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Medgold up on first drilling results

Medgold Resources (TSXV: MED) shares rose 37% to a five-year high yesterday on the first two assays from inaugural drilling at its Tlamino gold project in the exploration hotspot of Serbia.
Medgold up on first drilling results Medgold up on first drilling results Medgold up on first drilling results Medgold up on first drilling results Medgold up on first drilling results

Inaugural drilling at Tlamino

Staff reporter

The results comprised 30.82m at 2.06g/t gold and 54.7g/t silver from 2.38m; and 34.65m at 3.11g/t gold and 27.5g/t silver from 13.35m, including 2m at 23.88g/t gold and 340g/t silver.

The junior announced the results with its earn-in partner Fortuna Silver Mines (TSX: FVI), which is fully funding exploration at Tlamino under an option to earn 70% by spending US$8 million over five years and completing a preliminary economic assessment.

Medgold said six holes had been completed to date, to test the continuity of mineralisation away from the Barje outcrop where sampling yielded positive results last year.

"The next several holes will continue to test the continuity of the Barje mineralised zone, as well as test the large geophysical chargeability anomaly located west of the outcrop," president Dan James said.

Serbia and the Tethyan belt are attracting exploration attention as interest grows over Nevsun Resources' Timok copper-gold project. 

Medgold shares, which have traded below C20c for much of the past year, touched 46c intraday and closed up 37.1% to 42.5c, capitalising it at $38.2 million.

Fortuna closed unchanged at $7.14.