VANCOUVER, Jan. 22, 2013 /CNW/ - Medgold Resources Corp. (TSX-V: MED), the European focused gold exploration company, is pleased to announce the successful issuance of the Grasceta gold exploration licence, located in southern Tuscany, Italy. The acquisition of the 8 square kilometre Grasceta licence, which adjoins the Company's Frassine licence, is part of the Company's strategy to build a portfolio of European gold projects with potential to host multi-million ounce deposits.
Medgold has commenced exploration in the area with field crews undertaking detailed mapping, grid-rock sampling and channel-chip sampling. Results from this phase of exploration are expected in late February.
Medgold President, Dan James, said: "This acquisition - our first since listing on the TSX-V - underlines our aggressive growth strategy. The region is extremely exciting with known jasperoid (silicified limestone) occurrences observed at both Frassine and Grasceta with historically-reported high gold grades. We are looking forward to exploring these two licences as well as our Pietratonda licence and drill testing the most prospective gold targets."
A drilling campaign conducted at Frassine-Grasceta in 1991 by a joint-venture between Anglo American Corporation (now Anglo America plc) and Agip Miniere (a subsidiary of the Agip oil company) completed 7 diamond drill holes for 600 metres which returned intersections of up to 3.15 g/t Au over 4 metres and 0.94 ppm Au over 19 metres in two holes, with a highest sample value of 6.4 g/t Au. These are historical data which have not been verified by Medgold and are quoted for information purposes.
Medgold collected 12 reconnaissance rock samples at Frassine-Grasceta in November 2011, which yielded a high of 1.02 g/t Au from a grab sample, and 0.41 g/t Au over 12 metres from a composite channel-chip sample.
The Frassine-Grasceta licences are located 43 km from the Pietratonda licence, which was the qualifying NI 43-101 project for Medgold's recent RTO. Medgold's licences cover potentially high-grade, limestone-hosted Carlin-type epithermal gold targets, one of the most prospective gold deposits types. The acquisition of the Grasceta licence is part of Medgold's strategy to build a significant land position in southern Tuscany where initial field work has demonstrated the presence of sediment hosted gold mineralization (see Medgold's NI 43-101 report dated November 5, 2012 on www.sedar.com)
Mineralization at Frassine-Grasceta is controlled by high-angle feeder structures, and hosted by jasperoids which typically occur on low-angle thrust faults and also in high-angle normal faults. High-grade gold mineralization is typically associated with the latter and can also be associated with localized copper-lead-zinc mineralization.
Dr. Richard Sillitoe, an internationally renowned geological consultant, visited the region for Medgold in November 2011 and noted the following: "Frassine is clearly the highest-priority licence area selected to date because of the previously defined, high-grade gold values, widespread distribution of jasperoid and localised presence of hypogene alunite. The deposit types being targeted in Tuscany are high- and low-grade sediment-hosted gold mineralization. High-grade analogues are Meikle and Deep Star in the Carlin trend of Nevada, where fault control with or without pre-existing karst are partial ore controls. An appropriate analogue for a low-grade (1-2 g/t) deposit is Gualcamayo, Argentina, which is hosted by partially karsted massive limestone."
Dan James concluded: "We are also evaluating a number of other gold projects in the Iberian peninsula. Our focus is on areas with known gold deposits, where we believe our programs will benefit from the urgent need of the regional governments for new investment and job creation. We will update our shareholders on progress in the coming weeks."
Dr. Stewart D. Redwood, FIMMM, Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 - Standards of Disclosure or Mineral Projects and has prepared or reviewed the preparation of the scientific and technical information in this press release.
Medgold is aiming to become the leading Mediterranean-focused exploration and project development company, with an extensive pipeline of projects includes gold and base metal opportunities in Italy and the Iberian Peninsula.
The Board and Management have many decades of combined exploration and mining experience. The Directors have collectively raised over $500m in equity financings to fund exploration in many parts of the world. Led by Chairman Simon Ridgway, the Board has substantial experience in both the Canadian and UK capital markets having seeded and listed a number of successful companies including Fortuna Silver Mines, Radius Gold, Horizonte Minerals, Stratex International, Northland Resources and Rathdowney Resources Ltd.
ON BEHALF OF THE BOARD
Simon Ridgway, Chairman and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Medgold Resources' projects in Europe are at an early stage and all estimates and projections are based on limited, and possibly incomplete, data. More work is required before the mineralization and the projects' economic aspects can be confidently modelled. Actual results may differ materially from those currently anticipated in this presentation. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the project will otherwise prove to be economic.
SOURCE: Medgold Resources Corp.
For further information:
Jaclyn Ruptash (Vancouver)
Dan James (London)
+44 (0) 207 305 7050 / +44 (0) 7972 579188