(“MedaVinci” or the “Company”)
Update on Deli Jovan Gold Project
On 9 December 2010, the Company announced, inter alia, that SRK Consulting (UK) Limited (“SRK Consulting”) had been engaged to provide advice on the re-opening of the old mines at Rusman and Gindusa (with re-opening for exploration access planned for February 2011), and input on the economic parameters for development of a future gold mine.
The Board of Medavinci Plc is pleased to announce that SRK Consulting has reported as follows: “SRK considers it likely that a small scale mining operation can be established and sustained at Deli Jovan using handheld pneumatic drilling equipment. The current constraints on operations are the unknown processing recovery and the limited information on the continuation of the ore zone outside the known working areas. The target of 30,000 ounces per annum as set by Deli Jovan Exploration d.o.o (“DE”) could be achieved, on the condition that the historically reported widths and grades can be substantiated by the DE exploration programme.”
Note to Editor
Medavinci holds a 49 per cent interest in Orogen Gold Limited (“Orogen”) and has an option to purchase the remaining 51 per cent holding. Orogen has an option under an Earn in Agreement with TSX-listed Reservoir Capital Corp (“Reservoir”) and Reservoir Exploration (BVI) Ltd to acquire a 75 per cent interest in the Deli Jovan gold project in Serbia. DE was formed specifically to hold the Deli Jovan exploration permit and accommodate the earn-in structure.
DE contracted SRK Consulting to undertake a high level independent review of the Deli Jovan gold project, focussed on the planned re-opening of the historic gold mines at Rusman and Gindusa, including health and safety aspects, mine development options, ore processing routes and preliminary economic considerations.
DE plans to re-open access to two historic gold mines at Deli Jovan which exist to a known depth of 100m. If the staged exploration programme is successful, the objective is to commence a mining operation that could produce around 30-40,000 ounces of gold per year at full production.
A plan for the re-opening of access to the historic mines was prepared and submitted to the Serbian Ministry of Mining and Energy at the end of December 2010. Once the required approvals have been received DE proposes to appoint a local contractor to commence the rehabilitation of the old mine workings which will facilitate detailed mapping and sampling of the workings. The planned DE underground and surface exploration programme is aimed at demonstrating the continuity and grade of the Deli Jovan ore zone and obtaining samples for ore processing recovery test work, which will feed into planning for the re-development of this historic gold mining district.
Comments from Adam Reynolds
“The Board is delighted that SRK Consulting has reported positively following its review. The Board look forward to the re opening of both mines next month to facilitate detailed mapping and sampling of the historic workings. Subject to a successful outcome to the exploration programme, this leaves the Company on track to achieve production up to 3 years away”.
Mr Ed Slowey PGeo, EurGeol., a Qualified Person as defined by Canadian National Instrument 43- 101 and Managing Director of Orogen Gold Limited, is responsible for the preparation of the technical information in this release.
For further information please contact:
Adam Reynolds Tel: +44 (0) 207 245 1100
Zeus Capital Limited
Nominated Adviser and Joint Broker
Ross Andrews Tel: +44 (0)161 831 1512
XCAP Securities Plc
John Grant Tel: +44 (0) 207 101 7070