LATIN AMERICA — Medallion, Advanced team up at Gui Gui property

Medallion Resources (MDL-V) has entered into an agreement to earn a majority interest in the Gui Gui lead-zinc-silver property in northern Mexico.

The property, currently held entirely by Advanced Projects (AVJ-V), is 25 km east of the city Chihuahua and comprises 4,059 ha considered prospective for skarn-type lead-zinc-silver mineralization.

Previous exploration suggests that the targeted limestones are folded and cut by high-angle faults, any one of which could have served as a conduit for mineralizing fluids.

To earn a 51% interest, Medallion must spend US$1.5 million on exploration over two years. After earning an initial 30% interest in return for spending US$500,000 in the first six months, the company can elect either to cover the remaining expenditures or form a joint venture. Once Medallion finances its initial earn-in and regulators approve the deal (probably in the next few months), exploration drilling will commence.