Medgold Resources Corp (CVE:MED) (OTCMKTS:MGLDF) has reached a milestone at its Tlamino project in Serbia, with the publication of a maiden resource for the Barje prospect there.
Medgold, via its joint venture with Fortuna Silver Mines Inc (NYSE:FSM) (TSE:FVI), carried out exploration and then diamond drilling at Barje in 2018 and 2019, successfully encountering gold mineralization in a shallowly inclined body of breccia.
The maiden NI 43 101 inferred resource comes in at around 680,000 ounces of gold-equivalent (from 1.1 million tonnes) at a grade of 3 grams per ton (g/t) at a cut-off grade of 0.7 g/t, Medgold said in a statement.
READ: Medgold Resources releases encouraging metallurgical test results from Tlamino project samples
This inferred resource at Barje extends from surface to a depth of around 110 metres (m) as a shallowly inclined zone over an area of around m by 350 m, the company noted.
In today's statement, Medgold also reported initial results of metallurgical test work.
Bulk rougher flotation tests were performed on two composite samples formed from 50.39 kg of core from the firm's 2018 drilling program at the Barje prospect.
These yielded head grades of 2.04 g/t gold and 10.99 g/t gold and recoveries to concentrate of 88.2% and 90.5%, respectively, the firm said.
The same samples yielded silver head grades of 15.1 g/t and 107.2 g/t, and silver recoveries to concentrate of 88.2% and 96.4% respectively, added Medgold.
The Tlamino project covers an area of around 200 sq km in southern Serbia and is held by Medgold under two exploration licenses - Donje Tlamino and Surlica-Dukat.
All exploration there is fully-funded by Fortuna, which has an option to earn up to 70% of Tlamino by spending US$8 million over five years and completing a preliminary economic assessment.
Fortuna has earned a 51% stake so far, having spent US$3 million on exploration.
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