MedgoldResources Corp. said July 11 that it has entered into an optionagreement to acquire up to 100% interest in the Marrancos gold project in theBraga District in central-northern Portugal.
The company has the option to acquire an initial 70%interest in the project from Lusorecursos, a private Portuguese company, for acash payment of €25,000 and spending €150,000 on exploration within a year.
Medgold can then elect for a 70/30 joint venture withLusorecursos, or pay another €20,000 and incur €150,000 in explorationexpenditures within 12 months of the transaction to earn the final 30%.
Upon closing the 100% interest deal, Medgold will grantLusorecursos a 1% net smelter royalty on production from the project. Medgoldcan purchase the royalty for US$1 million.
The project covers 39 square kilometers and fourwell-defined targets, including the main target Marracos prospect approximately1 kilometer from the main metasediment-granite contact.
Medgold's recent due diligence work at the site confirmedthe presence of a 15-meter wide shear corridor, and sampling returned fourrock-chip results of 35.9 g/t of gold, 8.63 g/t of gold, 4.75 g/t of gold and4.19 g/t of gold.
The company's exploration work in the coming months willfocus on the detailed analysis of the vein-structure relationship and theprincipal controls on the distribution of the high-grade sigmoidal veins.