Management announces acquisition of another project. Hopethis one will be proven of value.
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:MED)|(OTC:MGLDF)|(FRA:1XD) is pleased to announce that it has entered into two definitive agreements with Fortuna Silver Mines Inc. (NYSE:FSM) (TSX:FVI) ("Fortuna"), to acquire Fortuna's 51% interest (the "Interest") in the Tlamino Project, located in Serbia (the "Project"). The first such agreement terminates the Option Agreement (the "Option") entered into between the parties on December 15, 2020 that provided for Medgold to acquire the Interest for a cash consideration of US$ 3.468 million (news release, January 7, 2021) and the second, which converts the Interest to a 1% Net Smelter Return royalty (the "Royalty") in favour of Fortuna. All obligations under the terms of the Option have been extinguished. The Royalty may be purchased at any time for a cash consideration of $3 million dollars. The agreements are subject to TSX Venture Exchange acceptance.
Medgold is actively appraising an array of strategic options for the Project based on 100% ownership, and expects to be able to report on these in due course.The Company takes the opportunity tothank Fortuna for their support of Tlamino and Medgold, and for their collaboration in establishing these new agreements.
The Tlamino Project
An updated Inferred Mineral Resource containing approximately 680,000 oz AuEq in 7.1Mt grading 3.0 g/t AuEq at cut-off grade of 0.7 g/t AuEq was announced in regard to the Barje Prospect as a component of a Preliminary Economic Assessment ("PEA") on January 26, 2021. The highlights of the PEA may be summarized as follows:
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Based on simple open-pit mining methods and the production of a flotation concentrate via conventional processing techniques, the pre-tax NPV of the Project, at a discount rate of 8%, is US$101M, its IRR 49%, and its operating margin 61%.
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A gold price of US$1500/oz and a silver price of US$16.50/oz was used in the study. At an approximate spot gold price of US$1,800/oz, the post-tax NPV of the Project, at a discount rate of 8%, is US$139M, and its IRR 69%.
The Tlamino Project covers an area of approximately 200km2 in southern Serbia and is held by Medgold under two exploration licenses. 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, all fully funded by Fortuna, which successfully intersected gold mineralization in a shallowly inclined body of hydrothermal breccia below altered schist (as announced on March 21, 2019). The Inferred Mineral Resource at the Barje Prospect extends from surface to a depth of approximately 110m as a shallowly inclined zone over an area of approximately 600 m x 350 m. The true thickness of mineralization generally ranges between 10 m to 40 m.
Qualified Person
Aleksandar Vuckovic, MAIG, Exploration Manager for Medgold and Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release. Mr. Vuckovic is not independent of the Company.
About Medgold Resources Corp.
Medgold is a TSX-V listed, gold exploration company targeting early-stage properties in the Balkan region. Run by an experienced management team with a successful track-record of building value in resource companies, Medgold is focused on growth through exploration and resource definition in the prospective and under-explored Balkan region."