COMPANY ANNOUNCEMENT CANGOLD ACQUIRES OPTION ON GOLD PROJECT...

COMPANY ANNOUNCEMENT
CANGOLD ACQUIRES OPTION ON GOLD PROJECT ADJACENT TO
MULATOS GOLD MINE IN MEXICO
24 July 2007 : The company is pleased to release the following announcement by Cangold Limited.
Mining Projects Group Limited currently holds approximately 5.8 million shares in Cangold Limited
which is listed on the Toronto Venture Exchange (TSX – V : CLD). The current share price of
Cangold Limited is CND 28.5 cents.
CANGOLD LIMITED (TSX-V: CLD, the “Company”) is pleased to announce that it has, through its
Mexican subsidiary, signed an Option Agreement to acquire a 100% interest in the Los Venados
property contiguous with, and along strike from, the Mulatos Gold Mine in the prolific Sierra Madre
gold belt of Sonora, Northern Mexico.
Los Venados lies within the emerging Mulatos gold mining district - a 15-20 kilometre long
northwest trending belt of strong hydrothermal alteration and gold mineralization in Tertiary volcanic
rocks within the Sierra Madre Mountains. The target at Los Venados is a multimillion ounce high
sulphidation epithermal gold deposit amenable to open pit mining and heap leaching, similar to
Alamos Gold Inc.’s (AGI: TSX) Mulatos gold deposit, which contains a global resource of 3.71
million ounces at a 0.5 g/t Au cut-off grade (Alamos Gold website). The southern boundary of the
Los Venados claim is located within 1,500 metres of the Estrella open pit, which contains Proven &
Probable Reserves of 31,900,000 tonnes at a grade of 1.64 g/t Au for a total of 1,683,000 ounces of
gold.
The 3,200 hectare Los Venados claim is easily accessible by an all weather road, approximately 220
kilometres southeast of Hermosillo, and covers a large hydrothermal system where three zones of
intense argillic alteration, silicification and gold mineralization have already been identified. The
property has been subjected to very little historical work and initial grab sampling by Cangold has
yielded gold values ranging from 0.01 to 1.84 g/t.
Cangold’s first phase of exploration is scheduled to commence in early August and will include
geological mapping and prospecting, detailed sampling and possibly trenching of the three zones
identified to date, with diamond drilling to follow. Cangold can acquire a 100% interest in the Los
Venados property by making staged cash payments totalling CDN$250,000 and issuing 500,000
shares over 5 years. The acquisition is subject to a 2% NSR, half of which can be purchased for
CDN$500,000. A finders fee is payable upon regulatory acceptance.
Los Venados represents an exciting entry point into gold exploration in Mexico for Cangold. It is
rare in today’s market to find a property with such a high profile address, so little previous work and
so much potential. As such, Los Venados will play a pivotal role in the accelerated growth of the
Company.
For And On Behalf Of The Board
Richard Revelins
Director