Medgold Resources (MED-V) wins Boticas exploration licence, Portugal. John Kaiser like Avrupa Minerals (AVU-V) Project generator also in Portugal
Aug 1, 2013 - News Release
Medgold Resources Corp. has been awarded the Boticas exploration licence in northern Portugal by the Direcao-Geral de Energia e Geologia of Portugal. Dan James, the president of the company, commented: "We're delighted that the Boticas licence has been awarded and I would like to thank the DGEG and the Portuguese government for their continued support. We now plan to fast-track the project to resource definition using the wealth of historical data collected over the last three decades. In parallel, we will start exploring the wider licence area where we have numerous untested gold anomalies. We believe this work will add substantial value for our shareholders over the next two years. In addition to our new Boticas licence, we also have our other Portuguese asset, Vila de Rei, which hosts multiple strike-extensive, gold-bearing silica ribs. These two 100-per-cent-owned licences represent very exciting exploration projects with potential in each to host significant gold mineralization."
The Boticas licence
The 106-square-kilometre Boticas licence covers approximately 12 kilometres strike length of a major regional structure that is considered to control orogenic gold mineralization. The Limarinho prospect, which has been the focus of historic exploration, is orientated orthogonal to this major structure, and is considered to be a major dilational, or crumple zone, which is of sufficient scale to potentially host a multimillion-ounce gold system. Furthermore, and typical of orogenic gold systems, these dilational zones commonly repeat along major regional structures creating a series of en echelon mineralized zones which opens up additional exploration potential.
Recent reconnaissance sampling completed by Medgold has identified a new zone of mineralization located 200 metres to the southeast of the Limarinho prospect, with five grab samples yielding best results of 13.1 grams per tonne, 8.19 grams per tonne and 0.80 gram per tonne gold. Early indications suggest that this zone may be an en echelon zone offset from, and parallel to, the main Limarinho zone. This zone will be the focus of further investigation over the summer.
Previous licencewide exploration, undertaken by COGEMA of France in the 1980s, which involved detailed grid-soil sampling, identified 15 gold anomalies throughout the licence, of which only three were drill tested. Drilling was undertaken by COGEMA in the late 1980s and Kernow Resources & Developments Ltd. in the early and late 2000s, with both companies primarily focusing on the Limarinho prospect. Drilling defined gold mineralization over at least 600 metres in strike and 150 metres in width, remaining open in both directions, and drill tested to a vertical depth of greater than 150 metres, yet also remains open at depth. Historical drilling results(i) reported by both companies include:
- 40.2 metres at 1.96 grams per tonne gold from 19.3 metres, including 20.4 metres at 2.92 grams per tonne gold from 20.7 metres (hole KL4);
- 50.05 metres at 1.70 grams per tonne gold from 8.65 metres, including 19.7 metres at 2.80 grams per tonne gold from 32.2 metres (hole PF3),
- 104.75 metres at 0.83 gram per tonne gold from 45.50 to 150.25 metres (hole PF17).
(i) Historic reports indicate a total of 3,234 metres of diamond drilling were completed in 26 holes. These are historical data provided for information purposes and Medgold has not completed sufficient work to verify these results.
The historic drilling indicates that Limarinho has a higher-grade core of gold mineralization, as evidenced by Kernow's hole KL4 which returned 20.4 metres at 2.92 grams per tonne gold, and Medgold's channel sample yielding 3.98 grams per tonne gold over 14.10 metres (as reported by Medgold press release Feb. 5, 2013), which is surrounded by a broad zone of roughly one gram per tonne gold mineralization. Previous mineralization studies indicated that the gold is typically free, associated with a late mineral phase, with gold grains occupying microfractures, highlighting potential for high-percentage gold recoveries.
Proposed work
Medgold's fieldwork will continue through the summer with an initial focus upon the newly discovered zone located 200 metres to the southeast of Limarinho by detailed mapping and channel-chip sampling. Licencewide exploration will also be undertaken to explore for repeating zones of mineralization along the structural corridor of the main northeast-trending fault. At the same time, detailed structural studies will be initiated to better understand the mechanical controls upon the gold mineralization. Medgold hopes to outline a number of drill targets for testing later in the year.
Quality assurance and quality control
Medgold's samples were prepared by ALS Minerals at the Seville laboratory, Spain. Samples were analyzed for gold by fire assay with atomic adsorption finish by ALS Minerals at the Rosia Montana Laboratory, Romania. Multielements were analyzed by inductively coupled plasma mass spectrometer and inductively coupled plasma emission spectrometer on a sample split sent to the ALS Minerals laboratory in Vancouver. Certified reference materials, blanks and field and laboratory duplicates were routinely inserted for quality assurance and quality control.
Qualified person
Dr. 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.
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