Dec 2 2014
Mega Precious Metals Inc. is very pleased to announce that the company continues to develop an updated comprehensive exploration model for the entire 338 km2 Monument Bay Project.
This new exploration model includes recent fall drilling results from two wildcat drill holes (TL-14-543 and TL-14-544), the compilation of new magnetic inversions and previous geophysical, geochemical, drilling and channel sampling within the region. This updated model has identified two new structures, the "South Limb Shear Trend" and "Altered Island Shear Trend" both structures are within 2 km south of Twin Lakes Gold Tungsten Deposit. The new structures display compelling geological and geophysical characteristics similar to the main Twin Lakes Shear Trend which hosts multiple gold deposits. (Figures 1 and 2)
Updated Exploration Model: Quantifying Blue Sky Potential in an Emerging High Grade Gold-Tungsten Camp
- Twenty-five new exploration targets have been identified
- Discovery of a parallel folded limb of similar rocks and alteration to that of the Twin Lakes Deposit ◦Seven of the highest ranking targets are located within the prolific Twin Lakes Shear Trend structure where the majority of the gold-tungsten resource is located
- Presence of gold including "Visible Gold"(VG), scheelite and key geological markers ◦These new regional structures serve as key markers for identifying areas of potential high grade mineralization and demonstrate the large scale potential of the system
- Cumulative strike length of these new targets totals over 7 km ◦Probability for discovering new gold-tungsten resources is considered to be high
In conjunction with this discovery, Mega is very pleased to announce that Mr. Tim Twomey has accepted a position with the Company as Vice President of Exploration. Tim was previously the Senior Exploration Geologist with Goldcorp's Regional Exploration Team in Red Lake and worked with Premier Gold on the Hardrock Project. Tim has worked closely with Mega's geological team on the development of the updated exploration model which has identified twenty-five new exploration targets. These targets will be followed up with diamond drill testing early 2015.
Tim Twomey P.Geo, VP Exploration, stated "I want to be involved with a management team who has the same vision for discovering and creating new mineral wealth as I do. I am impressed with the Monument Bay Project which has real potential for adding significant gold-tungsten resources and leading the exploration team to greatly expand the resource base at Monument Bay."
Glen Kuntz, P.Geo, President and CEO, stated "We are extremely pleased to have Tim join our team. His invaluable enthusiasm and innovation for exploration and development will play a critical role as we continue to focus our exploration activities beyond our existing resource boundary and demonstrate how the Monument Bay Project has the potential to host multiple large gold and tungsten deposits.
This recent discovery by the geological team corroborates the existence of extensive mineralized systems that are capable of hosting multiple gold tungsten deposits which have the potential to provide significant value creation for our shareholders."
The seven Twin Lakes Shear Trend targets are located in the same geological setting as the main deposit and have a cumulative strike length of 7,700 m. They contain no drilling and are within magnetic signatures similar to the Main deposit. The highest ranking target also contains co-incident resistivity and chargeability anomalies from historic IP surveys, which were never drill tested. The second highest ranking target is on-strike to the west of TL-13-498, which did not reach the Twin Lakes Shear Trend but intersected two zones above the trend, one of which returned 6.6 gpt over 0.6 m with VG. The drill-core from that hole displayed alteration that intensified down-hole, but it was stopped short of testing the Twin Lakes Shear Trend. The cumulative strike length of these seven prospective targets is almost double the strike length of the Main Deposit. Therefore, the probability of adding ounces along this trend is considered to be high.
Three of the highest ranking targets are located within the newly identified structures. These are considered to have the potential to transform the project into a significant emerging gold-tungsten camp. Two of these targets are located on a "New" Zone called the South Limb Shear Trend. This was identified from the "wildcat" drill-holes TL-14-543 and 544. These were drilled southwest of the AZ Zone which contains the same mineralization and alteration as the Twin Lakes Deposit. Anomalous gold as well as tungsten were returned. The drill-holes are within a low magnetic area from airborne geophysics and identifiable targets from the Magnetic Inversion solid. The new targets exhibit magnetic similarities to the Twin Lakes Gold-Tungsten deposit. (Figure 3)
The Twin Lakes Deposit is one of three gold/tungsten deposits that make up the 338km2 Monument Bay Project. The current Monument Bay pit constrained resource covers a strike length of 4 km. The Project has potential development advantages given the current winter road access to its camp from local communities and Manitoba's Northern Development Strategy which 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 km from our project area.
Tim Twomey's Background
Tim is a professional geologist with over 30 years of exploration, production and management experience. He was most recently Vice President of Exploration for Premier Gold Mines Limited where he directed the building of the Hardrock Gold Project in Geraldton, Ontario, right from its conception in 2008. Prior to this Tim was Senior Exploration Geologist with Goldcorp's Regional Exploration Team in the Red Lake Area where he worked from 1994 to 2008. Tim played a key role in the discovery, development & production of Goldcorp's High-Grade Zone, which is one of the most important gold discoveries made in the last 22 years.
Prior to Goldcorp, Tim explored for base and precious metals in mines and bush camps of Northern Ontario and Saskatchewan, including the Thunder Bay and Kirkland Lake regions. He graduated from Lakehead University in Thunder Bay, in 1983 with an Honours B.Sc. degree in Geology. As a Vice President, Mr. Twomey has been granted 200,000 stock options, vesting immediately. The options are exercisable at $0.10 per share and expire on December 1, 2019.