Full steam ahead for Vango in 2020
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Vango Mining (ASX:VAN) used is quarterly report (for the period ending 31 December to 2019), released 31 January to remind the market how close it is to becoming a significant, stand-alone gold producer through its recently announced bonanza gold intersections at the company’s key asset, its 100% Marymia Gold Project.
Major announcements during the December quarter include the drilling result grading up to 182g/t gold intersection from a new high-grade zone at the Albatross-Flamingo prospect, located 300 kilometres northeast of Meekatharra in the mid-west region of Western Australia.
Positive market sentiment around the open-pit potential of Albatross-Flamingo, and the potential to deliver substantial cost savings – relative to an underground operation – saw the share price up around seven per cent following its bonanza gold intersection announcement early January. It has since pulled back closer $0.14.
Major upgrades to existing high-grade resource
Beyond the high-grade zone at Albatross-Flamingo, Vango is focused on drilling within its other operations, including the Trident-Marwest-Mareast corridor, where it aims to deliver a significant upgrade to the existing high-grade resource.
During the quarter, exceptionally high-grade results were also received from drilling at the northeastern end of the Mareast deposit, with some of the results including 10 metres at 22.6 g/t, including six metres at 33.3 g/t, and four metres at 42.4g/t.
Based on some high grade gold intersections also reported on during the quarter, including four metres at 11.0g/t, two metres at 20.7g/t, and one metre at 34.5g/t, the gold explorer and developer plans to test for extensions to this new and very high-grade shoot discovery.
Within the December quarter the company also announced that it had received co-funding approval, through the Exploration Incentive Scheme (EIS) of the West Australian Government, to carry out deeper drilling at the shallow southwest plunging corridor of Mine-Mafic hosted mineralisation that may continue from Mareast to below Trident.
Equally encouraging are new high-grade shallow intersections at Mars, which include:
- 15m @ 4.15g/t from 34m, including 9m @ 6.62g/t, and 1 metre @17.9g/t
- 8m @4.40g/t from 68m, including 6m @5.60, and 2m @13.8g/t
- 16m @ 2.06g/t from 21m, including 6m @3.62g/t
Excellent metallurgy for Triple-P high-grade resource targets
In addition to multiple high-grade and relatively shallow intersections from drilling 11 wide-spaced, reverse circulation drill holes for 1,852 metres at Albatross Flamingo, the company also received excellent metallurgical results from its Triple-P and Zone B high-grade gold deposits.
Very high gold recovery was achieved of 97.4 percent, and 97.3 percent for the Triple-P – Zone B high-grade (8/t Au) composite; and moderate grade (3g/t Au), low sulphide composite respectively. These positive results have enhanced the Triple-P and Zone B high-grade gold targets, with the latter showing high gravity gold recovery, and very high overall leach recovery – which may bode well for low cost recovery.
During the quarter, drilling commenced testing targets on the Ned’s Creek joint venture tenements, and assay results from the initial programme are expected early in February.
New managing director appointed
Encouraging news around the high-grade zone at Albatross-Flamingo coincided with revelations that Mr Sean Zhou was stepping down as managing director with resource sector senior executive, Andrew Stock taking up the top job (effective 20 January 2020). It’s understood that Mr Zhou will continue to play an active role in the company as Deputy Chairman and non-executive director.
Following on the heels of the new managing director announcement early November, were revelations of a strategic partnership with China Nonferrous Metal Industry and Construction Company Ltd (NCF). It’s understood NCF will commit an estimated $70 million to the ongoing development of Marymia.
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