Medgold Prepares for Phase 2 Drill Program at Tlamino

Medgold Resources Corp. (TSXV:MED) announced that Phase 2 drilling of a minimum of 3,000 meters at the Tlamino gold project will begin at the end of July 2018. The exploration and development is being conducted under programs which are fully funded by Fortuna Silver Mines Inc. (TSX:FVI, NYSE:FSM) and directed by a joint Fortuna-Medgold technical committee pursuant to the terms of the Tlamino option agreement announced on May 1, 2017.

As quoted in the press release:

Mineralization has been identified over an area of at least 300 meters by 200 meters, and demonstrates a close spatial correlation with the IP-chargeability anomaly, which extends at least 700 meters further to the west for a total of area of approximately 1,400 meters east-west and 500 meters north-south.

Gold-silver mineralization at Barje is associated with tectonic brecciation along a large regional detachment fault which is mostly hosted within the hanging wall schists. This brecciation has structurally prepared large volumes of porous and permeable rocks, suitable to host mineralization. Intense hydrothermal breccias, with sulphide mineralization ground masses and altered schist clasts, typically form at the base of the hanging wall zones in close proximity to the detachment structure. These zones of intense brecciation, associated with sulphide mineralization, typically yield high-grade gold-silver intercepts. Brecciation, fracturing and sulphide mineralization is pervasive across large zones of the hanging wall schists and yields broad intersections of low-grade (>0.5 grams per tonne gold) to moderate-grade (>1 gram per tonne gold) gold plus silver mineralization.

Dan James, president, commented:

We’ve just made what we think is a significant gold-silver discovery at Tlamino so we’re keen to keep our momentum going with a second program of drilling at Barje. We hit with seven out of seven holes in the first stage of drilling which established a strong link between sulphide mineralization and the large IP-chargeability anomaly identified by our ground geophysics. So, Phase 2 has been designed to test the IP anomaly to the west of holes six and seven. Fortuna is strongly committed to the program and continues to provide significant financing, with the aim to drill-test an area of 1,400 meters by 500 meters.

We’re also planning to investigate the wider potential of the project, with a significant IP program planned for this summer at Karamanica. IP-geophysics worked well at Barje, successfully picking up sulphides, so we plan to run IP over the 2 kilometers by 2 kilometers Karamanica soil anomaly which is spatially associated with the same large-scale detachment fault as observed at Barje. We look forward to reporting results from both the Phase 2 drilling program at Barje, and the IP survey at Karamanica.