THUNDER BAY, Ontario--(BUSINESS WIRE)--Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce further tungsten results from its 2013 exploration and drill program at its Monument Bay gold deposit, in NE Manitoba.
Mega’s geological framework has verified that all 17 drill holes have continued to intersect broad intervals of significant Gold and Tungsten concentrations in the form of a mineral called Scheelite. The current program has increased the overall gold- equivalent grade by an average of 32% with smaller intercepts increasing up to 198%. Collectively these Tungsten results continue to demonstrate the potential for an economic by-product credit due to the consistent nature of the Gold/Tungsten association throughout the Twin Lakes Deposit.
TL 12-484 intersected, 94.0 metres at 1.50 g/t Gold
- Previous reported intercept was 94.0 metres at 1.00 g/t gold
- 40% increase in Gold Equivalent Grade
TL 11-368 intersected, 30.0 metres at 0.94 g/t Gold
- Previous reported intercept was 30.0 metres at 0.69 g/t gold
- 31% increase in Gold Equivalent Grade
TL 11-388 intersected, 33.1 metres at 0.86 g/t Gold
- Previous reported intercept was 33.1 metres at 0.57 g/t gold
- 40% increase in Gold Equivalent Grade
TL 11-390 intersected, 41.0 metres at 2.75 g/t Gold
- Previous reported intercept was 41.0 metres at 2.26 g/t gold
- 20% increase in Gold Equivalent Grade
TL 11-393 intersected, 5.3 metres at 2.61 g/t Gold
- Previous reported intercept was 5.3 metres at 1.99 g/t gold
- 27% increase in Gold Equivalent Grade
TL 11-437 intersected, 12.0 metres at 0.99 g/t Gold
- Previous reported intercept was 12.0 metres at 0.36 g/t gold
- 95% increase in Gold Equivalent Grade
A summary of the 2013 Tungsten (W) assay results and an updated plan view map are found below with previously released gold grades.
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 Spot price $50.64/gram ($1575/ounce), then adding the Gold grade. MZTLD equates to Main Zone Twin Lakes Deposit
Mega’s President & Interim CEO, Glen Kuntz commented "The Monument Bay gold deposits are unique assets in terms of size and polymetallic nature. Recent drilling has indicated elevated, potentially recoverable tungsten values along with the gold mineralization. This discovery has exceeded our expectations by enriching the gold-equivalent grades overall by an average of 30%.
Exploration to date has demonstrated a strong correlation between Gold and Tungsten. The upcoming 2013 drill program will continue to test the large scale potential of the 120km gold/tungsten system and potentially provide strong growth in gold and gold-equivalent resources at our Monument Bay Gold Camp.
These high grade Gold/Tungsten results are a game changer for Mega; they have the potential to deliver a significant cost advantage after by-product credit and clearly underscore the potential of our Monument Bay Project.”
To determine the association between gold and tungsten, Mega has completed the following work over the past 18 months:
- Thin section analysis has confirmed tungsten is associated with gold mineralization and not in separate discrete veins UOM Presentation November 2012
- Thin section analysis has confirmed the tungsten is in its purest end state (Scheelite) ITIA Newsletter June 2012
- Occurring in its purest form, Scheelite is of high density and can be enriched with standard gravitational methods and is amenable to flotation circuits ITIA Newsletter June 2012
As such, Mega will be conducting metallurgical testing of Tungsten in 2013 to determine the recoverability of the Tungsten component.
Drill core from the Monument Bay Gold Camp will be displayed Sunday, March 3 and Monday, March 4, 2013 at the PDAC Convention in Toronto, Investors Exchange Booth 2418A.
As a point of reference, a grade of 0.10% Tungsten equates to 1 kg of Tungsten per tonne. The current average January spot price of tungsten is $50.30/kg. Current Tungsten-only mines have resource grades between 0.06% and 1.1% Tungsten with the average being ~0.49% Tungsten http://www.itia.info/minerals-deposits.html
Mega is currently completing both an infill and stepout drill program and started the second phase of its Gold/Tungsten Old Core Assay Program (OCAP) program. These programs are focused on expanding the stockwork-style high grade gold mineralization of the existing Twin Lakes Deposit, 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 OCAP holes (> 11,568 m) and multiple kilometers of surface mapping and sampling which will be included in the updated resource estimate.
Additional Gold and Tungsten results are pending from both the current 2013 drill program and the ongoing OCAP that is expected to add more resource ounces to the project. We expect these programs to be complete by the end of April, 2013.
Please click on the following link to view the Plan View:
Testing Shallow Targets – More Near Term Potential for Success
Mega will also test targets beyond the existing resource boundary to establish potential for future resource growth by outlining multiple gold targets along the 120 kms of prospective mineralized corridors.
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. BC Energy & Mines
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.
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
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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.