Mega Precious Metals has Identified Potential New Mineralization at Its Monument Bay Gold Camp and Recommences Drilling
February 6, 2013 (Source: Filing Services Canada) Thunder Bay, ON — Mega Precious Metals Inc. (MGP – TSX Venture), is pleased to announce that the company has commenced its 2013 exploration & drill program and discovered high grade concentrations of Tungsten at its high grade multimillion (see resource table below) ounce gold deposit at the Monument Bay Gold Camp, in Manitoba.
In mid-2012, Mega’s geological team, in conjunction with the University of Manitoba, determined that the gold mineralized zones have highly elevated concentrations of tungsten in the form of a mineral called Scheelite. The Gold/Scheelite association was determined using a UV light and has outlined the mineralized zones to be broad and continuous. These Scheelite veins occur within the current gold mineralized footprint at Monument Bay and could become a significant economic by-product. Mega’s geological team has been reviewing in excess of 130,000 m of drill core to continue to outline these mineralized structures.
Mega is pleased to announce its first preliminary analytical Tungsten assay results for core previously assays in 2011 only for Au mineralization has shown the potential for an economic by-product credit. The initial results have indicated Tungsten values in excess of 2.01% over 1m with a broad lower grade halo. A grade of 2.01% Tungsten equates to 20.1 kg of Tungsten per tonne. The current average January spot price of tungsten is $52.90/kg. As a point of reference, current Tungsten only mines have resource grades between 0.09 and 1.1% Tungsten with the average being ~0.49% Tungsten. There are currently over 17 holes with over 600 Tungsten assays pending for the initial program.
A summary of the 2013 Tungsten assaying results are listed below with previously released gold grades.
Mega’s planned 7000 m step out drill program will focus on expanding the stockwork style high grade gold mineralization of the existing Twin Lakes Deposit, expand the new Mid East and AZ satellite deposits and test the newly found regional exploration gold targets such as the Connector and Gold Pond zones. All of these mineralized zones occur within 7 kms of the existing Twin Lakes Gold Deposit.
Get our daily investorintel update
In addition, Mega has commenced an update of its National Instrument (“NI”) 43-101 Resource Estimate for the Twin Lakes Deposit & area within the Monument Bay Gold Camp. During 2012 work completed included 40 new drill holes (> 12,500 m), over 30 Old Core Assay Program (“OCAP”) holes (> 11,568 m) and multiple kilometers of surface mapping and sampling which will be included in the updated resource estimate.
Mega’s President & Interim CEO, Glen Kuntz commented “These initial Tungsten results are very exciting as they demonstrate our ability to make new discoveries while continuing to expand the size and extent of the known mineralized zones and with the potential to greatly enhance the economics of our project. The very strong presence of tungsten in the form of scheelite throughout each of our gold bearing structures has demonstrated the polymetallic nature of our deposit will have a significant cost advantage after by-product credit compared to many of our mining peers. The addition of 0.25% tungsten equates to increasing the Au grade equivalent by 2.5 gpt.
This winter’s drill program is a combination of infill and step out drilling which is designed to refine the resource model and test regional targets that are outside the current resource boundary. The gold/tungsten knowledge and other mineralization controls that we have gained over the past 12 months is valuable and provides encouragement that the large high grade mineralized systems that we are exploring along the 120 kilometer long trends will contribute to demonstrate the large scale potential of the system and provide strong growth in resources at our Monument Bay Gold Camp.
Additional Gold and Tungsten results are pending from both our current drill program and our ongoing OCAP that will continue to add more resource ounces to this asset backed investment. We expect these programs to be complete by the end of April.”
Testing Shallow Targets – More Near Term Potential for Success
It is management’s view that our systematic approach continues to provide potential for significant value creation and plans to continue to test the near surface targets and believes that all of the new mineralization outlined since 2011 will potentially increase the areas for potential pits and High Grade underground mines. Mega is committed and focused with its exploration activities beyond the existing resource boundary to establish potential for future resource growth by outlining multiple gold targets along the 120 kms of prospective mineralized corridors.
The current project is easily accessible by air and the Manitoba Government continues to initiate the development of infrastructure in the region, including upgradable power lines, low electricity rates ($0.2-0.4/kWh) and the construction of all season roads within the region in the next 5 years.
The design of Mega’s drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of Mega’s geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. A detailed review of Mega’s QA/QC procedures is filed in the NI 43-101 report dated March 19, 2012 and on SEDAR.
All drill core is transported by Company personnel from drill site to our camp for logging, sampling preparation are completed. Sampling intervals are defined after core logging and determination of scheelite content by examination under short-wave UV-light. One half of the core is sent for analysis, while the other half is retained in the core boxes for future reference. All samples are shipped to Accurassay Laboratories in Thunder Bay, Ontario and analyzed employing the appropriate gold fire assaying technique. For QA/QC purposes the Company as well as the lab submits standards and blanks every 20 samples. Samples are analyzed for W by XRF and Assay results for tungsten are reported by the laboratory as W%. WO3 values are calculated using a conversion factor of 1.2611.
Glen Kuntz, President and Interim Chief Executive Officer (CEO) is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101. Glen was Sr. Resource Geologist at the Campbell Gold Mine and Global Spatial Data Systems Coordinator for Placer Dome, Vice President Enterprise Mining Solutions for Runge Ltd., and most recently, Chief Operating Officer with Mega Precious Metals.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resources in this press release were estimated using CIM Standards.
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.
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.
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.