1. Highlights
- Large (35km²) volcanic rock-hosted, low-sulfidation, quartz-adularia epithermal system.
- Rhyolite flow dome complexes define a series of topographic highs within the licence area which cumulatively extend for approximately 10km; these rhyolite ridges are in turn surrounded by a large (27km²) sinter field.
- Limited historic exploration diamond drilling focused on the northeast portion of the property (along strike from the Kremnica gold deposit) where the sinters have been removed by erosion to expose silicified rhyolite flow domes with chalcedonic quartz veins containing low-grade gold and elevated arsenic and antimony values.
- The sinter field has not been drill tested for gold mineralisation; it has been extensively drill tested for bentonite (average hole depth 20m).
- The Company believes that the current land surface is approximately 200-300m above the precious metal zone (i.e., the low-sulfidation epithermal system is preserved) and it is the Company’s opinion that the historic drilling had not tested the true potential of this large epithermal system.
- The Property is located 5km south, along strike and within the same volcanic depression that hosts the historic quartz-adularia Kremnica gold deposit (current JORC (2012) mineral resource estimate of 2.7Moz Au).
- Exploration target: high-grade gold (Au) ± silver (Ag) quartz veins; underground mining scenario.
Supporting maps can be found at the end of this press release:
Figure 1. The Lutila Exploration Licence relative to the Kremnica Mining Licence – Geology & Tenure
Figure 2. Lutila Exploration Licence – Geology & Tenure
Figure 3. The Lutila Exploration Licence – Topography, Tenure, Sinters and Bentonite Open Pits
Quote from the President & CEO, Mr
“The acquisition of the
2. Background
On
During the first quarter of 2023, the Company was informed by Green View s.r.o. that the Lutila exploration area (No. 14675/2023) had been granted by the
The Company’s Slovak subsidiary, Stredné Slovensko s.r.o., was informed by the
The Company is permitted to perform exploration activity on the property immediately.
3. About the
- EU and
NATO member since 2004. Eurozone member since 2009.- Established mining industry, clearly defined mining legislation.
- No restrictions on foreign ownership.
- 21% corporate tax rate.
- 5% NSR for gold and silver.
- The use of cyanide for extractive purposes has been prohibited since 2014.
- Low-cost profiles, skilled local workforce.
- Exploration licences can be held for a 10-year period (4+4+2).
4.
The property is located near the northern margin of the Central Slovak Volcanic Field within an area dominated by north to north-northeast trending faults and post-andesite resurgent rhyolite flow domes and dykes. The faults are normal, extensional, and form a series of horsts and grabens that are extensions of the Banská Štiavnica caldera complex that lies several kilometres to the south.
The Company was attracted to the property for the following reasons:
- The extensive sinter field which reflects the position of the paleosurface and is a surface indication of boiling at depth within an epithermal system which, if present, is preserved from erosion.
- The historic exploration diamond drilling within the northeast portion of the property indicated that the silicified rhyolite flow domes ± chalcedonic quartz veins did in fact contain gold mineralisation, which is important when assessing the upper, lower temperature parts of low-sulfidation epithermal vein systems.
- The proximity to the historic Kremnica gold deposit, which is located along strike, 5km to the north and within the same volcanic depression and effectively informs the Company’s exploration model was a key factor in acquiring the property.
- Review of public domain data relating to the Kremnica gold deposit indicated that rhyolite dykes were intimately associated with and often well mineralised where they are cross-cut, or run parallel to quartz-adularia veins, thus indicating that extrusive rhyolite volcanism was likely a pre-mineral event.
Taken together, the above points indicate to the Company that the Kremnica gold deposit most likely has been subjected to approximately 200-300m of erosion, including the removal of sinters and the silicified rhyolite flow dome complex so as to expose the quartz-adularia vein system within andesite volcanic rocks at surface and coincident with the precious metal zone, which most likely accounts for the exploitation of the deposit over such a long period of time.
Taken further, the Company believes that the
The Company’s conceptual exploration model is outlined below:
5. The Kremnica Gold Deposit
Historians estimate that mining of the Kremnica gold deposit may have started as early as the 8th century AD and the town of Kremnica was granted privileges of a free royal mining town in 1328. Finka, 1995, through a review of historical documentation, estimated that approximately 46t Au (1.6Mozs) had been produced from the deposit with the Company assuming that overall recovery rates were poor.
Currently an Australian company,
Finally, it is worth noting that a second vein system is associated with the Kremnica gold deposit, known locally as the Vein II system which, according to Bakos et al, 2017, had vein thicknesses ranging from 0.1 to 2m (but with converging veins, the width may be up to 5m with a strike length of up to 1.6km). They have formed in the hanging wall position to the main Kremnica vein system and are located 650m to the east under the town of Kremnica. The Vein II system never outcropped at surface and was discovered serendipitously when a dewatering adit intercepted the quartz-adularia veins. Bakos et al, 2017 report high gold grades from this vein system.
* This is not a mineral reserve or mineral resource that has been prepared in compliance with the requirements of National Instrument 43-101.
6. Due Diligence
The BULGOLD team has visited the property in support of its due diligence activities.
Within the sinter field the team field checked 80% of the outcropping siliceous sinters and confirmed that they were sinters which exhibit horizontal layering (laminations) and contain abundant flora and fauna fossils in the form of moulds and as replacement by low temperature opaline silica which is now chalcedonic quartz. The BULGOLD team also noted that some of the sinter occurrences are quite thick, up to 25m in some locations and are found at various topographic levels.
Within the northeast portion of the property the BULGOLD team field checked the silicified rhyolite flow dome complexes ± chalcedonic quartz veins within the Čertov vrch area and cut and slabbed the following float samples in the field (~500mRL):
*BULGOLD Assay Results (SGS Bor)
The rock samples were strongly silicified, brecciated and banded chalcedonic quartz (colloform-crustiform) in rhyolite rocks from the area of the Čertov vrch; minor marcasite ± pyrite recognised in non-oxidized portions of the rock. The gold results were in line with what the Company would expect from their location within the upper, lower temperature part of a low-sulfidation epithermal quartz-adularia vein system.
A significant portion of the due diligence process involved review of public domain information on the Kremnica gold deposit as it has been subjected to various study work over the past fifteen years by various companies. In particular, the Company was interested in the metallurgical response of the quartz-adularia veins given that the
“A program of metallurgical test work was carried out by
Sample | Average Head, g/t | Overall Gold Recovery, %* | Overall Silver Recovery, %* | |||||||
ID | Au | Ag | GSB | CN | GSB+Flot | GSB+CN | GSB | CN | GSB+Flot | GSB+CN |
Comp 1 | 0.51 | 5.6 | 70.6 | 76.1 | 77.0 | 88.3 | 30.2 | 45.0 | 73.0 | 44.5 |
Comp 2 | 2.60 | 7.8 | 83.5 | 89.8 | 93.9 | 96.1 | 35.6 | 60.3 | 50.4 | 68.8 |
Comp 3 | 2.48 | 15.3 | 56.1 | 89.6 | 82.7 | 92.4 | 20.9 | 44.5 | 83.9 | 52.4 |
Comp 4 | 2.49 | 16.8 | 65.4 | 90.2 | 90.0 | 94.6 | 26.3 | 48.7 | 80.3 | 55.7 |
Comp 5 | 2.00 | 18.4 | 37.9 | 92.9 | 72.1 | 95.4 | 12.8 | 64.0 | 57.8 | 74.0 |
Comp 6 | 1.33 | 10.0 | 46.4 | 94.1 | 78.0 | 94.9 | 16.2 | 62.7 | 49.5 | 69.6 |
Comp 7 | 1.86 | 14.2 | 66.8 | 90.9 | 85.0 | 94.4 | 18.3 | 57.4 | 45.1 | 62.1 |
Comp 8 | 1.83 | 15.8 | 65.3 | 92.8 | 73.8 | 95.2 | 27.0 | 58.3 | 49.8 | 62.3 |
Comp 9 | 2.02 | 14.8 | 37.3 | 82.4 | 64.1 | 85.2 | 16.7 | 48.2 | 55.7 | 55.7 |
Comp 10 | 2.04 | 14.0 | 48.2 | 87.9 | 75.9 | 93.5 | 26.1 | 56.0 | 63.6 | 66.0 |
Master | 1.68 | 12.8 | 58.5 | 89.5 | 76.2 | 92.4 | 21.6 | 60.1 | 56.5 | 66.4 |
*Recoveries denoted by GSB = gravity, CN = cyanide,
The Company was encouraged by this test work in that it shows that unoptimised gravity-flotation test work at an unknown grind size and using <3g/t Au material resulted in an average 79% overall recovery.
7. Veľký háj Exploration Licence & Third-party Bentonite Mining Leases
Due to specific procedural requirements with the granting of the Lutila exploration licence a small area within the northeast portion of the licence area and centred on the Veľký háj hill was excluded. As such, the Company has submitted the Veľký háj exploration licence application with an area of 1.92km² and this application remains in process.
Under Slovak law exploration licences for metallic minerals may not overlap with other licences for non-metallic minerals. There are currently eight Slovak mining companies actively extracting bentonite from open pits within third-party mining licences which adjoin and abut the Lutila property and the in process Veľký háj exploration licence application.
8. Next Steps
- Conduct meetings with local and national stakeholders.
- Acquire, validate and incorporate into the Company’s database the historic exploration data from the Lutila exploration licence area.
- The Company has ‘inherited’ an initial 4-year work programme commitment of approximately
CAD$100,000 and intends to review this programme to ensure compatibility with Company’s board of directors’ approved budget. - Prepare for the Company’s maiden exploration diamond drilling programme, which is expected to commence in March/
April 2024 .
Bakos F., Chovan M., Žitňan P. et al, 2017. Gold in
Finka, O., 1995. Zlatá Kremnica: Tisícročná história baníctva, Neografia vydavateľstvo, Monografie 71 pages (in Slovak).
About
BULGOLD is a gold exploration company focused on the exploration and development of mineral exploration projects in Central and
Rock samples are shipped to SGS Bor,
On
Qualified Person
The scientific and technical information described in this Press Release has been prepared in accordance with National Instrument 43-101. The scientific and technical information for
Neither
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”). These statements relate to future events or future performance and include statements relating to the
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including the inherent uncertainty of mineral exploration; risks related to title to mineral properties; and credit, market, currency, operational, commodity, geopolitical, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates and general market and economic conditions. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this press release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this press release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement.
For further information, please contact:
Telephone: +359 2 989 2361
Email: information@BULGOLD.com
Website: www.BULGOLD.com
Figure 1. The Lutila Exploration Licence relative to the Kremnica Mining Licence – Geology & Tenure.
Figure 2. Lutila Exploration Licence – Geology & Tenure.
Figure 3. The Lutila Exploration Licence – Topography, Tenure, Sinters and Bentonite Open Pits.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/79262a1d-6d56-4676-9483-62179b462e73
https://www.globenewswire.com/NewsRoom/AttachmentNg/3860c8b2-4ca4-480a-bbfe-bcbcdd1ac7b5
https://www.globenewswire.com/NewsRoom/AttachmentNg/09d8cfbe-c026-4f15-a869-4e2f19d56757
https://www.globenewswire.com/NewsRoom/AttachmentNg/a67b46df-2afe-4d63-8fd1-9881968614fd
https://www.globenewswire.com/NewsRoom/AttachmentNg/d7dacb31-b10a-47e4-889f-c203f7ab01fe
Company’s conceptual exploration model
Company’s conceptual exploration model
*BULGOLD Assay Results (SGS Bor)
*BULGOLD Assay Results (SGS Bor)
Figure 1. The Lutila Exploration Licence relative to the Kremnica Mining Licence – Geology & Tenure.
Figure 1. The Lutila Exploration Licence relative to the Kremnica Mining Licence – Geology & Tenure.
Figure 2. Lutila Exploration Licence – Geology & Tenure.
Figure 2. Lutila Exploration Licence – Geology & Tenure.
Figure 3. The Lutila Exploration Licence – Topography, Tenure, Sinters and Bentonite Open Pits.
Figure 3. The Lutila Exploration Licence – Topography, Tenure, Sinters and Bentonite Open Pits.
2023 GlobeNewswire, Inc., source