VANCOUVER, CANADA -- (Marketwired) -- 01/11/16 -- Medgold Resources Corp. (TSX VENTURE: MED) (the "Company" or "Medgold") is pleased to announce that Medgold has expanded its joint venture with Centerra Gold Inc. ("Centerra") to include its Boticas and Chaves gold exploration licences. The two licences will be added to the existing joint-venture agreement currently covering the Valongo Belt licences.
Dan James, President of Medgold, said: "We are very pleased to announce that we've amended our joint venture agreement with Centerra to include the Boticas and Chaves licences in Portugal. We've enjoyed a good working relationship with Centerra on the Lagares project and they are a natural partner for us to work with at Boticas. With the expansion of our agreement with Centerra, our Portuguese projects are now fully-funded and we can plan for a significant budget for the coming 2016 exploration season.
Our work at Boticas to date has been low key and low cost but has successfully generated many new gold targets in addition to the zones identified by historical work; some of the early high-grade sampling results were published in our August 8th release last year. Our main objective now is to drill-test key targets at the project, including Limarinho, as early as we can in 2016, most likely Q2. We will also conduct reconnaissance exploration work on the newly identified targets, and extensive geochemical sampling programs over the principal targets of Limarinho and Casas Novas. Our exploration efforts in the Valongo Belt, which is also under the Centerra agreement, will continue as will our target generation efforts throughout the region."
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 testing the prospect. The drilling cut broad zones of low-grade gold mineralization (approx. 1 g/t Au), and also multiple mineralized corridors of much higher grade (2-3 g/t Au) that are continuous over significant strike lengths. Key drill historical intercepts are as follows1:
-- KL4 - 20.4 metres of 2.92 g/t Au from 20.7 metres and 9.05 metres of 3.37 g/t Au from 145 metres; -- PF3 - 19.7 metres of 2.8 g/t Au from 32.3 metres; -- PF11 - 12.1 metres of 2.98 g/t Au from 51.1 metres; -- PF17 - 13.5 metres of 2.17 g/t Au from 65.7 metres; -- PF8 - 10 metres of 1.37 g/t Au from 86.2 metres.
1These are historical data provided for information purposes, and Medgold has not completed sufficient work to verify these results.
The mineralized corridors trend east-northeast, while the veins within them trend northeast. The mineralization is structurally-controlled and is believed to be developed within a large deformational zone.
Recent geochemical sampling results indicate the presence of high-grade quartz veins, which typically occur within vein swarms, and can be extensive over significant widths. Detailed structural mapping at Limarinho confirms that the vein swarms and associated alteration occur in a NE-elongate dilational zone which has focused deformation along linear zones. Rock-chip results include assays from 0.01 g/t Au to highs of 75.10 g/t Au, 45.00 g/t Au, 13.90 g/t Au and 11.75 g/t Au.
Similarly, at Casas Novas, which is 3 km southeast of Limarinho, quartz vein swarms are associated with a NE-elongate dilational prism. Grid-soil sampling has confirmed broad zones of gold and arsenic anomalism over an area of 3 km by 2 km, and with rock-chip samples yielding results from 0.01 g/t Au to highs of 71.90 g/t Au, 5.53 g/t Au and 5.20 g/t Au, including new results of 8.54 g/t Au and 7.31 g/t Au.
Located 15 km east of Limarinho within the Chaves licence, is the Carvela zone previously drilled by COGEMA in the 1980s. Narrow intervals of medium- to high-grade gold mineralization were intersected. Mineralization is confined to a significant shear structure, trending north-northeast, associated with a sediment-granite contact. Reconnaissance work has identified that the structure is continuous over 8 km and Medgold has completed a 297-sample grid-soil program (assays pending) over the structure. Rock chip samples yielded results from 0.01 g/t Au to highs of 8.39 g/t Au and 4.26 g/t Au. The exploration target is for very high-grade ore shoots, perhaps confined to dilational prisms, occurring along the structure.
Please visit our website, at http://www.medgoldresources.com/s/boticas.asp, to see details of the sampling programs and prospect location maps.
In December 2014, Medgold granted to Centerra the exclusive right to earn a 51% interest in the Valongo Belt properties (namely; Lagares, Balazar, Castelo de Paiva and Valongo licences, or the "Original Properties"), by incurring expenditures on the properties totaling USD$3.0 million over three years. Once Centerra has acquired the initial 51% interest in the Property, it may acquire a further 19% (for a total 70% interest) by incurring an additional USD$3.0 million on exploration within two years.
In late December 2015, Medgold and Centerra signed an amendment agreement, whereby the Boticas and Chaves licences (the "Additional Properties) were added to the existing agreement. Accordingly, Centerra may now acquire up to a 70% interest in both the Original Properties and the Additional Properties by making the expenditures noted in the preceding paragraph. In addition, Centerra is required to complete a minimum of 1,500 metres of diamond drilling on any of the properties and reimburse Medgold for its previously paid exploration bonds on Boticas and Chaves totaling EUR167,500. To date, Centerra has spent approximately USD$1.5m on the properties.
About Centerra Gold
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.
Quality Assurance/ Quality Control
Samples were prepared by ALS Minerals at the Seville Laboratory, Spain. Soil samples were analyzed for gold using 50gm fire assay with ICP analysis 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. Rock samples were analyzed for gold using 50gm fire assay with AAS analysis 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.
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.
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 exploration programs on the Company's projects, and the potential earn-in by Centerra of an interest in the Company's projects. 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 completion of exploration programs on the Company's projects as planned, and the option earn-in by Centerra; 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 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.