Medgold Resources Corp.
TSX VENTURE : MED

Medgold Resources Corp.

July 27, 2015 13:00 ET

Medgold-Centerra Drilling Program Intersects 7.7m @ 4.4 g/t Au from Surface at Lagares Project, Portugal

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 27, 2015) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to provide an update on the on-going diamond drilling program at the Lagares gold project in northern Portugal. To date, a total of 1,788 metres have been drilled in 19 holes of a planned 3,000 metre program.

The Company has granted Centerra Gold Inc. ("Centerra") the option to earn a 51% interest in the project by spending US$3 million over 3 years along with the right to earn an additional 19% by spending a further US$3 million over 2 years (for details see Medgold news release dated December 9, 2014).

Assay results have been received for the first 8 holes from the initial phase of drilling at Lagares. The drill-holes targeted high-grade, near-surface gold mineralization at the Castromil zone identified from surface channel-chip sampling and shallow historical drilling. Highlights of assay results for drill-holes MLG-001 through MLG-004 were reported by the company in a news release issued on July 2, 2015. Highlighted here are selected results from recently obtained assays:

  • 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 location map, cross-sections and core photographs can be found on Medgold's website, at the following location: http://www.medgoldresources.com/s/lagares.asp, with full details about the on-going drilling.

Dan James, President of Medgold, said: "We are very pleased with the latest Lagares drilling results which build on the early assays announced July 2nd, which included 17.5m at 4.5 g/t Au in MLG-004. The drilling is demonstrating the continuity of gold mineralization both along strike of the Castromil zone, and out to the northeast under alluvial cover. So far we've drill-tested a zone of continuous gold mineralization with over 250m of strike. Nearly all of the mineralization we've drilled is either at the surface, or very close to the surface, with the highest gold grades recorded by samples of oxidized granitic rock."

The drill results are showing a good relationship with the channel sampling completed at the end of last year. For example, the surface sampling results immediately adjacent to holes MLG-004 and MLG-008 yielded a weighted intersection of 60.3m at 3.1 g/t Au. Results from MLG-007 and MLG-008 demonstrate that the gold mineralization is apparently thickening to the northeast where it remains open, but is concealed by farmed fields. This will be the target for future deeper drilling, testing the continuation of mineralization down-dip to the northeast.

Drilling has also started at the Serra da Quinta prospect, located to the southeast of Castromil. Six holes have been completed to date and target a similar style of mineralization to that found at Castromil. A further 5 holes are planned at Serra da Quinta.

Lagares Property

The Lagares property is one of four mineral concessions Medgold holds in the Valongo Belt, all of which are currently subject to the option agreement with Centerra (the "Agreement").

The first phase of significant work under the Agreement is a program of 3,000 metres of diamond drilling, of which 1,788 metres have been drilled in 19 holes. To date, 718 assays have been received from the first 8 drill-holes, some of which are discussed above. The current program includes some verification drilling to confirm results obtained by previous drilling campaigns, but the majority of this year's drill-holes are designed as exploration holes inclined between 60 and 70 degrees to the southwest, beneath the limits of the historical drilling.

Collar locations and orientations of the drill-holes described in this news release are provided in the table below.

Hole ID Line ID (m) X UTM29 WGS 84 Y UTM29 WGS 84 Z (m) Azimuth Dip Total Depth (m) Recovery (%)
MLG-001 150 550993 4556258 184 222 -70 80.2 85
MLG-002 150 551034 4556295 174 222 -70 83.4 86
MLG-003 450 551240 4556064 167 222 -60 87.8 92
MLG-004 400 551256 4556145 143 222 -70 129.7 89
MLG-005 300 551187 4556229 150 222 -60 101.3 86
MLG-006 300 551145 4556184 150 222 -60 77.2 90
MLG-007 450 551289 4556120 138 222 -60 117.9 91
MLG-008 450 551291 4556125 138 42 -60 143.0 94

A summary of the drilling results, announced in June 2015 (see http://www.medgoldresources.com/s/news-releases.asp for more information), is listed below:

  • MLG-001: 10.90m @ 2.32 g/t Au from surface, section 150m
  • MLG-003: 19.95m @ 3.17 g/t Au from surface, section 450m
  • MLG-004: 17.49m @ 4.45g/t Au from 10.00m, section 400m

Previous Work

Previous work done by Medgold on the Lagares property includes a program of surface channel-chip sampling, comprising 800 samples from 732 metres of channel cuts made along 9 survey lines. Eight of the 9 channel-sampled lines yielded significant gold mineralization. Highlights of this sampling program were previously reported in a press release dated December 02, 2014, with full details on our website, including the channel results highlighted here:

  • 69.00m @ 4.15 g/t Au (section 150m)
  • 40.70m @ 5.73 g/t Au, including 5.20m @ 15.50 g/t Au (section 300m)
  • 15.50m @ 9.44 g/t Au, including 4.00m @ 18.00 g/t Au (section 300m)
  • 4.60m @ 36.17 g/t Au (from underground sampling at Serra da Quinta, reported in June 03, 2014)

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 reported on in this release, a total of 676 half-core samples, ranging from 0.5 to 1.5 metres in length, were submitted for analysis along with 12 sterile 'blank' samples, 20 certified reference standards and 10 field duplicate samples.

Qualified Person

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.

About Medgold

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.

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

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.

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 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. 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.

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, continuation of the drill program on 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 drill program on the Lagares Project will continue 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.

Contact Information

  • Medgold Resources Corp.
    Dan James (UK and Portugal)
    President
    +44 7972 579188 / +351 912 732334
    dj@medgoldresources.com

    Medgold Resources Corp.
    Ralph Rushton (Vancouver)
    Investor Relations
    +1 604-630-5544
    ralphr@goldgroup.com