FSC / Press Release
Mega Precious Metals Updates Deep Drill Hole Status for the Red Lake Headway Gold Property
Thunder Bay, Ontario CANADA, March 04, 2010 /FSC/ - Mega Precious Metals Inc. (MGP - TSX Venture), is pleased to provide an update for the deep diamond drill hole that is targeting the favorable Balmer volcanic rocks beneath the unconformity with the Confederation rocks on the Headway Gold Property. Deep drilling technology is allowing Mega to explore for high grade, bonanza, replacement-type zones at a depth of 1,800m to 2,500m just 2 kilometres south west and in the hanging wall of Goldcorp's Red Lake Gold Mines "High Grade Zone".
Drilling commenced on the Headway property on November 6th, 2009. As of March 3, 2010, Layne Christensen Canada Ltd., by way of an all-inclusive deep drill contract had completed 1,397 metres (m) of the first 3,000m drill hole. The deep controlled drilling program is on track and on path trajectory to intersect the targeted depth within the next 2 to 3 months.
In viewing the entire hole to date, rock types, fabrics and features in the core appear to be consistent with Mega's exploration model. Numerous faulted contacts, rock unit repetition and micro-movement observed in the core are all consistent with and can be explained by the entire hanging wall series of rocks being uplifted by faulting and folding. The schematic cross section and drill core structural deformation examples may be viewed on Mega's website at
http://www.megapmi.com/headway_gallery.
The first 615m of the drill hole consists of a series of mixed mafic to intermediate to felsic volcanics, minor inter-bedded sediments and numerous mafic to intermediate dykes throughout the interval. The bottom contact with the first quartz-feldspar porphyry dyke that occurs from 615m to 634m marks a change to intermediate volcanics and intermediate dykes mixed with inter-bedded argillitic sediments. This sequence continues to 890m where another 79m core length of quartz-feldspar porphyry dyke takes the hole to 969m. From here to the current hole bottom of 1,397m, the hole appears to be Houston sediments consisting of argillite, greywacke, siltstone and conglomerate. Based on the original Mega exploration model and surface mapping, the Unconformity is expected at 1,500 to 1,800m with the high grade target horizon below that depth.
Jim Rogers, President and CEO of Mega states; "We are seeing the right structures and the right rocks. If the top of the Huston sediments, which were encountered earlier than expected, is an indicator, then we could see the Unconformity within the next 150m to 200m of drilling. I remain optimistic."
The range of diamond drill intercepts, reported by King's Bay in 2005 include 63.52 grams/tonne (g/t) over 0.5m and 3.08g/t over 10.8m, true widths are unknown. Highlights of historical exploration include 21.0g/t gold over 1.0m in drill core (H-13) and several surface grab samples exceeding 34g/t gold. Gold is developed within quartz-carbonate +/- tourmaline +/- arsenopyrite veins associated with quartz-feldspar porphyry dykes that intrude altered and sheared mafic volcanics. These quartz-feldspar porphyry dykes are deep-seated structures that are intruded during the late stages of ore emplacement. This is evidenced by their structural relationships adjacent to and within the "ESC" and "High Grade" zones of Red Lake Gold Mines. The property contains two east-west trending, gold-bearing structural zones in intersection with the deep-seated extension of the north east trending Madsen deformation zone.
Terms of the staged 3 year option agreement between Mega and King's Bay Gold Corporation include cash payments totaling CAD$460,000, issuance of 4,425,000 common shares of Mega and project expenditures of $3,000,000. There is a 2.0% Net Smelter Royalty payable to the initial vendors of the property.
The drill program is being conducted under NI 43-101 quality assurance and quality control reporting standards. QA/QC procedures include the insertion of blind independent gold standards and blank samples in the sample stream. Assay results from channel samples were received from Accurassay Laboratories, mineral analysis laboratory in Thunder Bay, Ontario, accredited for preparation and mineral analysis utilizing both fire assay and screen metallic methods. A Chain of Custody protocol for the handling and shipping of samples is being rigorously followed.
Mr. Gord Yule, P.Geo., Vice President Exploration for Mega Precious Metals Inc. is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101.
Jim Rogers, President and CEO, is former Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex and most recently Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
The prolific Red Lake camp has produced more than 23 million ounces of gold and production of about 700,000 ounces of gold per year continue as the district's production base from Goldcorp's Red Lake Gold Mines. When compared to other camps, Red Lake is still a young and developing camp where consolidation, mechanization, improvements to processing technology and "Big Picture" economics will improve margins and drive future success.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Nunavut and the Yukon. 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.
Jim Rogers, P. Geo, President and 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.
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