THUNDER BAY, ONTARIO--(Marketwired - Oct 16, 2013) - Mega Precious Metals Inc. (TSX VENTURE:MGP) ("Mega") is pleased to announce the recent deep drilling exploration program on the Headway High Grade Project in Red Lake has confirmed their geologic model, where drill hole MH1103 has intersected a controlling regional shear zone responsible for gold fluid migration. Furthermore, the drill program has confirmed that altered and deformed Balmer Assemblage rocks occur within the property which exhibit similar alteration and deformation as those that host the high grade gold deposits at Goldcorp's Red Lake Mine.
Drill hole MH1103 was extended to a depth of 2735 m and has successfully intersected the following:
- The presence of pervasive brown-biotite in the wall rock with low amounts of disseminated pyrite and anomalous gold (up to 291 ppb Au) from 2261-2264 m indicates that the shear zone was an active structure during auriferous fluid migration.
- The structure, style and intensity of alteration is similar to the HW Shear and Kovala Fault (HW 7 Shear) associated with the High Grade Zone (HGZ) at the Red Lake Mine. (Figure 1 & 3)
- From 2279 - 2735 m down hole, the rocks are strongly altered to silica-andalusite +- sercite which are highly altered Balmer Assemblage rocks, including basalt and "Campbell-Dickenson Diorite" These are equivalent to the thick, aluminous-altered units found deep in Goldcorp's Red Lake Mine below 1,600 m from surface in the hanging wall of the HGZ.(Figure 2).
Goldcorp's New Zone Discovery in the 4699 Rampas well as the NXT Zone at the Red Lake Mine, both demonstrate that rocks hanging wall to the HGZ have excellent exploration potential for high-grade gold mineralization. The 4699 development ramp is located ~ 200 m north from our target horizon, boundary.The intersection of a regional shear zone in MH 1103 that was open to auriferous fluids has similarities to ore-bearing structures at the adjacent Red Lake Mine. This suggests any regional structures between this controlling regional shear zone and the HGZ to the northeast have potential to host economic gold mineralization. (Figure 3)
Glen Kuntz, President and CEO, states "The extension drilling continues to discover shear zones, anomalous gold zones and important marker horizons that are analogous to being within approximately 300 metres of high grade mineralization at the HGZ at the Red Lake Mine. Given that this large area has seen little to no previous deep exploration drilling, we are excited by the opportunity to continue to explore these potential structures in 2014 for they have several similarities with the Red Lake Mine's HGZ."
Technical Discussion and Analysis
The Headway property is strategically located in the heart of the prolific Red Lake gold mining District. Even with the limited 2013 drill program in 2013 due to conserving cash, the program exposed a potential new shear zone and anomalous gold mineralization. This new discovery shares similarities with, and is located in close proximity to the High Grade Zone that is currently in production by the RLGM operated by Goldcorp. This is considered to be one of the world's richest gold mines with production of more than 18 million ounces of gold and nearly 10 million ounces of mineral resources.
Mega is currently preparing a NI 43-101 report expected in Q4 for the Headway Project and any future drilling will continue to test the down-dip potential of these auriferous structures that are trending into a more favourable geologic environment for hosting bonanza-grade mineralization.
Figure 1: Strongly altered and sheared zone in Balmer basalt at 2268 m, MH1103 - http://media3.marketwire.com/docs/MGPFigure_1.pdf
Figure 2: "Bleached basalt", strongly-altered Balmer Assemblage Basalt or "Campbell-Dickenson Diorite" around 2644 m, MH1103 - http://media3.marketwire.com/docs/MGPFigure_2.pdf
Figure 3: Conceptual plan view below 47th level of Red Lake Mine in relation to Headway drill holes. Cartoon of NXT Zone and "New zone intersected in 4699 Ramp" from Investors Day Presentation, March 8, 2013. Skewness error in images +- 200m depending on location, www.goldcorp.com. - http://media3.marketwire.com/docs/MGPFigure_3.pdf
Monument Bay & N. Madsen Project Updates
In addition to the Headway Project in Red Lake, Mega holds several additional highly prospective projects that will be subject to major exploration programs in the coming year. Mega's fall drill program, in addition to the ongoing OCAP (Old Core Assay Program) Gold/Tungsten Sampling program is currently underway at the Company's Monument Bay Project. In 2013, these programs have successfully identified multiple open pit and underground style gold Resources including the discovery of a High Grade Starter Pit of 667,308 ounces of gold at 2.7 g/t (7.7M tonnes) within the Measured and Indicated Resources of 2.9 M Ounces (67M tonnes) and Inferred Resources of 0.7 M Ounces (26M tonnes) (Details available in the NI 43-101 Report). Mega expects to release a NI 43-101 gold equivalent compliant resource estimate in the first half of 2014.
In Red Lake, the Company is currently updating the NI 43-101 gold resource report on its North Madsen Project that is strategically located adjacent to the Madsen Mine trend and is part of a much larger gold system that encompasses the adjacent Howey, Hasaga and Gold Shore Mines which historically produced approximately 640,000 ounces of gold. Mega's drill programs have discovered mineralization with grades and widths comparable to those at these mines, within a near-identical geological setting.
Mega Precious Metals is pleased to announce that it has retained the services of Nicole Marchand to assist with Investor Relations activities. Ms. Marchand will be engaged for 2 months at a rate of $4,000 per month plus applicable expenses.
Mr. Tim Twomey, P.Geo., Geological Consultant for Mega Precious Metals, is a Qualified Person under National Instrument 43-101 and is responsible for this release and has verified the contents disclosed. Mr. Twomey, P.Geo. is independent of the Company as defined by Section 1.5 of the NI 43-101 guidelines and have reviewed and approved the technical information contained in this release. Tim is a professional geologist with over 25 years of experience in exploration and production. Tim was previously VP Exploration for Premier Gold Mines Limited and prior to that was part of the geological team that discovered, delineated and put into production the High Grade Zone at Goldcorp's Red Lake Mines.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega's common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information and presentation material, please review the Mega website at www.megapmi.com.
Certain statements in this press release relating to the Company's exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Mega Precious Metal's filings which are posted on SEDAR at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.