VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 28, 2015) – Medgold Resources Corp. (TSX VENTURE:MED) (the “Company” or “Medgold”) is pleased to announce that the second phase of drilling at the Lagares project in northern Portugal, targeting the Serra da Quinta prospect, is now complete. The drilling cut multiple zones of intense mineralization, including a best interval of 13.77 metres at 2.03 g/t Au. Centerra Gold Inc. (“Centerra”) has an option to earn a 51% interest in the project by spending US$3 million over 3 years at Lagares, and can earn an additional 19% by spending a further US$3 million over 2 years (see news release dated December 9, 2014).
The results highlight the southerly continuation of gold mineralization from the Castromil zone, where previous work by Medgold returned an intersection of 17.49 m @ 4.45g/t Au. The drilled strike length of the two zones now totals 1,250 metres. The drilling is targeting near-surface granite-hosted gold mineralization.
Twenty-eight diamond drill holes (2,614m of a planned 3,000m program) have been completed since drilling started in March 2015. Assays have been received for the first 26 drill holes with significant mineralized intersections cut in 24 of the holes. A summary of the recent results, from drill holes MLG-009 to MLG-024, include:
- MLG-009: 4.00m @ 3.86 g/t Au, from 46.00m (section 550m, Castromil)
- MLG-013: 12.85m @ 1.55 g/t Au from 9.95m (section 1125m, Serra da Quinta)
- MLG-017: 13.77m @ 2.03 g/t Au from surface (section 1375m, Serra da Quinta)
- MLG-022: 6.62m @ 2.04 g/t Au from 24.63m (section 1375m, Serra da Quinta)
- MLG-023: 2.26m @ 5.41 g/t Au from 16.00m (section 1450m, Serra da Quinta)
Dan James, President of Medgold, said: “We are very pleased with the progress of the on-going drilling at Lagares and our latest results highlight the significant scale of mineralization, which has now been drill-tested over a strike length of more than 1,000m. Our best hole at Serra da Quinta returned 13.77m @ 2.03 g/t Au, and our best at Castromil returned 17.5m @ 4.5 g/t Au, demonstrating a consistently well-mineralized corridor over a 1,000m strike length. We are seeing the highest-grade gold mineralization – and the broadest widths – in the central parts of the Castromil prospect.
“Drilling is now underway at Castromil North, located over one kilometre northwest of Castromil, with potential to double the strike length of the system. We’ve also started a deeper drill hole located to the northeast of the best zones of mineralization at Castromil to test the continuity of mineralization at depth and under cover. We expect to complete the initial 3,000m program by the end of October.”
The Lagares property is one of four mineral concessions Medgold holds in the Valongo Belt, all of which are currently under option to Centerra. It is located in northern Porto approximately 25 km east of the city of Porto.
Gold mineralization at Lagares is granite-hosted and associated with pyrite and arsenopyrite. It is structurally controlled, occurring as zones of pervasive silicification and as discrete veins, within shallow northeast-dipping lenses that are bounded to the southwest by the Railway Fault, which is the dominant structural feature within the project area.
A summary of the drilling results, announced on the 2nd and 27th July, 2015 (see http://www.medgoldresources.com/s/news-releases.asp for more information), is listed below:
- MLG-001: 10.90 m @ 2.32 g/t Au from surface, section 150m
- MLG-003: 19.95 m @ 3.17 g/t Au from surface, section 450m
- MLG-004: 17.49 m @ 4.45 g/t Au from 10.00m, section 400m
- MLG-006: 7.76m @ 4.40 g/t Au; from surface, section 300m
- MLG-007: 10.53m @ 3.07 g/t Au; from 17.53m down-hole, section 450m
- MLG-008: 28.65m @ 1.30 g/t Au; from surface, section 450m
A full table of collar locations and results, as well as location maps and cross-sections, are listed on the website at http://www.medgoldresources.com/s/lagares.asp.
The objective of the 2015 drill program is to test near-surface and high-grade zones of mineralization at the principal prospects of Castromil, Serra da Quinta and Castromil. Drilling is now complete at Castromil and Serra da Quinta with 12 holes for 1,229.65m and 16 holes for 1,384.65m completed, respectively. Drilling at Castromil North, for a proposed 3 holes, has commenced. Finally, we have commenced a deeper drill hole at Castromil, which is located approximately 120 metres to the northeast of the known extent of mineralization, and thus testing the down-dip continuity of the previously reported zones of mineralization beneath cover (e.g. testing continuity from MLG-004 which intersected 17.49 m @ 4.45g/t Au). We expect to complete the remaining four holes by the end of October.
Regional Exploration (Valongo Belt)
Exploration teams are undertaking systematic geochemical and geological exploration of the other properties within the Centerra JV licences that includes soil sampling in Balazar, Valongo and Lagares Licences. Assay results received to date from within the Valongo licence have detected a 2 km by 1 km gold-in-soil and arsenic-in-soil anomaly. Initial indications are that the anomaly is associated with structures proximal to a granodioritic intrusive body in an area of no known previous exploration or ancient mining. This area will be the focus of follow-up work during the fall.
Quality Assurance/ Quality Control
Samples were prepared by ALS Minerals at the Seville Laboratory, Spain. Half-core samples were analyzed for gold by fire assay with atomic absorption finish, and multi-elements were analyzed by inductively coupled plasma mass spectrometer and inductively coupled plasma emission spectrometer by ALS Minerals at the Omac Laboratory, Ireland. Certified reference materials, blanks, and field and laboratory duplicates were routinely inserted for quality assurance and quality control. For the current drilling program (MLG-001 to MLG-026), a total of 1686 half-core samples, representing 1,716.78 metres, ranging from 0.5 to 1.5 metres in length, were submitted for analysis along with 33 sterile ‘blank’ samples, 52 certified reference standards and 33 field duplicate samples.
David Clark, PGeo, consulting geologist to the Company, is a Qualified Person as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects. Mr. Clark has reviewed and approved the disclosure of technical information contained in this news release.
Medgold is aiming to become the leading Mediterranean-focused gold exploration and project development company, with an extensive portfolio and pipeline of projects in Portugal and Spain, targeting economically stressed, but politically stable European countries that are seeking foreign investment to invigorate the mining sector.
ON BEHALF OF THE BOARD
Daniel P. James, President & Director
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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 timing and completion of exploration work at the Lagares Project, and the potential of the Lagares 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 information in this news releases includes statements regarding the Company’s plans to continue the drilling program at the Castromil zone and to start drilling the Serra da Quinta prospect with two rigs at the same time.
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, timing and completion of exploration work at the Lagares 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: expectations that the work programs at the Lagares Project will proceed as planned; 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.
Dan James (UK and Portugal)
+44 7972 579188 / +351 912 732334
Ralph Rushton (Vancouver)