Mega Precious Metals Inc.
TSX VENTURE : MGP

Mega Precious Metals Inc.

November 19, 2013 11:23 ET

Mega Precious Metals Files NI 43-101 Technical Report for Its Headway Project, Red Lake Ontario

THUNDER BAY, ONTARIO--(Marketwired - Nov. 19, 2013) - Mega Precious Metals Inc. (TSX VENTURE:MGP) ("Mega") announces that, further to the news release of October 16, 2013, Mega has filed the National Instrument 43-101 Technical Report entitled "Report on Drilling MH1103 Headway Au Property, Red Lake, Ontario" dated November 4, 2013, on SEDAR. The report has also been posted on the Company's website http://www.megapmi.com. There are no material differences between the results of the Technical Report filed today and the disclosure provided in the October 16, 2013 news release.

Highlights of the Technical Report include:

  • Deep drilling on the Headway Gold Property by Mega has confirmed their geological model, where drill hole MH1103 has intersected altered and deformed Balmer Assemblage rocks within the property and are the same rock types that occur within Goldcorp's Red Lake Mine to the north of the Property.

  • 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 in drill hole MH1103 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 in MH1103, 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).

Glen Kuntz, President and CEO, states "The technical report authored by Tim Twomey Consulting and our team is an important milestone in the advancement of the Headway Gold Project. Mr. Twomey was an integral member of the geological team at the Red Lake Mine that discovered, delineated and brought the High-Grade Zone discovery into production. As such this in-depth knowledge combined with our recent discovery of shear zones, anomalous gold zones and other important marker horizons in Drill hole MH1103 are analogous to being within approximately 300 metres of high grade mineralization at the HGZ at the Red Lake Mine and it is the QP's opinion that deep diamond drilling should continue at the Headway Property northward to the boundary of the Red Lake Mine in order to explore for other regional foliation-parallel shear zones in Balmer basalt."

Recent deep discoveries at Goldcorp's New Zone in the 4699 Ramp (~200 m north from our target horizon) as well as the NXT Zone at the Red Lake Mine both demonstrate that rocks in the hanging-wall to the HGZ have excellent exploration potential for high-grade gold mineralization. The intersection of a regional Shear Zone in MH1103 that was open to auriferous fluids has similarities to ore-bearing structures at the adjacent Red Lake Mine. This suggests that this regional Shear Zone has good potential for higher gold-grades within the Headway Gold Property (Figure 3).

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.

Mega is currently planning future drilling that continues 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/MGP-Figure1.pdf.

Figure 2: "Bleached basalt", strongly-altered Balmer Assemblage Basalt or "Campbell-Dickenson Diorite" around 2644 m, MH1103 - http://media3.marketwire.com/docs/MGP-Figure2.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, www.goldcorp.com. Skewness error in images +- 200m depending on location - http://media3.marketwire.com/docs/MGP-Figure3.pdf.

Qualified Person

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 leading Canadian-based exploration company with a high quality pipeline of projects located in the mining friendly jurisdictions of Northwestern Ontario, Manitoba 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.

Forward-looking Statements

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.

Contact Information

  • Mega Precious Metals Inc.
    Glen Kuntz, P.Geo.
    President, Chief Executive Officer & Director
    O: 807-766-3380 or TF: 877-592-3380
    info@megapmi.com
    www.megapmi.com