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Medgold Resources Corp (2)
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Close 2019-09-13 C$ 0.11
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Medgold to start drilling Karamanica this week

2019-09-18 06:33 ET - News Release

Mr. Jeremy Crozier reports


Drilling of Medgold Resources Corp.'s high-priority Karamanica prospect will commence in the current week. The Karamanica prospect falls within the Tlamino project in southern Serbia, approximately eight kilometres west of the Barje-Liska prospect at which drilling by Medgold has been focused to date.

Approximately 2,000 metres of diamond drilling are planned in this phase of work. The 2019 exploration program remains fully financed by Fortuna Silver Mines Inc. and directed by a joint Fortuna-Medgold technical committee pursuant to the terms of the Tlamino option agreement announced on March 7, 2017.

The most prominent target at Karamanica consists of a two km long induced polarization chargeability anomaly within a two km by 1.5 km polymetallic soil anomaly. Medgold's technical team believes that this anomaly may represent the strike extension of a mineralized structure onto Tlamino from underground mine workings at the adjacent Podvirovi mine currently in development by Mineco Ltd.

A historic mineral resource estimate for Podvirovi was listed by Yugoslav state agencies in 1989 as 2,216,000 tonnes at 3.07 per cent lead, 3.06 per cent zinc and 0.87 per cent copper in A plus B plus C resource categories. While no systematic gold or silver analyses appear to have been performed by the Yugoslav state agencies, it is important to note that soil sampling by Medgold along the projection of the Podivirovi trend within the company's landholding identified gold in soil of 0.1 gram per tonne over an area of two km by 1.5 km. Evidence of mineralization on an adjoining property is not itself evidence of mineralization at Tlamino.

While it is known that drilling and underground development for exploration were carried out by state agencies 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. Yugoslav mineral resources listed in A plus B plus C resource categories would be equivalent to mineral resources of indicated or measured category within the CIM definition guidelines relating to National Instrument 43-101.

In other news, results have been received from all 11 drill holes completed during Medgold's 2019 drilling program at Barje-Liska. Drill hole locations and significant intervals are shown in images and tables on the company's website. Intersected mineralization includes 32.35 m at 3.48 per cent combined Pb-Zn with 0.25 g/t Au in hole LIS006, and 30.0 m at 3.95 per cent combined Pb-Zn with 0.11 g/t Au in hole LIS007. The latter interval falls approximately 290 m north of historically reported mineralization at Liska (see news release dated March 21, 2019), suggesting a broad zone of Pb-Zn mineralization over a north-south interval in excess of 600 m.

Two holes, BAR031 and BAR032, were drilled to the east of previous hole BAR10 (38.20 m at 3.98 g/t Au, 158 g/t Ag and 0.66 per cent Pb-Zn; see news release dated Sept. 20, 2018); both holes intersected hydrothermal breccia that appears to be same shallow-dipping structure containing the hydrothermal breccia in BAR10; BAR032 returned the strongest intersection from the 2019 drilling at Barje reporting 14.5 m at 2.13 g/t Au including 2.0 m at 7.35 g/t Au.

                                         BARJE-LISKA DRILL INTERCEPTS 

                                                   Vertical                                      Zn-Pb
Drill hole       From      To  Interval length  thickness**      Au     Ag      Zn     Pb  combined***
                  (m)     (m)              (m)          (m)   (g/t)  (g/t)     (%)    (%)          (%)

LIS003          76.70  108.70            32.00        32.00    0.12   1.84    0.60   0.41         1.01
LIS004                                                                   no significant mineralization
BAR030                                                                   no significant mineralization
LIS005          90.90  150.25            60.05        52.00    0.13   1.56    0.59   0.24         0.83
LIS006         120.60  152.95            32.35        28.29    0.25   6.82    2.30   1.18         3.48
and            172.60  223.50            50.90        43.63    0.03   3.09    0.97   0.12         1.10
LIS007         198.60  228.60            30.00        25.44    0.11   8.33    2.83   1.12         3.95
incl.          212.60  217.60             5.00         4.19    0.24  15.44    6.32   1.89         8.21
LIS008                                                                   no significant mineralization
LIS009                                                                   no significant mineralization
LIS010                                                                   no significant mineralization
BAR031           0.00   32.90            29.40        23.17    0.70   5.07    0.20   0.10         0.30
incl.           15.80   27.80             8.50         6.70    1.49   9.72    0.65   0.24         0.89
BAR032           0.00   15.50            14.50        13.71    2.13   6.97    0.27   0.13         0.40
incl.           10.00   12.00             2.00         1.89    7.35  23.05    1.36   0.70         2.06
* Drill hole dip and azimuth were surveyed every 30 m down the hole with some 
additional readings in the first and last 30 m of each hole. The reported dip 
uses the surveys within or closest to the reported intersection.
** Mineralization at Liska and Barje is related to shallow-angle structural 
control. The calculated vertical thickness is regarded as a reasonable estimate 
of the true thickness of mineralization.
*** May contain differences due to rounding.

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 highway and local roads. Tlamino comprises two exploration licences, Donje Tlamino and Surlica-Dukat, each approximately 100 square kilometres. All exploration work at the project is fully financed by Fortuna, which has an option to earn up to 70 per cent of the project by spending $8-million (U.S.) on exploration over five years and completing a preliminary economic assessment (see Medgold news release of March 7, 2017).

About Medgold Resources Corp.

Medgold Resources is a Serbia-focused, TSX Venture Exchange-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 record of building value in resource companies, Medgold Resources is aiming to become a leading European gold exploration company.

Qualified person

Thomas Sant, FGS, CGeol, EurGeol, is a qualified person as defined by National Instrument 43-101. Mr. Sant has a 25-year career in mineral exploration focusing on gold and base metal projects and has provided consulting services to Medgold since 2017. Mr. Sant has supervised the preparation of the technical information in this new release and has verified it by reference to the original field and assay data, by inspection of the drill core before and after sampling, by conducting several site visits during the drilling, by audit of the significant intersection calculations, and by carrying out inspection of the quality assurance/quality control data. Mr. Sant approves the disclosure of the technical information in this news release.

Quality assurance and quality control (QA/QC)

Drilling was carried out using PQ3- and HQ3-diameter tooling with core recovery averaging 97 per cent for the program. Cut half-core samples were collected in and surrounding logged intervals of alteration and mineralization with an average sample length of 1.7 m and an average sample mass of 6.4 kilograms. Medgold inserted 43 packets of commercial certified reference material, 23 blank samples of coarse-crushed barren granite and 21 core duplicates with the sequence of 575 primary core samples during the program as part of a documented and monitored QA/QC system to confirm the reliability of assay results for Au, Ag, Cu, Pb and Zn. All samples were delivered directly to the independent laboratory facilities of ALS Geochemistry in Bor, Serbia, where samples are crushed and pulverized using method code PREP-31, fire assayed for Au using method code Au-ICP21, and analyzed by ICP (inductively coupled plasma) for a multielement suite using method code ME-MS61 following a four-acid digestion. Samples reporting over the upper limits of these analysis methods were reanalyzed using an appropriate method. Review of QA/QC data from the program does not suggest any issues that could materially affect the accuracy or reliability of the data referred to by this news release.

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