VANCOUVER, April 20, 2020 /CNW/ - Medgold Resources Corp.
(TSX-V: MED|FRA: 1XD) is pleased to announce that it has entered
into an exclusive Letter Agreement with Gecon EOOD with respect to
an Exploration License application made by Gecon at Zlogosh
("Zlogosh", the "Zlogosh Property"), Kyustendil Oblast, western
Bulgaria. The main mineralized
targets at Zlogosh are situated approximately 40 kilometers by road
from Medgold's Tlamino Project in Serbia, with which they appear to
share considerable geological similarity. The location of Zlogosh
relative to the Tlamino Project is shown in Figure 1.
Historic work at Zlogosh identified multiple gold-in-soil
anomalies including the 1350 meter by 600 meter Zdravkov Dol
target, within which trench sampling returned intervals including
4.70 g/t Au over 10.0 meters and 2.21 g/t Au over 8.0 meters. Other
gold-in-soil targets include Kretsul, which returned 5.61 g/t Au
over 4.0 meters in trench sampling, and Dobri Dol which returned
3.04 g/t Au over 10.0 meters and 8.64 g/t Au over 5.0 meters in
trenching. The location of mineralized targets at Zlogosh is shown
in Figures 1 and 2. Reported soil and trench sample results within
the Zlogosh Property are the work of previous operators; this work
has not been verified by the Qualified Person. Details of sample
collection, preparation and analysis are not known, and no QAQC
data have been reviewed for the reported work. Similarity of
geology between the Zlogosh Property and the Tlamino Project is not
evidence for similarity of mineralization.
Subject to satisfactory completion of due diligence, Medgold is
planning to conduct drilling and other exploration activities at
Zlogosh targeting a Mineral Resource of a similar order – or
greater – than that seen at the Tlamino Project (see Medgold News
Release dated January 30, 2020).
Extensive historical datasets of stream sediment, soil and rock
samples are available for Zlogosh, and Medgold intends to apply its
understanding gained in similar exploration at Tlamino to these
highly prospective targets. Medgold remains committed to the
advancement of the Tlamino Project in parallel with activities at
Zlogosh.
Under the terms of the Letter Agreement, Medgold has the right
to complete certain due diligence activities in regard to Zlogosh
which, if satisfactory, give Medgold the right to enter into an
Option Agreement with Gecon EOOD. The Letter Agreement provides
that said Option Agreement allows Medgold to earn an initial 51%
interest in Gecon EOOD by financing approximately €330,000 in
permitting and permitting-related expenditures, followed by a
second option to earn a further 44% interest in Gecon EOOD by
incurring approximately €650,000 in exploration expenditures. The
remaining 5% interest in Gecon EOOD may be purchased by Medgold for
€200,000 in cash on the third anniversary of the Zlogosh
Exploration License once awarded or, at the election of the
residual shareholder, for €200,000 in shares of Medgold subsequent
to the attainment of exploration expenditures to the value of
€1,000,000. Gecon EOOD is a private company incorporated under the
laws of the Republic of
Bulgaria.
The Tlamino Project
On January 30, 2020, Medgold
announced an Inferred Mineral Resource containing approximately
680,000 oz AuEq in 7.1Mt grading 3.0 g/t AuEq at cut-off grade of
0.7 g/t AuEq for the Barje Prospect, within Tlamino Project
("Tlamino") in southern Serbia.
Medgold holds two exploration licenses at Tlamino Project
covering an area of approximately 200km2.
Outcropping mineralization was first observed at the Barje
Prospect by Yugoslav State agencies in the 1950s and 1960s when a
short adit was opened but no drilling was carried out. Between
approximately 2005 and 2012, the prospect was held by private and
public companies which carried out limited drilling but failed to
intersect significant mineralization.
In 2018 and 2019, Medgold conducted mapping, surface sampling
and geophysics (IP) followed by diamond drilling at Barje which
successfully intersected gold mineralization in a shallowly
inclined body of hydrothermal breccia below altered schist (See
Medgold news release dated March 21,
2019). The Inferred Mineral Resource at the Barje Prospect
extends from surface to a depth of approximately 110m as a shallowly inclined zone over an area of
approximately 600m x 350m. The true thickness of mineralization
generally ranges between 10m to
40m. 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.
Qualified Person and Data Verification
Mr. Thomas Sant, FGS, CGeol,
EurGeol, Consultant Exploration Manager for Medgold and Qualified
Person as defined by NI 43-101 has reviewed and approved the
scientific and technical content of this news release.
About Medgold Resources Corp.
Medgold is a TSX-V listed, gold exploration company targeting
early-stage properties in the Balkan region. Run by an
experienced management team with a successful track-record of
building value in resource companies, Medgold is focused on growth
through fast-paced exploration and resource definition in the
prospective and under-explored Balkan region.
Additional information on Medgold can be found on the
Company's website at www.medgoldresources.com and by
reviewing the Company's page on SEDAR at
www.sedar.com.
ON BEHALF OF THE BOARD
Jeremy Crozier, President and
CEO
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 Company's
plans for the Zlogosh Property. 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, whether the Company's plans for
the Zlogosh Property will proceed as anticipated; the
uncertainties inherent in the estimation of mineral resources;
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 Company's plans for the
Zlogosh Property will proceed as anticipated; the accuracy
of the mineral resource estimate for the Tlamino Project; 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.
SOURCE Medgold Resources Corp.
