A significant update from management which, unfortunately in a BAD Market day, will probably not get the positive reaction it deserves.
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Medgold Resources Corp. has completed metallurgical testwork from the Barje prospect, within the Tlamino project in southern Serbia. Highlights of this work are as follows:
• Conventional flotation has produced a concentrate grading 48.9 grams per tonne gold and 824 g/t silver with recoveries to concentrate of 83.4 per cent for gold and 82.4 per cent for silver from a composite sample representing the main hydrothermal breccias; this material type hosts approximately 72 per cent of the total gold inventory reported in the current mineral resource estimate for the Barje prospect (see Medgold news release dated Jan. 30, 2020).
• A second composite sample representing the mineralized schist immediately above the hydrothermal breccias produced a flotation concentrate grading 24.4 g/t Au and 238 g/t Ag with recoveries to concentrate of 71.2 per cent for gold and 79.2 per cent for silver; this second material type hosts approximately 16 per cent of the total gold inventory reported in the current MRE.
These highly positive results will be incorporated into the preliminary economic assessment (PEA) for the Barje prospect currently in progress (Medgold news release dated Aug. 5, 2020). It is anticipated that the results of the PEA will be reported in the current quarter.
The company also announces that with effect of Oct. 12, 2020, it is in receipt of new exploration licences from the Serbian Ministry of Mining and Energy in respect to the Donje Tlamino and Surlica Dukat properties that together comprise the Tlamino project. These licences are each valid for terms of three years and are renewable for terms of three
The Tlamino project
A mineral resource estimate of approximately 570,000 ounces Au and 8.6 million ounces Ag (680,000 oz gold equivalent) in 7.1 million tonnes grading 2.5 g/t Au and 38 g/t Ag (3.0 g/t AuEq) in the inferred resource category was reported by Medgold for the Barje prospect (Medgold news release dated Jan. 30, 2020). Mineralization is at or near surface and with adjacent road and grid power access.
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 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) at the Barje prospect followed by diamond drilling in 2018 and 2019, which successfully intersected gold mineralization in a shallowly inclined body of hydrothermal breccia below altered schist (Medgold news 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.
