Letter from the Executive Chairman – Vango Mining Limited
Dear Vango Mining Shareholders,
It has been sometime since I last wrote to update you on your Company and what your Board of Directors is doing to advance the Company’s high-quality Marymia Gold Project in the Midwest region of Western Australia. In 2018, your Board initiated a three-pronged approach to advancing the Company’s assets and maximising their value for the benefit of shareholders.
I am pleased to report that all three approaches are well advanced as we enter the second quarter of 2019. Vango’s goals can be summarised under the following three headings:
1. Become a Gold Producer.Prepare and finalise mining proposals with supporting documentation to apply to the Government of Western Australia Department of Mines and Petroleum for a licence to commence mining of the high-grade Trident gold resource at Marymia.
2. Grow our Gold Assets. Realise the value of our historical geological data by conducting an in-depth review and analysis of all data. This will assist us to: a. prioritise work to further strengthen our mining proposals over the short to medium term; and b. conduct targeted exploration drilling over the medium term to grow our gold asset size in order to support a substantial long-term gold mining operation.
3. Build our Brand.Initiate a proactive market engagement program to build awareness of the significant progress Vango Mining has made towards becoming what may well be one of the most prolific undeveloped gold assets in recent Australian mining history.
All three of these goals are designed to support the achievement of our vision of developing our 100% owned Marymia Gold Project into a significant, long term gold mining and stand-alone processing operation. Become a Gold Producer We believe that the success of our Company will be built upon the strength of our team. For this reason, the Board has focused throughout the past 12 months on building a management team with deep mine planning, gold mining operations, gold discovery, project management and leadership experience. As we grow, we will continue to carefully select the right people to develop and deliver our plan…as a team.
Since I last wrote to you, the Board and management have spent considerable time, energy and capital on building a feasible, cost-effective and timely pathway to mining. Previously, much of the Company’s focus was directed at the K2 underground deposit as being the pathway to mining. However, through our analysis of historical data and as a result of the Company’s targeted drilling program, management has come to a decision that a more cost-effective and appropriate approach will be to centre our mining proposal development on the Trident-Marwest corridor.
This decision has also strongly assisted the Company in determining that the preferred location of the planned stand-alone processing plant be in the central region of the Marymia project area, in the vicinity of the Trident Deposit. This will vastly reduce haulage costs of ore proposed to be mined from multiple deposits in the northern and southern sectors of the Project area. Grow our Gold Assets With the financial stability of the Company now firmly in place, management has been able to direct resources to a detailed and extensive review of the massive bank of data files of historical drilling and analysis inherited by Vango Mining on its purchase of the Marymia tenements. Much of this information was obtained by Resolute, Barrick and then Dampier Gold. Vango is working to ensure that this significant historical investment in understanding the Marymia tenements (estimated to be in excess of $130 million in drilling costs alone in 2019 terms) is not wasted.
The review of this data is literally producing “Gold” in the valuable information being extracted and is allowing the development of precision-targeted and ongoing exploration programs in areas that have been identified as priority targets for expenditure on future drilling. These targeted areas, with supporting historical data, are already being built into the mining model in order to support the application for mining. When looking at and reviewing this information, the Board and management believe that Vango Mining’s Marymia Gold Project may well be one of the most prolific undeveloped gold assets in recent Australian mining history and we are on track well and truly to become tomorrow’s ‘overnight success’. Build our Brand Those of us within the Company working at the “Gold Face” genuinely believe that we are on the brink of achieving something special. However, it’s important to note that this story is one of a long, strategic and meticulously planned campaign, not one of a quick and easy journey to success. Hence, the focus is now on advancing the Company’s profile with a view of increasing the wider investment community’s awareness and appreciation of our plan, our team and our asset.
The Board continues to hold the view that Vango has been underrated in terms of both our financial strength and also in terms of the Board and management’s perseverance to prove-up the viability and size of the Company’s gold assets. Whilst we consider that the Company has been underrated by much of the local investment community, the Board recognises and genuinely appreciates the strong and enduring support that we have continued to receive from our core investor group. Further, overseas investors and gold companies have begun to take a strong positive view of Vango Mining and its prospects. In response to strong interest from international investors, including international gold mining companies, the Board will be undertaking a marketing trip to visit financial and institutional investor groups in Asia, including China, to capitalise on this positive acceptance of the Company in May and June of this year.
As you would be aware, the exceptional results from our drilling programs over the past two years have confirmed that Vango has not one, but multiple large-scale, high-grade gold targets, plus a number of other highly promising, but yet to be fully explored, targets. This exciting progress has often led me to ask: ‘Just how large a future gold producer can Vango Mining be?’ which in the Board’s view is like asking: ‘How long is a piece of string?’ Thank you for your continuing support as we work to build Vango Mining into the strong, significant, long term gold mining and stand-alone processing operation that you seek.
Bruce McInnes
Executive Chairman
Vango Mining Limited
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