Medgold is planning a 2,500m diamond drilling program, expected to commence in mid-July, targeting a gold-bearing sheeted orogenic vein system. Energold Drilling Corp. have been selected as drill contractors to complete the initial drilling program using man-portable drill rigs.

Dan James, President of Medgold, said: "We are very pleased to have received formal approval of the Centerra-funded drill program at the Limarinho Zone. With the permit in hand, we can now start a detailed evaluation of the main prospect, Limarinho. Our aims are to confirm the historical drill intercepts and to define a mineral resource over the area. In February last year, the Portuguese government classified Boticas as a Project of Strategic National Interest, which highlights the importance of the project to Portugal."

The exploration work at the Boticas Gold Project is fully-funded by our joint venture partner, Centerra Gold Inc. The JV with Centerra started in December 2015, and since that time, Medgold has undertaken grid-soil sampling over Limarinho and the wider region, and has completed a number of phases of channel-chip sampling.

The Boticas-Chaves Gold Project

The Boticas-Chaves Gold Project is comprised of two exploration licences covering a total area of approximately 600 sq km located in the north of Portugal close to the Spanish border. The principal prospect at Boticas is the Limarinho zone.

In the 1980s and 2000s COGEMA and then Kernow Resources, respectively, completed over 3,000m of diamond drilling at Limarinho. The drilling cut broad zones of low-grade gold mineralization (approx. 1 g/t Au), and also multiple mineralized corridors of higher grade (2-3 g/t Au) that are continuous over significant strike lengths.

Medgold recently completed a re-evaluation of the historical drilling data, applying strict compositing criteria of a 0.2 g/t Au cut-off and a maximum of 3m internal dilution. The re-calculated drill intersections are summarized below:

PFR17: 15.60m @ 3.25 g/t Au from 70.95m

KL04: 38.40m @ 1.96 g/t Au from 19.30m

KL04: 9.00m @ 3.59 g/t Au from 143.30m

KL03: 15.80m @ 2.14 g/t Au from 9.85m

PFR3: 29.60m @ 1.88 g/t Au from 28.20m

PFR10: 56.60m @ 1.33 g/t Au from 72.80m

PFR11: 25.50m @ 1.62 g/t Au from 51.10m