Fortuna can earn a 51% stake in the Tlamino Project by spending US$3.0 million on the Project over three years. Once it has earned 51%, Fortuna can elect to form a 51:49 joint venture with Medgold to further develop the Project
Medgold Resources Corp announced that it has entered into an Option Agreement with Fortuna Silver Mines Inc.whereby Fortuna has the exclusive option to acquire up to 70% in the Tlamino Project located in Southern Serbia (comprised of the Donje Tlamino and Surlica-Dukat licences), by spending a total of US$8.0 million in qualifying expenditures and completing a preliminary economic assessment.
Dan James, President of Medgold, commented: “We are very pleased with Fortuna’s continued support of our exploration efforts in Serbia. Their decision to option the Tlamino Project is a clear demonstration of our joint excitement over the Project and a validation of our successful project generation work completed in 2016. We will continue to generate projects under our Strategic Alliance with Fortuna, and will also now commence a more focused exploration campaign at Tlamino under the Option Agreement. We have a combined budget of CAD$2.5m for 2017 in Serbia, which will allow us to complete a program of ground geophysics and diamond drilling at Tlamino aiming to test recently reported channel results of 40 m of 8.32 g/t Au and 193 g/t Ag, as well as continuing our project generation work across the country.”
Fortuna Option Agreement
Under the terms of our Strategic Alliance whereby Fortuna has the exclusive right to option any two of Medgold’s Serbian projects, Fortuna’s first Selected Property is the Donje Tlamino and Surlica-Dukat licences, collectively the Tlamino Project, which cover a total area of approximately 200 sq km, and are located on the Bulgaria-Macedonia borders close to the town of Boseligrad.
Fortuna can earn a 51% stake in the Tlamino Project by spending US$3.0 million on the Project over three years. Once it has earned 51%, Fortuna can elect to form a 51:49 joint venture with Medgold to further develop the Project; or can elect to earn an additional 19% interest in the Project by spending an additional US$5.0 million in qualified expenditures and completing a preliminary economic assessment on the Project. The Option Agreement is subject to TSX Venture Exchange acceptance.
The Tlamino Gold Project
The Tlamino Gold Project is located in southern Serbia, and includes two historical showings: Liska and Barje. Both showings are associated with a regional east-west striking detachment fault, which in the vicinity of these showings has been overlain by conglomerates. Mineralization is located at the contact of the basement metamorphic rocks and the base of the conglomerate cover. Liska, located approximately 1.5 km to the southwest of Barje, was drilled in the 1970s by Yugoslav state companies, and a lensoid-shaped mineralized volume of rock with 1-2 % combined Pb & Zn was found to strike NE towards Barje. The mineralization at Liska is located at the base of the conglomerate and parallel to the slope of the detachment fault. Liska was found to contain little precious metals. At Barje, base metal contents are lower, but precious metals are found in much higher concentrations. The area between the two showings is overlain by a thin conglomerate cover likely in the range of 50 – 100 m in thickness, and Medgold considers the exploration potential under the conglomerate, between the two showings, to be excellent.