Adit channel sampling yields 2.20 g/t gold and 88 g/t silver over 52 m at Tlamino

Medgold Resources Corp. [MED-TSXV] reported a composite channel sample interval in the Barje adit at the Tlamino Project of 52 metres grading 2.20 g/t gold and 88 g/t silver, (AuEq 3.38 ppm using 75:1 Ag to Au price ratio), from a recently re-opened historical lead-zinc exploration adit, located in the centre of the main Barje occurrence.

The Tlamino Project comprises a block of two contiguous licences granted in November 2016, Donje Tlamino and Surlica-Dukat, totaling 192 km². The project is located in the southeast of Serbia, bordering Macedonia and Bulgaria. The DonjeTlamino licence hosts two main targets, Barje and Liska.

Assay results from the adit, which is driven into the Barje outcrop perpendicular to the surface, demonstrate that mineralization is not limited to the outcrop plane but extends into the hillside in the third dimension.

Dan James, President of Medgold, said, “This is an excellent result and we are very excited by the potential the adit indicates. Similar to the surface sampling, we’re seeing strong consistency in the elevated gold-silver grades, with all samples yielding anomalous values. Our confidence is building in our geological model, which we have been able to test having entered, mapped and sampled the adit, and we can now consistently demonstrate anomalous gold-silver values in all three directions at Barje. Our adit sample is of lower grade, when compared to the earlier surface channels, 2 g/t versus 5 g/t gold, and may point towards the surface sampling itself being a high-grade feeder zone, or is reflective that much of the adit follows north-trending ‘gougey’ structures which may be less mineralized than the surrounding rock. Exploration at Tlamino is progressing steadily, despite a delay in the issuance of a land access permit, and we’re aiming for a Q2 2018 start to our planned first-pass of diamond drilling. Barje is proving to be an exciting exploration story, with the identification of three-dimensional gold-silver mineralization and a large geophysical anomaly, and we are excited by the possibilities that Barje presents.”

The Barje Prospect

The adit at Barje was excavated by a Yugoslav state company in the 1950s as part of their regional exploration for lead-zinc mineralization. From the 1950s to the 1970s, at least two phases of diamond drilling at the nearby Liska prospect (located 1.5 km southwest of Barje) were completed, as well as several exploratory adits at both Barje and Liska. The entire surface of the exposed outcrop was channel sampled by Medgold.

A total of 298 samples were collected. The composited grade of the adit was 2.20 g/t gold and 88 g/t silver, with 36 out of 52 samples assaying greater than 1 g/t gold, a minimum grade of 0.49 g/t gold, and a maximum grade of 25.3 g/t gold.

The adit results support Medgold’s current geological model for Barje, in which shallowly south-dipping stratabound mineralization lies in a north-northeast axis, associated with a regional detachment fault. These results will assist Medgold in planning a program of diamond drilling, which will be fully-funded by Medgold’s strategic partner, Fortuna Silver Mines [FVI-TSX, Lima; FSM-NYSE; F4S-FSE] and is due to commence in Q2 2018.

The planned program of drilling will target both the up-dip continuity of the mineralization to the northeast from the Barje outcrop, as well as its along-strike continuity to the west. This latter target has been highlighted by a significant IP-chargeability anomaly extending from the Barje outcrop 1 km to the west and 400 m to the north. Given the favourable geological conditions for the mineralization and the significant IP anomaly, the project is demonstrating significant exploration upside.