Mundoro Capital Inc. ("Mundoro" or the "Company") is pleased to report drilling has commenced on the Company's 100% owned exploration licenses, Dubrava and Zeleznik which are located at the central and northern end of the Timok Magmatic Complex ("TMC") in northeastern Serbia (see Figure 1: Location Map - Timok North Projects).
- 3000 m drill program began July 1 on Timok North Projects
- Timok North Project work programs sole funded by JV partner JOGMEC
- Previous drilling and geophysics programs provided high priority targets including:
- 25.8 m of 0.47% CuEq interval in the West Zone (ZELDD01 from 29.2 m to 55.0 m)
- 4.9 m of 1.40% CuEq interval in the East Zone (ZELDD06 from 137.4 m to 142.3 m EOH)
- 2.8 m of 2.98% CuEq interval in the East Zone (ZELDD05 from 26.6 m to 29.4 m)
- Mundoro maintains a strong treasury and is debt free
Teo Dechev, CEO and President of Mundoro commented, "This program will focus on testing three copper-gold porphyry and epithermal systems within the two properties. We believe the drilling program at Zeleznik will further delineate the extent of the copper-gold porphyry identified in the West Zone from the first round of drilling results in January 2015 as well as the massive sulphides identified in the East Zone. For Mundoro shareholders, the JOGMEC funded exploration activity including drilling and geophysics will allow for more aggressive exploration of the Timok North Projects and bring us closer to identify a resource on the discovery at Zeleznik. At the end of Q1-2016, Mundoro had a treasury of $5.1 million and no debt."
Drilling commenced on July 1, 2016 under the Option Agreement between Mundoro and Japan Oil, Gas and Metals National Corporation. ("JOGMEC") announced March 7, 2016. Under the terms of the agreement JOGMEC may earn a 51% interest in the Timok North Projects by making US$3 million in expenditures by March 7, 2018. JOGMEC is under a firm commitment to expend US$1 million of this amount by March 7, 2017. Stage Two Earn-in: Following the Stage One Earn-in, JOGMEC has a right to acquire an additional 24% interest in the Timok North Projects, for a total of 75% interest, by funding the completion of a Feasibility Study by the eighth anniversary of the Agreement (March 7, 2024). The current drill program, which is a part of the Stage One Earn-in and the US$1 million commited expenditure, is being sole funded by JOGMEC and includes this 3000 m diamond drilling program.
JOGMEC-Mundoro Drill Program
This drilling program is designed to test various copper-gold targets over two of the Timok North Projects. The final number of holes drilled will be dependent on results obtained through the course of the drilling program. The targets have been identified through a systematic program completed by the Company comprising of detailed mapping, geochemistry, alteration mapping, ground geophysics, regional geophysics and initial drilling testing. The properties and targets to be tested are described below.
The Zeleznik license is a 60 sq.km area located at the northern end of the TMC in northeastern Serbia, 160 km southeast of Belgrade. Zeleznik directly borders the Majdanpek mining complex to north and is 45 km northwest of the Bor smelter-refinery. The southern end of the property has several areas of anomalous Cu-Mo-Au geochemical results related to andesite-diorite porphyry intrusions. The western anomaly ("West Zone") is 600 m x 450 m and is open along strike to the north and south, while the eastern anomaly ("East Zone") is 300 m x 300 m in outcrop and dips under a limestone cap to the northeast and remains open along strike.
Initial drilling at these two target areas has intersected mineralization throughout the drill holes and indicated the systems remain open at depth and along strike at both the West Zone and East Zone.
An initial ground magnetic survey was completed over the West Zone and East Zone during the 2015 field season. Additional geophysics surveys consisting of IP-Resistivity and CSAMT-AMT were completed in Q1-2016. The follow-up surveys comprised 8 profiles lines, each 3200 m long and totalling 25.6 line-km. Both surveys successfully identified drill targets and were used to focus the current drilling program (see Figure 2: Zeleznik Drillhole Location Map).
At the West Zone, the phase 1 drilling intersected several porphyry dikes cutting basement gneiss. The intersected porphyries are potassic altered and the host gneiss is cut by A-type quartz veins and veinlets containing pyrite-chalcopyrite mineralisation. A 25.8 m intercept centred on the early porphyry dyke averages 0.47% copper-equivalent ("CuEq"). At the West Zone Cu-Au porphyry system, geophysics results show that the strongest IP chargeability anomalies remain untested at depth as well as highlighting an additional interpreted porphyry target at the northern end of the system. Three drillholes (PH07, PH09 and PH12) totalling 1070 m are planned for the West Zone:
- PH07 is designed to test the continuation of the stockwork mineralisation and diorite porphyry intersected in ZELDD01, the strong IP anomaly, and the interpreted mineralised structure. The planned depth of 350 m will penetrate through a resistivity high and test the resistivity low anomaly coincident with the strongest IP anomaly in the West Zone.
- PH09 is planned to a depth of 370 m and designed to test the strong IP anomaly coinciding with moderate resistivity anomaly and the continuation of mineralisation and potassic alteration intersected in ZELDD02.
- PH12 is designed to test the high resistivity with strong IP near surface phyllic alteration with quartz (overprint) while the IP high with resistivity low anomaly at depth suggests primary mineralisation related to a structure or possibly porphyry stock projected to 700 to 800 m depth in magneto-telluric sections.
At the East Zone, all three drillholes from phase 1 drilling intersected andesite porphyry containing massive sulphide blocks with typically 0.3-0.5% Cu and 0.3-0.6 g/t Au; however, one 4.9 m interval at the end of drill hole ZELDD06 (137-142 m) averaged 1.4% CuEq (~1% Cu and 1 g/t Au). A block of gossan after massive sulphide intersected in drill hole ZELDD05 (26-29 m) reported even higher grades of 2.8 m @ 2.98% CuEq (~2% Cu and 2 g/t Au) and is similar to the gossan sampled in proximal road cuts (7.57 g/t Au; 2.65% Cu).
The Company believes the drilling and surface sampling work and geophysical interpretations to-date suggest the potential for discovery of bulk porphyry mineralisation containing high grade sulphide blocks formed by carbonate replacement along porphyry-host limestone contact. The existence of these sulphide blocks is significant in that close analogues to this style of mineralisation demonstrate that the blocks can boost the overall grade of the related porphyry system.
Prior drilling on the East Zone has bottomed in mineralisation and requires further testing to depth and along strike. The strongest Cu-Au soil and trench anomalies in the area also remain untested. The IP-resistivity survey highlighted new targets and fault zones which appear to be related to a newly inferred and larger mineralisation center. The regional stratigraphy, preserved limestone cap and epithermal geochemical signature all suggest that little erosion has taken place and the presence of a potentially preserved copper-gold mineralised system beneath. This geological model requires further exploration drilling along strike and at depth. Three drillholes (PH08, PH10 and PH11) totalling 1100 m are planned for the East Zone:
- PH08 is located at the strongest Cu-Au soil anomaly at the East Zone which remained untested from the previous drilling. It is believed that drill hole ZELDD06 tested the margin of the anomaly at a depth of 142.3 m where it intersected brecciated and faulted diorite containing quartz-carbonate-pyrite-chalcopyrite veinlets at upper levels and a brecciated fault zone bearing massive and disseminated pyrite-chalcopyrite mineralization at lower levels. Results from geophysical surveys also show significant low resistivity and moderate IP chargeability related to the surface Cu-Au anomaly capped by highly resistive limestone. The drillhole is projected to a depth of 500 m aiming to intersect the low resistivity anomaly and reach the moderate to high chargeability anomaly.
- PH10 is designed to test the strongest IP anomaly at the East Zone which is located under the limestone cap. This area is characterized by Sb-As pervasive soil anomaly and spotty Au anomalies which penetrate through the recrystallized limestone. The IP anomaly coincides with a resistivity low and both start at 200 m depth. To date, PH10 will be the northern most drillhole testing the northern extension of the mineralised system under the limestone cap.
- PH11 is designed to test a strong surface Au-in-soil anomaly and anomalous trench samples which coincide with a prominent resistivity low at depth that extends to 1500 m depth. The resistivity low was determined by the AMT and IP resistivity surveys. There is no detectable IP anomaly at this area however elevated chargeability is directly related to the surface soil anomaly.
The Dubrava license totals 51 sq.km and wraps around the eastern side of the Bor Mine Complex and the Veliki Krivelj open pit mine, and is 3.5 km north from the Cukaru Peki deposit discovered by the Freeport-Reservoir JV. Mundoro's exploration work on the Dubrava license has demonstrated very encouraging results of 28 m @ 0.2% Cu, 0.25 g/t Au (0.36% CuEq) in drillhole BJ-04 including 7 m @ 0.5% Cu, 0.69 g/t Au (0.94% CuEq).
Since the Dubrava license has no outcrop and is mostly covered by post-mineral Miocene and Cretaceous sediments, the Company has relied on geophysical exploration methods and has completed AMT, CSAMT, IP and gravity surveys over prospective parts of the licence area. In proximity of drillhole BJ04, four closely spaced (~50 m apart) IP lines have been carried out in order to delineate the massive sulfide mineralisation intersected at depth as well as to try to locate the controlling hydrothermal breccia structure (see Figure 3: Dubrava Drillhole Location Map). IP Resistivity and CSAMT surveys at Dubrava have identified two IP/Resistivity anomalies located west of drill hole BJ04. As such, the following two drill holes are planned to test these targets:
- PDUB01 is located 180 m northwest of BJ04 and is designed to test the IP/Resistivity anomaly which starts at 50 m depth and is well defined up to 300 m. This anomaly also encompasses the area of drill hole BJ04 and the intersected sulphide mineralisation. The drillhole aims to test for lateral and depth continuation of this previously intersected mineralisation.
- PDUB02 is located 430 m west of BJ04 and 270 m southeast of PDUB01. It is projected to test the well expressed IP/Resistivity anomaly. It is open at depth and laterally links with the anomalies to the north at shallower levels. The IP chargeability anomaly overlaps with the resistivity anomaly which makes the target promising for possible relation to a massive sulphide body.
Technical information contained in this Press Release has been reviewed and approved by Mr. G. Magaranov, P. Geo., Qualified Person as defined by National Instrument 43-101.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director