Medgold Announces Board Changes, Cancellation and Award of Stock Options

Posted Under: Uncategorized

Vancouver, Canada, March 2, 2021 – Medgold Resources Corp. (TSX-V: MED|FRA: 1XD) announces that Mr. Simon Ridgway has resigned as Executive Chairman and as a Director of Medgold in order to pursue other business interests. Mr. Ridgway is recognized and warmly thanked for his foundational role in the establishment of Medgold, and for his strategic leadership of the Company through its acquisition, financing and advancement of property assets in both Serbia and Portugal. Medgold wishes him well in his ongoing ventures.

Medgold also announces the appointment of Mr. Andrei Kroupnik as a Director of the Company. Mr. Kroupnik is a Mining Engineer with twenty years of operations, business development and capital markets expertise, including the position of Head of Mergers and Acquisitions of Polymetal International, with whom he has gained in-depth knowledge of global high-grade refractory gold concentrate market. Medgold benefitted greatly from Mr. Kroupnik’s knowledge of concentrate trading systematics during the recent preparation of  its PEA, in which time he assisted in defining appropriate concentrate specification targets that were used in the PEA’s metallurgical study.

Mr. Kroupnik lives in London where he is currently a consultant to Hannam and Partners; he previously held the position of Vice President Investment Banking – Metals and Mining at Canaccord Genuity/Collins Stewart. Mr. Kroupnik holds a Bachelor of Engineering from the Curtin University of Technology, Western Australia, and an MBA from Esslingen University of Applied Sciences, Germany.

Mr. Kroupnik is cordially welcomed to the Medgold Board, and the Company looks forward to the benefit of his contributions towards the advancement of the Tlamino Project.

The Company also announces that it has granted incentive stock options to its directors, officers, employees and consultants to purchase up to 7,645,000 common shares of the Company, exercisable at $0.10 per share for up to ten years.  In addition, the Company will cancel up to 4,755,000 existing stock options.

The Tlamino Project

On January 26, 2021, Medgold announced the completion of a positive Preliminary Economic Assessment (“PEA“) for the Barje gold deposit at its Tlamino Project, Serbia (“Tlamino“, the “Project“). The highlights of the PEA are as follows:

  • Based on simple open-pit mining methods and the production of a flotation concentrate via conventional processing techniques, the pre-tax NPV of the Project, at a discount rate of 8%, is US$101M, its IRR 49%, and its operating margin 61%.
  • The up-front capital cost of the Project is US$74M (inclusive of a 15% contingency margin and further study and engineering costs) with payback achieved in two years.
  • Life of mine C1 cash costs of US$464/oz Au, and life of mine all-in sustaining costs of US$522/oz Au.
  • A gold price of US$1500/oz and a silver price of US$16.50/oz was used in the study. At an approximate spot gold price of US$1,800/oz, the post-tax NPV of the Project, at a discount rate of 8%, is US$139M, and its IRR 69%.
  • An updated Inferred Mineral Resource of approximately 670,000 oz AuEq in 7.1 Mt grading 2.9 g/t AuEq at cut-off grade of 0.7 g/t AuEq.

The PEA is preliminary in nature and is based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. As such there may be no certainty that the PEA will be realized. The study was undertaken by Addison Mining Services Ltd., Bara Consulting Ltd. and Reach Partners Limited, all of the United Kingdom.

In January 2021, Medgold announced that it has entered into a definitive Option Agreement (the “Agreement“) whereby it has an exclusive option (the “Option“) to purchase the 51% interest in the Tlamino Project held by Fortuna Silver Mines Inc. (“Fortuna“) for a cash consideration of US$3.468 million. The Option is valid for three years and is exercisable (i) at any time at the election of Medgold prior to the expiry of the term of the Option; or (ii) at the date of completion of a sale by Medgold of a 100% interest in the Project to a third party; or (iii) at the date of completion of a merger between Medgold and a third party, whichever arises soonest.

In the event that Medgold completes a sale of the Project or corporate merger during the term of the Option and receives consideration in excess of US$8.84 million (the “Sale Consideration“), Medgold will pay to Fortuna an asset sale bonus equal to 10.2% of any amount in excess of the Sale Consideration, less all of Medgold’s costs related to the sale or corporate merger.

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 and by reviewing the Company’s page on SEDAR at


Jeremy Crozier, President and CEO

For Further Information, Contact:

President and CEO
Jeremy Crozier (Vancouver), +1 604 801 5432,

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 potential acquisition by the Company of Fortuna’s interest in the Tlamino Project, and the mineral resource estimate and PEA 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, whether the Company will obtain stock exchange approval to the Option, and ultimately acquire Fortuna’s interest in the Tlamino Project; the uncertainties inherent in the PEA and 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  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: the Company will obtain stock exchange approval to the Option; the accuracy of the PEA and 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.