Medgold Secures Exclusive Option on two Portuguese Gold Exploration Licenses Identifying Significant Potential
VANCOUVER, Feb. 5, 2013 /PRNewswire/ – Medgold Resources Corp. (TSX-V: MED),
the European focused gold exploration company, is pleased to announce
that it has secured the exclusive option on two highly prospective
Portuguese exploration licenses, Boticas and Vila de Rei, through the
DireÃ§Ã£o-Geral de Energia e Geologia (DGEG) of Portugal.
-- Boticas and Vila de Rei cover 100 sq km and 300 sq km respectively. -- Previous drilling at Boticas reported results including 40.2m at 1.96 g/t Au, including 20.4m at 2.92 g/t Au, and surface sampling has yielded results up to 204 g/t Au in veinlets. -- 3,234 metres of historical diamond drilling at key prospect, which is only one of 15 soil geochemical anomalies identified by historical grid-sampling. -- Vila de Rei includes 40 line km of a principal regional structure. -- Comprises four geochemical anomalies, the largest of which extends over 3 km and yielded best results from rock grab sampling of 24.72, 22.85 and 19.24 g/t Au. -- Acquisitions part of Medgold's aggressive expansion strategy and follow the recent issue of an additional license in Italy. -- Evaluating additional prospects to increase exploration and development portfolio in prospective gold regions in Europe perceived to benefit from planning amelioration.
Dan James, President of Medgold, commented, that: “These are truly
exciting projects with excellent historical data available. We believe
they have multi-million ounce potential with similar geological
controls to the world-class Fort Knox gold deposit in Alaska . The
projects highlight the Company’s focus to define high-value,
wholly-owned, exploration projects in recognized gold districts. The
historic work, including 3,234m of drilling at Boticas, in tandem with
the work conducted by our geologists, which yielded a best channel
sample of 14.10m at 3.98 g/t Au, underpin the potential and we look
forward to rapidly implementing evaluation programs on the
multi-anomalous projects as soon as possible.”
The Boticas Gold Project
Boticas is located in northern Portugal, approximately 30 km north of
the Jales/Gralheira gold mine, hosted in granites with gold
mineralization controlled by large-scale regional faults. The Board
believes that the project has multi-million ounce gold potential in
structurally-controlled and en echelon repeating dilation zones, which
is a common structural setting for gold deposits with a similar
geological setting typified by the Fort Knox gold deposit in Alaska
The 100 sq km project area was previously explored between the 1980′s
and early 2000′s by several companies with a total of 3,234 metres of
diamond drilling completed in 26 holes. Results from the drilling
-- 40.15m at 1.96 g/t Au from 19.30 to 59.45m, including 20.40m at 2.92 g/t Au from 20.70 to 41.10m (hole KL4); -- 64.80m at 0.42 g/t Au from 35.00 to 99.80m (hole PF2); -- 50.05m at 1.70 g/t Au from 8.65 to 58.70m, including 19.7m @ 2.80 g/t Au from 32.20 to 52.00m (Hole PF3); -- 103.60m at 0.83 g/t Au from 28.10 to 131.70 m (hole PF10); -- 75.55m at 0.92 g/t Au from 6.80 to 82.35m (hole PF11); -- 104.75m at 0.83 g/t Au from 45.50 to 150.25m (hole PF17).
The exploration drilling results are exciting and will allow the Company
to define drill-ready exploration targets with the opportunity to
fast-track to resources. Importantly the key prospect, which has been
the focus of drilling, is only one of 15 soil geochemical anomalies
identified by historical grid-sampling.
Historical surface sampling has yielded results over 1 g/t Au in 9 out
of 34 samples with a maximum of 204 g/t Au in a grab sample of selected
veinlets, underpinning the high prospectivity of the project area.
Prior to the grant of the option, Medgold carried out evaluation work
which yielded a composite channel-chip sample with a length weighted
average of 3.98 g/t Au over 14.10m (channel CH001) and individual
rock-chip samples up to 28.3 g/t Au over 1.70m (channel CH007) out of
58 samples, 11 of which were greater than or equal to 1.0 g/t Au.
The Boticas license is expected to be issued in mid-2013, and it is
planned to start ground work immediately following issuance, with a
drilling campaign scheduled for late 2013.
 Fort Knox gold deposit is an active gold mine operated by Kinross
and has proven and probable reserves of 314.6 Mt at 0.43 g/t gold
containing 4.3 million ounces of gold. See http://www.kinross.com/operations/operation-fort-knox-alaska-usa.aspx for further details.
 Sample grades capped at 20 g/t Au. Intersections above 20 g/t *
Vila de Rei Gold Project
The Vila de Rei exclusive license option is located in central Portugal,
covering an area of approximately 300 sq km, targeting sediment-hosted
shear-related mineralization. The project area covers 40 line km of a
principal regional structure and comprises four previously identified
geochemical anomalies, the largest of which extends over 3 km. Rock
chip sampling by a previous explorer in the mid 2000′s gave 33 out of
247 samples above 1 g/t Au with maximum values of 24.72, 22.85 and
19.24 g/t Au.
This large-scale exploration project is focused on a large and
gold-anomalous lineament, and the Company believes has the potential to
host significant gold resources.
The geochemical anomalism is highly extensive with high-grade zones
occurring in large sulphide-rich lenses which are hosted in silicified
quartzites. The scale of the geological framework within the license
area, combined with multiple highly anomalous zones, highlights the
potential for significant gold discoveries.
The license is expected to be issued in late Q1 2013, with a program of
license-wide mapping, reconnaissance sampling, and detailed
channel-chip sampling tentatively planned for early Q2 2013.
Stewart D. Redwood, Consulting Geologist to the Company, is a qualified
person as defined by National Instrument 43-101 – Standards of
Disclosure or Mineral Projects and prepared or reviewed the preparation
of the scientific and technical information in this press release.
The drill intersections and sampling by previous companies are
historical in nature and have not been verified by Medgold, and are
quoted for information purposes. Medgold has carried out limited rock
chip sampling at Boticas and Vila de Rei for evaluation purposes. The
samples were prepared by ALS Minerals at the Rosia Montana Laboratory,
Romania, and analyzed for gold by fire assay with atomic adsorption
finish. Samples above 10 g/t were repeated with a gravimetric finish.
Multi-elements were analyzed by ICP.
Medgold is aiming to become the leading Mediterranean-focused gold
exploration and project development company, with an extensive pipeline
of projects across Portugal, Italy and Spain, targeting economically
stressed, but politically stable European countries that are seeking
foreign investment to invigorate the mining sector.
ON BEHALF OF THE BOARD
Simon Ridgway, Chairman and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
This press release may contain forward-looking statements including, but
not limited to, comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, and other related matters.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Medgold Resources’
projects in Europe are at an early stage and all estimates and
projections are based on limited, and possibly incomplete, data. More
work is required before the mineralization and the projects’ economic
aspects can be confidently modelled. Actual results may differ
materially from those currently anticipated in this presentation. No
representation or prediction is intended as to the results of future
work, nor can there be any promise that the estimates and projections
herein will be sustained in future work or that the project will
otherwise prove to be economic.
SOURCE Medgold Resources Corp.