Mundoro Announces Q2-2020 Exploration and Corporate Report
Mundoro Announces Q2-2020 Exploration and
Corporate Report
Vancouver, British Columbia--(Newsfile Corp. - August 24, 2020) -
Mundoro Capital Inc. (TSXV:
MUN) (
www.mundoro.com
)
("
Mundoro
" or the "
Company
"), is pleased to report its quarterly update
for exploration and corporate activity for the three months ending June 30, 2020.
The Company has filed
its quarterly Consolidated Financial Statements and Management's Discussion and Analysis on SEDAR
at www.sedar.com and posted on the Company's website at
www.mundoro.com
.
Highlights for Q2-2020
Financial Update
The Company ended Q2-2020 with $2,378,168 in cash and cash equivalents. Mundoro has no
long-term debt.
During the six months ended June 30, 2020 and 2019, the Company received operator fees of
$116,302 and $135,940 for its role as the operator on exploration programs for option partners.
The Company’s exploration costs were lower for the six months ended June 30, 2020 at
$1,742,150 compared to $1,990,496 for the six months ended June 30, 2019. Exploration costs
related to the JOGMEC Generative Alliance, JOGMEC-Mundoro JV Project, Vale-Mundoro
Projects, and the two licenses, Savinac and Bacevica, previously part of the Freeport earn-in from
October 2018 to April 2020, were sole-funded by option partners.
Recoveries from partners during the six months ended June 30, 2020 and 2019, amounted to
$1,197,817 and $1,337,490, resulting in net exploration costs of $544,333 and $653,006,
respectively.
During the period, Mundoro recorded lower corporate expenses of C$151k mainly due to
decreased expenses for governance, accounting and audit, and corporate communication. All
other corporate expenses incurred by the Company remained relatively constant from the prior
period.
Operational Update and Outlook
Since 2016, Mundoro’s business strategy has benefited from partner-sole-funded programs of
US$13.6 million and Mundoro has generated operator fees of US$1.3 million (C$1.7 million).
Mundoro continues to advance discussions with interested third parties regarding Mundoro's
existing
copper and gold
projects in our portfolio.
These discussions are in line with the
Company's business model to generate future returns for our shareholders from our mineral
properties through royalties, advance royalty payments, milestone payments, operator fees to
operate partner programs, an interest in commercial production or sale of our interest in a mineral
property.
In eastern Europe, MUN was an early mover in recognizing the opportunities for copper and gold
projects in the western portion of the Tethyan belt, and quickly staked and then optioned projects
for operator fees, work commitments, and royalty interests.
Mundoro continues to grow the eastern European exploration portfolio while working on new deals
for the existing projects. The Company has new applications for gold and copper projects in
Serbia and Bulgaria which can continue to attract mining industry interest.
A core part of our business is to identify new opportunities in the field, hence to remain in the field
we have developed new practices to work within the restrictions observed during the COVID-19
health pandemic in the jurisdictions in which we operate, in order to protect the health and well-
being of our staff, consultants and partners, as well as the members of the communities where we
operate.
Figure 1: Project Location Map in Timok
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2408/62315_d346b89d3438687e_001full.jpg
Notes: 1. Third party resources estimates based on those reported by RTB Bor Group. Resources
reported according to Russian classification system.
2. Nevsun Resources Inc - NI 43-101 Technical
Report on SEDAR.
Mineralization hosted on adjacent and or nearby properties is not necessarily
indicative of mineralization hosted on the Company's properties.
Vale-Mundoro Projects
For the Vale-Mundoro Projects
(see Figure 1)
, compiled data sets are being reviewed for
targeting and exploration planning. Data review includes: drill logs, structural interpretation,
geophysical surveys of ground magnetics, CSAMT, IP and gravity data, as well as alteration
and geochemistry analysis. The parties are awaiting government approvals before exploration
activity can commence.
JOGMEC-Mundoro JV Project
To date, JOGMEC has sole funded a total of US$5.8 million (C$8.2 million) for the JOGMEC-
Mundoro JV Project
(see Figure 1)
, and has completed the earn-in for a 51% interest in the
project.
All work commitments have been met for the JOGMEC-Mundoro JV Project during this
term. The joint venture is now at a proportionate funding stage, with Mundoro entitled to exercise
an option to acquire a 2% interest in the joint venture from JOGMEC (taking Mundoro to 51%)
for nominal consideration and maintain its role as the operator.
An online data room with a 3D model for the project has been opened for interested third
parties which have signed a confidentiality agreement with the Company.
The Company has received interest from a number of third parties to review the project.
Savinac and Bacevica (Available for Option)
The two licenses, Savinac and Bacevica
(see Figure 1),
previously part of the Freeport earn-in
from October 2018 to April 2020, have reverted 100% to Mundoro for no consideration.
Freeport sole funded a total of US$3.2 million (C$4.5 million) on these two licenses, therefore
the current term work commitments for the licenses have been met.
Mundoro has signed Confidentiality Agreements with a number of third parties to review an
online data room with 3D models for the two project areas. These third-party reviews are
advancing for the purpose of adding a new partner to the projects. No further exploration
expenditures are required to maintain the licenses while Mundoro continues discussions with
third parties.
Zeleznik (Available for Option)
The Zeleznik group of licenses ("Zeleznik"), which are 100% owned by the Company, are
available for optioning.
An online data room with 3D models for this project has been opened
for third parties which have a confidentiality agreement signed with the Company.
Summary of Completed Drill Program in Q2-2020
Zeleznik is located directly north of the Majdanpek copper mine at the north end of the Timok district
(Figure 2)
.
Two identified targets: West Zone and East Zone, respectively, have similarities with the
Majdenpek deposits in terms of geology, structural settings and type of mineralization - porphyry and
skarn/massive sulphides. A 450 meter drill program was completed in Q1-2020 which was designed to
test the southern extension of the East Zone by 200 m to the south with two inclined drill holes.
The East Zone target is a 1000 m by 300 m gold-copper geochemical anomaly with porphyry
signature
(Figure 3)
.
Diorite porphyry and subvolcanic andesite are intruded into a limestone and gneiss to form contact
zones of semi-massive sulphide of carbonate-replacement type.
Copper-gold mineralisation is bounded to sub-vertical faults in diorite-andesite and consists of
disseminated to semi-massive sooty pyrite and chalcopyrite. Magnetite skarn occur on the diorite-
limestone contacts. Some of the best intercepts from previous drilling program returned:
Drill hole 17-ZEL-25 - 35 meters of 0.32 g/t gold and 0.29% copper from 46.0 m
Drill hole 17-ZEL-15 - 20.8 meters of 0.26 g/t gold and 0.20% copper from 33.0 m
Best results from the current 450 meter drill program were obtained from drill hole 20-CZ-02 that
returned:
42.4 m of 0.14 g/t gold and 0.14% copper (0.24% CuEq), from 41 meters
Including 6 m of 0.27 g/t gold and 0.38% copper (0.57% CuEq) from 63 meters
The mineralized system remains open to the east, southeast, and southwest. The IP chargeability
anomaly beneath the copper-gold and base metal mineralization identified to date also remains
untested at depth.
Table 2: Drill Hole Summary Results
Drill
hole ID
Azimuth
Dip
Total
Depth
(m)
From
(m)
To
(m)
Interval
(m)
Copper
(%)
Gold
(g/t)
CuEq*
(%)
AuEq*
(g/t)
20-CZ-
01
300
-70
242.5
37
90
53
0.09
0.13
0.18
0.26
including
82.5
86
3.5
0.27
0.22
0.43
0.6
20-CZ-
02
300
-60
207.5
41
83.4
42.4
0.14
0.14
0.24
0.34
including
63
69
6
0.38
0.27
0.57
0.81
128.1
134.9
6.8
0.23
0.24
0.4
0.57
including
133.6
134.9
1.3
0.52
0.56
0.91
1.3
177.7
183.6
5.9
0.09
0.44
0.4
0.57
including
179.9
183.6
3.7
0.11
0.63
0.55
0.79
*
Copper equivalent (CuEq%) is calculated using the formula CuEq = (%Cu) + [(g/t/AuEq) x
(1/31.1035) x ($/oz Au)] ÷ [(22.0462) x ($/lb Cu)]. Metal prices used are: gold price of US$1,357/oz,
copper price of US$2.81/lb, the average of the last three years period. All thicknesses from
intersections from drill holes are down-hole drilled thicknesses and not true widths.
Figure 2: Zeleznik - Target Area Locations
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/2408/62315_d346b89d3438687e_002full.jpg
Figure 3: Zeleznik East Zone - Geology and Drill Hole Locations
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/2408/62315_d346b89d3438687e_003full.jpg
Strategic Alliance with JOGMEC
In March 2019 Mundoro entered into a Generative Program Agreement (the
"Strategic Alliance"
)
in the Republic of Bulgaria with Japan Oil, Gas and Metals National Corporation (
"JOGMEC"
).
The purpose of this Strategic Alliance is to establish a generative program, whereby Mundoro
carried out mineral exploration activities in Bulgaria under the direction of a joint Technical
Committee with the view to identifying areas of interests that merit additional exploration and/or
development work.
JOGMEC sole funded the Strategic Alliance. Upon JOGMEC determining that one or more
properties merit additional exploration and/or development work, JOGMEC has the right to
establish a joint venture on that property with Mundoro.
The generative program has been completed and JOGMEC has selected designated projects to
proceed to the next stage of the agreement.
Drilling, Sampling, Analysis and Quality Assurance and Control
The drilling technique was triple tubed diamond drilling from surface for PQ and HQ. The drill holes were
generally cased from surface progressing from PQ to HQ at 40 m on average, however exact depths
vary from hole to hole. Drill hole orientations were surveyed at 30 meters intervals. Drill core was
oriented using the Reflex EZ-Trac tool, the bottom of oriented core was marked by the drillers and this
was used for marking the whole drill core with reference lines. Company personnel monitored the drilling,
with drill core delivered daily to the Company's core storage facility where it was logged, cut and
sampled.
Core recovery was measured and recorded continuously from the top to the end of the hole for every drill
hole. Each run of 3m length was marked by plastic core block which provided the depth drilled. Core
recovery is recorded as 100% in most intervals.
The drill core was sawn into two for PQ and HQ diameter, along drill core orientation line using a core-
cutter and left half looking downhole was collected in bag and submitted for analysis, the other half is
kept in tray and stored. Samples were collected at two-meter lengths from mineralised intervals and
three-meter lengths from non-mineralised intervals with breaks for major geological changes. The
samples were submitted to SGS managed laboratory in Bor, Serbia for sample preparation and
analysis. Drill core samples are assayed using 50-grams charge for fire assay with atomic absorption
finish and multi-element method 4 acid digestion ICP-AES package IMS40B.
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 and field duplicates every 25
samples.
Qualified Person
The exploration work programs described herein were supervised by Yassen Khrischev, the Company's
Exploration Manager in Serbia and Bulgaria who has also prepared the above technical information in
this press release in accordance with Canadian regulatory requirements as set out in National Instrument
43-101.
The above technical disclosure in this press release has been reviewed, verified and approved,
by Richard Jemielita, PhD, MIMMM, a Qualified Person as defined by NI 43-101 and consultant of the
Company.
About Mundoro Capital Inc.
Mundoro is a Canadian listed (TSX-V: MUN) precious and base metal company focused on building
value for its shareholders through directly investing in mineral projects that have the ability to generate
future returns for shareholders.
Mundoro has generated an attractive mineral project pipeline in Serbia
and Bulgaria, as well as an investment in a producing gold mine in Bulgaria, in order to drive long-term
growth and achieve shareholder return.
Potential future returns for our shareholders from our mineral
properties can be in various forms such as discovery of mineral resources, royalties, advance royalty
payments from partners, an interest in production, dividend payments or sale of our interest in the
mineral property.
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
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
For further information, please visit Mundoro Capital website
www.mundoro.com
Teo Dechev,
Chief Executive Officer, President and Director
+1-604-669-8055
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