2022-07-25 | TSXV:MED | Press release


Vancouver, Canada – TheNewswire – July 25, 2022 – Medgold Resources Corp. (TSXV: MED)|(OTC:MGLDF)|(ENG:1XD) is pleased to announce that it has entered into two definitive agreements with Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) (“Fortune“), to acquire Fortuna’s 51% stakeInterest”) in the Tlamino project, located in Serbia (the “Project”).

The first agreement of this type terminates the option agreement (the “Option”) entered into between the parties on December 15, 2020 which provided for Medgold to acquire the interest for cash consideration of US$3.468 million (press release, January 7, 2021) and the second, which converts the interest to 1% net smelter return royalty (theRoyalties”) in favor of Fortuna. All obligations under the option have been extinguished. The royalty can be purchased at any time for a cash consideration of $3 million. The agreements are subject to acceptance by the TSX Venture Exchange.

Medgold is actively evaluating a range of strategic options for the project on a 100% ownership basis, and expects to be able to report back in due course.The Company takes advantage of this tothank Fortuna for their support of Tlamino and Medgold, and for their collaboration in establishing these new agreements.

The Tlamino project

An inferred mineral resource update containing approximately 680,000 oz AuEq in 7.1 Mt grading 3.0 g/t AuEq at a cut-off grade of 0.7 g/t AuEq has been announced for the prospect Barje as part of a preliminary economic assessment (“PEAS”) on January 26, 2021. The highlights of the PEA can be summarized as follows:

  • Based on simple surface mining methods and the production of a flotation concentrate via conventional processing techniques, the pre-tax NPV of the Project, at an 8% discount rate, is 101 M USD, its IRR of 49% and its operating margin rate of 61%.

  • A gold price of US$1,500/oz and a silver price of US$16.50/oz were used in the study. At an approximate gold spot price of US$1,800/oz, the project’s after-tax NPV, at an 8% discount rate, is US$139m and its IRR is 69%.

The Tlamino project covers an area of ​​approximately 200 km2 in southern Serbia and is held by Medgold under two exploration licenses. Outcropping mineralization was first observed at Barje Prospect by Yugoslav state agencies in the 1950s and 1960s when a short gallery was opened but no drilling was carried out. The prospect was subsequently held by private and public companies between approximately 2005 and 2012, during which time limited drilling failed to intersect significant mineralization.

Medgold carried out mapping, surface sampling and geophysical (PI) work, followed by diamond drilling on the Barje prospect in 2018 and 2019, all fully funded by Fortuna, which successfully intersected gold mineralization in a shallow body of hydrothermal breccia beneath weathered shale (as reported on March 21, 2019). The inferred mineral resource of the Barje prospect extends from surface to a depth of approximately 110 m in the form of a gently sloping zone over an area of ​​approximately 600 mx 350 m. The actual thickness of the mineralization generally varies between 10m and 40m.

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 press release. Mr. Vuckovic is not independent of the Company.

About Medgold Resources Corp.

Medgold is a gold exploration company listed on the TSX Venture Exchange company targeting early-stage properties in the Balkan region. Led by an experienced management team with a successful track record of building value in resource companiesMedgold is focused on growth by exploring and defining resources in the prospective and underexplored Balkan region.

Additional information about Medgold is available on the Company’s website at www.medgoldresources.com and by consulting the company’s page on SEDAR at www.sedar.com.


Jérémy Crozier, Chairman and CEO

For more information, contact:

Presidentand CEO

Jeremy Crozier (Vancouver)), +1 604 801 5432, info@medgoldresources.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking statements and include, but are not limited to, the Company’s plans for the Tlamino Project, as well as the mineral resource estimate and the EEP for the Tlamino project. Often, but not always, these forward-looking statements can be identified by the use of words such as “estimate””, “estimate””, “estimate””, “potential””, “open””, “future””, “assume””. ;, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be&CloseCurlyDoubleQuote ;, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by the statements. prospective. These uncertainties and factors include, among others, whether the TSX Venture Exchange will accept the agreements with Fortuna; the uncertainties inherent in estimating mineral resources and PEAs; changes in general economic and financial market conditions; the Company or any joint venture partner not having the financial capacity to achieve its exploration and development objectives; risks associated with the results of exploration and development activities, mineral resource estimates and the geology, grade and continuity of mineral deposits; unforeseen costs and expenses; and other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulatory authorities and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

The forward-looking statements contained herein are based on management’s assumptions, beliefs, expectations and opinions, including, but not limited to: that the arrangements with Fortuna will be accepted by the TSX Venture Exchange; the accuracy of the mineral resource estimate and PEA for the Tlamino Project; that the Company’s stated objectives and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and any other assumptions as set forth herein. Forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. required. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

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