Published: March 9, 2017 |

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Medgold Resources Corp. has entered into an option agreement with Fortuna Silver Mines Inc. whereby Fortuna has the exclusive option to acquire up to 70 percent 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.

“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 C$2.5 million 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,” said Dan James, president of Medgold.

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 percent stake in the Tlamino Project by spending US$3.0 million on the project over three years. Once it has earned 51 percent, 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 percent interest in the project by spending an additional US$5.0 million in qualified expenditures and completing a preliminary economic assessment on the project.

A detailed structural interpretation of the Tlamino Project is currently underway, and previous historical exploration work is being integrated into Medgold’s exploration model and conceptual understanding of the mineralization. Exploration drill targets for the project will be developed over coming months, in anticipation of a first phase of drilling in summer 2017.

About Medgold
Medgold is a European-focused, TSX-V listed, exploration and development company targeting gold properties in Portugal and Serbia. Run by a highly experienced management team with a successful track record of building value in resource companies, Medgold is aiming to become a leading European gold exploration company.

To stop by Medgold’s website, CLICK HERE

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