Mundoro Announces Drill Program Results From Borsko License in Serbia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 7, 2017) - Mundoro Capital Inc. (TSX VENTURE:MUN) (www.mundoro.com) ("Mundoro" or the "Company") is pleased to announce the results from drilling at the Borsko Jezero license ("Borsko"). Borsko is one of the four licenses part of the JOGMEC-Mundoro option to earn-in agreement announced in August 2016. Borsko is located directly west of the Serbian state-operated producing mines, RTB Group's Bor copper porphyry mine and the Veliki Krivelj copper-gold porphyry mine, all located in the central portion of the Timok Magmatic Complex ("Timok"). See Figure 1 - Location Map of Borsko Drill Targets.
Teo Dechev, CEO & President of Mundoro commented, "We are strongly encouraged by the alteration and mineralization we have intercepted in the drill core thus far at the Borsko license and that the results to date from the initial drill holes provide support for the project's potential to host a copper-gold epithermal and porphyry system. We are planning, along with our partner JOGMEC, for further drilling at Borsko in the second half of 2017."
Borsko Drill Program
Overview
The Borsko drill program tested the first two of six targets generated by the 2016 field program (Figure 1 - Location of Borsko Drill Targets). For the 2016 field program, Mundoro carried out a soil sampling program over the central portion of the license to follow up on high copper-gold stream sediment anomalies which could not be explained by previous prospecting and rock sampling. The soil sampling results returned significant copper-gold anomalies which remain open to the north and south. Follow-up field work revealed association of some of the soil anomalies with altered dike contacts, discrete quartz stockwork veinlets and fine grained sulphides related to fault-fracture zones. Mundoro conducted ground magnetic and CSAMT surveys, structural analysis and limited trenching over certain soil anomalies.
Geology Interpretation of Borsko License Area
The Borsko license is located in the Timok Magmatic Complex which is one of the most prolific metallogenic domains in the Tethyan Belt. The geologic units in this licence area consist of Upper Cretaceous volcano-sedimentary successions, predominantly andesite and pyroclastics. Generally considered the most prospective geological units, the Phase 1 hornblende porphyry andesite occupies the easternmost boundaries of the Borsko license and dips moderately to southwest under the andesitic flows and interflow breccias and pyroclastic rocks of the second phase.
The H1-2017 drillholes are located approximately 2.5 kilometers west of the Bor group of copper-gold deposits which include high sulphidation epithermal mineralization such as the historical Tilva Rosh deposit which has been mined out and reported to have been intersected in the uppermost 30m meters of the lithocap.
The interpretation of Borsko geology summarized above along with models of known deposits in the district highlights the uppermost part of the lithocap, immediately below the less-altered volcanic sequence, as the prime target for any high-sulphidation copper-gold orebodies of Bor and Čukaru Peki type. Any such massive and/or stockwork sulphide bodies are likely to lie within the footprint of the underlying porphyry copper-gold centre.
The H1-2017 drilling at Borsko shows that an advanced argillic lithocap underlies 550 m of little-altered andesitic volcanic rocks, which were in existence at the time the advanced argillic alteration took place. The lithocap is weakly mineralized but, importantly, the highest copper and gold assay values lie immediately beneath its top, which is the equivalent stratigraphic position of the Bor and Čukaru Peki high-sulphidation copper-gold orebodies with respect to their associated lithocaps.
Hole BJ-07 exits the lithocap at depth and intersects pyrite-bearing propylitic alteration, which is interpreted to be the outer halo of a porphyry copper-gold centre. Additional holes are planned in order to search for high-sulphidation orebodies at the top of the Borsko lithocap.
Target 1 - See Figure 2 - Cross Section of Target 1
- Drillhole BJ_06, which tested one of the newly generated drill targets at Borsko successfully demonstrated that a potentially mineralised system exists under overlying andesitic flows. This drill hole targeted an interpreted blind system at Target 1. Targeting was based on geophysical data and geological interpretation. The hole was completed at a depth of 821.6 m.
- BJ_07: Based on the visual inspection of BJ_06, Mundoro and JOGMEC determined to extend the drill program to further test Target 1 with a follow up drill hole, BJ_07, up to 1300 m length.
Target 2 - See Figure 3 - Cross Section of Target 2
- BJ_08: This diamond drill hole was designed to test Target 2 with a planned depth of 700 m. Based on visual inspection of the core, Mundoro and JOGMEC determined to extend the drilling to 1,000 m. Target 2 was based on geophysical data and structural interpretation in relation to surface geochemistry and hydrothermal alteration.
Table 1: Borsko Drill Holes Observations
| Drill Hole ID | Total Depth | Dip/ Azimuth | Geological description | |
| BJ_06 | 821.6m EOH | -65/246 | • | From surface to 585 m, cut through a package of weak but pervasively altered to chlorite-smectite, lacking pyrite andesitic flow and interflow breccias; |
| • | At 585 m the drill hole abruptly entered advanced argillic mainly kaolinite lithocap containing disseminated pyrite increasing at depth. | |||
| • | From 625 m to 767 m (142 m) the drill hole entered pervasively silicified andesite volcanics containing semi-massive pyrite, vuggy silica and breccia zones. The breccias are polymictic and relatively late stage. | |||
| • | From 762.6 m to 767 m such breccia contains 4.4m @0.27 g/t Au, 5.46 g/t Ag; including 0.6m @ 0.8 g/t Au, 24.3 g/t Ag and 0.18% Cu. | |||
| • | From 765 m to end of the hole at 821 m, the drill hole transitioned to advanced argillic altered partly brecciated andesitic volcanics containing more dickite with occasional sericite-pyrite and semi-massive pyrite implying increased temperature. | |||
| BJ_07 | 1301.9 m EOH | -85/66 | • | From surface to 580 m, intersected a package of weak but pervasively altered to chlorite-smectite, lacking pyrite andesitic flow and interflow breccias; |
| • | From 580 m to 1132 m (552 m) the drill hole entered advanced argillic quartz-kaolinite lithocap as in drill hole BJ-06. | |||
| • | In the lithocap, quartz-kaolinite-pyrite transitions downwards at around 1100 m to quartz-kaolinite-dickite-pyrophyllite-pyrite implying increased temperature. Pyrite is fine-grained locally sooty (melnikovite) and occurs in disseminated and semi-massive pods rather than veinlet form. | |||
| • | The lithocap is locally overprinted by 1-5 m intervals of cream-colored silicification cut by irregular veinlets and patches of massive pyrite. Vuggy residual quartz and subsidiary alunite are also observed locally. | |||
| • | From 1032 m enargite-pyrite mineralisation is observed in an interval 6.2m containing 0.26 g/t Au, 2.6 g/t Ag, 0.2% Cu including 1.4m with 0.6 g/t Au, 0.23% Cu and 0.7 m with 0.14 g/t Au, 0.6% Cu. | |||
| • | From 1132.5 m to the end of the drill hole at 1302 m, the lithocap is transitional to propylitic alteration in which magnetite is preserved and pyrite contents are much less. The transition zone contains remnant chlorite but lacks epidote that defines the underlying propylitic zone. | |||
| BJ_08 | 1002 m EOH | -75/351 | • | From surface to 509 m, drilled through alternating andesitic agglomerate and andesite tuff weakly chlorite-smectite altered. |
| • | From 509 m to 615 m drill hole continued through sedimentary package of marl and conglomerates layered with andesite tuff. | |||
| • | From 615 m to 682 m, the drill hole intersected unaltered coarse-grained hornblende andesite ('Phase 1 andesite'). | |||
| • | From 682 m to the end of the drill hole 1002 m, the drill hole continued in weakly chlorite-smectite altered hornblende andesite and andesitic breccia with trace of chalcopyrite-pyrite mineralised clasts at 695.5 m and 749.6 m. | |||
| • | At 942.4m the drill hole cut through interval with covellite mineralisation which returned 0.9m @ 0.83 g/t Au and 2.63% Cu. |
Table 2: Assay Results of Borsko Drilling
| Drill Hole ID | Total Depth | Dip/ Azimuth | From (m) | To (m) | Interval (m) | Cu (%)1 | Au (g/t)2 | CuEq (%)3 |
| BJ_06 | 821.6 m EOH | -65/246 | 758.4 | 767.0 | 8.6 | 0.023 | 0.2 | 0.17 |
| Including | 764.6 | 765.2 | 0.6 | 0.18 | 0.78 | 0.75 | ||
| BJ_07 | 1301.9 m EOH | -85/66 | 607.6 | 609.0 | 1.4 | 0.004 | 1.03 | 0.76 |
| 734.0 | 738.4 | 4.4 | 0.01 | 0.16 | 0.13 | |||
| 768.3 | 769.7 | 1.4 | 0.008 | 0.45 | 0.34 | |||
| 771.9 | 775.0 | 3.1 | 0.006 | 0.24 | 0.18 | |||
| 873.0 | 875.5 | 2.5 | 0.27 | 0.33 | 0.51 | |||
| including | 875.1 | 875.5 | 0.4 | 0.71 | 0.65 | 1.18 | ||
| 989.5 | 992.5 | 3.0 | 0.03 | 0.15 | 0.14 | |||
| 1006.0 | 1013.8 | 7.8 | 0.02 | 0.14 | 0.12 | |||
| 1032.0 | 1050.0 | 18.0 | 0.07 | 0.17 | 0.19 | |||
| including | 1032.0 | 1035.4 | 3.4 | 0.27 | 0.33 | 0.51 | ||
| 1130.0 | 1132.5 | 2.5 | 0.03 | 0.28 | 0.23 | |||
| including | 1131.8 | 1132.5 | 0.7 | 0.05 | 0.77 | 0.61 | ||
| BJ_08 | 1002 m EOH | -75/351 | 625.0 | 627.0 | 2.0 | 0.1 | 0.007 | 0.11 |
| 942.4 | 943.3 | 0.9 | 2.63 | 0.83 | 3.24 | |||
| 1. Analysis by ICP-AES using 0.5 g aliquot for samples containing less than 1% copper, by AAS for samples containing 1 - 11% copper, and by ICP-AES using 0.1 g aliquot for samples containing >11% copper. | ||||||||
| 2. Analysis by fire assay with gravimetric finish for samples containing greater than 3 g/t gold, and by fire assay with AAS finish for samples containing less than 3 g/t gold. | ||||||||
| 3.The copper equivalent (CuEq%) is calculated from the formula CuEq = (%Cu) + [(g/t/AuEq) x (1/31.1035) x ($/ozAu)] ÷ [(22.0462) x ($/lbCu)] | ||||||||
| 4. The gold equivalent is calculated from the formula AuEq = (g/t/Au)+[(%Cu) x (22.0462) x ($/lbCu)] ÷ [(1/31.1035) x ($/ozAu)]. | ||||||||
| 5. All thicknesses from intersections from drill holes are down-hole drilled thicknesses. At this early stage of exploration for a high-sulphidation epithermal and porphyry system at depths typical of the Timok, it is not possible at this time to determine the orientation of the mineralized zones, or to estimate their true thickness. | ||||||||
Next Steps
The Company is preparing a follow up drilling program for the second half of 2017. Based on the data collected in this most recent drill program and the associated analysis and interpretation, the Company and its partner JOGMEC, believe that Borsko has strong potential to host high sulphidation and porphyry style copper-gold mineralisation. Mostly notably, the prospective lithocap horizon discovered through this program is directly analogous with the host horizons at the Bor underground high sulphidation deposits and Cukaru Peki discovery.
JOGMEC-Mundoro Option to Earn-in Agreement
In July 2016, the Company amended its binding interim agreement (the "Interim Agreement") with Japan Oil, Gas and Metals National Corporation ("JOGMEC") and granted to JOGMEC an earn-in option on four of Mundoro's exploration licenses: Dubrava, Padina, Zeleznik and Borsko Jezero (the "Timok North Projects") located within the Timok Magmatic Complex in northeastern Serbia. JOGMEC has the option to earn a 51% interest in the Timok North Projects by making US$4 million in expenditures within three years (March 2019) ("Stage One Earn-in"). JOGMEC has completed its commitment to expend US$1 million of this amount by March 2017. Following the Stage One Earn-in, JOGMEC has a right to acquire an additional 24% interest in the Timok North Projects, for a total of 75% interest, by funding the completion of a Feasibility Study (up to US$32 million) by the eighth anniversary of the Interim Agreement (March 2024) ("Stage Two Earn-in"). On completing the Stage Two Earn-In, JOGMEC will have a right, exercisable for a period of 60 days, to purchase an additional 5% interest in the Timok North Projects from Mundoro, for a total of 80% interest.
Qualified Person
Technical information contained in this Press Release has been reviewed and approved by Mr. G. Magaranov, P. Geo., Qualified Person as defined by National Instrument 43-101.
QA/QC, Sampling and Analysis
Drillhole orientations were surveyed at approximately 30 m intervals. Company personnel monitored the drilling, with cores delivered daily to the Company's core storage facility in the town of Bor, where it was logged, cut and sampled. Core recovery is recorded as 95-100% in most intervals, with the exception of the more intensely tectonized sections. The samples were collected in accordance with the Company's protocols that are compatible with accepted industry procedures and best practice standards. Most samples through the mineralized intervals were 1 metre in length, up to a maximum 2 metres. In sections of poorly mineralized or unaltered and unmineralised rocks one 2m sample was collected at every 15 meters core. The samples were submitted to ALS Laboratory in Bor, Serbia, for sample preparation and analysis. In addition to the laboratory's internal QA/QC procedures, the Company conducted its own QA/QC with the systematic inclusion of certified reference materials every 20 samples, blank samples every 20 samples and field duplicates at every 25 samples.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a Canadian mineral exploration and development public company focused on building value for its shareholders through directly investing in mineral projects that have the ability to generate future returns for shareholders. The Company currently holds a diverse portfolio of projects in two European countries as well as an investment in a producing gold mine in Bulgaria and a feasibility stage gold project in China. The Company holds eight 100% owned projects in Serbia, the four Timok North Projects are in option to JOGMEC, and the four Timok South Projects are being advanced by Mundoro. Mundoro's common shares trade on the TSX Venture Exchange under the symbol "MUN".
Caution Concerning Forward-Looking Statements
This News Release contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words or the negative thereof, and include the following: completion of the earn-in expenditures and options by JOGMEC; and completion of a definitive joint venture agreement by the parties. The material assumptions that were applied in making the forward looking statements in this News Release include expectations as to the mineral potential of the Timok North Properties, the Company's future strategy and business plan and execution of the Company's existing plans. We caution readers of this News Release not to place undue reliance on forward looking statements contained in this News Release, as there can be no assurance that they will occur and they are subject to a number of uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include general economic and market conditions, exploration results, commodity prices, changes in law, regulatory processes, the status of Mundoro's assets and financial condition, actions of competitors and the ability to implement business strategies and pursue business opportunities. The forward-looking statements contained in this News Release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this News Release are made as of the date of this News Release and the Board undertakes no obligation to publicly update such forward-looking statements, except as required by law. Shareholders are cautioned that all forward-looking statements involve risks and uncertainties and for a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with the Canadian securities regulators available on www.sedar.com.
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