Targeted minerals include gold, nickel - PGM, and copper - cobalt.

Vangold’s history of exploration in Uganda dates from 1994. The Kafunjo, Kilembe, and Fort Portal projects were developed in the following years. Active exploration resumed in 2007, with programs planned and in progress in 2008 on all licences.

Releases in January 2008 of airborne magnetic and radiometric geophysical surveys covering two areas (Blocks 1 & 6) have been purchased and are being interpreted by a geophysicist. As additional Blocks are released the data will be acquired.

Programs are now being organized in Kampala. Letters of introduction to regional authorities have been provided from the Geological Survey. Field examinations will begin in March. A new 4×4 Toyota Land Cruiser has been purchased and other field supplies are on hand.

Three adjacent licences are located in southwest Uganda near the triple junction of Tanzania, Rwanda, and Uganda. A strong 7 km long coincident pairing of magnetic and gravity anomalies occurs on a trend which arcs from the ultramafic-hosted nickel-PGM deposits at Kabanga and Kagera in Tanzania.

Previous exploration by Vangold (1994-1995) included a drill test to depths of approximately 350m. Reinterpretation of the geophysics and drill core suggests that the upper part of the causative body is 600-800m below surface. Study of pyrrhotite-silica veinlets determined that they are of hydrothermal origin. Sulphur isotopes are similar to those from the massive copper - silver deposits at Mt. Isa, Australia.

Work now commenced includes a gravity survey over the centre of the anomaly. A proposal for the survey has been submitted to the geophysical section of the Petroleum Department of the Uganda Geological Survey, for completion in mid-March. Diamond drilling to depths of 1000m or more is planned. A suitable drill is being sought; one or more may be available by April.