Medgold Resources (TSXV: MED; US-OTC: MGLDF) will drill 5,000 metres at its Tlamino gold project in southern Serbia in 2019, fully funded by Fortuna Silver Mines (TSX: FVI).
Fortuna can earn a 51% interest in the project by spending US$3 million on exploration over three years. It can increase its interest to 70% by spending US$5 million and completing a preliminary economic assessment over an additional three years.
Medgold will try to expand its Barje prospect and test targets at its Karamanica prospect, 8 km west of Barje, including a 2 km long induced polarization chargeability anomaly within a 2 km by 1.5 km gold-in-soil anomaly.
Medgold drilled 31 holes in 2018 across its Barje and Liska prospects. It now has all its drill results, and has reinterpreted the 500-metre by 400-metre mineralized zone at Barje into a 700-metre by 250-metre zone, with a vertical thickness ranging from 10 to 151 metres.
Liska, which sits 1.5 km southwest of Barje, was previously drilled by Yugoslav state agencies and hosts a historic resource tallying 4.8 million tonnes grading 0.54% lead and 1% zinc. Medgold's 2019 drilling will target a 1 km zone between Barje and Liska.
Highlights from the company's 2018 exploration include 34.65 metres from 13.35 metres downhole grading 3.11 grams gold and 28 grams silver, and 22 metres from 2.2 metres downhole at 1.83 grams gold and 109 grams silver.
Medgold shares are trading at 12 ? with a 52-week range of 12 ? to 51 ?. The company has an $11-million market capitalization.