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A successful joint venture would provide non-dilutive access to capital and generate further exploration value. Concurrent to our exploration efforts, we continue to evaluate developed assets closer to production."

Savinac

A detailed ground magnetic survey totalling 178 kilometres was completed over an area of 18 square km. The survey lines had an east-west orientation and were largely spaced at 100 metres (m) apart, with some select lines spaced 50 m apart. The survey was designed to cover the previously confirmed mineralized structural zone (identified by soil and rock geochemical surveys), extending over a strike length of more than seven km.

Analysis of the ground magnetic data defined five anomalous areas of interest. The north-northwest-trending magnetic lows are characteristic of the ore-controlling structures within the Timok magmatic complex.

Further analysis suggests that three of these magnetic lows could potentially host mineralization, meriting further exploration. This interpretation is supported by geological mapping of the property. All three of these zones trend north-northwest (and occasionally north to south) and demonstrate demagnetized zones that extend down to between 200 m and 500 m of depth.

Exploration work continues with detailed mapping, trenching and rock sampling over identified anomalous areas. Follow-up drill testing of selected targets as defined by systematic and multiple exploration data is planned later in the year.

Zeleznik

The Zeleznik licence covers 60 square km and is located at the northern part of the Timok magmatic complex. The southern portion of this licence continues along strike and shares the same geological and structural setting as its neighbour, the Majdanpek copper-gold porphyry mine, which has a reported resource of one billion tonnes at 0.4 to 0.8 per cent Cu and 0.25 to one gram per tonne Au (Jelenkovic, 2007). The anomalies in Mundoro's licence lie directly north of the latest, continuing, northerly extension of the Majdanpek mine, which is now approximately 1,600 metres from Mundoro's property boundary.

Mundoro completed a ground magnetic survey program over the two areas highlighted by significant Cu-Au-Mo in the soil anomalies located at the southern part of the project (see press release from Jan. 13, 2014, for details). Interpretation of the results highlighted that the zone of hydrothermal alteration is characterized by a 600- to 700-metre-long, by 600-metre-wide, magnetic high. Several other local magnetic highs appear to define a ring at the margins of the zone of alteration. The zone is interpreted to extend down from the surface. The company is following up with trenching in second quarter 2014 and follow-on drill testing in the second half of 2014.

Sumrakovac

The Sumrakovac licence covers 103 square km in the southern portion of the Timok magmatic complex. The property contains a cluster of underexplored occurrences with the potential for gold-copper porphyry-style mineralization. The company has completed stream sediment screening and rock and soil geochemical sampling and partially completed the reconnaissance mapping.

A ground magnetic geophysical survey was completed over a 1.5-square-kilometre area coincident with Cu-Au-Mo geochemical soil anomalies. The results highlighted additional anomalous centres to the east of the known Skorusa Cu-Au porphyry and have been interpreted as possible stockwork-related mineralization. Interpretation of the geophysical survey results shows:

  • The existence of a major north-south to northwest linear magnetic low, defined at the contact between tuffs and argillic-altered rocks. The anomaly is 400 to 500 metres deep and dips to the west. In general, northwest magnetic lows are a characteristic feature of the ore-controlling structures in the Timok magmatic complex;
  • A north-northwest-trending magnetic high interpreted as a previously unknown stockwork zone. This needs additional follow-up, as do the bull's-eye-type magnetic anomalies, at the eastern end of the known diorite intrusion, which overlap with an area of hydrothermal alteration. This area is highlighted by Cu-Au-Mo soil and stream sediment anomalies.