VANCOUVER, CANADA--(Marketwired - July 6, 2016) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to announce that it has received formal approval for the proposed diamond drilling program at the Limarinho Zone at the Boticas Gold Project.
Medgold is planning a 2,500m diamond drilling program, expected to commence in mid-July, targeting a gold-bearing sheeted orogenic vein system. Energold Drilling Corp. have been selected as drill contractors to complete the initial drilling program using man-portable drill rigs.
Dan James, President of Medgold, said: "We are very pleased to have received formal approval of the Centerra-funded drill program at the Limarinho Zone. With the permit in hand, we can now start a detailed evaluation of the main prospect, Limarinho. Our aims are to confirm the historical drill intercepts and to define a mineral resource over the area. In February last year, the Portuguese government classified Boticas as a Project of Strategic National Interest, which highlights the importance of the project to Portugal."
The exploration work at the Boticas Gold Project is fully-funded by our joint venture partner, Centerra Gold Inc. The JV with Centerra started in December 2015, and since that time, Medgold has undertaken grid-soil sampling over Limarinho and the wider region, and has completed a number of phases of channel-chip sampling.
The Boticas-Chaves Gold Project
The Boticas-Chaves Gold Project is comprised of two exploration licences covering a total area of approximately 600 sq km located in the north of Portugal close to the Spanish border. The principal prospect at Boticas is the Limarinho zone.
In the 1980s and 2000s COGEMA and then Kernow Resources, respectively, completed over 3,000m of diamond drilling at Limarinho. The drilling cut broad zones of low-grade gold mineralization (approx. 1 g/t Au), and also multiple mineralized corridors of higher grade (2-3 g/t Au) that are continuous over significant strike lengths.
Medgold recently completed a re-evaluation of the historical drilling data, applying strict compositing criteria of a 0.2 g/t Au cut-off and a maximum of 3m internal dilution. The re-calculated drill intersections are summarized below 1:
- PFR17: 15.60m @ 3.25 g/t Au from 70.95m
- KL04: 38.40m @ 1.96 g/t Au from 19.30m
- KL04: 9.00m @ 3.59 g/t Au from 143.30m
- KL03: 15.80m @ 2.14 g/t Au from 9.85m
- PFR3: 29.60m @ 1.88 g/t Au from 28.20m
- PFR10: 56.60m @ 1.33 g/t Au from 72.80m
- PFR11: 25.50m @ 1.62 g/t Au from 51.10m
1These are historical data provided for information purposes, and a Qualified Person has not completed the work necessary to verify these results.
The mineralized corridors trend east-northeast, while the veins within them trend northeast. The mineralization is structurally controlled and developed within a large deformational zone which coincides with the surface soil geochemistry, outlining a northeast-elongate area of approximately 4km by 2km. This anomaly covers both Limarinho and Limarinho South, both of which are located in the centre of the deformation zone
About Centerra Gold and the Joint Venture
Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties primarily in Asia, North America and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.
Centerra has the exclusive right to earn a 51% interest in the Valongo Belt properties (namely: Lagares, Castelo de Paiva and Valongo licences) and the Boticas-Chaves Project by incurring expenditures on the properties totaling US$3.0 million over three years. Once Centerra has acquired the initial 51% interest in the properties, it may acquire a further 19% (for a total 70% interest) by incurring an additional US$3.0 million on exploration within two years.
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.
Medgold is a European-focused, TSX-V listed exploration and development company targeting gold properties in northwest Iberia and the under-explored gold provinces of southern Europe. Run by a highly experienced management team with a successful track record of building value in resource companies, Medgold is aiming to become a leading European gold company.
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.
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 proposed drill program on the Boticas Gold 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 proposed drill program on the Boticas Gold Project will proceed as planned; 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 drill program on the Boticas Gold Project will proceed 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.