Last checked at 9 Dec 2010 07:00
Medavinci Plc
Update on Deli Jovan Gold Project
Further to the announcement on 3 December 2010, the Board is pleased to announce that the Company has initiated its exploration programme aimed at demonstrating down-dip and lateral extensions to the historic high grade mesothermal lode gold mines at Rusman and Gindusa, as well as the discovery of new gold zones along the 10km Deli Jovan trend.
A services contract agreement was signed with SEE d.o.o, Orogen Gold's joint venture partner on the Deli Jovan project, whereby SEE d.o.o. will provide geological and administrative services to the joint venture. In addition a contract has been agreed for the submission of a plan to the Serbian Mining Ministry for the re-opening of the two former mines to facilitate detailed underground structural mapping and close-spaced channel sampling.
The start of the re-opening is planned for February 2011. SRK Consulting has been engaged to provide advice on the re-opening of the old mines and input on the economic parameters for development of a future gold mine. Trial surface trenching will be carried out across the Rusman gold lode to obtain shallow information on the structure and grade of the gold system at surface. It is planned to extend the surface bedrock sampling programme subject to the satisfactory outcome of the initial programme.
In order to test the potential of the extensive Deli Jovan gold trend detailed soil geochemical sampling is planned to commence this month and 2,500 samples will be collected over a six-week period in the area between the Rusman and Gindusa mines, subject to weather conditions. Results are expected by February 2011.
The Board intends to invite John Barry, Ed Slowey and Alan Mooney, all directors of Orogen Gold Limited, to join the Board in the New Year, at which point a further announcement will be made.
Dr. Deirdre Lewis, PGeo, EurGeol of SLR Consulting Ireland has advised Zeus Capital on the technical information in this release.
For further information please contact:
Medavinci Plc
Adam Reynolds Tel: +44 (0) 207 245 1100
Paul Foulger
Zeus Capital Limited
Nominated Adviser and Joint Broker
Ross Andrews Tel: +44 (0)161 831 1512
Tom Rowley
XCAP Securities Plc
Joint Broker
John Grant Tel: +44 (0) 207 101 7070
Karen Kelly