JOHANNESBURG (miningweekly.com) – TSX-V-listed Medgold Resources has granted Toronto, Ontario-based, Centerra Gold the option to earn a 51% interest in its Lagares gold project, in northern Portugal, by spending $3-million over three years.
Medgold explained in a statement that Centerra could earn an additional 19% by spending a further $3-million over two years.
The earn-in deal followed a successful ongoing 3 000 m diamond drilling programme, where 1 192 m had been drilled over 12 holes.
Gold assay values received ranged from below the detection limit to highs of 38.7 g/t of gold.
"We are delighted with the early success of the drilling at the Castromil zone. All drill holes have cut significant alteration and gold mineralisation, and surface rock and soil sampling programmes have traced the Lagares mineralised system along strike for 4 km.
“We've confirmed the existence of high-grade gold mineralisation associated with zones of silica and pyrite alteration, and the current drilling is indicating good depth potential, with the highest grade zones apparently extending to the northeast under cover,” Medgold president Dan James advised.
He added that the company would soon start drilling its next prospect – Serra da Quinta – with two rigs. “We really like the upside potential of the Lagares project and the drilling at Serra da Quinta will drill-test high-grade surface mineralisation, which appears to have very similar characteristics to the mineralisation at Castromil,” he highlighted.
The Lagares property was one of four mineral concessions held by Medgold in the Valongo belt, all of which were currently under option to Centerra.