THUNDER BAY, Ontario--(Business Wire)--
Mega Precious Metals Inc. (MGP:TSX-V) ("Mega") is pleased to announce that the
company has commenced its 2013 exploration & drill program and discovered high
grade concentrations of Tungsten at its high grade multimillion (see resource
table below) ounce gold deposit at the Monument Bay Gold Camp, in Manitoba.
In mid-2012, Mega`s geological team, in conjunction with the University of
Manitoba, determined that the gold mineralized zones have highly elevated
concentrations of tungsten in the form of a mineral called Scheelite. The
Gold/Scheelite association was determined using a UV light and has outlined the
mineralized zones to be broad and continuous. These Scheelite veins occur within
the current gold mineralized footprint at Monument Bay and could become a
significant economic by-product (University of Manitoba Presentation Nov 2012).
Mega`s geological team has been reviewing in excess of 130,000 m of drill core
to continue to outline these mineralized structures.
Mega is pleased to announce its first preliminary analytical Tungsten assay
results for core previously assays in 2011 only for Au mineralization has shown
the potential for an economic by-product credit. The initial results have
indicated Tungsten values in excess of 2.01% over 1m with a broad lower grade
halo. A grade of 2.01% Tungsten equates to 20.1 kg of Tungsten per tonne. The
current average January spot price of tungsten is $52.90/kg. As a point of
reference, current Tungsten only mines have resource grades between 0.09 and
1.1% Tungsten with the average being ~0.49% Tungsten
http://www.itia.info/minerals-deposits.html. There are currently over 17 holes
with over 600 Tungsten assays pending for the initial program.
A summary of the 2013 Tungsten assaying results are listed below with previously
released gold grades.
HOLE# ZONE FROM TO INTERCEPT (m) Au Grade (g/t) WO3 Grade (%) Au Grade Equivalent
(m) (m) (g/t)
TL 12-484 Main Zone Twin Lakes Deposit 267.0 274.0 7.0 2.30 0.53 7.59
includes 271.0 272.0 1.0 1.95 2.01 21.99
TL 11-390 Main Zone Twin Lakes Deposit 97.3 113.0 15.7 2.54 0.10 3.54
includes 101.0 106.0 5.0 2.54 0.23 4.83
TL 11-437 Main Zone Twin Lakes Deposit 58.0 59.0 1.0 0.69 0.63 6.97
Assays pending for remaining of 12-484,11-390, 11-437 plus 17 additional holes
Note: * Gold equivalent grade is calculated by multiplying the
January Average Spot Tungsten price of $52,900/tonne by the %WO3 and
then dividing by the Gold Spot price $52.05/gram ($1650/ounce), then
adding the Gold grade.
Mega`s planned 7000 m step out drill program will focus on expanding the
stockwork style high grade gold mineralization of the existing Twin Lakes
Deposit, expand the new Mid East and AZ satellite deposits and test the newly
found regional exploration gold targets such as the Connector and Gold Pond
zones. All of these mineralized zones occur within 7 kms of the existing Twin
Lakes Gold Deposit.
In addition, Mega has commenced an update of its National Instrument ("NI")
43-101 Resource Estimate for the Twin Lakes Deposit & area within the Monument
Bay Gold Camp. During 2012 work completed included 40 new drill holes (> 12,500
m), over 30 Old Core Assay Program ("OCAP") holes (> 11,568 m) and multiple
kilometers of surface mapping and sampling which will be included in the updated
Mega`s President & Interim CEO, Glen Kuntz commented "These initial Tungsten
results are very exciting as they demonstrate our ability to make new
discoveries while continuing to expand the size and extent of the known
mineralized zones and with the potential to greatly enhance the economics of our
project. The very strong presence of tungsten in the form of scheelite
throughout each of our gold bearing structures has demonstrated the polymetallic
nature of our deposit will have a significant cost advantage after by-product
credit compared to many of our mining peers. The addition of 0.25% tungsten
equates to increasing the Au grade equivalent by 2.5 gpt.
This winter`s drill program is a combination of infill and step out drilling
which is designed to refine the resource model and test regional targets that
are outside the current resource boundary. The gold/tungsten knowledge and other
mineralization controls that we have gained over the past 12 months is valuable
and provides encouragement that the large high grade mineralized systems that we
are exploring along the 120 kilometer long trends will contribute to demonstrate
the large scale potential of the system and provide strong growth in resources
at our Monument Bay Gold Camp.
Additional Gold and Tungsten results are pending from both our current drill
program and our ongoing OCAP that will continue to add more resource ounces to
this asset backed investment. We expect these programs to be complete by the end
Testing Shallow Targets - More Near Term Potential for Success
It is management`s view that our systematic approach continues to provide
potential for significant value creation and plans to continue to test the near
surface targets and believes that all of the new mineralization outlined since
2011 will potentially increase the areas for potential pits and High Grade
underground mines. Mega is committed and focused with its exploration activities
beyond the existing resource boundary to establish potential for future resource
growth by outlining multiple gold targets along the 120 kms of prospective
The current project is easily accessible by air and the Manitoba Government
continues to initiate the development of infrastructure in the region, including
upgradable power lines, low electricity rates ($0.2-0.4/kWh) and the
construction of all season roads within the region in the next 5 years.
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.
Glen Kuntz, President and Interim Chief Executive Officer (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.
Monument Bay Gold Camp - Measured, Indicated & Inferred Mineral Resources
Material Classification Cut off Grade Estimate Resource Tonnes Contained Au Ozs
Open Pit (OP) Measured 0.4 2.46 1,121,000 88,781
Indicated 0.4 1.59 8,738,300 447,547
Inferred 0.4 2.34 3,442,000 258,496
Underground (UG) Measured 2.2 5.56 307,950 55,004
Indicated 2.2 5.01 2.822,400 454,678
Inferred 2.2 4.24 10,779,000 1,468,178
OP + UG Measured + Indicated 2.50 12,989,700 1,046,010
OP + UG Inferred 3.78 14,221,000 1,726,674
Note: due to rounding, some totals may not appear to total
properly. Resource calculation used USD $1271/Troy ounce.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially affected
by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues. The quantity and grade of reported inferred
resources in this estimation are uncertain in nature and there has been
insufficient exploration to define these inferred resources as an indicated or
measured mineral resource and it is uncertain if further exploration will result
in upgrading them to an indicated or measured mineral resource category. The
mineral resources in this press release were estimated using CIM Standards.
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 and Interim Chief Executive Officer
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.
To view this press release as a webpage, please click on the following link:
Mega Precious Metals Inc.
Glen Kuntz, 877-592-3380
President and Interim Chief Executive Officer
Copyright Business Wire 2013