Assays from a composite channel sample interval at an adit in the Barje prospect contained 52m at 2.2g/t gold and 88g/t silver.
"Our confidence is building in our geological model, which we have been able to test having entered, mapped and sampled the adit, and we can now consistently demonstrate anomalous gold-silver values in all three directions at Barje," Medgold president Dan James said.
The adit had been excavated by a Yugoslav state company in the 1950s in a search for lead-zinc mineralisation.
James said exploration was progressing "steadily" despite a delay in the issuing of a land access permit and the company was aiming to start first-pass diamond drilling in the second quarter of 2018.
The drilling will be fully-funded by Medgold's strategic partner, Fortuna Silver Mines (CN:FVI).
The pair is part of the six-member, Vancouver-based Gold Group of companies led by Simon Ridgway, who is also Medgold's chairman and CEO.
Under the alliance, Fortuna can earn up to 51% of Tlamino by spending US$3 million within three years.
Medgold has terminated its exploration in Portugal to focus on its Serbian projects.
Shares in the company closed up 6.67% at C16c, towards the lower end of its 52-week range of 13-25c.