THUNDER BAY, ONTARIO, May 22, 2014 (Marketwired via COMTEX) — Press Release Highlights:
— Mega’s 2014 drill program continues to define near surface high grade
gold and gold/tungsten structures within a broader gold mineralized zone
and multiple occurrences of visible gold (“VG”).
— TL-14-526 intersects 61m of 3.44 g/t gold including 6.64 g/t gold
— TL-14-518 intersects 52m of 1.34 g/t gold equivalent including 1.98
g/t gold over 31m plus 1.17% WO3 over 3.0m
— TL-14-516 intersects 18.5m of 1.81 g/t gold including 2.71 g/t gold
— TL-14-520 intersects 25m of 1.00 g/t gold including 1.40 g/t gold
— Additional gold and tungsten assays are pending from the ongoing 2014
OCAP and drill program
Mega Precious Metals Inc. (TSX VENTURE: MGP) (“Mega”) is pleased to announce an additional six (6) holes from its 29 hole, 4,784 m winter drill program on its 100% owned high grade gold and tungsten Monument Bay Project, located in Manitoba.
Prior to this year’s 2014 drill program, limited drilling had taken place in the top 100 m of the porphyritic dyke host rock and associated shear zones at the Twin Lakes Deposit. The results are especially significant because of the width of near surface high grade mineralization, up to 30m in true thickness, and Mega’s ability to continue to intersect continuous gold and gold/tungsten mineralization within a broader gold mineralized zone all within the upper 50 m of the deposit.
The results from TL-14-526 are among the highest gold intercepts with multiple occurrences of visible gold (VG) in the Twin Lakes Deposit. Drilling continues to demonstrate that appreciable high grade mineralization occurs within 25m of surface along the eastern edge of the proposed starter pit. Holes TL-14-513, TL-14-516, TL-14-518 to TL-14-520 were focused on converting near surface inferred low grade or waste material into considerable grade potential within the eastern/central portions of the current proposed pit shell. The current Monument Bay open-pittable resource covers a strike length of 8 kms with limited deep drilling.
Glen Kuntz, P.Geo, President and CEO, stated, “The 2014 drill program has definitively confirmed that there are multiple continuous high grade gold and gold tungsten mineralized horizons within the deposit. These horizons are providing further confidence in our geological model, our ability to continue to building resources and to realize the full potential of the Monument Bay Project.
The continuity of these intercepts along with previously reported gold and tungsten results are located in continuous shear zones that flank the broad QFP dike which hosts the majority of the gold and tungsten mineralization and suggest the potential for an economic Tungsten by-product credit due to the consistent nature of the gold and tungsten association throughout the Monument Bay Project. Mega’s decision to focus its efforts on near surface resource expansion, above 150 meters, has further strengthened the geological model and continues to added significant value for our shareholders.”
2014 Gold and Tungsten Infill Drill Results
Au WO3 Grade
FROM TO Width Grade Grade Equiv.
HOLE# ZONE (m) (m) (m) (g/t) (%) (g/t) Comments
TL-14-513 MZTLD 93.0 100.0 7.0 0.93 – 0.93 Dyke
TL-14-516 MZTLD 94.0 112.5 18.5 1.81 – 1.81 Dyke
includes 98.65 110.5 11.85 2.71 – 2.71 Incl.VG
TL-14-518 MZTLD 85.0 137.0 52.0 0.50 0.07 1.34 Dyke
includes 86.0 116.0 31.0 0.60 0.11 1.98 Incl.VG
includes 113.0 116.0 3.0 0.90 1.17 15.11 Dyke
TL-14-519 MZTLD 49.0 65.0 16.0 0.75 – 0.75 Dyke
MZTLD 80.0 98.0 18.0 0.54 0.03 0.96 Dyke
includes 96.4 98.0 1.6 1.58 0.30 5.24 Dyke
TL-14-520 MZTLD 59.0 84.0 25.0 1.01 – 1.01 Dyke
includes 59.0 74.0 15.0 1.40 – 1.40 Incl.VG
525 Assays pending
TL-14-526 MZTLD 62.0 123.0 61.0 3.44 – 3.44 Dyke
includes 62.0 92.0 30.0 6.64 – 6.64 Incl.VG
538 Assays pending
Note: Gold equivalent grade is calculated by multiplying the 3 year average
Tungsten price of $50,300/tonne by the %WO3 then dividing by the Gold price
$41.47/gram ($1290/ounce), then adding the Gold grade. MZTLD equates to Main
Zone Twin Lakes Deposit Tungsten Current Spot price is $42,000/tonne. Gold
assays capped at 88.0 gpt as per June 2013 NI43-101 Report. The Company has
not determined the economic cut-off grade for and metallurgical recoveries
Down-hole thickness, true width varies depending on drill hole dip; most
2014 drill holes are intersecting the vein structures perpendicularly
therefore down hole width are close to true width
More than 12,000 m of new drilling (2013/2014) and over 8,000m of historical core from 64 drill holes of the OCAP program has yet to be incorporated into a new resource. Mega expects to provide an updated NI 43-101 resource during Q2/Q3 of 2014 which will encompass gold, tungsten and the results from the metallurgical testing program currently in progress. The Company has limited deep drilling at Monument Bay which is located in an Abitibi style Green Stone Belt and has the same style of gold and tungsten mineralization as the Hollinger Mine in the Timmins Camp. These types of deposits are known to extend beyond 2,000 m.
To date, all of the holes assayed for gold and tungsten have collectively increased the overall gold equivalent grade by a weighted average of approximately 30% when compared to the gold only results. As a point of reference, current Tungsten only mines have resource grades between 0.09 and 1.1% Tungsten with the average being approx. 0.49% Tungsten http://www.itia.info/minerals-deposits.html.
To view Figure 1: Twin Lakes Deposit Composite Long Section – Total Au (Grade X Metre) Contour Diagram with DDH Pierce Points – Showing Consistent High Grade Gold Cores, please visit the following link: http://media3.marketwire.com/docs/Figure1MGP.jpg.
To view Figure 2: 2014 Drill Hole Cross Section, please visit the following link: http://media3.marketwire.com/docs/Figure2MGP.jpg.
The property is located on Crown property in an area of low topographic relief and outcrop is fairly rare. The Monument Bay Gold Project is located 52 km North of Red Sucker Lake First Nation (RSLFN), Manitoba.
Mega currently has winter road access to its camp from local communities. Manitoba’s Current Northern Development Strategy is building all-purpose roads and infrastructure improvements within the region. Once these are complete, we will have all purpose roads approximately 52 km of our project area.
The current power lines with very low electricity rates (estimated at $0.02-0.04/kWh) are approximately 48 kms from our project area.
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 June 17, 2013 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. BC Energy & Mines
Glen Kuntz, P. Geo, President and 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.
Mega Precious Metals Inc. is a leading Canadian-based exploration company with a high quality pipeline of projects located in the mining friendly jurisdictions of Manitoba, Northwestern Ontario and Nunavut. The Company’s significant portfolio includes the flagship Monument Bay Gold Tungsten Project in NE Manitoba as well as the N. Madsen Gold Project in the prolific gold mining district of Red Lake, Ontario. Mega has established a record of delivering rapid growth through their focused and low cost approach to exploration and resource development. The Company’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.