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Mundoro Capital Mobilizes for Phase II Drill Program at Borsko Jezero License

Mundoro Capital Inc. is pleased to announce the Company is mobilizing for the Phase II drill program at the Borsko Jezero license where drilling is expected to commence in August.

Borsko is one of the four licenses being sole funded by JOGMEC as part of the Amended Earn-in Agreement announced August 2016. Borsko is located in the central portion of the Timok Magmatic Complex and is directly west of the Serbian state-operated producing mines, RTB Group's Bor copper porphyry mine and the Veliki Krivelj copper-gold porphyry mine.

HIGHLIGHTS

  • The Borsko Phase II drill program is in follow-up to the Phase I drill program completed in May 2017 which tested two of the six generated drill targets.
  • The Phase II drill program will test Target 1 with four diamond drill holes totalling approximately 3000 m (see Figure 1). The main goal of this drill program is to further test for epithermal high-sulphidation copper-gold mineralisation stepping out from the alteration intersected in BJ-06 and BJ-07 which began at approximately 580 m depth.

Teo Dechev, CEO & President of Mundoro commented, "With our partner JOGMEC, we are looking forward to the Phase II step-out drill program to test Target 1 with 200 m step-out holes to the north, south, west and east. Mundoro will have an active H2-2017 field season comprising of the two JOGMEC funded drill programs: (i) Borsko Phase II step-out drill program in order to test for the epithermal high-sulphidation copper-gold mineralization, and (ii) Zeleznik Phase III fence drill program in order to further delineate the mineralized zones. As of Q1-2017, Mundoro had approximately $4.2 mln in cash and is debt free."

Figure 1: Location Map of Borsko Phase II Drill Program

Summary of Borsko Drill Program

Core logging and assay results from BJ-06 and BJ-07 highlighted important findings:

  • The highest concentration of geochemical anomalism in both BJ-06 and 07 is situated in the uppermost 30 m of the lithocap. The highest gold and copper values are related to breccia and veins within and cross-cutting the lithocap.
  • The contact between the lithocap and overlying chlorite-smectite zone is a replacement front, as defined by the narrow transitional alteration zone and the magnetite remnants in the uppermost 1 to 2 m of the advanced argillic lithocap (see Figure 2).
  • A similar abrupt vertical change from advanced argillic to chloritic alteration appears to correlate with the tops of the Čukaru Peki (approximately 10 km to the southeast) and Bor epithermal high-sulphidation copper-gold orebodies(approximately 4 km to the east) all within the Timok Magmatic Belt.

Interpretation of the geology and alteration encountered in the Borsko Phase I drilling program highlights the uppermost part of the lithocap, immediately below the less-altered volcanic sequence, as the prime target for epithermal high-sulphidation copper-gold orebodies of the Bor and Čukaru Peki type. In order to further test the Borsko Target 1 for its copper-gold potential, the Company has designed the Phase II step-out drilling program to attain vectoring information towards a epithermal high-sulphidation system. The goal is to use geochemical and alteration information obtained in the four Phase II drill holes (drilled in four quadrants) to vector towards a epithermal high-sulphidation centre, if it is not directly intersected by Phase II drilling.

For further description of the Borkso geology and Phase I drill program, see press release from June 7, 2017 at www.mundoro.com.

Figure 2: Cross Section of Borsko Target 1

Next Steps

The Company expects to complete the drilling in Q4-2017 and to release the results around year-end.

On behalf of the Company,

Teo Dechev, Chief Executive Officer, President and Director

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