• Medgold Resources

Vila De Rei

Location

The 300 sq km Vila de Rei exclusive license is located in central Portugal, approximately 150km northeast of the capital of Lisbon. The license was issued by the Direção-Geral de Energia e Geologia (DGEG) of Portugal in April 2013. The Government is working hard to ease legislation to fast-track production of strategic mineral resources and is fully supported by the Central European Parliament. The mining sector is a key part of the government’s strategy to stimulate economic growth and recovery through attracting foreign investment.

HISTORY

The Romans first applied their formidable exploration and mining talents to the Vila de Rei area nearly two thousand years ago. They found gold in the bedrock, but mostly focussed on the many alluvial gold occurrences in the area.

Between 1987 and 1989, the Portuguese government carried out a detailed regional exploration program (mapping, soil and rock sampling, and stream sediments) in the Tomar and Vila de Rei areas. From 2006 to 2008, Redcorp Ventures Ltd – aToronto-listed company – - undertook wide-scale regional exploration throughout the region. The results of much of this work are stored in the government archive offices in Porto and available to Medgold.


Vila de Rei licence map show key prospects

GEOLOGY AND MINERALIZATION

Medgold’s target at Vila de Rei is structurally-controlled and dominantly sediment-hosted mineralization, commonly forming as large-scale tension veins, considered to be orogenically-controlled.

The license covers a geologically complex linear structural zone, called the Porto-Tomar-Cordova Fault (PTCF), which marks the boundary between two majors structural units; the Ossa Morena Zone to the south and west, and the Northern Iberian Massif to the north and east. The PTCF stretches from Porto in the north, runs through the licence area, and strikes onto Badajoz and Cordoba (Spain) to the southeast. Approximately 40 km of the PTCF is located on the license area.

Medgold has identified geochemical anomalies associated with the PTCF, in addition to four previously identified anomalies, the largest of which (the Rei anomaly) extends over 3 km. Higher-grade zones occur in large sulphide-rich lenses which are hosted in silicified ’ribs’. The scale of the structural control within the license area, combined with the presence of multiple zones of anomalous gold, highlights the potential for significant additional gold discoveries.

HISTORIC RESULTS

Redcorp’s work between 2009 and 2010 included a license-wide stream sediment sampling program, at an average density of 3-4 sq km, and soil and rock sampling. Their rock chip sampling gave values from trace to 24.72 g/t Au from a total of 247 samples, with maximums of 22.85 and 19.24 g/t Au. Thirty three out of the 247 samples collected assayed above 1 g/t Au.

Readers are cautioned that sampling by previous companies is historical in nature, and was reported in internal reports archived in the Laboratório Nacional de Energia e Geologia (LNEG) in Porto, Portugal. The results have not been verified by Medgold, and are quoted for information purposes. Medgold's Qualified Person has verified that the technical information disclosed herein is an accurate summary of the internal reports.

The sampling by previous companies is historical in nature, and reported in internal reports archived in the Laboratório Nacional de Energia e Geologia (LNEG) in Porto, Portugal, and have not been verified by Medgold, and are quoted for information purposes. Medgold's Qualified Person has verified that the technical information disclosed herein is an accurate summary of the internal reports.

MEDGOLD EXPLORATION

Preliminary exploration at the Pampilhal prospect has outlined highly anomalous gold mineralisation associated with silicification over a 2.4 km by 1.3 km area, including over 2.8 km combined strike length of linear, structurally-controlled, gold-bearing silica ridges or “ribs”. A geochemical sample map can be seen below.

  • The longest exposed silica rib, named Dan’s Ridge, extends for over 1.2 km and returned anomalous gold along its entire length, with assays ranging from trace to 12.45 g/t Au and including samples of 3.48 g/t and 1.06 g/t Au. Thirty-two rock grab samples were collected along its length at roughly 40-100 m intervals.
  • The Western Ridge, in the northern end of the prospect, is exposed over 300 m and returned remarkably consistent high gold assays for a first-pass sampling program. Five rock grab samples were collected along its length at roughly 75-100 m intervals, returning 2.10 g/t, 1.20 g/t, 1.45 g/t, 2.36 g/t and 1.15 g/t Au.
  • In the southern end of the prospect, the Southeast Ridge is exposed over 365 m. Eight rock grab samples were collected, yielding results from 0.046 g/t to 3.76 g/t Au and including samples of 3.32 g/t Au and 1.84 g/t Au.

Pampilhal anomaly showing silica ribs in red and the principle gold anomaly, defined by geochemistry and alteration
Figure 2. Pampilhal anomaly showing silica ribs in red and the principle gold anomaly, defined by geochemistry and alteration

Medgold carried out some reconnaissance work over the Pampilhal and Rei anomalies. A total of 106 rock grab samples were collected, (including 11 QC samples), with 55 from Pampilhal prospect and 40 from Rei prospect. Forty one samples (75%) collected from the Pampilhal prospect yielded greater than 0.1 g/t Au and 11 (20%) greater than 1.0 g/t Au, with values ranging from trace to 12.45 g/t Au.

Programme

Medgold is planning further work focused on detailed mapping and channel sampling of the silica ribs at Pampilhal with the aim of defining potential drill targets. In addition, licence-wide reconnaissance sampling and mapping will continue, with the aim to discover further prospects and advance all to drill-ready status.

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