Jul 3 2015
Medgold Resources Corp. (the "Company" or "Medgold") is pleased to provide an update on the on-going diamond drilling program at the Lagares gold project in northern Portugal. To date, a total of 1,192 metres have been drilled in 12 holes of a 3,000 metre program. The Company has granted Centerra Gold Inc. ("Centerra") the option to earn a 51% interest in the project by spending US$3 million over 3 years, and then the right to earn an additional 19% by spending a further US$3 million over 2 years.
Assay results have been received for 5 holes from the initial phase of drilling at Lagares that targeted high-grade gold mineralization identified at the Castromil zone from surface channel-chip sampling, and shallow historical drilling. Highlights of the new assay results include:
- MLG-001: 10.90 m @ 2.32 g/t Au from surface, section 150mS
- MLG-003: 19.95 m @ 3.17 g/t Au from surface, section 450mS *
- MLG-004: 17.49 m @ 4.45 g/t Au from 10.00m, section 400mS
* Includes intervals of 19.1 g/t Au (5.45 to 6.00 m), 31.4 g/t Au (10.40 to 11.00 m), and 38.7 g/t Au (13.04 to 13.25 m)
Gold assay values received to date from the 2015 drilling program range from below detection limit to highs of 38.70 g/t Au (in MLG-003, 13.04-13.25 m), 31.40 g/t Au (in MLG-003, 10.40-11.00 m) and 19.95 g/t Au (in MLG-004, 22.57-23.40 m). A location map, cross-sections and core photographs can be found on Medgold's website, at the following location: http://www.medgoldresources.com/s/lagares.asp, with full details about the recent drilling.
Dan James, President of Medgold, said: "We are delighted with the early success of the drilling at Castromil. All drill holes have cut significant alteration and gold mineralization, and surface rock and soil sampling programs have traced the Lagares mineralized system along strike for 4 kilometres. We've confirmed the existence of high-grade gold mineralization associated with zones of silica and pyrite alteration, and the current drilling is indicating good depth potential, with the highest grade zones apparently extending to the northeast under cover. We're about a third of the way through our proposed 3,000 m program, and will soon start drilling the next prospect - Serra da Quinta - with two rigs. We really like the upside potential of the Lagares project, and the drilling at Serra da Quinta will drill-test high-grade surface mineralization which appears to have very similar characteristics to the mineralization at Castromil."
Lagares Property
The Lagares property is one of four mineral concessions Medgold holds in the Valongo Belt, all of which are currently under option to Centerra.
The first phase of significant work being conducted at the Lagares property is a program of 3,000 metres of diamond drilling, of which 1,192 metres have been drilled in 12 holes. To date, 497 assays have been received from the first 5 drill-holes, a few of which are discussed above. The current program includes some verification drilling, to confirm results obtained by previous drilling campaigns, but the majority of this year's drill-holes are designed as exploration holes inclined between 60 and 70 degrees to the southwest, beneath the limits of the historical drilling. Previous explorers, including the Romans, generally targeted oxide mineralization due to the very high gold grades and excellent gold recoveries typically obtained with this material. However, the sulphide-associated gold mineralization has not been well tested, and the recent drilling has intersected some broad widths of semi-massive sulphide mineralization, predominantly pyrite, where the highest gold grades have been identified.
The early drilling results of the ongoing drilling program demonstrate a good positive correlation with both the historical drilling and our recent channel-chip results. The Company's geological model for the Lagares system has also evolved, and we now understand that the strongest mineralization is hosted in shallow-dipping tabular zones broadly associated with the northwest-trending Railway Fault.
Outcropping gold mineralization extends along a northwest-trending strike of 4 kilometres with only 500 metres drill-tested by Medgold. Gold-associated hydrothermal alteration in the granitic host-rock is up to 200 metres wide and is continuous for over 100 metres vertically, showing a zonation from silica-pyrite through phyllic and kaolinite alteration to low-temperature propylitic alteration. The highest gold grades are associated with the silica-pyrite alteration phase.
Due to access restrictions, three drill-holes were steeply inclined towards the northeast, effectively sub-parallel to the dip orientation of the mineralization, but still intersected the shallowly northeast-dipping, tabular mineralized zones, albeit obliquely. Assays are pending for these drill-holes, however, geological information provided by these drill-holes suggests that the mineralized zones extend at low-angles to the northeast beyond the main hill of the Castromil prospect beneath valley lands where no bedrock is exposed. The continuity of these zones will be the focus of future drilling.
A summary of the drill-collars is shown in the table below.
Previous Work
Previous work done by Medgold on the Lagares property includes a program of surface channel-chip sampling, comprising 800 samples from 732 metres of channel cuts made along 9 survey lines. Eight of the 9 channel-sampled lines yielded significant gold mineralization. Highlights of this sampling program were previously reported in a press release dated December 02, 2014, with full details on our website, including the channel results highlighted here:
- 69.00 m @ 4.15 g/t Au (line 150)
- 40.70 m @ 5.73 g/t Au, including 5.20 m @ 15.50 g/t Au (line 300)
- 15.50 m @ 9.44 g/t Au, including 4.00 m @ 18.00 g/t Au (line 300)
- 4.60 m @ 36.17 g/t Au (from underground sampling at Serra da Quinta, reported in June 03, 2014)
Quality Assurance / Quality Control
Samples were prepared by ALS Minerals at the Seville Laboratory, Spain. Half-core samples were analyzed for gold by fire assay with atomic absorption finish, 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. For the current drilling program reported on in this release, a total of 497 half-core samples, ranging from 0.5 to 1.5 metres in length, were submitted for analysis along with 8 sterile 'blank' samples, 13 certified reference standards and 6 field duplicate samples.
Qualified Person
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.
Source: http://www.medgoldresources.com/