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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 20, 2016) - Medgold Resources Corp. (TSX VENTURE:MED) (the "Company" or "Medgold") is pleased to announce it has established a wholly-owned subsidiary in the Republic of Serbia, and has subsequently applied for a 100 sq. km exploration licence targeting newly identified epithermal-porphyry mineralization in the country.
Dan James, the President of Medgold, said: "We're excited to establish ourselves in Serbia which has a long and rich history and culture of mining. The country has a tremendous metal endowment and Serbia's mining industry enjoys high-level government support. Our decision to expand our generative exploration effort into Serbia is timely. The on-going contraction of the gold exploration industry worldwide has created major opportunities for risk-tolerant junior exploration companies like Medgold. The cost of exploration has decreased significantly and there are many dormant exploration projects which can be acquired quickly and at low cost.
Exploration of our projects in Portugal is on-going and well-funded through our JV agreement with Centerra, and we've spent a lot of time recently reviewing the exploration potential in other regions of Europe. Serbia is a logical place for us to expand our efforts. We're looking forward to commencing field work in the spring."
Medgold's first exploration target in Serbia has been the focus of reconnaissance geochemical rock sampling and remote sensing studies. The licence application has been made, and management expects the licence to be granted in approximately 90 days.
Medgold has engaged a full-time senior Serbian geologist who has more than 12 years of experience in exploration in the region, and is a co-discoverer of the Kiseljak and Yellow Creek porphyry Cu-Au deposits in Serbia. In addition, we have retained the Serbian consultancy, Jantar Group, who have been providing geological services for over 20 years.
The Company intends to apply the same exploration approach in Serbia that it used in Portugal; that is, identifying the key macro controls on metal deposition in the region, and thereby identifying the local deposit-scale controls on mineralization.
The Company is in a very positive position in Portugal. Our key projects - which include 6 exploration licences - are joint-ventured to Centerra with a proposed exploration budget of US$1.4m for 2016. Management expects to drill-test the Boticas project with a 3,000m diamond core programme in the late spring of this year. Boticas has been recognized by the Portuguese government as a project of Strategic National Importance. We are also awaiting the issuance of the Caramulo licence in early 2016, which is a large gold exploration area located approximately 60 km due south of the Lagares project.
As well, Medgold is expecting repayment of the Boticas and Chaves bonds from Centerra, plus additional bond repayments for several other licences which are in the process of relinquishment. In total, management is anticipating about C$600k in cash in-flow throughout the year. This cash will cover G&A costs through 2016 and a portion of our exploration costs in both Portugal and Serbia.
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 proposed acquisition of a licence in Serbia, the exploration work proposed on the Company's Portugal projects, and the expected receipt of cash payments during 2016 and the planned use thereof. 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, the issuance of a licence in Serbia; changes in the proposed exploration work on the Company's Portugal projects; the receipt of anticipated cash payments in 2016 and use of such funds; 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 in Serbia and Portugal will be achieved; that the Company will receive the anticipated cash payments during 2016 and will spend such funds as planned; 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.