VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/24/16 -- Medgold Resources Corp. (TSX VENTURE: MED) (the "Company" or "Medgold") is pleased to announce that drilling has started at the Boticas Gold Project in Portugal. Medgold is planning a 15 hole 2,500m diamond drilling program, targeting a medium-grade sheeted vein system. The first drill hole is designed to test grade continuity below a contiguous Medgold channel-chip result of 3.98 g/t Au over 14.10m.
Dan James, President of Medgold, said: "We are very pleased to start drilling at Boticas. Our program will aim to confirm the historical drilling results from previous operators of the project. It will also test a number of large undrilled zones to investigate their gold resource potential. The work will focus on the Limarinho Zone where nearly 2,600m of historical drilling outlined mineralization over a 600m strike length, up to 300m wide. We'll also be drilling some holes into the Limarinho South zone, which appears to be similar in terms of area to the main Limarinho Zone, but has very little drill data. We look forward to keeping our shareholders updated on the drilling over the coming months."
The exploration work at the Boticas-Chaves project is fully-funded by Medgold's joint-venture partner Centerra Gold Inc. The Medgold-Centerra joint venture started in December 2015, and since then 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 much higher grade (2-3 g/t Au) that are continuous over significant strike lengths.
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 which are located in the centre.
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 drill program on the Boticas-Chaves 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, changes in general economic conditions and financial markets; whether the drill program on the Boticas-Chaves Gold Project will be completed as planned; 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 drill program on the Boticas-Chaves Gold Project will be completed 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.