VG, San Gold drill 51.4 gpt Au over 1.5 m at JV project

2010-05-03 08:17 ET - News Release

See News Release (C-VG) VG Gold Corp

Mr. Tom Meredith of VG Goldreports

VG GOLD RESULTS AT DAVIDSON-TISDALE, TIMMINS, ONTARIO-51.4 GPT GOLD OVER 1.5 METERS. 10,000 METERS PLANNED

VG Gold Corp. (68.5 per cent) and its joint venture partner San Gold Corp. (31.5 per cent) have released the initial diamond drill results for the Davidson-Tisdale project in Timmins, Ont., for 2010. Drilling occurred on two separate zones of mineralization, known as the S Zone and the Main Zone.

Recent drilling began with two objectives:

1. Angle drilling in previously explored areas in order to intersect possible narrow zones of higher grade mineralization;

2. Exploration for extensions of known mineralization.

1) S-Zone: Looking for Higher Grades

Previous operators at Davidson-Tisdale drilled the S-Zone primarily from surface using vertical holes. When angle drilling occurred at a later date it was discovered that the results typically contained higher gold grades. It's believed that the vertical holes were unsuccessful indentifying narrow zones of higher grade because of their positioning. VG Gold's drilling was designed to test this hypothesis. Although additional drilling is required to better quantify this theory, early results have been encouraging. Highlights are shown below:

-----------------------------------------------------------
Hole #               From        To     Width    Gold Grade
(m)       (m)       (m)         (gpt)
-----------------------------------------------------------

VGT-10-371           93.8      95.3       1.5          51.4

VGT-10-372           22.3      23.6       1.3         10.80

VGT-10-373          101.8     103.4       1.6          7.68
-----------------------------------------------------------

Intervals reported here are core lengths. True widths are not known at this time. See more results in Table 1 below.

2) Main Zone: Extensions of Known Mineralization

Drilling in the Main Zone was designed to extend the known mineralization at depth. Drill holes VGT-10-377 and VGT-10-380 intersected 8.04 gpt gold over 3.0 m and 9.90 gpt gold over 1.5 m, helping to extend the mineralization by 50 m.

-----------------------------------------------------------
Hole #               From        To     Width    Gold Grade
(m)       (m)       (m)         (gpt)
-----------------------------------------------------------
VGT-10-377          285.5     288.5       3.0          8.04

VGT-10-380          274.3     275.8       1.5          9.90
-----------------------------------------------------------

Intervals reported here are core lengths. True widths are not known at this time. See more results in Table 1 below.

Drilling at Davidson-Tisdale is ongoing, with VG Gold and San Gold currently planning a 10,000 m drill program to test for deeper high-grade extensions.

About Davidson-Tisdale

The Davidson-Tisdale project is well located in the heart of the Timmins gold camp and is approximately 3 km along strike from the Hollinger-McIntyre Mines, which have produced over 31 million ounces of gold. Davidson-Tisdale contained a measured and indicated resource of 188,967 ounces of gold (1,237,689 tonnes at 4.75 gpt) and an inferred resource of 58,684 ounces of gold (391,821 tonnes at 4.66 gpt). VG Gold owns 68.5% of Davidson-Tisdale and is the projects operator, with San Gold owning the remaining 31.5%.

QUALIFIED PERSON

All exploration work was conducted under Kenneth Guy, P. Geo., designated Qualified Person for VG Gold, who has reviewed this press release. All drilling was completed using NQ size core. Gold analysis of the samples collected by VG Gold was assayed by ALS Chemex. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over 10.0 gram per tonne Au are re-assayed with gravimetric finish. Samples noted to contain visible gold are analyzed via total metallic assay method. A rigorous Quality Control and Assurance Program (QA/QC) is in place, using control samples such as Blanks and duplicate checks. In addition, duplicate analyses of 10% of the samples are corroborated by check assays performed at a third party Laboratory.

Table 1. Tisdale Project - April 2010


S - Zone
Mine grid                            Assays
northing easting dip  az length  from    to   gpt Length G x W
(m)

VGT-10-363        9385    9725 -45 180    251  No significant assays

VGT-10-364        9385    9725 -75 180     92  No significant assays

VGT-10-365        9490    9850 -45 355    176 114.8 116.5  4.22    1.7     7

VGT-10-366        9465    9875 -45 355    140  71.2  74.5  2.30    3.3     8
123.8 124.3  3.72    0.5     2

VGT-10-367        9480    9925 -45 355    119  47.5  49.0  2.80    1.5     4
54.5  56.0  3.78    1.5     6

VGT-10-368        9485    9950 -45 355    110  46.0  47.5  1.14    1.5     2
61.0  62.5  1.83    1.5     3

VGT-10-369        9465   10000 -45 355    131     No significant assays

VGT-10-370        9515   10000 -45 355    149     No significant assays

VGT-10-371        9530    9950 -45 355    140  93.8  95.3 51.40    1.5    77

VGT-10-372        9530    9875 -45 355    170  22.3  23.6 10.80    1.3    14

VGT-10-373        9545    9850 -45 355    191  37.0  38.5  4.18    1.5     6
40.0  41.5  1.60    1.5     2
101.8 103.4  7.68    1.6    12
143.0 145.8  4.94    2.8    14
155.0 156.5  5.18    1.5     8

VGT-10-374        9654    9965 -55 355    221     No significant assays

VGT-10-375        9585    9925 -45 355    215 136.0 137.5  3.86    1.5     6
140.5 142.0  2.42    1.5     4

13 holes                                 2105


Assays
Hole #        section easting dip    az length  from    to  gpt Length G x W
(m)
Main             Zone
VGT-10-376       -125    -175 -64   145    251  No significant assays

VGT-10-377        -50    -200 -70   143    347 275.0 277.0 1.03      2     2
285.5 291.5 4.47      6    27
incl 8.04      3    24

VGT-10-378        -75    -175 -62   144    296  No significant assays

VGT-10-379      -87.5    -200 -57   145    299 226.0 227.5 2.27    1.5     3
232.4 233.9 1.23    1.5     2

VGT-10-380      -87.5    -200 -72   142        269.8 278.8 2.90      9    26
incl 9.90    1.5    15

VGT-10-381     -112.5    -150 -63   145    275 208.5 210.0 0.91    1.5     1

6 holes                           total   1468

To learn more about VG Gold (TSX: VG), visit our website: www.vggoldcorp.com