News out this morningStarting it's PEA.
Medgold starts PEA on Barje prospect at Tlamino
2020-08-05 06:12 ET - News Release
Mr. Jeremy Crozier reports
MEDGOLD INITIATES PRELIMINARY ECONOMIC ASSESSMENT FOR THE TLAMINO PROJECT, SERBIA
Medgold Resources Corp. has initiated a preliminary economic assessment (PEA) in respect to the Barje prospect within the Tlamino project in southern Serbia. The purpose of this study will be to constrain the self-standing economics of the project and most particularly its capacity to yield a marketable metal concentrate, to which end a program of metallurgical testwork will be completed. Addison Mining Services Ltd. and Bara Consulting Ltd., both of the United Kingdom, have been appointed as leaders of the PEA and metallurgical studies. Reach Partners Ltd., also of the United Kingdom, has been engaged to provide guidance in the fields of concentrate specification and marketing terms. Metallurgical testwork will be performed by ALS Metallurgy of Kamloops, B.C. Completion of the PEA is anticipated in the fourth quarter of 2020.
The Tlamino project
An inferred mineral resource estimate containing approximately 570,000 ounces gold and 8.6 million ounces silver (680,000 ounces gold equivalent) in 7.1 million tonnes grading 2.5 grams per tonne Au and 38 g/t Ag (3.0 g/t AuEq) was established for the Barje prospect (see Medgold new release dated Jan. 30, 2020 (1) (2)). Mineralization is at or near surface and with adjacent road and grid power access. As part of the inferred mineral resource estimate, bulk rougher flotation tests were performed on two composite samples formed of 50.39 kilograms of core from the company's 2018 drilling program at the Barje prospect. These samples yielded head grades of 2.04 g/t Au and 10.99 g/t Au and gold recoveries to concentrate of 88.2 per cent and 90.5 per cent, respectively, and silver head grades of 15.1 g/t Ag and 107.2 g/t Ag, and silver recoveries to concentrate of 88.2 per cent and 96.4 per cent, respectively.
(1) Gold equivalent (AuEq) grade was calculated using the formula AuEq equals ((Ag g/t) times 0.012)) plus (Au g/t).
(2) A cut-off grade of 0.7 g/t AuEg was used for the mineral resource estimate. This cut-off grade was calculated on the basis of the following assumptions: a gold price of $1,350 (U.S.) per ounce, a silver price of $16 (U.S.) per ounce, mining costs of $3.30 (U.S.) per tonne, mining recovery and dilution of 5 per cent and processing costs including tailings and concentrate handling of $21 per tonne. General and administrative costs were included within mining and processing costs. Per metallurgical testwork completed to date, recovery to concentrate after flotation of 89.4 per cent for gold and 92.3 per cent for silver were assumed; metals were assumed to be 80 per cent payable.
The Tlamino project covers an area of approximately 200 square kilometres in southern Serbia and is held by Medgold under two exploration licences. Outcropping mineralization was first observed at the Barje prospect by Yugoslav state agencies in the 1950s and 1960s when a short adit was opened but no drilling was carried out. The prospect was then held by private and public companies between approximately 2005 and 2012 during which time limited drilling failed to intersect significant mineralization.
Medgold conducted mapping, surface sampling and geophysics (IP) followed by diamond drilling at the Barje prospect in 2018 and 2019, which successfully intersected gold mineralization in a shallowly inclined body of hydrothermal breccia below altered schist (see Medgold new release dated March 21, 2019). The inferred mineral resource at Barje extends from surface to a depth of approximately 110 m as a shallowly inclined zone over an area of approximately 600 m by 350 m. The true thickness of mineralization generally ranges between 10 m and 40 m.
Qualified person and data verification
Thomas Sant, FGS, CGeol, EurGeol, consultant exploration manager for Medgold and qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical content of this news release.
The independent qualified person for the inferred mineral resource estimate, as defined by NI 43-101, is Richard Siddle, MSc, MAIG, of Addison Mining Services Ltd.
About Medgold Resources Corp.