MED:CC - Medgold acquires full ownership of the Tlamino Project Serbia
(TheNewswire)
Vancouver, Canada – TheNewswire- July 25,2022 – Medgold ResourcesCorp. (TSXV:MED ) | (OTC:MGLDF)|( FRA:1XD) is pleased to announce that it has entered into two definitive agreementswith Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) (“ Fortuna ”), toacquire Fortuna’s 51% interest(the “ Interest ”) in theTlamino Project, located in Serbia (the “ Project ”).
The first such agreement terminates the OptionAgreement (the “ Option ”) entered into between the parties onDecember 15, 2020 that provided for Medgold to acquire the Interestfor a cash consideration of US$ 3.468 million (news release, January7, 2021) and the second, which converts the Interest to a 1% NetSmelter Return royalty (the “ Royalty ”) in favour of Fortuna. Allobligations under the terms of the Option have been extinguished. TheRoyalty may be purchased at any time for a cash consideration of $3million dollars. The agreements are subject to TSX Venture Exchangeacceptance.
Medgold is actively appraising an array of strategicoptions for the Project based on 100% ownership, and expects to beable to report on these in due course. TheCompany takes the opportunity to thank Fortunafor their support of Tlamino and Medgold, and for their collaborationin establishing these new agreements.
An updated Inferred Mineral Resourcecontaining approximately 680,000 oz AuEq in 7.1Mt grading 3.0 g/t AuEqat cut-off grade of 0.7 g/t AuEq was announced in regard to the BarjeProspect as a component of a Preliminary Economic Assessment(“ PEA ”) on January 26,2021. The highlights of the PEA may be summarized asfollows:
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Based on simple open-pit mining methodsand the production of a flotation concentrate via conventionalprocessing techniques, the pre-tax NPV of the Project, at a discountrate of 8%, is US$101M, its IRR 49%, and its operating margin 61%.
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The up-front capital cost of the Projectis US$74M (inclusive of a 15% contingency margin and further study andengineering costs) with payback achieved in two years.
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Life of mine C1 cash costs are US$464/ozAu, and life of mine all-in sustaining costs are US$522/ounce Au.
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A gold price of US$1500/oz and a silverprice of US$16.50/oz was used in the study. At an approximate spotgold price of US$1,800/oz, the post-tax NPV of the Project, at adiscount rate of 8%, is US$139M, and its IRR 69%.
The Tlamino Projectcovers an area of approximately 200km 2 in southernSerbia and is held by Medgold under two exploration licenses. Outcropping mineralization was first observed at the Barje Prospectby Yugoslav State agencies in the 1950s and 1960s when a short aditwas opened but no drilling was carried out. The prospect was thenheld by private and public companies between approximately 2005 and2012 during which time limited drilling failed to intersectsignificant mineralization.
Medgold conductedmapping, surface sampling and geophysics (IP) followed by diamonddrilling at the Barje Prospect in 2018 and 2019, all fully funded byFortuna, which successfully intersected gold mineralization in ashallowly inclined body of hydrothermal breccia below altered schist(as announced on March 21, 2019). The Inferred Mineral Resource atthe Barje Prospect extends from surface to a depth of approximately 110m as a shallowly inclined zone overan area of approximately 600 m x 350 m. The true thickness ofmineralization generally ranges between 10 m to 40 m.
QualifiedPerson
Aleksandar Vuckovic, MAIG, ExplorationManager for Medgold and Qualified Person as defined by NI 43-101, hasreviewed and approved the scientific and technical content of thisnews release. Mr. Vuckovic is not independent of theCompany.
Medgold is a TSX-V listed, goldexploration companytargeting early-stage properties in the Balkan region. Run by anexperienced management team with a successful track-record of buildingvalue in resource companies , Medgold isfocused on growth through exploration and resource definition in theprospective and under-explored Balkan region .
Additionalinformation on Medgold can be found on the Company’s website at www.medgoldresources.com and by reviewing theCompany’s page on SEDAR at www.sedar.com .
JeremyCrozier, President and CEO
For Further Information,Contact:
Jeremy Crozier(Vancouver ) , +1 604 801 5432,info@medgoldresources.com
Neither the TSXVenture Exchange nor the Investment Industry Regulatory Organizationof Canada accepts responsibility for the adequacy or accuracy of thisrelease.
Certain statementscontained in this news release constitute forward-looking statementswithin the meaning of Canadian securities legislation. Allstatements included herein, other than statements of historical fact,are forward-looking statements and include, without limitation, theCompany’s plans for the Tlamino Project, and the mineral resourceestimate and PEA for the Tlamino Project. Often, but not always,these forward looking statements can be identified by the use of wordssuch 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 similarexpressions, including negative variations.
Forward-lookingstatements involve known and unknown risks, uncertainties and otherfactors which may cause the actual results, performance orachievements of the Company to be materially different from anyresults, performance or achievements expressed or implied byforward-looking statements. Such uncertainties and factors include,among others, whether the TSX Venture Exchange will accept theagreements with Fortuna; the uncertainties inherent in the estimationof mineral resources and PEAs; changes in general economic conditionsand financial markets; the Company or any joint venture partner nothaving the financial ability to meet its exploration and developmentgoals; risks associated with the results of exploration anddevelopment activities, estimation of mineral resources and thegeology, grade and continuity of mineral deposits; unanticipated costsand expenses; and such other risks detailed from time to time in theCompany’s quarterly and annual filings with securities regulatorsand available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factorsthat could cause actual actions, events or results to differmaterially from those described in forward-lookingstatements, there may be other factors that cause actions, events orresults to differ from those anticipated, estimated orintended.
Forward-lookingstatements contained herein are based on the assumptions, beliefs,expectations and opinions of management, including but not limited to:that the agreements with Fortuna will be accepted by the TSX VentureExchange; the accuracy of the mineral resource estimate and PEA forthe Tlamino Project; that the Company’s stated goals and plannedexploration and development activities will be achieved; that therewill be no material adverse change affecting the Company or itsproperties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and theCompany disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate,as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.
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