Another prospect being ,possibly, added to portfolio. When is management going to develop a revenue producing vehicle? ENOUGH ALREADY
"MEDGOLD ANNOUNCES LETTER AGREEMENT IN RELATION TO THE ZLOGOSH PROPERTY, BULGARIA
Medgold Resources Corp. has entered into an exclusive letter agreement with Gecon EOOD with respect to an exploration licence application made by Gecon at Zlogosh, Kyustendil Oblast, western Bulgaria. The main mineralized targets at Zlogosh are situated approximately 40 kilometres by road from Medgold's Tlamino project in Serbia, with which they appear to share considerable geological similarity. The location of Zlogosh relative to the Tlamino project is shown in an image on the company's website.
Historic work at Zlogosh identified multiple gold-in-soil anomalies including the 1,350-metre-by-600-metre Zdravkov Dol target, within which trench sampling returned intervals including 4.70 grams per tonne gold over 10.0 metres and 2.21 g/t Au over 8.0 metres. Other gold-in-soil targets include Kretsul, which returned 5.61 g/t Au over 4.0 metres in trench sampling, and Dobri Dol, which returned 3.04 g/t Au over 10.0 metres and 8.64 g/t Au over 5.0 metres in trenching. The location of mineralized targets at Zlogosh is shown in images on the company's website. Reported soil and trench sample results within the Zlogosh property are the work of previous operators; this work has not been verified by the qualified person. Details of sample collection, preparation and analysis are not known, and no quality assurance/quality control data have been reviewed for the reported work. Similarity of geology between the Zlogosh property and the Tlamino project is not evidence for similarity of mineralization.
Subject to satisfactory completion of due diligence, Medgold is planning to conduct drilling and other exploration activities at Zlogosh, targeting a mineral resource of a similar order -- or greater -- than that seen at the Tlamino project (see Medgold news release dated Jan. 30, 2020). Extensive historical data sets of stream sediment, soil and rock samples are available for Zlogosh, and Medgold intends to apply its understanding gained in similar exploration at Tlamino to these highly prospective targets. Medgold remains committed to the advancement of the Tlamino project in parallel with activities at Zlogosh.
Under the terms of the letter agreement, Medgold has the right to complete certain due diligence activities in regard to Zlogosh, which, if satisfactory, give Medgold the right to enter into an option agreement with Gecon EOOD. The letter agreement provides that said option agreement allows Medgold to earn an initial 51-per-cent interest in Gecon EOOD by financing approximately 330,000 euros in permitting and permitting-related expenditures, followed by a second option to earn a further 44-per-cent interest in Gecon EOOD by incurring approximately 650,000 euros in exploration expenditures. The remaining 5-per-cent interest in Gecon EOOD may be purchased by Medgold for 200,000 euros in cash on the third anniversary of the Zlogosh exploration licence once awarded or, at the election of the residual shareholder, for 200,000 euros in shares of Medgold subsequent to the attainment of exploration expenditures to the value of one million euros. Gecon EOOD is a private company incorporated under the laws of the Republic of Bulgaria.
The Tlamino project
On Jan. 30, 2020, Medgold announced an inferred mineral resource containing approximately 680,000 ounces gold equivalent in 7.1 million tonnes grading 3.0 g/t AuEq at cut-off grade of 0.7 g/t AuEq for the Barje prospect, within the Tlamino project in southern Serbia.
Medgold holds two exploration licences at Tlamino project covering an area of approximately 200 square kilometres. 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. Between approximately 2005 and 2012, the prospect was held by private and public companies, which carried out limited drilling but failed to intersect significant mineralization.
In 2018 and 2019, Medgold conducted mapping, surface sampling and geophysics (IP) followed by diamond drilling at Barje, which successfully intersected gold mineralization in a shallowly inclined body of hydrothermal breccia below altered schist (see Medgold news release dated March 21, 2019). The inferred mineral resource at the Barje prospect 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. A total of 4,089 m of diamond drilling in the areas of Barje, Liska and Karamanica were completed by Medgold during its 2019 exploration programs."