Medoro goes for gold in Mali (April 24, 2007)

Medoro Resources (MRS-V, MRL-L) has signed an option agreement for nine gold properties in Mali with a Panama-based company, boosting the companys current portfolio of two adjacent properties in Venezuela.

Eight of the properties are located in the Bougouni region of Southern Mali, near Resolute Minings (RMGGF-O, RSG-A) Syama gold project, which hosts resources of 66.6 million tonnes grading 3 grams gold, or about 6.4 million oz. Also in the area is the Morila mine owned by Randgold Resources (GOLD-Q, RRS-L) and AngloGold Ashanti (AU-N, AGD-L, ANANO-J), which produced about 500,000 oz. gold in 2006.

The ninth property is located near Anglo Golds Sadiola gold mine in the Kenieba region of western Mali.

Under the agreement, Medoro will first pay US$720,000 to acquire the shares of African Gold Resources S.A., which is based in Panama and holds the options to acquire the nine properties. Medoro will then have to pay another US$2.43 million and issue 6 million shares to Gold Resources S.A., the current shareholder of African Gold.

Medoro will follow the requirements that African Gold has agreed on for each the nine properties, which include paying US$224,000 and a one-time payment of US$9 per oz. of measured gold resources and US$4 per oz of indicated cold resources. If any of the properties contains more than 500,000 oz. of measured and indicated gold resources, then Gold Resources will receive a one-time payment of US$6 per measured oz. and US$4 per indicated oz.

In early March, Medoro released its initial drill results for its Lo Increible 4A and 4B concessions in the El Callao mining district in the Guyana Shield. Highlights include a 48.6-metre intersection grading 2.5 grams gold per tonne, including 8.5 metres grading 7.1 grams per tonne.

At that time, Medoro shares were trading in the between 50 and 65 but over the last week, Medoro shares have closed as high as $1.32.

Shares dropped to $1.23 yesterday on the news of the new Mali properties and continued the downwards trend today with a 20% decrease compared to yesterday, with a closing price of 98.

Medoro reports that the properties have regional soil anomalies and radiometric potassium anomalies, which are of a favourable geological context similar to known deposits.

In total, the company has acquired more than 1,200 sq. km of land. Medoro chose the properties through a database maintained by the Documentation Centre of the Ministry of Natural Resources of Mali.