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MEGA’S STEPOUT DRILLING OUTLINES TWO NEW MINERALIZED ZONES AND FURTHER EXPANDS THE QUARTZ TOURMALINE AND DISSEMINATED ZONES AT THE NORTH MADSEN PROJECT IN RED LAKE, ONTARIO
August 28, 2012 Thunder Bay, Ontario
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce results from 13 additional core holes totaling 4304.7 m from its second phase step out drilling program which has defined two new zones. Additionally drilling has further expanded the high grade quartz (qtz) tourmaline veins and the large disseminated mineralized gold structures at the North Madsen Project. 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.
Mega’s focused exploration program continues to demonstrate that additional higher grade gold mineralization occurs 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 North Madsen see news release dated April 23, 2012.
None of the results from the 2012 drill program are included in the NI 43-101 resource which was released September 2011 and contained a NI 43-101 compliant Measured resource of 19,638,140 tonnes grading 1.27 g/tonne for 803,886 ounces, plus an Indicated resource of 3,838,000 tonnes grading 1.08 g/tonne for 133,281 ounces plus an Inferred resources of 11,486,000 tonnes grading 1.03 g/tonne for 379,026 ounces using a 0.50 g/tonne cut off grade.
Consolidated figures of the long sections are available below and the full series is available at https://www.megapmi.com/nm_project_presentations
HIGHLIGHTS:
Disseminated Zone
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MM1213 intersected, 53.0 metres at 0.66 g/t gold
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MM1223 intersected, 26.0 metres at 1.57g/t gold, including 2.0 metres at 9.98 g/t gold
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MM1224 intersected, 70.0 metres at 0.86 g/t gold
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MM1225 intersected 99.0 metres at 0.74 g/t gold, including 11.0 metres at 3.96 g/t gold
Quartz Tourmaline Zone
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MM1212 intersected, 23.0 metres at 1.37 g/t gold, including 5.0 metres at 5.75 g/t gold
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MM1213 intersected, 29.6 metres at 3.21 g/t gold, including 8.0 metres at 4.61 g/t gold
Central Zone
South Zone
A summary of the drilling results are listed below.
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MEGA 2012
North Madsen Drill Results
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HOLE#
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ZONE
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FROM
(m)
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TO
(m)
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INTERCEPT (m)
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Au Grade (g/t)
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MM1212
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Quartz Tourmaline Zone
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48.0
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71.0
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23.0
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1.37
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includes
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48.0
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53.0
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5.0
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5.75
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Disseminated Zone
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250.0
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310.0
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60.0
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0.23
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MM1213
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Quartz Tourmaline Zone
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237.0
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292.6
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29.6
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3.21
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includes
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268.0
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276.0
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8.0
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4.61
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Disseminated Zone
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360.4
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413.5
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53.1
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0.66
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MM1214
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Central Zone
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7.0
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70.0
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63.0
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0.33
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MM1215
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Central Zone
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56.0
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161.0
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105.0
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0.66
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includes
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83.0
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119.0
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36.0
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1.06
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MM1216
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Central Zone
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7.0
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20.0
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13.0
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0.85
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MM1217
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Central Zone
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88.0
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120.6
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31.6
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0.42
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MM1219
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South Zone
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178.0
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181.0
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3.0
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0.96
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MM1220
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NSV
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MM1221
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South Zone
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17.0
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22.0
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5.0
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0.82
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MM1222
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Disseminated Zone
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132.5
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204.0
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71.5
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0.47
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Quartz Tourmaline Zone
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239.0
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272.5
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33.5
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1.09
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MM1223
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Quartz Tourmaline Zone
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133.0
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144.0
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11.0
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0.83
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Disseminated Zone
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263.0
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289.0
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26.0
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1.57
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includes
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263.0
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272.3
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9.3
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2.06
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includes
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286.0
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288.0
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2.0
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9.98
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MM1224
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Disseminated Zone
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187.0
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257.0
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70.0
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0.76
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Quartz Tourmaline Zone
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367.0
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377.5
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10.5
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0.82
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MM1225
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Disseminated Zone
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201.0
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300.0
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99.0
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0.74
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includes
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289.0
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300.0
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11.0
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3.96
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Minimum reported interval is >5 metre grams using a fringe cutoff grade of 0.3 g/t
MM1218 the hole was abandoned due to broken drill rods
Mega’s President & CEO, Jim Rogers commented "Mega’s drill program at the North Madsen project has outlined two new zones and continues to expand the mineralization on the Buffalo Extension area. These results for the new zones show significant promise and are confirming the geometry, grade consistency, location to previous drilling and the existence of an extensive mineralized system that is throughout the property. These results continue to have a favorable impact on the next resource statement as we continue to prove that we have one of the top potential open pit projects of its kind in Ontario."
Long Sections:
Technical Information:
Diamond drilling was NQ cored. Sampling of core (by Mega personnel) and sample preparation and analytical analysis was provided by Accurassay Labs, Thunder bay Ontario were carried out under the same strict protocols that are outlined in the NI 43-101 Technical Report dated October 2011 on North Madsen Project.
The property has been explored since 1925 by Red Lake Mines Limited followed by various other companies with numerous trenches, ground geophysical surveys and diamond drilling. The diamond drilling to date shows the emergence of two types of structural and lithological features typical of known world class gold camps.
Mega management believe that their Laverty and East My-Ritt properties are all part of a much larger gold system that encompasses the adjacent Howey, Hasaga and Gold Shore mines which historically produced approximately 640,000 ounces of gold. Mega has an option to acquire a 100% interest in both Laverty and East My-Ritt properties.
The prolific Red Lake camp has produced more than 25 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
Glen Kuntz, Chief Operating Officer (COO), 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, Vice President Global Operations for GMC Global.
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.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
info@megapmi.com
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