News

Medgold Announces Conclusion Of Its 2019 Drilling Program At The Tlamino Project, Serbia And Reports Initial Results

Written by TSX-V: ELY on October 30, 2019

Posted Under: Uncategorized

Vancouver, Canada, October 30, 2019 – Further to its News Releases of May 29 and September 18, 2019, Medgold Resources Corp. (TSX-V: MED) is pleased to announce the completion of its 2019 drilling program at the Tlamino Project (the “Project” or “Tlamino”) in southern Serbia.

In recent weeks, approximately 2,000m of diamond drilling has been completed at the Karamanica prospect in 8 holes.  Targets drilled included a 2 km long Induced Polarization (“IP”) chargeability anomaly within a 2 km by 1.5 km gold-in-soil anomaly falling along what is thought to represent the continuation of a geological structure (the Podvirovi structure) related to underground mine workings beneath an adjoining property.

Results from the first hole of the 2,000m drilling program – KAR001 – targeting the Podvirovi structure at a relatively shallow depth, include 8m at 0.29 g/t Au and 3.19 g/t Ag. Mineralization in this interval is hosted in carbonaceous schist with traces of disseminated pyrite and quartz-pyrite veins.  Holes KAR002, KAR003 and KAR005 targeted the same structure and intersected longer intervals of similar carbonaceous schist; results are awaited for these later holes. Mineralization observed in core from KAR001 is thought by the Company to suggest potential for an exploration target in the Podvirovi structure below the level of the current drilling. Drill hole locations at Karamanica, and results from KAR001 are shown in Figures 1 and 2, and Tables 1 and 2 below.

The 2019 exploration program was fully funded by Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”) and was directed by a joint Fortuna-Medgold technical committee pursuant to the terms of the Tlamino Option Agreement announced on March 7, 2017. A total of 4,089m of diamond drilling in the areas of Barje, Liska and Karamanica were completed by Medgold during its 2019 exploration programs.

Karamanica

Located approximately 8km northwest of Barje, the Karamanica Zone is characterized by a 2km by 1.5km gold-in-soil anomaly in which samples returned values generally above 0.1 g/t gold.  Within this anomaly locally elevated concentrations of Ag, Cu, Pb, Zn, As and Sb are seen to form distinct NW-SE linear features, which are in turn partly co-incident with high values of IP chargeability (see Medgold news release of March 21, 2019).

The strong, linear, chargeability anomaly trending NW-SE through the area follows the trend of the Podvirovi structure associated with reported mineralization from historic drilling and underground workings at the Podvirovi polymetallic showing adjacent to Medgold’s landholding. The area of historic drilling and underground working is held in a mining permit by Bosil Metal doo, a subsidiary of Mineco Limited, who are currently producing base-metal concentrates from underground developments. The presence of mineralization in an adjoining property is not necessarily an indication of mineralization on Medgold’s property.

A historic Mineral Resource Estimate for Podvirovi was listed by Yugoslav State Agencies in 1989 as 2.216 million tonnes at 3.07% Pb, 3.06% Zn and 0.87% Cu in A+B+C₁ Resource categories⁽¹⁾.

(1)   While it is known that drilling and underground development for exploration were carried out at Podvirovi pre-1980, a Qualified Person has not completed sufficient work to classify the historic Mineral Resource Estimate as current Mineral Resources or Mineral Reserves.  Key assumptions, parameters, and methods used in its preparation are moreover unknown, and systematic precious metal analyses were not performed. As such Medgold is not treating the historical Mineral Resource Estimate as either current Mineral Resources or Mineral Reserves and notes that evidence of mineralization on the adjacent property is not necessarily indicative of mineralization on Medgold’s property. The historical estimate should not be relied upon. Mineral Resources calculated as A+B+C₁ Resource categories in the former-Yugoslavia, if verified by a Qualified Person, may be equivalent to Mineral Resources of Indicated or Measured category within the CIM Definition Guidelines relating to NI 43-101.

In addition to the exploration targets defined along the possible continuation of the Podvirovi structure, the geochemical and geophysical anomalies mentioned above also give rise to exploration targets in areas of similar structure and lithology to that hosting mineralization at Karamanica.

Figure 1 – Plan view of Medgold’s 2019 drill holes at Karamanica relative to geochemical and geophysical targets.

Figure 2 – Oblique view of Medgold’s 2019 drill holes at Karamanica relative to geochemical and geophysical targets, and the Podvirovi Mine.

Additional maps and information for Barje-Liska and Karamanica are available on Medgold’s website at https://electrumdiscovery.com/tlamino/.

Table 1 – Karamanica Drill Intercepts, 2019. Including final assay results and estimation of vertical thickness.

1 –  The mineralization is thought to be hosted along structural zones inclined at approximately 70° to the horizontal. The true thickness is calculated from the length of intersect and the inclination of the drill hole as indicated by the drillhole survey.

Table 2 – Karamanica Drill Collars 2019

1 –  Coordinates provided are from initial measurement by non-differential GPS. Medgold is awaiting final coordinates measured by a licensed surveyor using differential GPS. Coordinates are given in WGS84 datum and UTM zone 34 projection.

The Tlamino Gold Project

The Project is located in southern Serbia, close to the borders of both Bulgaria and Macedonia, five hours south of Belgrade by road. Tlamino is comprised of two exploration licenses, Donje Tlamino and Surlica-Dukat, each approximately 100km². All exploration work at the Project is fully-funded by Fortuna, which has an option to earn up to 70% of the Project by spending US $8 million on exploration over five years and completing a Preliminary Economic Assessment (see Medgold news release of March 7, 2017).

About Medgold Resources Corp.

Medgold is a Serbia-focused, TSX-V listed, project generator company targeting early-stage gold properties in the Oligo-Miocene Belt of Serbia.  Run by an experienced management team with a successful track-record of building value in resource companies, Medgold is aiming to become a leading European gold exploration company.

Qualified Person and Data Verification

The scientific and technical information in this new release has been prepared and approved by Mr. Thomas Sant, FGS, CGeol, EurGeol, who is a Qualified Person as defined by National Instrument 43-101. Mr. Sant has provided consulting services to Medgold since 2017.

Drilling was carried out by independent contractors using PQ and HQ size tooling. Average core recovery for the program was 98%. Drill core was cut in half by Medgold using a rock saw with one half of the core then taken as a sample for analysis. Sample intervals were generally between 50 to 210 cm (averaging 180 cm) producing samples of between 2 to 13 kg (averaging 6.5kg). Samples were delivered to the independent ALS Geochemistry laboratory facilities in Bor, Serbia. The samples were crushed and pulverized using method code PREP-31, were fire assayed for Au using method code Au-ICP21, and were analyzed for multi-elements using method code ME-MS61 following a four-acid digestion. Overlimits were analyzed using an appropriate method. Medgold routinely inserted multi-element geochemical standards, blanks, and field duplicate samples into the drill core sample stream as part of a documented Quality Assurance/Quality Control (QAQC) process to monitor laboratory performance, during the 2019 drilling program QAQC material was inserted into sample batches at the following rates per primary sample: ¼ core duplicates 1 in 24; granite blanks 1 in 25; certified reference material (CRM) 1 in 14. Medgold’s Qualified Person has checked the results of blank and CRM material inserted with samples reported in this new release and has verified that all such material passed the Company’s QAQC control gates. Sample data has also been verified by comparison of reported assay intervals with original sample logs and sample intervals marked on drill core boxes.

Quoted Historical Mineral Resources

Mineral Resources were calculated in former-Yugoslavia according to laws and regulations applicable at that time, defined specifically by “Zakon o jedinstvenom načinu utvrđivanja, evidentiranja i prikupljanja podataka o rezervama mineralnih sirovina i podzemnih voda i o bilansu tih rezervi” (The Law on the Uniform Method of Establishing, Recording and Gathering Data on Reserves of Mineral Raw Materials and Underground Water and Their Balancing), Službeni list SFR Jugoslavije, br. 53/1977; and by “Pravilnik o klasifikaciji i kategorizaciji rezervi čvrstih mineralnih sirovina i vođenju evidenciije o njima” (The Book of Regulations on Classification and Categorization of Reserves of Solid Mineral Raw Materials and Keeping a File on Them), Službeni list SFR Jugoslavije br. 53/1979.

Additional information on Medgold can be found on the Company’s website at www.electrumdiscovery.com and by reviewing the Company’s page on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

Jeremy Crozier, President and CEO

For Further Information, Contact:

President and CEO

Jeremy Crozier (Vancouver), +1 604 801 5432, info@electrumdiscovery.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation.  All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the exploration plans for the Tlamino Project.  Often, but not always, these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations. 

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements.  Such uncertainties and factors include, among others, the exploration plans for the Tlamino Project; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the proposed exploration of the Tlamino Project will proceed as intended; that the Company’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein.  Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, investors should not place undue reliance on forward-looking statements.