MGLDF - Medgold Announces Positive Metallurgical Results for Barje Prospect Receives New Exploration Licenses for the Tlamino Project Serbia
(TheNewswire)
Vancouver, Canada - TheNewswire - October 28, 2020 - Medgold Resources Corp.(TSXV:MED ) | ( FRA:1XD) ispleased to announce the completion of metallurgical test work from theBarje Prospect, within the Tlamino Project in southern Serbia.Highlights of this work are as follows:
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- Conventional flotation has produced aconcentrate grading 48.9 g/t Au and 824 g/t Ag with recoveries toconcentrate of 83.4 % for gold and 82.4% for silver from a compositesample representing the main hydrothermal breccias; this material typehosts approximately 72% of the total gold inventory reported in thecurrent Mineral Resource Estimate for the Barje Prospect (the"MRE", Medgold news release, January 30,2020 ).
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- A second composite sample representingthe mineralized schist immediately above the hydrothermal brecciasproduced a flotation concentrate grading 24.4 g/t Au and 238 g/t Agwith recoveries to concentrate of 71.2% for gold and 79.2% for silver;this second material type hosts approximately 16% of the total goldinventory reported in the current MRE.
These highly positive results will beincorporated into the Preliminary Economic Assessment (the"PEA") for the Barje Prospect currently in progress (Medgoldnews release, August 5,2020 ). It isanticipated that the results of the PEA will be reported in thecurrent quarter.
The Company also announces that witheffect of October 12, 2020 it is in receipt of new ExplorationLicenses from the Serbian Ministry of Mining and Energy in respect tothe Donje Tlamino and Surlica Dukat properties that together comprisethe Tlamino Project. These Licenses are each valid for terms of threeyears and are renewable for terms of three and then two years.
Metallurgical test work was performed on t hree composite samples derived from drill coreassay rejects from the main hydrothermal breccias ("HG Fresh"), from themineralized schist immediately above the hydrothermal breccias("LG Fresh") and from oxidized material developed on boththe HG Fresh and LG Fresh materials ("OX"). At approximately 3.9 g/tAu, 1.0 g/t Au and 1.3 g/t Au, the head grades of these threecomposites are considered representative of the material types formingthe basis of the MRE.
Eachcomposite sample was characterized mineralogically using QEMSCAN andTESCAN techniques as a basis for informing metallurgical processingrequirements. Subsequent flotation testing, via conventional means, ofboth HG and LG Fresh samples returned positive results, with HG Freshproducing a concentrate grading 48.9 g/t Au and 824.0 g/t Ag at a goldrecovery of 83.4% and a silver recovery of 82.4%. HG Fresh representsapproximately 72% of the total gold inventory within the MRE at Barje. Flotation testing of LG Freshproduced a concentrate grading 24.4 g/t Au and 228.0 g/t Ag at a goldrecovery of 71.2% and a silver recovery of 79.2%. LG Fresh representsa further 16.5% of the total gold inventory within the MRE at Barje. While OX was not subjected toflotation test work, leaching tests have demonstrated that goldextraction of up to 80% can be achieved from this material. OXrepresents the balance, or 11.5%, of the total gold inventory within the MRE at Barje. Gravity test workreturned gold recoveries of 41.4% for LG Fresh, 38% for HG Fresh, and12% for OX.
Allmetallurgical test work was performed by ALS MetallurgicalLaboratories in Kamloops, British Columbia, and overseen by Addison Mining ServicesLtd. and Bara Consulting Ltd., both of the United Kingdom. The results of the test work will beincorporated into the ongoing PEA study, completion of which Medgoldanticipates by the end of the current quarter.
A Mineral Resource Estimate ofapproximately 570,000 oz Au and 8.6 Moz Ag (680,000 oz AuEq) in 7.1 Mtgrading 2.5 g/t Au and 38 g/t Ag (3.0 g/t AuEq) in the inferredresource category was reported by Medgold for the Barje Prospect(Medgold news release January 30,2020 1,2 ). Mineralization is at or near surface and with adjacentroad and grid power access.
The Tlamino Projectcovers an area of approximately 200 km 2 in southernSerbia and is held by Medgold under two exploration licenses.Outcropping mineralization was first observed at the Barje Prospect byYugoslav State agencies in the 1950's and 1960's when a short adit wasopened but no drilling was carried out. The prospect was then held byprivate and public companies between approximately 2005 and 2012during which time limited drilling failed to intersect significantmineralization.
Medgold conductedmapping, surface sampling and geophysics (IP) at the Barje Prospectfollowed by diamond drilling in 2018 and 2019 which successfullyintersected gold mineralization in a shallowly inclined body ofhydrothermal breccia below altered schist (Medgold news release March 21,2019 ). The Inferred Mineral Resourceat Barje extends from surface to a depth of approximately 110 m as ashallowly inclined zone over an area of approximately 600 m x 350 m.The true thickness of mineralization generally ranges between 10 m to40 m.
Notes:
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1. Gold equivalent (AuEq) grade inthe MRE was calculated using the formula AuEq = ((Ag g/t) x 0.012)) +(Au g/t).
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2. A cut-off grade of 0.7 g/t AuEgwas used for the MRE. This cut-off grade was calculated on the basisof the following assumptions: a gold price of 1350 USD/oz, a silverprice of 16 USD/oz, mining costs of 3.30 USD/t, mining recovery anddilution of 5% and processing costs including tailings and concentratehandling of $21/t. G&A costs were included within mining andprocessing costs. Per metallurgical test work completed at the time ofthe MRE, recovery to concentrate after flotation of 89.4% for gold and92.3% for silver were assumed; metals were assumed to be 80%payable.
Qualified Person andData Verification
Mr. Thomas Sant, FGS, CGeol, EurGeol, Consultant Exploration Manager for Medgold and Qualified Person asdefined by NI 43-101 has reviewed and approved the scientific andtechnical content of this news release.
The independent Qualified Person for the metallurgicaltest work, as defined by NI 43-101, is Mr. Ian Jackson, CEng, ACSM,FIMMM, MSAIMM, Associate Process Engineer, Bara Consulting Ltd.
Medgold is a TSX-V listed, goldexploration company targeting early-stage properties in the Balkanregion. Run by an experienced management team with a successfultrack-record of building value in resourcecompanies , Medgold is seeking to buildvalue through fast-paced exploration and resource definition in theprospective and under-explored 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. All statementsincluded herein, other than statements of historical fact, areforward-looking statements and include, without limitation, statementsabout the Inferred Mineral Resource estimate for the Tlamino Projectand the PEA. Often, but not always, these forward looking statementscan 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 thatevents, "could" or "should" occur or be achievedand similar expressions, 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, the uncertainties inherent in the estimation of mineralresources; whether the PEA will be completed as planned and what thewill be the results therefrom; 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 regulators andavailable under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors thatcould cause actual actions, events or results to differ materiallyfrom those described in forward-looking statements, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended.
Forward-lookingstatements 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 PEA will be completed as planned; that the Company's statedgoals and planned exploration and development activities will beachieved; that there will be no material adverse change affecting theCompany or its properties; and such other assumptions as set outherein. Forward-looking statements are made as of the date hereof andthe Company 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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