Medoro Announces Drilling

Medoro Announces Drilling To Commence On The Monte Ollasteddu Gold

    Prospect In Sardinia

 

    TORONTO, Aug. 4 /CNW/ - Medoro Resources Ltd. (TSXV/AIM: MRL) is pleased

to announce that drilling is to commence on the Monte Ollasteddu gold prospect

in eastern Sardinia following receipt of all the necessary permits and

approvals.

    The Monte Ollasteddu prospect is subject to joint venture agreements with

Bolivar Gold Corp. (BGC.T) and Gold Fields Limited (GFI.N). Bolivar Gold can

earn a 70% interest by funding all costs through completion of a bankable

feasibility study. Gold Fields can earn a 60% interest in the property by

funding all of Bolivar Gold's obligations.

    A first phase diamond and reverse circulation (RC) drilling programme of

3,000 metres has been planned to test the mineralisation on the Western

Plateau area, 'Pranu Canceddas', and the central 'Fraigada' ridge. The drill

hole spacing is 100 to 150 metres and will test the mineralisation to 100 to

200 metres vertical depths.

    Gold was first discovered at Monte Ollasteddu in October 2000. The

mineralisation is hosted in multiple quartz-sulphide vein structures over a

4 square kilometre area, as defined by soil sampling and surface rock chip

sampling.

    Extensive rock chip and channel sampling has been carried out over the

4,000 metre strike length of the mineralisation. This work has demonstrated

the continuity of grade over 200 metres of vertical relief and continuity of

grade in individual structural zones of up to 800 metres along strike. Soil

sampling has been carried out on 50 by 50 metre and 50 by 25 metre spacing.

The average grade of gold in soils within the 100 parts per billion (ppb)

contour is 256 ppb, with the highest gold value being 16 grams per tonne

(g/t).

    In excess of 1,850-rock chip channel samples, of 1 metre length, have

been collected from rock outcrops. Of this total 31% return values greater

than 0.3 g/t Au and the average grade is 2.5 g/t Au. Previous rock chip

channel sample results have returned intervals of 24 metres at 2.1 g/t Au, 15

metres grading 2.2g/t Au, 12 metres at 2.4 g/t Au, 7 metres at 7.0 g/t Au and

11 metres of 4.8 g/t Au.

    Gold Fields completed a due diligence programme in September 2003 which

included the sampling of 150 rock chip and sawn channel samples, detailed

petrography, fire assay and screen fire assay analysis for gold and

preliminary metallurgical testwork on gold recoveries.

    The diamond and RC drilling programme will commence in the next few days.

Concurrent mapping and sampling programmes will commence on the eastern half

of the Monte Ollasteddu prospect, to develop further drill targets not tested

in this initial phase.

    Ongoing mapping and sampling leading to drill target definition will also

continue at the San Vito prospect, located 16 kilometres to the south of

Ollasteddu. The mineralisation is similar to Monte Ollasteddu and is hosted in

multiple quartz-sulphide veins over a 1 kilometre by 500 metre area. Previous

grab samples have assayed up to 114 g/t Au and rock chip channel results

include 21 metres at 1.3 g/t Au and 9 metres at 3.5 g/t Au. The San Vito

prospect also lies within the Bolivar/Gold Fields 'Area of Interest'.

 

    For further information: Medoro Resources Ltd., Peter Volk, Assistant

Secretary, [phone], info(at)medororesources.com

    (MRL.)