Medgold Secures Exclusive Option on two Portuguese Gold Exploration Licenses Identifying Significant Potential
Posted Under: Exploration Results
VANCOUVER, Feb. 5, 2013 /CNW/ – Medgold Resources Corp. (TSX-V: MED), the European focused gold exploration company, is pleased to announce that it has secured the exclusive option on two highly prospective Portuguese exploration licenses, Boticas and Vila de Rei, through the Direção-Geral de Energia e Geologia (DGEG) of Portugal.
Overview
- Boticas and Vila de Rei cover 100 sq km and 300 sq km respectively.
- Previous drilling at Boticas reported results including 40.2m at 1.96 g/t Au, including 20.4m at 2.92 g/t Au, and surface sampling has yielded results up to 204 g/t Au in veinlets.
- 3,234 metres of historical diamond drilling at key prospect, which is only one of 15 soil geochemical anomalies identified by historical grid-sampling.
- Vila de Rei includes 40 line km of a principal regional structure.
- Comprises four geochemical anomalies, the largest of which extends over 3 km and yielded best results from rock grab sampling of 24.72, 22.85 and 19.24 g/t Au.
- Acquisitions part of Medgold’s aggressive expansion strategy and follow the recent issue of an additional license in Italy.
- Evaluating additional prospects to increase exploration and development portfolio in prospective gold regions in Europe perceived to benefit from planning amelioration.
Dan James, President of Medgold, commented, that: “These are truly exciting projects with excellent historical data available. We believe they have multi-million ounce potential with similar geological controls to the world-class Fort Knox gold deposit in Alaska [1]. The projects highlight the Company’s focus to define high-value, wholly-owned, exploration projects in recognized gold districts. The historic work, including 3,234m of drilling at Boticas, in tandem with the work conducted by our geologists, which yielded a best channel sample of 14.10m at 3.98 g/t Au, underpin the potential and we look forward to rapidly implementing evaluation programs on the multi-anomalous projects as soon as possible.”
The Boticas Gold Project
Boticas is located in northern Portugal, approximately 30 km north of the Jales/Gralheira gold mine, hosted in granites with gold mineralization controlled by large-scale regional faults. The Board believes that the project has multi-million ounce gold potential in structurally-controlled and en echelon repeating dilation zones, which is a common structural setting for gold deposits with a similar geological setting typified by the Fort Knox gold deposit in Alaska [1].
The 100 sq km project area was previously explored between the 1980’s and early 2000’s by several companies with a total of 3,234 metres of diamond drilling completed in 26 holes. Results from the drilling included [2]:
- 40.15m at 1.96 g/t Au from 19.30 to 59.45m, including 20.40m at 2.92 g/t Au from 20.70 to 41.10m (hole KL4);
- 64.80m at 0.42 g/t Au from 35.00 to 99.80m (hole PF2);
- 50.05m at 1.70 g/t Au from 8.65 to 58.70m, including 19.7m @ 2.80 g/t Au from 32.20 to 52.00m (Hole PF3);
- 103.60m at 0.83 g/t Au from 28.10 to 131.70 m (hole PF10);
- 75.55m at 0.92 g/t Au from 6.80 to 82.35m (hole PF11);
- 104.75m at 0.83 g/t Au from 45.50 to 150.25m (hole PF17).
The exploration drilling results are exciting and will allow the Company to define drill-ready exploration targets with the opportunity to fast-track to resources. Importantly the key prospect, which has been the focus of drilling, is only one of 15 soil geochemical anomalies identified by historical grid-sampling.
Historical surface sampling has yielded results over 1 g/t Au in 9 out of 34 samples with a maximum of 204 g/t Au in a grab sample of selected veinlets, underpinning the high prospectivity of the project area.
Prior to the grant of the option, Medgold carried out evaluation work which yielded a composite channel-chip sample with a length weighted average of 3.98 g/t Au over 14.10m (channel CH001) and individual rock-chip samples up to 28.3 g/t Au over 1.70m (channel CH007) out of 58 samples, 11 of which were greater than or equal to 1.0 g/t Au.
The Boticas license is expected to be issued in mid-2013, and it is planned to start ground work immediately following issuance, with a drilling campaign scheduled for late 2013.
[1] Fort Knox gold deposit is an active gold mine operated by Kinross and has proven and probable reserves of 314.6 Mt at 0.43 g/t gold containing 4.3 million ounces of gold. See http://www.kinross.com/operations/operation-fort-knox-alaska-usa.aspx for further details.
[2] Sample grades capped at 20 g/t Au. Intersections above 20 g/t * metres listed.
Vila de Rei Gold Project
The Vila de Rei exclusive license option is located in central Portugal, covering an area of approximately 300 sq km, targeting sediment-hosted shear-related mineralization. The project area covers 40 line km of a principal regional structure and comprises four previously identified geochemical anomalies, the largest of which extends over 3 km. Rock chip sampling by a previous explorer in the mid 2000’s gave 33 out of 247 samples above 1 g/t Au with maximum values of 24.72, 22.85 and 19.24 g/t Au.
This large-scale exploration project is focused on a large and gold-anomalous lineament, and the Company believes has the potential to host significant gold resources.
The geochemical anomalism is highly extensive with high-grade zones occurring in large sulphide-rich lenses which are hosted in silicified quartzites. The scale of the geological framework within the license area, combined with multiple highly anomalous zones, highlights the potential for significant gold discoveries.
The license is expected to be issued in late Q1 2013, with a program of license-wide mapping, reconnaissance sampling, and detailed channel-chip sampling tentatively planned for early Q2 2013.
Qualified Person
Stewart D. Redwood, Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release.
The drill intersections and sampling by previous companies are historical in nature and have not been verified by Medgold, and are quoted for information purposes. Medgold has carried out limited rock chip sampling at Boticas and Vila de Rei for evaluation purposes. The samples were prepared by ALS Minerals at the Rosia Montana Laboratory, Romania, and analyzed for gold by fire assay with atomic adsorption finish. Samples above 10 g/t were repeated with a gravimetric finish. Multi-elements were analyzed by ICP.
About Medgold
Medgold is aiming to become the leading Mediterranean-focused gold exploration and project development company, with an extensive portfolio and pipeline of projects across Portugal, Italy and Spain, targeting economically stressed, but politically stable European countries that are seeking foreign investment to invigorate the mining sector.
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
“Dan James”
Daniel P. James, President & Director
For Further Information, Contact:
Investor Relations
Ralph Rushton (Vancouver)
ralphr@goldgroup.com
+1 604-630-5544
President
Dan James (UK and Portugal)
dj@medgold.pubco.net
+44 (0) 7972 579188
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
This press release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological in terpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Medgold’s projects in Europe are at an early stage and all estimates and projections are based on limited, and possibly incomplete, data. More work is required before the mineralization and the projects’ economic aspects can be confidently modelled. Actual results may differ materially from those currently anticipated in this news release. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the projects will otherwise prove to be economic.