VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2017) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to announce that the Company has selected a drilling contractor for a planned diamond drill program at the Tlamino project in Serbia. Drilling is scheduled to start at the end of July. A ground IP-resistivity geophysical survey is currently underway to outline potential anomalies for drill testing.
Dan James, President of Medgold, commented: "We are very pleased at the rapid progress we've made at the Tlamino Project which has built on the high-grade gold-silver results we reported in January. Working with our partner, Fortuna Silver Mines, we've started an IP-resistivity survey over the Barje-Liska and Karamanica showings, and we're excited to drill test our Barje prospect. We'll also be continuing our target generation work throughout Serbia and we have several new licences under application."
The Tlamino Gold Project is located in southern Serbia, and includes two historical showings: Liska and Barje. Both showings are associated with a regional east-west striking detachment fault, which in the vicinity of these showings has been overlain by conglomerates. Mineralization is located at the contact of the basement metamorphic rocks and the base of the conglomerate cover.
In January, Medgold reported the assay results from a series of saw-cut surface channel samples over the outcrop at Barje, where approximately 70 m x 25 m of mineralized tectonic breccia is exposed at the edge of the conglomerate cover (see Medgold news release dated January 9, 2017). A plan map showing the locations of the channel samples is posted on Medgold's website at www.medgoldresources.com.
Medgold's diamond drilling program at Tlamino will test anomalies resulting from the IP program, and will also attempt to confirm the continuity of the Barje outcrop high-grade precious metal mineralization at depth.
Portugal Update
In the light of its recent exploration successes in Serbia, the Company has decided to focus its exploration efforts in Serbia and withdraw from Portugal. Medgold would like to thank everyone on our team in Portugal for their efforts over the last two years.
Following the completion of a 2,500 m diamond drilling program at Boticas, under the Option Agreement with Centerra Gold Inc., it was determined by both Centerra and Medgold that there is insufficient exploration upside to warrant further exploration. Accordingly, our option agreement with Centerra is in the process of being terminated, and Medgold is terminating its option agreement with Luso Recursos for the Marrancos Project.
Shares for Services
In order to preserve its cash on hand during 2017, Medgold has agreed, subject to TSX Venture Exchange approval, to issue a total of 220,000 shares of the Company to Dan James in part consideration for his ongoing services as the Company's President. The shares will be issued in installments over a one-year period commencing as of January 1, 2017.
About Medgold
Medgold is a European-focused, TSX-V listed, exploration and development company targeting gold properties in Serbia. 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 exploration company.
Qualified Person
Mr. David Clark, M.Sc., P.Geo., is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Clark prepared the technical information contained in this news release and has approved its disclosure.
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.
