Medgold Completes 2018 Drilling at Tlamino, Serbia Announces $2-million budget for 2019

Posted Under: Financing

Vancouver, Canada, November 19, 2018 – Medgold Resources Corp. (TSX-V: MED) has completed the planned drilling for 2018 at the Tlamino Gold Project (“the Project”) in southern Serbia. The exploration program at Tlamino is fully funded by Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortuna”), and directed by a joint Fortuna-Medgold technical committee pursuant to the terms of the Tlamino Option Agreement announced on March 7, 2017. Assays have been received for holes BAR014 to BAR020 (see Table 1 below for full results), returning best intercepts of 33.0 m @ 1.14 g/t Au and 8.2 m @ 2.29 g/t Au. Medgold and its partner, Fortuna, have approved a $2-million budget for the project for 2019 to continue drilling at Barje and Karamanica.

Mineralization has now been confirmed over an area of 500 m by 400 m, east-west by north-south. The main zone of mineralized hydrothermal breccia and alteration has excellent lateral continuity between drill holes, is flat-lying to gently dipping, with a thickness of up to 30 m, but recent drilling extending outside of this area, yielded weaker mineralization.

Drilling stepped to the west across the Barje project, systematically testing a large chargeability anomaly identified by an induced polarization-resistivity geophysical survey completed in 2017. The anomaly measures 1,400 m east-west by 400 m north-south, and includes a second-order anomaly with a north-northeast axis overlying the Barje outcrop. The results received to date demonstrate the gold anomalism is weakening as drilling moved to the west away from the high-grade drill holes announced in June which were collared near the Barje discovery outcrop (see news release dated June 11, 2018).

Table 1 – Barje Drill Intercepts (BAR014 to BAR020)

* The mineralization is thought to be hosted along sub-horizontal to shallowly dipping structural zones and as such the true thickness of the reported intersections is estimated to vary between 60 and 100% of apparent width. However, due to the early stage of exploration, and the spacing between current drill holes, the Company is unable to accurately estimate true widths.

Dan James, President of Medgold, said: “As our drilling has moved west, gold grades have declined, suggesting that the chargeability anomaly is not necessarily diagnostic of the presence of high-grade gold mineralization, but more indicative of a broad halo of disseminated sulphide mineralization. The first 13 holes identified an extensive zone of high-grade gold-silver-base-metal mineralization at Tlamino with excellent continuity of mineralization from hole to hole and we’ll be looking at these over the winter to try to identify additional possible controls. We’ll also be looking to test the open-ground between Barje and Liska, which are over 1 km apart, and aligned on a north-northeast axis, for potential blind targets beneath a conglomeratic unit.”

The Company also completed an IP chargeability/resistivity survey over the adjacent prospect of Karamanica, identifying a series of linear and northwest-trending high-chargeability zones up to 1.5 km in strike length, coincident with gold-in-soil anomalism. IP was used successfully at Barje to identify broad zones of sulphide mineralization, so the Karamanica anomalies are priorities for drilling in 2019.

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. Tlamino is comprised of two exploration licences, Donje Tlamino and Surlica-Dukat, each approximately 100km2. All exploration work at the Project is fully-funded by Fortuna, which has an option to earn up to 70% of the Project by spending US $8 million on exploration over five years and completing a Preliminary Economic Assessment (see Medgold news release of March 7, 2017).

The Barje Zone

The Barje Zone hosts a large outcrop of intense brecciation and mineralization, which Medgold channel sampled in 2017, yielding a best result of 84m of 5.60 g/t Au and 105 g/t Ag (see Company press release on July 18, 2017). Gold-silver mineralization is associated with tectonic brecciation in hangingwall schists along thrusts above a large regional detachment fault. Zones of intense hydrothermal breccias and altered schist clasts have formed at the base of the hangingwall to the thrust surfaces. These zones of intense brecciation typically yield high-grade gold-silver intercepts, but brecciation, fracturing and sulphide mineralization is pervasive across large zones of the hanging wall schists and can yield broad intersections of tens of meters of low- (>0.5 g/t Au) to moderate-grade (>1 g/t Au) gold and silver mineralization.

A preliminary gold deportment study by Dr. Chris Blake, an independent mineralogist is underway on four samples from Barje to determine the grain size, liberation and association of microscopically visible native gold grains within the mineralization. Grains of free gold have been observed in three of the samples with gold grain sizes of up to 40 μm associated with pyrite, sphalerite, galena, chalcophyrite and arsenopyrite. In the fourth sample free gold grains were not microscopically identified.

Table 2 – Barje Drill collars (BAR014 to BAR020)

** Coordinates are given in WGS84 datum and UTM zone 34 projection.

A plan map showing drill collar locations and hole traces, and cross sections is available on Medgold’s website at http://medgoldresources.com/tlamino/.

The Karamanica Zone

The Karamanica Zone is approximately 8km northwest of Barje, located on the southeastern flanks of the Crnook Dome on a series of steep northwest-trending strike- and dip- faults. Immediately to the southeast of Karamanica, and along-strike, is an active mine working a polymetallic skarn deposit associated with felsic porphyritic intrusions. At Karamanica, Medgold has identified a significant gold-in-soil anomaly (>0.1 ppm Au), broadly extensive over a 2km x 2km area, with higher-grade northwest-trending anomalies. Mineralization has been observed within felsic intrusions, similar to the active mine to the southeast, but also as replacement zones within calcareous units. Potential exists, therefore, for both skarn-type and carbonate replacement-type polymetallic mineralization.

An Induced Polarization (IP) survey at Karamanica was completed in the fall of 2018, covering 32 line kms, with a line spacing of 200m. The survey identified two northwest-trending chargeability anomalies containing values of >30 mV/V. The first anomaly is located in the southwest-side of the survey, extending 2km northwest-southeast by up to 600m, and is coincident with an extension of a northwest-trending fault associated with mineralization in the polymetallic mine to the southeast. The second anomaly is located on the northeast-side of the survey, extending 750m northwest-southeast by 250m, and is open to the southeast. This shallow anomaly is coincident with mineralization observed within calcareous (limestone) units. Both of these anomalies require follow-up and will be drill tested in 2019.

A map of the IP survey at Karamanica can be found at http://medgoldresources.com/tlamino/.

About Medgold Resources Corp.

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

Qualified Person

Mr. David Clark, M.Sc., P.Geo., is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.  Mr. Clark prepared the technical information contained in this news release and has approved its disclosure

Quality Assurance and Quality Control

Drilling is carried out using PQ and HQ size tooling. Drill core is cut in half by Medgold using a rock saw with one half of the core then taken as a sample for analysis. Sample intervals are generally between 50 to 150 cm producing samples of between 2 to 9 kg. Approximately 4% of samples are duplicated by submitting primary and duplicate quarter-core samples. Half-core samples are delivered to the ALS Geochemistry laboratory facilities in Bor, Serbia. The samples are crushed and pulverised using method code PREP-31, are fire assayed for Au using method code Au-ICP21, and are analysed for multi-elements using method code ME-MS61 following a four-acid digestion. Overlimits are analysed using an appropriate method. Medgold routinely inserts multi-element geochemical standards, blanks, and field duplicate samples into the drill core sample stream to monitor laboratory performance.

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

“Dan James”

Daniel P. James, President & Director

For Further Information, Contact:

President

Dan James (London), dj@medgoldresources.com, +44 7972 579188

Investor Relations

Elina Chow (Toronto), ec@catchadvisorygroup.com, +1 416.845.8495

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 exploration plans 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, the exploration plans for the Tlamino 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: that the proposed exploration of the Tlamimo Project will proceed as intended; 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.