Mega Precious Metals Inc.
TSX VENTURE : MGP

Mega Precious Metals Inc.

August 06, 2014 09:11 ET

Mega Precious Metals Intersects 38m of 4.43 g/t Gold Expanding Near Surface High Grade Gold Structure at Monument Bay

THUNDER BAY, ONTARIO--(Marketwired - Aug. 6, 2014) - Mega Precious Metals Inc. (TSX VENTURE:MGP) ("Mega") is pleased to announce an additional seven (7) holes from its 29 hole, 4,784m winter drill program and nine (9) holes from its OCAP (Old Core Assay Program) on its high grade gold and tungsten ("WO3") Monument Bay Project, located in Manitoba. The success of the winter drill program continues to expand multiple high grade gold/tungsten structures to surface within the porphyritic dyke host rock and associated shear zones at the Twin Lakes Deposit.

Highlights:

  • Mega's 2014 drill program has now encountered multiple high grade gold and gold/tungsten structures near surface within broader gold mineralized zones with multiple occurrences of visible gold ("VG")
    • TL-14-533 intersects 38.0m of 4.43 g/t gold including 8.60 g/t gold over 13.0m and 4.89 g/t gold over 5.7m
    • TL-14-523 intersects 40.6m of 2.00 g/t gold including 3.60 g/t gold and 0.08% WO3 over 15.6m
    • TL-14-528 intersects 33.0m of 1.02 g/t gold including 1.72 g/t gold and 0.11% WO3 over 12.4m
    • TL-14-517 intersects 24.5m of 1.12 g/t gold including 2.31 g/t gold over 10.5m
  • The OCAP program continues to define broad gold zones coupled with multiple gold/tungsten shear zones that were previously left unassayed
    • TL-05-275 intersects 59.1m of 1.10 g/t gold including 1.29 g/t gold and 0.19% WO3 over 16.9m
    • TL-05-286 intersects 44.0m of 1.08 g/t gold including 5.43 g/t gold and 1.11% WO3 over 2.8m
    • TL-03-121 intersects 43.0m of 0.90 g/t gold including 1.66 g/t gold and 0.10% WO3 over 9.0m plus 0.68 g/t gold and 0.10% WO3 over 6.0M
    • TL-11-391 intersects 26.9m of 0.99 g/t gold and 0.12% WO3 including 1.46 g/t gold and 0.40% WO3 over 7.5m

The 2014 winter drill and OCAP program results continue to identify near surface high grade gold/tungsten mineralization, within a broader gold mineralized zone in the upper 100m of the deposit. Some of the gold and tungsten intercepts disclosed today are broader and higher grade compared to what was reported in our June 2013 Twin Lake Resource. Mega's planned summer/fall drill and OCAP program will continue to focus on the expansion of these near surface high grade structures as they have the potential to identify additional high grade mineralization within and between the proposed high grade starter pits.

Holes TL-14-533, along with previously released TL-14-514 and TL-14-526 which intersected 61.0m of 3.44 g/t gold including 6.64 g/t gold over 30.0m plus 8.0m @ 0.21 WO3 continues to successfully extend multiple high grade gold and tungsten mineralized structures up to or near surface in the eastern portion of the potential Twin Lakes open pit. (See Figures 1, 2 and 3: http://media3.marketwire.com/docs/MGP0806.pdf).

In the central and western portion of the proposed open pit, holes TL-14-517, TL-14-523, TL-41-528, TL-05-275, TL-05-286, TL-11-391 and TL-03-121 were focused on identifying additional near surface high grade gold/tungsten mineralization through the expansion of the high grade mineralized cores.

Glen Kuntz, P.Geo, President and CEO, stated, "These drill and OCAP results are highly encouraging as they continue to further define the surface/near surface continuity of multiple high grade gold and tungsten intercepts both along strike and at depth with our 2014 and 2015 drilling program focused on expanding the high grade zones and identifying additional zones. Our objective is to include as much of the 2013/2014 drilling and OCAP program as possible into an updated gold/tungsten NI 43-101 resource estimate in the second half of 2014."

2014 Gold and Tungsten Infill Winter Drill Results

HOLE# ZONE FROM
(m)
TO
(m)
Width
(m)
Au
Grade
(g/t)
WO3
Grade
(%)
Au
Grade
Equiv.
(g/t)
Comments
TL-14-517 MZTLD 111.0 135.5 24.5 1.12 - 1.12 Porphyry Dyke
includes 111.0 121.5 10.5 2.31 - 2.31 Incl.VG
MZTLD 160.0 169.4 9.4 0.62 - 0.62 Porphyry Dyke
TL-14-521 MZTLD 95.0 120.0 25.0 0.73 - 0.73 Porphyry Dyke
includes 95.0 103.0 8.0 1.55 - 1.55 Incl.VG
TL-14-523 MZTLD 85.7 126.3 40.6 2.00 0.04 2.48 Porphyry Dyke
includes 94.4 110.0 15.6 3.64 0.08 4.57 Incl.VG
MZTLD 197.0 198.8 1.8 6.27 0.04 6.80 Incl. VG Shear Zone
TL-14-524 MZTLD 51.7 66.0 14.3 1.29 0.03 1.64 Porphyry Dyke
includes 58.1 64.2 6.1 2.58 0.05 2.87 Incl.VG
MZTLD 135.0 136.5 1.5 7.47 - 7.47 Incl. VG Shear Zone
TL-14-525 MZTLD 44.0 52.8 8.0 1.15 0.03 1.57 Porphyry Dyke
MZTLD 83.5 84.8 1.4 0.37 0.12 1.87 Incl. VG Shear Zone
TL-14-528 MZTLD 38.0 71.0 33.0 1.02 0.05 1.56 Porphyry Dyke
includes 58.6 71.0 12.4 1.72 0.12 3.14 Incl.VG
TL-14-533 MZTLD 36.0 74.0 38.0 4.43 0.01 4.46 Porphyry Dyke
includes 40.0 53.0 13.0 8.60 - 8.60 Incl.VG
includes 64.7 70.4 5.7 4.89 - 4.89 Incl.VG
MZTLD 82.0 91.0 9.0 1.55 - 1.55 Incl. VG Shear Zone
Note: TL-14-529 to TL-14-530 and TL -14-534 to TL-14-538 have assays pending.

2014 Gold and Tungsten OCAP Infill Results

HOLE# ZONE FROM
(m)
TO
(m)
Width
(m)
Au
Grade
(g/t)
WO3
Grade
(%)
Au
Grade
Equiv.
(g/t)
Comments
TL-03-121 MZTLD 100.8 143.8 43.0 0.90 0.04 1.41 Porphyry Dyke
includes 100.8 109.8 9.0 1.66 0.10 2.90 Incl.VG
includes 137.8 143.8 6.0 0.68 0.10 1.87 Incl.VG
TL-03-143 MZTLD 146.8 149.7 2.6 5.49 - 5.49 Porphyry Dyke
MZTLD 173.5 180.0 6.6 0.87 0.01 0.97 Porphyry Dyke
MZTLD 185.95 202.3 16.4 0.72 0.08 1.73 Porphyry Dyke
includes 196.4 201.5 5.1 0.92 0.21 3.48 Incl.VG
TL-05-273 MZTLD 135.0 147.4 12.4 1.73 0.11 3.13 Porphyry Dyke
MZTLD 206.0 208.0 2.0 3.26 - 3.26 Incl. VG Shear Zone
TL-05-275 MZTLD 94.8 157.5 59.1 1.10 0.06 1.78 Porphyry Dyke
includes 94.8 107.0 8.6 1.79 - 1.79 Incl.VG
includes 126.6 143.5 16.9 1.29 0.19 3.64 Incl.VG
TL-05-286 MZTLD 141.0 185.0 44.0 1.08 0.07 1.93 Porphyry Dyke
includes 181.4 184.2 2.8 5.43 1.11 18.87 Incl.VG
TL-05-291 MZTLD 194.0 234.1 40.1 0.82 0.02 0.98 Porphyry Dyke
includes 229.3 234.1 4.8 2.13 0.06 2.91
TL-11-386 MZTLD 74.9 105.0 30.1 0.88 0.06 1.57 Porphyry Dyke
includes 97.3 102.0 4.7 1.49 0.28 4.84 Incl.VG
TL-11-391 MZTLD 80.7 107.0 26.9 0.99 0.12 2.53 Porphyry Dyke
includes 99.5 107.0 7.5 1.46 0.40 6.32 Incl.VG
TL-12-486 MZTLD 95.0 107.0 12.0 0.80 0.05 1.46 Porphyry Dyke
MZTLD 142.0 192.0 50.0 1.14 0.01 1.29 Porphyry Dyke
includes 146.0 150.0 4.0 3.11 0.04 3.59 Incl.VG
includes 188.0 192.0 4.0 1.82 0.10 3.08 Incl.VG
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 $40.12/gram ($1250/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 WO3. 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 10,000m of historical core from 94 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 the second half of 2014 which will encompass gold, tungsten and include the results from the metallurgical testing program. The Company has limited deep drilling at Monument Bay which is located in an Abitibi style Green Stone Belt and has a similar style of gold and tungsten mineralization as the Hollinger Mine in the Timmins Camp. These types of deposits are known to extend beyond a depth of 2,000 m. The current Monument Bay pit constrained resource covers a strike length of 8 kms.

The 338km2 property is located on Crown property 570 km northeast of Winnipeg and 340 km east southeast of Thompson, Manitoba. The nearest communities are Red Sucker Lake First Nation, 52 km to the southwest, and God's Lake Narrows First Nation, 100 km to the west.

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, Mega will have all purpose roads within approximately 52 km of our project area. The current power lines which connect Red Sucker Lake First Nation and God's Lake Narrows First Nation have very low electricity rates (estimated at $0.02-0.04/kWh) and are approximately 48 kms from 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 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.

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.

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