VANCOUVER, Jan. 30, 2020 /CNW/ - Medgold Resources Corp.
(TSX-V: MED|FRA: 1XD) is pleased to announce a maiden Mineral
Resource Estimate for the Barje Prospect within the Tlamino Project
(the "Project" or "Tlamino") in southern Serbia. 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 is reported,
and is presented in Table 1. Example cross-section and a block
model view of the resource are given in Figure 1. This estimate was
prepared in accordance with National Instrument 43-101 (NI 43-101)
and CIM Definition Standards by Addison Mining Services Ltd. of the
United Kingdom. A Technical Report
for the Project will be filed on www.sedar.com within 45
days.
Medgold is also pleased to announce the initial results of
metallurgical test work. Bulk rougher flotation tests were
performed on two composite samples which, formed of 50.39 kg of
core from the Company's 2018 drilling program at the Barje
prospect, yielded head grades of 2.04 g/t Au and 10.99 g/t Au and
gold recoveries to concentrate of 88.2% and 90.5%, respectively.
The same composite samples yielded silver head grades of 15.1 g/t
Ag and 107.2 g/t Ag, and silver recoveries to concentrate of 88.2%
and 96.4% respectively. A summary of these results is presented in
Table 2.
The 2019 exploration program was fully funded by Fortuna Silver
Mines Inc. (NYSE: FSM) (TSX: FVI) ("Fortuna") and was directed by a
joint Fortuna-Medgold technical committee pursuant to the terms of
the Tlamino Option Agreement announced on March 7, 2017. Pursuant to the terms of said
Agreement, as later amended, Fortuna has earned a 51% interest in
the Project having spent US$3 million
in exploration expenditures.
Table 1 –Mineral Resource Estimate for the Barje
Prospect.
|
Resource
Category
|
Tonnage
(tonnes)
|
Au
|
Ag
|
AuEq
|
|
Contained
oz
|
g/t
|
Contained
oz
|
g/t
|
Contained
oz
|
g/t
|
|
Inferred
|
7,100,000
|
570,000
|
2.5
|
8,600,000
|
38
|
680,000
|
3.0
|
|
Notes to the Mineral
Resource Estimate:
|
|
|
|
1.
|
The independent
Qualified Person for the Mineral Resource Estimate, as defined by
NI 43-101, is Mr. Richard Siddle, MSc, MAIG, of Addison Mining
Services Ltd since November 2014. The effective date of the Mineral
Resource Estimate is January 13, 2020.
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2.
|
These Mineral
Resources are not Mineral Reserves as they do not have demonstrated
economic viability. The quantity and grade of reported Inferred
Resources in this Mineral Resource Estimate are uncertain in nature
and there has been insufficient exploration to define these
Inferred Resources as Indicated or Measured, however it is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
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3.
|
Mineral Resources in
Table 1 are presented as undiluted and in-situ for an open-pit
scenario and are considered to have reasonable prospects for
economic extraction. Pit optimization was carried out assuming pit
slopes of 45° with other parameters as per the cut-off grade
(see below).
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|
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4.
|
A cut-off grade of
0.7 g/t AuEg was used for the Mineral Resource Estimate. This
cut-off grade was calculated on the basis of the following
assumptions: a gold price of 1350 USD/oz, a silver price of 16
USD/oz, mining costs of 3.30 USD/t, mining recovery and dilution of
5% and processing costs including tailings and concentrate handling
of $21/t. G&A costs were included within mining and processing
costs. Per metallurgical test work completed to date, recovery to
concentrate after flotation of 89.4% for gold and 92.3% for silver
were assumed; metals were assumed to be 80% payable. Recovery
of gold and silver from partially oxidized material has not been
tested. For the selection of cut-off grade and for pit optimization
parameters, the partially oxidized material was assumed to have the
same concentrate recoveries as indicated from the combined fresh
rock composites.
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5.
|
Geological and
block models for the Mineral Resource Estimate used data from 33
surface drillholes performed by Medgold in 2018 and 2019; data from
four drillholes completed by Avala Resources Ltd., a prior
operator, were used to constrain the model though they did not
intercept significant mineralization. The drill database was
validated prior to resource estimation and QA/QC checks were made
using industry-standard control charts for blanks, core duplicates
and commercial certified reference material inserted into assay
batches by Medgold and by comparison of umpire assays performed at
a second laboratory. No QA/QC was possible on the data relating to
the drilling by Avala.
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6.
|
The geological model
as applied to the Mineral Resource Estimate comprises two
mineralized domains, a shallowly inclined high-grade hydrothermal
breccia unit and a lower-grade schist unit immediately overlying
the hydrothermal breccia. Individual wireframes were created for
each domain. Weathering domains of fresh and partially oxidized
material were defined within the two mineralised
domains.
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7.
|
The block model was
prepared using Micromine version 2020, Services Pack 1, A 10 m x 10
m x 4 m block model was created with sub-blocks of minimum 2 m x 2
m x 2 m on domain boundaries. Grade estimation from drillhole data
was carried out for Au, Ag, As, Cu, Pb, Zn, Fe, S using Ordinary
Kriging and was validated by comparison of input and output
statistics, kriging neighbourhood analysis and by inspection of the
assay data and block model in cross section. A gold equivalent
(AuEq) grade was calculated for each block using the formula AuEq =
((Ag g/t) x 0.012)) + (Au g/t).
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8.
|
Bulk density
values were calculated for each block of the model based on a broad
linear relationship observed between 152 measured bulk density
values within the mineralized domains and the assayed values of As,
Cu, Fe, S, Pb and Zn. Blocks within the partially oxidized material
were assigned a single bulk density value of 2.54
g/cm3.
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9.
|
Estimates in
Table 1 have been rounded to two significant figures.
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10.
|
CIM Definition
Standards for Mineral Resources have been followed.
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11.
|
The independent
Qualified Person has been made aware that Medgold's previously
approved three-year work program for The Donje Tlamino exploration
licence covering the Barje Prospect ended 31st October 2019.
Medgold met all minimum work and expenditure requirements related
to this work program and has submitted an additional work program
to cover a further 3-year exploration period. Medgold has no reason
to expect that the additional work program should not be renewed.
The independent Qualified Person is not aware of any
additional known environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues that could
materially affect the Mineral Resource Estimate.
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|
Metallurgical Test Work
Metallurgical test work for the Mineral Resource Estimate
included bulk rougher flotation tests on two composite samples
blended from approximately 50 kg of drill core representing medium-
and high-grade gold mineralization within unweathered
hydrothermal breccias at the Barje Prospect. The composites
reported head grades of 2.04 g/t and 10.99g/t Au and gold
recoveries to concentrate of 88.2% and 90.5%, respectively. The
same composites reported silver head grades of 15.1 g/t Ag and
107.2 g/t Ag, and silver recoveries to concentrate of 88.2% and
96.4% respectively. A summary of these results is presented in
Table 2.
The metallurgical test work used conventional flotation
methodology at a grind size of -74 microns, a pH of 8.2, a
conditioning time of 3 minutes and a flotation time of 9 minutes.
Metallurgical analyses were performed by Resource Development Inc.
of Wheat Ridge, Colorado, and were
overseen by Woods Process Services LLC of Denver, Colorado.
Table 2 - Summary of recoveries from baseline bulk
sulphide rougher flotation tests
|
Grade
|
Distribution
(percentage by
weight)
|
|
Flot 1 ("HBX"
Breccia)
|
|
Fraction
|
Wt%
|
Au g/t
|
Ag g/t
|
Cu %
|
Pb %
|
Zn %
|
As %
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
As
|
|
Feed
|
100
|
2.04
|
15.1
|
0.01
|
0.07
|
0.17
|
0.75
|
100
|
100
|
100
|
100
|
100
|
100
|
|
Conc.
|
10.7
|
16.83
|
124
|
0.08
|
0.57
|
1.2
|
5.86
|
88.2
|
88.2
|
65.9
|
93.2
|
74.2
|
83.4
|
|
Tails
|
89.3
|
0.27
|
2.05
|
0
|
0.01
|
0.05
|
0.14
|
11.8
|
11.8
|
34.1
|
6.8
|
25.8
|
16.6
|
|
Flot 2 ("XXX"
Breccia)
|
|
Fraction
|
Wt%
|
Au g/t
|
Ag g/t
|
Cu %
|
Pb %
|
Zn %
|
As %
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
As
|
|
Feed
|
100
|
10.99
|
107.2
|
0.04
|
0.77
|
2.13
|
3.74
|
100
|
100
|
100
|
100
|
100
|
100
|
|
Conc.
|
27.3
|
36.48
|
379
|
0.15
|
2.69
|
1.2
|
12.1
|
90.5
|
96.4
|
91.6
|
95.3
|
91.4
|
88.3
|
|
Tails
|
72.7
|
1.42
|
5.13
|
0
|
0.05
|
2.48
|
0.6
|
9.5
|
3.6
|
8.4
|
4.7
|
8.6
|
11.7
|
|
Combined
|
|
Fraction
|
Wt%
|
Au g/t
|
Ag g/t
|
Cu %
|
Pb %
|
Zn %
|
As %
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
As
|
|
Feed
|
100
|
6.52
|
61.15
|
0.03
|
0.42
|
1.15
|
2.245
|
100
|
100
|
100
|
100
|
100
|
100
|
|
Conc.
|
19
|
26.66
|
251.5
|
0.12
|
1.63
|
1.2
|
8.98
|
89.35
|
92.3
|
78.75
|
94.25
|
82.8
|
85.85
|
|
Tails
|
81
|
0.85
|
3.59
|
0
|
0.03
|
1.265
|
0.37
|
10.65
|
7.7
|
21.25
|
5.75
|
17.2
|
14.15
|
The Tlamino Project
The Tlamino Project covers an area of approximately
200km2 in southern Serbia and is held by Medgold under
two exploration licenses. 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. The prospect was then held by private and
public companies between approximately 2005 and 2012 during which
time limited drilling failed to intersect significant
mineralization.
Medgold conducted mapping, surface sampling and geophysics (IP)
followed by diamond drilling at the Barje Prospect in 2018 and 2019
which successfully intersected gold mineralization in a shallowly
inclined body of hydrothermal breccia below altered schist (as
announced on 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 600 m x 350 m. The true thickness of mineralization
generally ranges between 10 m to
40 m.
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. Mr. Sant is
not independent of the Company.
The independent Qualified Person for the MRE, as defined by NI
43-101, is Mr. Richard Siddle, MSc,
MAIG, of Addison Mining Services Ltd.
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 mineral
resource estimate 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 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: 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.
