Mundoro Capital Inc. announced the Company has been notified by the Ministry of Energy that Bulgaria Alpha EOD, a 100% subsidiary of the Company, has won the tenders for the Svoboda permit and the Pesnopoy permit in Bulgaria.
Teo Dechev, CEO and President of Mundoro commented, “We are pleased to have been named the winner of the Svoboda and Pesnopoy tenders. Before exploration can begin on these two projects, further procedural steps are required before the exploration contracts are signed with the local government which we estimate may be completed by mid-2018. Part of capital to be raised through the Company’s current C$1.5 million financing will be used to fund project acquisition and exploration of these projects.”
Dechev adds “Mundoro continues to advance projects both through direct exploration and strategic partners in joint ventures. Mundoro completed Q2-2017 with C$3.1 million in cash and cash equivalents and short term investments and no debt. We are pleased to be working with our joint venture partner in Serbia, JOGMEC, who is funding the drilling at the Borsko and Zeleznik projects in H2/2017. As well, Mundoro has a portfolio of four projects covering 400 sq.km of the southern half of the Timok magmatic complex in Serbia and a growing package of exploration contracts in Bulgaria. “
Svoboda Project Overview
Svoboda is located in the Panagyurishte Region which is approximately 100 km south-east of Sofia, Svoboda covers 189 sq.km. (18,900 hectares) of the south-eastern portion of the Panagyurishte Metallogenic Zone. The Panagyurishte Belt is the most prospective belt for copper and gold porphyry and epithermal high sulphidation deposits in Bulgaria. It is part of the upper Cretaceous Banat-Timok-Srednogorie Belt which hosts a number of economically viable porphyry and epithermal copper and gold deposits such as the: Moldova Nova, Majdanpek, Bor and Chelopech.
Within Svoboda, there are two identified prospects to date: the Radka high sulphidation copper and gold deposit and the Red Hill copper and gold prospect.
The Radka mine was in operation from 1928 to 1993 with total production of 6.4 million tonnes at 1.06% Cu and 3 g/t Au, according to historical records in the Bulgarian National Geological Fund.
The Radka deposit is reported to host a historical mineral resource estimates, calculated under the Bulgarian classification system, consisting of 2.02 million tonnes at 0.60% Cu and 0.57 g/t gold and 0.27 million tonnes at 0.60% Cu and 0.53 g/t Au.
Red Hill is a high sulphidation gold-silver prospect with reported outcropping mineralisation of 2.98 g/t Au and 59 g/t Ag over 20 m hosted in a wider 61.5 m interval averaging 0.59 g/t Au and 10 g/t Ag.
The Red Hill deposit is reported to host historical mineral resource estimates, calculated under the Bulgarian classification system, as follows:
50,000 tonnes at 1.42% Cu and 0.60 g/t Au and
0.6 million tonnes at 0.76 % Cu and 4.5 g/t Au
The historical mineral resource estimates at Radka and Red Hill are derived from prior data and reports prepared by the National Geological Survey and held in the Bulgarian National Geological Fund. The company is not currently able to confirm the dates of the estimates or the key assumptions, methods and parameters used to prepare them. At this time, Mundoro is not able to determine the reliability of the resource estimates with reference to the standards applicable to CIM-compliant resource estimates, although expects that additional exploration work will be required to enable Mundoro to report some or all of the mineralized material in conformity with CIM resource estimate categories. A Qualified Person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves and the issuer is not treating the historical estimates as current mineral resources or mineral reserves.
Around Red Hill and Radka, there is pervasive argillic-phyllic altered andesite volcanics containing numerous other copper and gold mineral occurrences.
Svoboda Geology, Alteration and Occurrences
Location, Access and Infrastructure
Svoboda is easily accessible by a network of asphalt roads from various directions. It is approximately 110 km or 1.5 hours drive from Sofia, the capital city of Bulgaria. There are small towns in the immediate area where local labour could be readily obtained for general exploration activities, and there are relatively modern facilities available. Power could be supplied from the Bulgarian national transmission and distribution system which is close to site.
Historical Exploration and Exploration Targets
Svoboda is situated in the south-eastern part of Panagyurishte which is the most mineralised region of Bulgaria with much evidence of ancient and modern mining activity. The area was actively explored in Soviet style from the 1950’s to 1990’s.
More than 150 mineral occurrences have been documented in Panagyurishte, approximately 50 of which fall within Svoboda.
There are two exploited mines within the area:
Radka, which is a high sulphidation copper and gold deposit and
Tsar Assen copper porphyry deposit, which is not part of Svoboda
The Red Hill prospect was explored in the past with 43 drill holes which intersected mineralization from 250 m to 375 m. None of the drill holes were assayed for gold.
In 1992-1993, exploration continued with trenching along profile lines at 100 m and 5 additional drill holes were drilled totaling 1,400 meters, which proved the gold potential at Red Hill.
Previous exploration activity includes ancient workings, excavation of trenches and exploratory adits, diamond drilling and bulk sampling.
The Red Hill prospect and the Radka deposit are the primary targets for exploration.
The Red Hill prospect has prior trenching and drilling. Although a historical government drilling program did not assay for gold, later exploration proved the high grade gold, silver and copper content which now requires further systematic exploration with trenching and drilling to assess economic potential.
The Radka high sulphidation copper and gold deposit has been exploited in the past however significant resources remain which need to be systematically explored to assess economic potential.
Additional around-mine and along-strike potential exists for discovery of new ore bodies of similar type to Radka.
The large area of pervasive hydrothermal alteration between the known deposits containing numerous documented copper and gold occurrences adds significantly to the overall prospectivity of Svoboda.
Svoboda is located within the south-eastern portion of Panagyurishte within the Apuseni-Banat-Timok-Srednogorie belt, Europe’s most extensive belt of calc-alkaline magmatism and copper and gold mineralisation. The ABTS Belt is related to the subduction of the Tethys ocean beneath the European continental margin during the Late Cretaceous phase of the Alpine-Himalayan orogeny. To date, economic deposits appear to be restricted to certain segments along the belt, and all major porphyry-style and high-sulphidation ore deposits in Bulgaria are aligned on the Panagyurishte corridor, a narrow zone obliquely crossing the ABTS Belt.
The geology of the property is dominated by Upper Cretaceous volcanic and intrusive rocks. The Upper cretaceous volcanics are predominantly represented by andesite-dacite and andesite-basalt lava flow, volcanic breccias and tuff, alternated with narrow siltstone beds. Diorite and granodiorite porphyry stocks are largely exposed in the southern portion of the property.
Mineralization and Alteration
High sulphidation epithermal copper-gold and gold-silver mineralisation is the most important style in the property. It is hosted in andesite-dacite volcanics which are intensely phyllic-argillic altered.
The Radka deposit consists of lens-like massive sulphides and stockwork hosted copper and gold mineralisation made up of chalcopyrite, bornite, chalcocite, covellite and tennantite.
Red Hill is hosted in a large zone of of advance argillic and phyllic alteration covering at least 3 square kilometers. This alteration zone is host to a number of small vuggy silica-enargite bodies and quartz-stockworks related to a large breccia body. The breccia is host of massive silica-barite replacement lenses up to 50 m x 15 m in size with reported grades up to 2.5 g/t Au and 59 g/t Ag from rock samples.
Porphyry copper-gold mineralization has been the primary target for historic exploration efforts. This resulted in the discovery and mining of the Tsar Assen copper porphyry deposit.
Pesnopoy Project Area
Pesnopoy is located in the Tertiary Eastern Rhodopean Metallogenic Region of Bulgaria and is approximately 200 km south-east of Sofia. The East Rhodopean Belt is host to at least 10 documented low sulphidation epithermal occurrences and deposits with Ada Tepe, Chala and Rosino being the most important and the most thoroughly investigated. The mining activity in the region dates back to prehistoric times.
Pesnopoy covers 35.95 sq.km (3595 hectares) of the north-western portion of the Tertiary East Rhodopean Belt. Within Pesnopoy there is one known gold occurrence, Rusalsko, which was partly explored by a local private company in the past.
Historical Exploration and Exploration Targets
Pesnopoy has not been actively explored in the past. Several state run mapping campaigns were carried out in the region.
The main target for initial exploration will be the Rusalsko gold occurrence on Pesnopoy.
The Rusalsko gold occurrence is located in the center of Pesnopoy and is described as epithermal low sulphidation. It covers a wide area of alteration more than 500 m long and 300 m wide, elongated in a NW direction. Central part of the altered zone is completely silicified and brecciated at some parts containing pyrite, arseno-pyrite and hematite. It reportedly contains up to 1 g/t Au in single rock samples.
West of Rusalsko is an area of advanced argillic alteration which is reported at 1000 m long and 400 m wide and related to brecciated latite volcanics.
Location, Access and Infrastructure
Pesnopoy is located 25 km from the town of Kardjali. Local labour could be readily obtained for general exploration activities, and there are relatively modern facilities available from which to conduct field programs. Local towns are connected with a network of asphalt roads and can be reached by highway from Sofia with approximately 3 hours driving.
Pesnopoy region is part of the East Rhodopean Belt and consists of Tertiary volcanics superimposed on crystalline basement composed of Proterozoic metamorphics. Structurally it falls at the southern edge of the Borovitsa caldera which is a major regional structure with north-east trending axis extending for approximately 20 km.