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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 22, 2016) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to announce that recent exploration of a new prospect called Guimarei on the Valongo licence in northern Portugal, has identified anomalous gold in rocks outcropping over a 3 km strike length. Assay results from rock chip sampling range from trace gold to highlights of 7.80 g/t Au, 4.84 g/t Au and 2.53 g/t Au.
Dan James, President of Medgold, said: "Guimarei is a brand new gold discovery by Medgold. We've picked up gold mineralization over at least 3km strike length using wide-spaced soil sampling over promising structural features. The new chip sample results have validated our targeting concept and the approach we took to the exploration at Guimarei. The team continues to build on what we learned in defining high-grade mineralization at the Lagares project and is developing new targets in the region.
"More work is underway at Guimarei and our field teams are doing detailed structural and geological mapping and geochemical sampling. The aim is to define a drill target which will be tested in the summer of 2016 with a proposed 500m diamond core program."
The Guimarei Prospect
The Guimarei prospect is located in the Valongo exploration licence, 20 km northeast of Porto between the towns of Santo Tirso and Valongo, and is under joint venture with Centerra Gold Inc. ("Centerra").
Orogenic gold mineralization at Guimarei occurs along the geological contact between Silurian meta-sediments and a large granodioritic intrusion. In common with many major structurally-controlled orogenic deposits, mineralization at Guimarei is associated with a dilation zone along a bend in a major fault. At Guimarei, the combination of a marked lithological contact with a bend in a major structure, has generated alteration and mineralization over a recorded strike length of 3 km.
Medgold's team initially collected 148 soil samples late last year, along wide-spaced soil sampling lines. This work defined gold anomalism over a strike length of 3,000m. Despite the poor rock exposure, mapping has identified alteration up to 200m wide along the strike length which is associated with quartz veins from 1cm to 80 cm thick, containing pyrite and arsenopyrite, and pervasive silicification. Infill soil sampling is ongoing with a further 220 samples collected with assay results pending. These samples are being collected at 50m intervals on 250m line spacing.
Results have also been received for 28 rock chip samples, with a further 27 samples collected and assays pending. Assays for rock chip samples range from trace to 7.80 g/t Au, 4.84 g/t Au and 2.53 g/t Au. We have also identified some highly-elevated Pb and Ag values up to 21.0% and 506 ppm, respectively, which are from a sample which also yielded 2.48 g/t Au.
About Centerra Gold and the Joint-Venture
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.
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 above.
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 proposed exploration at the Guimarei prospect, and regarding the possible acquisition by Centerra of an interest in the Company's properties. 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, whether exploration at the Guimarei prospect will be completed as planned; the possible acquisition by Centerra of an interest in the Company's properties; 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.