2012-09-24 15:30:25 -
Thunder Bay, Ontario CANADA, September 24, 2012 /FSC/ - Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased to announce the discovery of additional gold mineralization from 12 diamond drill holes totaling 5,378 m as part of its ongoing old core assay program (OCAP).
The OCAP program has been designed to assay previously unassayed mineralized core intervals from a library of over 75,000 m of historical core as the previous operators were testing only for narrow high grade veins. Material previously classified as waste is being converted into economic mineralization, subsequently increasing resource material and potentially grade within the proposed open pit. As such, each of these drill holes continues 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 this 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 70,000 m of core throughout 2012 and 2013 followed by an updated NI 43-101.
* TL 11-369 pre OCAP intersected, 1.0 metres at 6.34 g/t gold
* Post OCAP intersected, 22.0 metres at 0.71 g/t gold, 16.0 metres at
0.99 g/t gold
* TL 11- 376 pre OCAP intersected, 15.0 metres at 2.06 g/t gold
* Post OCAP intersected, 37.0 metres at 1.04 g/t gold
* TL 11- 383 pre OCAP intersected 1.9 metres at 5.00 g/t gold
* Post OCAP intersected, 30.8 metres at 0.93 g/t gold, 27.7 metres at
0.94 g/t gold
* TL 11-384 pre OCAP intersected No significant values
* Post OCAP intersected, 67.0 metres at 0.45 g/t gold
* TL 11-385 pre OCAP intersected 11.0 metres at 1.90 g/t gold
* Post OCAP intersected 3 mineralized zones:
* 15.0 metres at 0.47 g/t gold
* 29.0 metres at 1.04 g/t gold
* 3.31 metres at .87 g/t gold
* TL 11-387 pre OCAP intersected 5.0 metres at 2.29 g/t gold
* Post OCAP intersected, 70.0 metres at 0.82 g/t gold
* TL 11-389 pre OCAP intersected, 10.0 metres at 2.06 g/t gold
* Post OCAP intersected, 49.4 metres at 0.83 g/t gold
A summary of the OCAP results are listed below.
Monument Bay Pre-OCAP Monument Bay Post-OCAP
(as of February 2012) (as of September 2012)
Hole# From To Intercept Au From To Intercept Au
(m) (m) (m) g/t) (m) (m) (m) (g/t)
TL-11-367 288.5 319.5 31.0 1.29 273 328.9 55.9 0.95
211 217 6.0 0.91
361.4 374.4 13.0 0.30
TL-11-369 335 336 1.0 6.34 335 357 22.0 0.71
414 430 16.0 0.99
TL-11-370 139 144 5.0 1.78 139 144 5.0 2.19
280.7 282.2 1.5 4.08 180 195 15.0 1.15
296.7 301.1 4.4 2.99 279 282.2 3.2 2.34
299 302 3.0 2.35
TL-11-373 498 513 15.0 1.94 450 453 3.0 1.94
483 520 37.0 0.92
537 548 11.0 0.45
TL-11-376 275 290 15.0 2.06 257 294 37.0 1.04
TL-11-382 474 478 4.0 4.63 410.5 483 72.5 0.69
TL-11-383 447.7 449.6 1.9 5.00 433.2 464 30.8 0.93
543 570.7 27.7 0.94
TL-11-384 NSV 91 158 67.0 0.45
TL-11-385 473 484 11.0 1.90 415.9 430.9 15.0 0.47
471 500 29.0 1.04
566.7 570 3.3 1.87
TL-11-387 69 74 5.0 2.29 48 118 70.0 0.82
TL-11-389 109.7 119.7 10.0 2.06 108 157.4 49.4 0.83
TL-11-390 72 87 15.0 3.27 65 109.9 44.9 2.11
97.3 106 8.7 4.32
Mega's President, Interim CEO, Glen Kuntz commented "The OCAP program is on track to convert greater than 20% of the previously outlined waste into economic mineralization. These excellent results in terms of their widths and grade consistency are delivering on the promise that this program will continue to significantly add ounces to the existing NI 43-101 resource and reconfirm the existence of an extensive mineralized system.
This is an exciting time for Mega shareholders as we are set to continue to test the 7 newly discovered regional targets at Monument Bay and expand the footprints of our known main and satellite deposits in the coming months. The company remains focused on its Monument Bay and Red Lake properties, where we believe that we will generate substantial corporate shareholder value in the near term."
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. To view previous drilling results from Monument Bay refer to news releases dated April 12, June 13 & August 2, 2011.
A selection of consolidated figures for the OCAP cross sections are available below and the full series is available at www.megapmi.com/mb_project_presentations
Please click on the following link to view the Plan View:
Please click on the following links to view the Cross Sections:
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 (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 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
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 web page, click onto the link below:
Source: Mega Precious Metals Inc. (MGP - TSX.V) www.megapmi.com
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