Vango Works to Fast-track Plutonic Dome Gold Project

Vango Mining (ASX:VAN) continues to advance its Plutonic Dome gold project through its ongoing drill program at three sites. The company has also signed a memorandum of understanding (MoU) with China ZhengHe Industrials to supply it with pertinent equipment, the miner said on Tuesday (November 13).

In addition to the MoU, the miner told shareholders that it has a number of drilling rigs on site which are currently targeting the Cinnamon, Trident and Trident West deposits.

“This program is scheduled to continue operations through this current quarter with results being released when they become available,” Vango stated in a press release.

“In addition to the ground field works, Vango Mining has advanced with Como Engineering the design, engineering and feasibility study works for the construction and operation of a stand‐alone company owned and operated gold processing plant as previously announced,” the miner added.

In regards to the MoU, Bruce McInnes, executive chairperson, noted that a formal cooperation agreement will likely be signed during the first quarter of 2019.

The announcement of the MoU comes on the heels of Superior Gold’s (TSXV:SGI) subsidiary Billabong Gold commencing legal proceedings against Vango.

The company claims that it holds rights of first refusal under a 2014 ore treatment agreement over tenements within Vango’s Plutonic Dome project, and that these rights were breached during Vango’s and its wholly-owned subsidiary Dampier’s transactions in 2016 and 2017.

“It is disappointing that our efforts to resolve this dispute without litigation have been unsuccessful,” stated Chris Bradbrook, president and CEO of Superior Gold.

“Notwithstanding our claims, the infrastructure at our Plutonic Gold mine, which currently has excess mill capacity, potentially offers Vango’s shareholders the opportunity to develop any financially viable mine on the tenements in the most expedient and cost effective manner,” he added.

Vango responded to the claims, telling shareholders that Billabong’s accusations were speculative and without merit, noting that the ore treatment agreement had been terminated more than 12 months ago.

As of 4:01 p.m. EST, Vango was up 2.94 percent, trading at AU$0.175

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.