Mega's OCAP Program Continues to Add Gold Mineralization Within the Proposed Open Pit at the Monument Bay Gold Camp
27.11.2012 | Business Wire
Thunder Bay, Ontario CANADA, November 27, 2012 - Mega Precious Metals Inc. (MGP - TSX Venture), is pleased to report that the Old Core Assay Program (OCAP), designed to sample previously unassayed mineralized core, continues to add significant gold mineralization in an additional 16 diamond drill holes totaling 6,190 m. During 2012, over 30 holes (> 11,568 m) from the OCAP program have converted greater than 20% of the previously outlined waste into gold mineralized intervals.All of the results from the OCAP program have been successful in outlining continuous mineralization that is equal to or greater than the current economic cutoff grade. As such, bringing these new assay drill results into the database is expected to have a positive effect on updated planned resource estimate update is expected to be completed in first half 2013.
The OCAP library has over 75,000 m of historical core from previous operators who were testing for narrow high grade veins. Drill holes tested too date suggest continuity of gold mineralization between higher grade vein hits. This has the potential to enhance the open pit potential of this large gold bearing system and each of the zones remains open along strike and down dip.
Results from the 2012 OCAP program have not been included in the NI 43-101 resource which was released in February 2012 estimated to contain a NI 43-101 compliant Measured Resource of 1.4M tonnes grading 3.3 g/tonne for 143,785 ounces, plus an Indicated Resource of 11.6M tonnes grading 2.43 g/tonne for 902,225 ounces plus Inferred Resources of 14.2M tonnes grading 3.78 g/tonne for 1,726,674 ounces. Mega plans to continue the OCAP program by testing the remaining 63,809 m of core throughout 2013 followed by an updated NI 43-101.
HIGHLIGHTS:
* TL 11-368 pre OCAP intersected, 3.0 metres at 2.42 g/t gold and 1.0 metres at 5.10 g/t gold
* Post OCAP intersected 2 mineralized zones:
* 30.0 metres at 0.68 g/t gold
* 6.0 metres at 1.00 g/t gold
* TL 11-371 pre OCAP intersected, 11.0 metres at 1.08 g/t gold
* Post OCAP intersected 4 mineralized zones:
* 18.7 metres at 0.58 g/t gold
* 23.0 metres at 0.43 g/t gold
* 15.0 metres at 0.55 g/t gold
* 3.4 metres at 1.31 g/t gold
* TL 11-380 pre OCAP intersected 2.0 metres at 9.15 g/t gold and 2.5 metres at 6.70 g/t gold
* Post OCAP intersected, 23.0 metres at 1.00 g/t gold, 12.5 metres at 2.05 g/t gold
* TL 11-397 pre OCAP intersected 5.2 metres at 2.29 g/t gold
* Post OCAP intersected 2 mineralized zones:
* 49.0 metres at 1.04 g/t gold
* 6.0 metres at 0.40 g/t gold
* TL 11-441 pre OCAP intersected no significant values
* Post OCAP intersected 2 mineralized zones:
* 5.0 metres at 0.80 g/t gold
* 21.0 metres at 0.69 g/t gold
* TL 11-442 pre OCAP intersected no significant values
* Post OCAP intersected 4 mineralized zones:
* 5.0 metres at 0.45 g/t gold
* 7.0 metres at 0.99 g/t gold
* 5.0 metres at 0.69 g/t gold
* 50.0 metres at 1.04 g/t gold
A summary of the OCAP results are listed below.
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Monument Bay Pre-OCAP (as of February 2012)
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HOLE# FROM(m) TO(m) INTERCEPT(m) Au Grade(g/t)
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TL-11-368 354.0 357.0 3.0 2.42
378.1 379.1 1.0 5.10
TL-11-371 381.2 392.2 11.0 1.08
TL-11-372 490.0 508.0 18.0 1.49
TL-11-380 423.2 425.2 2.0 9.15
497.5 500.0 2.5 6.70
TL-11-386 97.3 100.0 2.7 2.40
98.0 99.0 1.0 3.41
104.0 105.0 1.0 3.36
TL-11-392 135.8 138.8 3.0 1.77
167.8 172.6 4.8 1.47
TL-11-397 457.0 462.2 5.2 7.91
TL-11-439 188.0 194.0 6.0 1.23
216.0 221.0 5.0 0.52
232.0 256.0 24.0 0.43
266.0 281.4 15.5 0.63
320.0 359.0 39.0 0.55
TL-11-441 NSV
TL-11-442 NSV
TL-11-443 NSV
TL-11-444 NSV
TL-12-454 157.0 184.0 26.0 1.60
TL-12-463 119.0 170.0 51.0 1.25
TL-12-469 NSV
TL-12-472 NSV
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Monument Bay Post-OCAP (as of September 2012)
HOLE# FROM(m) TO(m) INTERCEPT(m) Au Grade(g/t)
--------------------------------------------------------------
TL-11-368 350.0 380.0 30.0 0.68
447.0 453.0 6.0 1.00
TL-11-371 380.2 398.9 18.7 0.58
417.0 440.0 23.0 0.43
460.0 475.0 15.0 0.55
500.0 503.4 3.4 1.31
TL-11-372 475.0 508.0 33.0 0.90
531.0 534.0 3.0 1.39
TL-11-380 420.2 444.0 23.8 1.00
496.5 509.0 12.5 2.05
TL-11-386 62.0 105.0 43.0 0.78
TL-11-392 135.0 172.6 37.6 0.62
TL-11-397 432.0 481.0 49.0 1.04
544.3 550.3 6.0 0.40
TL-11-439 136.0 138.0 2.0 0.75
188.0 195.0 7.0 1.08
232.0 360.0 128.0 0.41
TL-11-441 51.0 56.0 5.0 0.80
116.0 137.0 21.0 0.69
TL-11-442 163.0 168.0 5.0 0.45
261.0 268.0 7.0 0.99
386.0 391.0 5.0 0.69
491.0 541.0 50.0 1.04
TL-11-443 59.0 73.0 14.0 0.41
TL-11-444 84.0 105.9 21.9 0.78
TL-12-454 109.0 113.0 4.0 0.97
138.0 186.0 48.0 0.97
TL-12-463 114.0 174.0 60.0 1.12
214.0 226.0 12.0 0.40
TL-12-469 251.0 261.0 10.0 1.04
TL-12-473 181.0 189.0 8.0 0.72
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Mega's President & Interim Chief Executive Officer, Glen Kuntz commented "These latest OCAP program results continue to provide further encouragement for the company that we're well on track to continue to expand the mineral resource base within the proposed open pit.
Our team continues to demonstrate that the OCAP program's historical drilling database has the potential to add significant ounces and future targets and it has also allowed us to improve our understanding in the relationship between rock types, structure, alteration, and the presence of tungsten within gold mineralization. Collectively, this information has been successful at targeting new ounces and finding them at a very low cost throughout our Monument Bay Gold Camp."
Please see the recent University of Manitoba Presentation that outlines these geological controls further. http://www.megapmi.com/assets/files/monument_bay/Ryus_St._Pierre_-_Mines_and_Minerals_Presentation.pdf
Mega's focused exploration program continues to demonstrate that additional gold mineralization occurs both within the current pit and outside the existing resource boundary or in areas that are currently estimated as low grade and classified in the inferred category.
Plan View
Please click on the following link to view the Plan View:
http://www.usetdas.com/pr/mega11272012graphic1.jpg
Cross sections
Please click on the following link to view the Vertical Section (505620 E) Looking East, TL-11-371:
http://www.usetdas.com/pr/mega11272012graphic2.gif
Please click on the following link to view the Vertical Section (506050 E) Looking East, TL-11-380:
http://www.usetdas.com/pr/mega11272012graphic3.gif
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 filed on SEDAR.
The drill core is logged and split with half-core samples shipped to Accurassay Laboratories of 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.
Mega Precious Metals has conducted over 40,000 metres of drilling at the Monument Bay Gold Camp since January 2011, making it one of the most active mineral exploration projects in the region.
Management believes success from these exploration programs will continue to demonstrate that additional gold mineralization occurs outside the existing resource boundary and can be a very meaningful scale for outlining multiple satellite gold deposits to support ongoing resource growth in the Monument Bay Gold Camp.
Glen Kuntz, President & Interim Chief Executive Officer, 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 Inc.
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.
For further information and presentation material, please review the Mega website at www.megapmi.com
For further information, please contact:
Mega Precious Metals Inc.
Glen Kuntz, President & Interim Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@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.