Bulgold Acquires 100% of the Lutila GOLD Project IN Slovakia FOR €100
BULGOLD ACQUIRES 100% OF THE LUTILA GOLD PROJECT IN SLOVAKIA FOR €100
Toronto, ON. September 27, 2023 – BULGOLD Inc. (TSXV: ZLTO) (the “Company” or “BULGOLD”) is pleased
to announce that it has exercised its option to acquire 100% of the Lutila Gold Project (the “property” or “exploration
licence”) in Slovakia for the price of €100. The Lutila exploration licence covers an area of 32.2km ², hosts a
significant amount of target areas , is prospective for epithermal gold mineralisation and has been granted for an
initial 4-year period.
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 approx imately 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 c urrent 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 ha d not tested the true potential of this large
epithermal system.
• The Property is l ocated 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 Sean Hasson:
“The acquisition of the Lutila Gold Project is a great asset fit and enhances the Company’s country risk profile
within the EU. It is a rare event to be able to acquire good exploration ground immediately adjacent to a gold
deposit that has been mined for over 1,000 years and which supported the fou ndation of the Kremnica mint in
1328, which still operates today. The BULGOLD team has many years of experience exploring for quartz-adularia
vein systems and we look forward to seeking to realize the potential of the property to the benefit of all
stakeholders.”
2. Background
On October 22 , 2022 , BULGOLD entered into a cooperation agreement and a transfer of exploration area
agreement with Green View s.r.o. pursuant to which the Company ha d an option to acquire 100% interest in a
particular area of land located in the Slovak Republic to prospect for gold and silver exploration in exchange for
€100 (EUR).
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 Slovak Ministry of Environment (Department of State Geological
Administration), with an effective date of March 21, 2023. The Lutila exploration area is located in Central Slovakia
and 5km south of the historic Kremnica quartz-adularia gold deposit. The Lutila exploration licence covers an area
of 32.2km² and has been granted for an initial 4-year period.
The Company’s Slovak subsidiary, Stredné Slovensko s.r.o., was informed by the Ministry of Environment
(Department of State Geological Administration) on September 7, 2023, by decision, that the property had been
transferred to the Company pending a 15-day appeal process, which ended on September 22, 2023. No appeals
were received during such period.
The Company is permitted to perform exploration activity on the property immediately.
3. About the Slovak Republic
• 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 Lutila Gold Project
The Lutila Gold Project is located 140 kilometres northeast of the capital city of the Slovak Republic, Bratislava.
The nearby town of Žiar nad Hronom within the Banská Bystrica Region is located immediately south of the
exploration licence area. The villages of Lutila and Slask á bound the property to the west, while the villages of
Kopernica and Lúčky lie to the north and the villages of Horná Ves, Doln á Ves, Bartošova Lehôtka and Stará
Kremnička bound the property to the east.
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 th e 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 deposi t 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 h as 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 Lutila Gold Project reflects a continuation of the same volcanic
depression which has been downfaulted, creating a preserved graben of rhyolite flow domes, lavas and their
pyroclastic products together with a very large sinter field.
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, Metals Tech Limited (ASX: MTC), owns the Kremnica mining lease and has
recently released an updated JORC (2012) mineral resource estimate* for the deposit of 2.7Mozs Au (Source:
company website) together with a JORC (2012) Exploration Target relating to other quartz-adularia veins on the
property. Exploration diamond drilling by Metals Tech Ltd. within the deposit has revealed some good gold
intersections within the quartz-adularia vein system and the reader is encouraged to read Metals Tech Limited’s
recent June 2023 Quarterly Activities Report for additional information.
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 con tain 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 s trongly 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
Slovak Republic has banned the use of cyanide for extractive purposes since 2014.
Beacon Hill Consultants (1988) Ltd. completed a prefeasibility study on the Kremnica Gold Project for Tournigan
Gold Corporation with an effective date of Jul y 5, 2007 (the “Study”). The information in the Study is historical
information that has not been verified by the Company. The following information is taken from the Study:
“A program of metallurgical test work was carried out by Process Research Associates (PRA) in Vancouver, BC,
Canada between 2005 and 2006 on a range of ore samples. This work established that Kremnica ore presented
no particular treatment problems. A number of flowsheet alternatives were examined including gravity
concentration, flotation, cyanide leaching and leaching with alternative lixiviants. The selected flowsheet of gravity
concentration and cyanide leaching gave higher recoveries than the alternative processes. A series of 45 samples
were received by PRA and made into 10 composites based on ore type and location. A single master composite
was made from the 10 primary composites.”
*Recoveries denoted by GSB = gravity, CN = cyanide, Flot = flotation.
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.
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
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 approx imately
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 dril ling programme, which is expected to
commence in March/April 2024.
Bakos F., Chovan M., Žitňan P. et al, 2017. Gold in Slovakia, Vydavatel’stvo LÚČ, Bratislava, 2017 (in Slovak
and English).
Finka, O., 1995. Zlatá Kremnica: Tisícročná história baníctva, Neografia vydavateľstvo, Monografie 71 pages (in
Slovak).
About BULGOLD Inc.
BULGOLD is a gold exploration company focused on the exploration and development of mineral exploration
projects in Central and Eastern Europe. The Company controls 100% of three quality quartz-adularia epithermal
gold projects located in the Slovakian and Bulgarian portion of the Western Tethyan Belt: the Lutila Gold Project,
the Kutel Gold Project and the Kostilkovo Gold Project. Management of the Company believes that its assets show
potential for high-grade, good-metallurgy, low-sulfidation epithermal gold mineralisation.
Rock samples are shipped to SGS Bor, Serbia. Quality control samples, comprising certified reference materials,
blanks, and field duplicates, are inserted into each batch of samples and locations for crushed duplicates and pulp
replicates are specified. At the SGS Bor laboratory, the submitted rock samples are dried at 105°C for a minimum
of 12 hours, and then jaw crushed to about 80% passing 4mm. Sample preparation duplicates are created by riffle
splitting crushed samples on a 1 in 20 basis. Larger samples are riffle split prior to pulverizing, whereas smaller
samples are pulverized entirely. Pulverizing specifications are 90% passing 75 microns. Gold analyses are done
using a conventional 50-gram fire assay and AAS finish.
On August 24, 2023, BULGOLD had approximately $2.5 million in its treasury and BULGOLD’s issued and
outstanding shares were 27,5 97,928 of which approximately 39.54% were held by Founders , Directors and
Management. Additional information about the Company is available on BULGOLD’s website
(www.BULGOLD.com) and on SEDAR (www.sedar.com).
Qualified Person
The scientific and technical information described in this Press Release has been prepared in accorda nce with
National Instrument 43-101. The scientific and technical information for Slovakia and Bulgaria was reviewed and
approved by Mr Sean Hasson, a Qualified Person as defined by N ational Instrument 43-101 and President and
Chief Executive Officer to the Company.
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.
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 Lutila Gold Project, the Kremnica gold deposit, the reason
for the Kremnica gold deposit being exploited over a long period of time , the Lutila Gold Project reflecting a
continuation of the same Kremnica volcanics, the Company’s conceptual exploration model for the Lutila Gold Project,
the potential of the Lutila Gold Project to benefit the Company’s stakeholders, the mineralised inventory within the
Kremnica deposit through time, the exploration plans of the Company and the timing thereof. All statements other
than statements of historical fact may be forward‐looking statements or information. The forward‐looking statements
and information are based on certain key expectations and assumptions made by management of the Company.
Although management of the Company believes that the expectations and assumptions on which such forward -
looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐
looking statements and information since no assurance can be given that they will prove to be correct.
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:
BULGOLD Inc.
Sean Hasson, President and Chief Executive Officer
Telephone: +359 2 989 2361
Email: [email protected]
Website: www.BULGOLD.com
Figure 1. The Lutila Exploration Licence relative to the Kremnica Mining Licence – Geology & Tenure.