The Tlamino Project area was explored in the latter half of the 20th century by the Yugoslav national geological survey and by Yugoslav state exploration companies for their lead and zinc potential. Liska returned higher base metal values and was explored more comprehensively, but it appears neither showing was systematically evaluated for gold and silver. The lead-zinc mineralization at Liska was drilled by Yugoslav state companies in the 1960s and 1970s. The mineralization at Liska was found to consist of an elongate lensoid body approximately 30 m in thickness, located at the base of the conglomerate and trending to the NNE towards the Barje showing.
In the mid 2000s, Avala Resources (now Dundee Precious Metals; DPM) explored the area and completed multiple geochemical surveys and rock chip sampling and trenching near Barje.
A total of 4 diamond drill holes, for 831.2 m, were completed by Avala Resources in 2007 in the vicinity of the Barje showing. Medgold recently acquired a dataset from DPM, containing regional exploration data covering our recently granted licences as well as the drilling data from Barje.
One drill hole targeted the Barje outcrop, but Medgold considers that it was collared in a down-faulted block below Barje and consequently missed the Barje mineralization. A further three drill holes were completed by DPM, located to the east of the Barje outcrop. These intersected sequences of tectonic breccias considered by Medgold to represent the Crnook detachment fault, as at Barje, but considered to be a parallel detachment zone below the hangingwall zone typified by the Barje outcrop and which hosts the high-grade mineralization.
THE FORTUNA OPTION AGREEMENT
MEDGOLD RESOURCES CORP. TSX.V: MED
In June 2016, Medgold completed a $1.5 million private placement to Fortuna Silver Mines (“Fortuna”) by way of the issuance of 10.0 million units at $0.15 per unit. Each unit consists of one common share and one warrant $0.15 for one year from closing. Using the placement funds, Fortuna and Medgold commenced with a Strategic Alliance, to generate new gold and silver targets in Serbia. The generative exploration work focused on the Oligo-Miocene igneous belt of Central and Southern Serbia. In addition, Medgold granted Fortuna the option to enter into an option agreement to earn up to a 70% interest of a Selected Project, by spending US $8 million in qualifying expenditures over 6 years.
In late 2016, Medgold received its first exploration licences in Serbia, resulting from target generation work, and which included the Donje Tlamino licence. Immediately following the licence issuance, Medgold undertook a program of channel-chip sampling at the Barje prospect, located within the Donje Tlamino licence, and yielded a best result of 40 m of 8.32 g/t Au and 193 g/t Ag.
In March 2017, following the completion of 12 months of generative work, Fortuna elected to option the Tlamino Project (comprised of the Donje Tlamino and Surlica-Dukat licences), and thus has the right to incur expenditures of US$3.0 million to acquire 51% of the project within 3 years, and have the second option to earn a further 19% over 3 years, by spending US $5 million and completing a Preliminary Economic Assessment (PEA).
In addition, Fortuna exercised their warrants in February 2017, for total proceeds of $1.5 million, and secured 24% of the capital of Medgold. The proceeds were used within the Strategic Alliance, for a further 12 months, aiming to generate new projects in Central and Southern Serbia. Fortuna was granted the right to option a second project, on the same terms of the first, whereby they can earn up to a 70% interest of a second Selected Project, by spending US $8 million in qualifying expenditures over 6 years.
MEDGOLD’S CHANNEL SAMPLING
Medgold has completed three phases of saw-cut surface channel samples over the outcrop at Barje.
Results from the first two phases of sampling (CH_BAR_01-11) creates a contiguous channel interval of 84 metres at 5.6 g/t Au and 105.2 g/t Ag.
The third phase of channel sampling (CH_BAR_12-14) was from an adit at Barje was excavated by a Yugoslav state company in the 1950s as part of their regional exploration for Pb-Zn mineralization. The composited grade of the adit was 2.20 g/t Au and 88 g/t Ag, with 36 out of 52 samples assaying greater than 1 g/t Au, a minimum grade of 0.49 g/t Au, and a maximum grade of 25.3 g/t Au.
From these three phases of channel sampling a total of 298 samples were collected, which includes 41 Quality Assurance samples (blanks, standards and field duplicate).
See press release January 9, 2017 for further details.
See press release July 18, 2017 for further details.
See press release November 15, 2017 for further details.
MEDGOLD’S GROUND GEOPHYSICAL SURVEY
INDUCED POLARIZATION / RESISTIVITY
Following a detailed structural interpretation of the geology between the Barje and Liska prospects, the Company has completed an Induced Polarization / Resistivity (IP-Res) geophysical study which has identified a high chargeability anomaly which extends to the west of the Barje outcrop under cover for over 1 kilometre.
The objective of the 39 line-kilometre IP-Resistivity program was to analyse an area covering 4 square kilometres, focusing on the Barje-Liska prospects, for near-surface sulphide-rich mineralization. The program commenced at the Liska prospect, which has been historically drill-tested for Pb-Zn mineralization by the former Yugoslav state companies in the 1950s and 1970s, and results from both the drilling and IP-Resistivity survey support the geological model of relatively flat-lying mineralization at the contact of the basement rocks and the overlying schists.
At Barje, located 1.5 kilometres to the northeast of Liska, a large high-chargeability anomaly was identified just west of the Barje outcrop. The anomaly measures approximately 1 kilometre east to west and approximately 400 metres north to south. The southern limit of the anomaly appears to track a large-scale regional detachment fault, which has been assumed to be a principal control on mineralization at both Barje and Liska, and its surface expression trends east-west. The anomaly continues northwards, which is considered to be the northerly extension of the same detachment fault, but beneath cover and steepening topography. Interestingly, the high-grade saw-cut channel sampling completed at the main Barje outcrop is located on the eastern flank of the chargeability anomaly. At this stage, it is unknown whether the chargeability anomaly is directly related to gold mineralization; however, it is clear that the surface rocks exposed in the area of the chargeability anomaly consist of schists which display similar alteration and mineralization as seen in the schist stratigraphically overlying the mineralization at Barje. The Barje outcrop itself is observed in the chargeability data as a weaker NNE trending corridor; this also constitutes an exploration target to be followed up.