Mega Precious Metals Inc.
TSX VENTURE : MGP

Mega Precious Metals Inc.

November 20, 2013 09:44 ET

Mega Precious Metals Intersects 36.3 m at 1.58 g/t Gold and 3.88 g/t Gold Equivalent at Its Monument Bay Gold Project

THUNDER BAY, ONTARIO--(Marketwired - Nov. 20, 2013) - Mega Precious Metals Inc. (TSX VENTURE:MGP) ("Mega") is pleased to announce further gold and tungsten results from its ongoing 2013 exploration and drill program at its Monument Bay Gold Project, in northern Manitoba.

The results from the 2013 drilling program continue to confirm Mega's geological model of a unique gold and tungsten open pit mine. The current six (6) drill holes (totaling 2,172 m) increases the gold equivalent grade by an average of approximately 71% when tungsten is included in the results. The results continue to confirm the continuity of strong, near surface high grade gold and tungsten mineralization and the potential of tungsten to significantly increase the size and economics of the current resources.

The tungsten results to date have not been included in the NI 43-101 resource released June 17, 2013 and the Company expects to provide an updated NI 43-101 to include Tungsten following the results of the metallurgical testing expected to be completed during the second quarter of 2014.

HIGHLIGHTS:

2013 Drill Program

  • TL 13-506 intersected, 36.3 metres at 3.88 g/t Gold Equivalent
    • Gold only intercept is 36.3 metres at 1.58 g/t gold
    • High Grade Tungsten 0.95% WO3 over 4.8 m (Figure 3)
    • 145% increase in Gold Equivalent Grade
  • TL 13-492 intersected, 30.9 metres at 0.98 g/t Gold Equivalent
    • Gold only intercept is 30.9 metres at 0.55 g/t gold
    • 76% increase in Gold Equivalent Grade
  • TL 13-504 intersected, 27.5 metres at 1.79 g/t Gold Equivalent
    • Gold only intercept is 27.5 metres at 1.66 g/t gold
    • 8% increase in Gold Equivalent Grade

Glen Kuntz, P.Geo, President and CEO, stated "These resource expansion holes confirm the continuity of the multiple high-grade zones with extensive high-grade cores becoming a dominant and predicable feature at Monument Bay. The results from TL 13-506 are significantly higher than any previously released. Our focus is to continue drilling and resource delineation of the near surface high grade cores as part of the updated NI 43-101 Resource Estimate expected in 2014. The evolution of this deposit has been remarkable, going from a grass-roots gold only discovery to a continuous gold/tungsten horizon over four kilometers in strike length, in under 3 years, and we see much more potential ahead as we continue our technical program."

Mega's 2013 drill and OCAP programs have been focused on the Twin Lakes starter pit between sections 503000 E and 506300 E and continues to be successful in further delineating the high grade continuity of gold and tungsten mineralization, particularly for the shallow (less than 200 metre vertical depth) mineralization. Drill hole's TL 13-492, 13-503, 13-504 and 13-506 noticeably exhibit the same predictable and consistent high grade gold cores that occur every 180-290 m, begin at or near surface and increase in size with depth and the high grade tungsten has the potential to significantly enrich the current overall open pit resource grade of 1.4 g/t gold only and convert gold mineralization previously below cut-off into economic mineralization (Figures 1 & 2).

2013 Open Pit Drill Program Focusing on Resource Expansion of High Grade Cores

The current results from our drill program were successful in extending the high grade gold and tungsten mineralization between sections 503320 E and 505380 E in the Twin Lakes Deposit and extending the strike of the Mid East zone at section 509730 E by approximately 100 m. Additionally, they are thicker and higher grade than those previously used in the most recent June 17, 2013 resource update and will continue to improve the contained ounces, open pit design and overall economics of the deposits.

Table 1: 2013 High-Grade Gold Equivalent Infill and Step out Drill Results

HOLE# ZONE FROM
(m)
TO
(m)
INTERCEPT
(m)
Au
Grade
(g/t)
WO3
Grade
(%)
Au Grade
Equivalent
(g/t)
%
Increase
TL-13-487 MZTLD 152.0 168.0 16.0 0.72 0.01 0.86 19%
MZTLD 192.0 222.0 30.0 0.96 0.01 1.05 9%
MZTLD 252.7 278.0 25.3 0.73 0.01 0.91 24%
includes 252.7 255.0 2.3 1.16 0.12 2.59 123%
includes 302.0 305.0 3.0 2.83 0.01 2.93 4%
TL-13-492 MZTLD 201.5 232.4 30.9 0.55 0.03 0.98 76%
includes 205.9 207.0 1.1 0.50 0.24 3.42 578%
includes 231.0 232.4 1.4 1.53 0.14 3.27 114%
TL-13-500 Mid-East 194.0 204.0 10.0 1.04 0.01 1.12 7%
TL 13-503 MZTLD 146.5 171.0 24.5 1.02 0.04 1.55 51%
includes 162.6 170.5 7.9 2.46 0.12 3.91 59%
TL 13-504 MZTLD 170.5 198.0 27.5 1.66 0.01 1.79 8%
includes 181.5 192.0 10.5 3.03 0.01 3.12 3%
TL 13-506 MZTLD 159.8 196.0 36.3 1.58 0.19 3.88 145%
includes 170.0 182.5 12.5 2.40 0.08 3.34 39%
includes 243.5 248.3 4.8 1.12 0.95 12.62 1025%
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 $41.48/gram ($1290/ounce), then adding the Gold grade. MZTLD equates to Main Zone Twin Lakes Deposit Tungsten Current Spot price is $58,000/tonne

Figure 1: Plan View - Tungsten Credits Significantly Increasing Gold Equivalent Assay Values - http://media3.marketwire.com/docs/MGPfig1.pdf

The 2013 OCAP Gold and Tungsten sampling program has:

  • Increased the overall gold equivalent grade by an average of 30%, smaller intercepts increasing up to 2,589%
  • Converting >20% waste to economic mineralization
  • All 38 holes tested for tungsten have elevated tungsten grades
  • Current Mineralization is domain controlled and 30-120 M in width

Figure 2: Long Section View - Grade X Metre of Twin Lake Resource - http://media3.marketwire.com/docs/MGPfig2.pdf

Figure 3: Hole 13-506, 194 - 196m, High Grade Tungsten > 2.56% WO3 in the Form of Scheelite Veins - http://media3.marketwire.com/docs/MGPfig3_.pdf

2013 Regional Exploration Highlights - Strong Exploration Discovery Potential

Mega's ongoing regional exploration program has discovered a 5 km long near surface gold trend that is 7 km along strike from our multi-million resorce ounce compliant resource at the 338km2 Monument Bay Gold Camp. The regional program to date has confirmed that Mega's land package hosts over 140 km of proven gold bearing structures that are composed of three main shear zones (Twin Lakes, AZ and Stull-Wunnummin). (Figure 4 and 5).

Each of these gold anomalies has been further developed by various geochemical surveys, channel sampling, magnetics, Induced Polarization (IP), regional mapping and some drilling (Figure 4 and 5). The coincident gold anomalies are accompanied by strong path finder elements such as elevated tungsten (Scheelite) and multiple occurrences of visible gold. Collectively, this information has identified multiple potential high grade and bulk tonnage gold targets that are ready to be drilled in the upcoming program.

Highlights of the Gold Pond Target Area:

  • Strong, open ended 5 km by 500 m soil/humus anomaly enhanced by strong IP and magnetic signatures.
  • Greater than 80% of the 220 soil samples collected to date returned values exceeding 2 ppb/Au including 2% greater than 25 ppb/Au
  • Strong sericite and scheelite alteration associated with surface breccia and vein mineralization
  • Current Gold Pond anomaly is larger than the soil anomaly of the known Twin Lakes Deposit

Figure 4: Plan View of Monument Bay Project - > 140 kms of Gold/Tungsten Bearing Structures in a World Class Gold/Tungsten District - http://media3.marketwire.com/docs/MGPfig4.pdf

  • All existing Deposits are open to Expansion
  • Multiple New bulk tonnage and High Grade gold/Tungsten Targets

Figure 5: Plan View of Gold Pond Regional Gold/Tungsten Anomaly Approximately 7 kms East of Twin Lakes Deposit - http://media3.marketwire.com/docs/MGPfig5.pdf

Shallow High Grade Gold/Tungsten Resource Targets - More Near Term Potential for Success

Mega will continue to focus on resource expansion though its drilling, OCAP and surface exploration programs to establish potential for future growth by outlining multiple gold targets along the 140 kms of prospective mineralized corridors.

All of the deposits remain open both along strike and down-plunge and new prospective horizons located in close proximity to the current resource are currently being further delineated by drilling, OCAP and surface exploration which will provide valuable information to make additional new discoveries.

Monument Bay Gold Project is located 52 kms North of Red Sucker First Nation (RSLFN), Manitoba. The property is located on Crown property in an area of low topographic relief and outcrop is fairly rare. 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 and power lines with very low electricity rates ($0.02-0.04/kWh) that are within approximately 52 kms of our project area.

Technical Information

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. BC Energy & Mines

Glen Kuntz, President, Chief Executive Officer (CEO) and Director 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 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