TSX-V: MED
VANCOUVER,
April 9, 2013 /PRNewswire/ - Medgold
Resources Corp. (TSX-V: MED), the European focused gold exploration
company, is pleased to announce that it has now completed the
application process and paid all relevant taxes for three
contiguous gold exploration permits covering 79 square kilometres
in southern Galicia, Spain, (the
"Pinzas Gold Project").
- The applications cover approximately 79 square kilometres of
the highly prospective Galician Hercynican Massif. Licence issuance
is expected in Q2 2013.
- Gold-bearing structure already identified over 14 strike km
covering several licence areas.
- Rock chip sampling has yielded results of up to 11.10, 5.49 and
2.73 g/t Au. (These results are historic and the Company
has not independently verified them.)
- Applications also submitted, through a public tender process,
for 6 adjoining licences.
- Pinzas Gold Project contains multiple old gold workings and is
considered to be highly prospective for gold.
Dan James,
President of Medgold, said, "This transaction marks our entry into
Spain. We believe the entire
region is highly prospective, already hosting several advanced gold
projects. We have identified a 14 km linear deformation zone,
with multiple known high-grade gold occurrences on the application
areas, and we will be implementing exploration work upon licence
issuance by the provincial mining authorities to test the potential
of this area and identify further targets. The geology is
very similar to our Boticas project in Portugal, located 100 km to the southeast,
where we have an exclusive option, and we consider that both
projects have multi-million ounce potential.
Our momentum continues to build as we advance
our strategy of becoming a leading European gold company.
Since the beginning of the year we have applied for 9 permits in
Galicia (3 pending issuance and 6 applied for via public tender),
received issuance of the Vila de
Rei licence in Portugal, and we
hold the exclusive licence option to the Boticas gold project in
Portugal, which is expected to be
issued in Q2 2013. Results from Boticas and Vila de Rei include surface rock chip assays
of up to 204.0 g/t Au and 24.7 g/t Au respectively, as previously
reported in our February 5, 2013 news
release. We have a highly exciting foundation and I look
forward to continuing to build and develop our portfolio in
Spain, Italy and Portugal as we continue to rapidly build
shareholder value."
The Pinzas Gold Project
The Pinzas Gold Project is located in the
southwest corner of the highly prospective and productive gold
region of Galicia, in northwest Spain. Mineralization is hosted in
granites in the Hercynian orogenic belt, which extends northwards
to the advanced-stage gold project of Salave1, and
southwards to Boticas and the Jales-Gralheira gold mine in
Portugal.
1 Salave has measured and
indicated resources of 17.9 Mt at 2.92 g/t Au for 1.68 Moz Au and inferred resources of 3.7 Mt at 2.80
g/t Au for 338 koz Au [Source: 'Technical Report on Salave Gold
Deposit, Spain' by Scott Wilson
RPA, 25/FEB/2010].
Medgold has completed the application process
and paid all taxes for three exploration permits at Pinzas which
are expected to be issued in Q2 2013. These permits cover
approximately 79 square kilometres of free-ground and are therefore
not subject to a public tender process. They are adjacent to
an additional six pre-defined licence areas under application
through a public tender which closed on March 15, 2013, with the outcome of the tender
expected in Q2 2013.
Historical work undertaken within the Pinzas
permit application area included rock samples collected by Ormonde
Mining plc ("Ormonde") in 2005, which yielded results from below
detection limit, up to 11.10, 5.49 and 2.73 g/t Au in 11
samples. Mineralization is hosted within a 14 km north-south
trending structural corridor where parallel quartz veins, commonly
high-grade, are concentrated along fault boundaries with schistose
metasediments. The structural corridor within the public
tender licence area was drill-tested by a previous company in the
1980's with 3,705 m drilled in 16 holes, with gold-bearing quartz
veins intersected in all drill holes. These drill results are
historic and the Company has not independently verified them.
Medgold collected 21 rock samples in the permit application areas,
with results from below detection up to 1.00 and 2.13 g/t Au.
The Ormonde Agreement
In July 2011
Medgold signed a Binding Letter of Intent ("BLOI") with Ormonde
covering a 2,400 square kilometre agreement area within which
Ormonde has an extensive rock and stream sediment geochemical
database from samples collected in 2004-2006. Under the terms
of the BLOI, Medgold was provided access to Ormonde's database in
return for agreeing to undertake 100,000
EUR of exploration expense, where part of this expense could
be incurred through the cost of licence applications. On
April 4, 2013 the BLOI was modified
such that Medgold now has 100% ownership of the project and on any
other permits or projects acquired in the agreement area, with an
obligation to pay Ormonde a 1.5% Net Smelter Royalty on any future
gold production from any such projects with no further funding
obligation. This will enable Medgold to solely develop the
potential of the project area which contains multiple historic
workings and strong geological signatures for gold
mineralization.
Sampling Quality Analysis and Quality
Control
Medgold has carried out limited rock chip
sampling at Pinzas for evaluation purposes. The samples collected
were prepared by ALS Minerals at the Seville Laboratory,
Spain, and analyzed for gold by
fire assay with atomic adsorption finish. Multielements were
analyzed by ICP.
Qualified Person
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. Dr. Redwood has reviewed
and approved the technical information contained in this news
release, some of which is based on reports by historical
workers. The Company, however, has not independently verified
the historic results.
About Medgold
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.
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.
ON BEHALF OF THE BOARD
"Ralph Rushton"
Ralph Rushton, Director
Forward-looking statements
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 news release. 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 projects will otherwise prove to be
economic.
SOURCE Medgold Resources Corp.