Mega Precious Metals continues to add Gold in Ontario and Manitoba
Northern Ontario and Manitoba are hard rock regions and gold is found in rocks rather than nuggets or dust mixed in stream or bench sand. The gold tends to be of the lode variety. Which means it is found in vein form or as a by-product of base metal deposits. Most, if not all Gold recovered in Manitoba, is not of the variety that you can obtain from panning in a stream. In Manitoba you are in hard rock country, meaning anything mined to date on a significant scale was found in rock and not as nuggets, dust or flour gold mixed into stream or bench sands. Gold in these provinces is typically of a lode type found in veins or as derivative in base metal deposits and Mega Precious Metals is developing two key projects in these areas.
On November 29, Mega Precious Metals (Mega, TSX.V: MGP) announced that it has completed its acquisition of the Headway property in Red Lake, Ontario. Mega now owns 100% of the 320 acre property, which is located along the Red Lake mine trend, and well linked to roads and infrastructure in an area well known to gold miners. Mega has high – and justified – expectations for the Headway project. The three holes drilled since 2009 have identified the same host rock being mined by Goldcorp’s Red Lake mine; Mega’s future drilling in the area will continue to search for additional zones rich in the type of mineralization found at the Goldcorp property while choosing the best exploration course for 2013. Mega believes that high grade mineralization is present at Headway and it has the human and financial resources to pursue growth at a fast pace.
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If Red Lake represents the future, Mega is also continuing to develop its legacy properties through the Old Core Assay Program (OCAP). Indeed, Mega also owns a 100% interest in the Monument Bay gold project, near Thompson, Manitoba and this property has continued to offer valuable prospects. Just days before announcing the finalization of the Red Lake acquisition, Mega announced that it has found “significant” additional gold mineralization from 16 drill holes as part of OCAP. The Company says that in 2012, over 30 holes have yielded 20% more mineralized intervals than the previously outlined waste.
The OCAP program has been very successful in identifying continuous gold mineralization, enabling Mega to offer a more exciting – planned – updated resource estimate in 2013. Mega relied on favorable historical data to find such high gold mineralization continuity as to enhance the open pit potential of the mine. The 2012 NI 43-101 resource estimate of 1.4 million tons (compliant) and 11.6 million tons (Indicated) was published in February 2012 but it failed to include the OCAP results for 2012. The updated resource promises to be very exciting considering the fact that the post-OCAP highlights show that all 16 holes showed additional gold intersections. The results have been very encouraging, adding to the Company’s understanding of the geology and adding to the value of its mineralization.