They Know .... ...what they have ... and that is why the share price was brought down...get themselfs some cheap ones ... makes for a good entry point for new shareholders : )
New ideas pan out for Mega at Monument Bay
TEXT SIZE 2014-06-17
VANCOUVER – From new holes to old cores and from gold to tungsten, Mega Precious Metals (TSXV: MGP) continues to uncover potential at the Monument Bay project in northeastern Manitoba.
The company is targeting shallow mineralization in its 29-hole winter drill program and the effort is paying off, as results continue to expand known gold-tungsten structures towards surface.
In the latest results, hole 532 returned 55 metres grading 3.33 grams gold per tonne and 0.05% WO3, starting 80 metres downhole and including 14 metres of 5.67 grams gold and 0.16% WO3. Nearby, hole 527 cut 37.6 metres of 3.06 grams gold and 0.07% WO3, starting 60 metres downhole and including 17.7 metres of 5.33 grams gold and 0.12% WO3.
Most of the recent holes have targeted mineralized structures in the western half of the Twin Lakes deposit and the resulting intercepts show these structures extend towards surface and carry grades comparable to the well-mineralized structures in the eastern half of the deposit.
“These results either correlate well to, or are better than, the estimated grades in our June 2013 gold-only resource estimate,” said Mega president and CEO Glen Kuntz. “Overall these gold-tungsten results have the potential to change the economics of the project, and we continue to be excited at the continuity of the multiple high-grade structures along strike and at depth.”
Meanwhile, a program to re-assay old cores that were untested because earlier operators made incorrect geologic assumptions is also churning out promising results. The last six holes re-tested returned such intercepts as 20 metres grading 2.38 grams gold, including 0.98% WO3 over 2.1 metres; 19 metres of 1.56 grams gold, including 81 metres of 4.64 grams gold and 0.27% WO3; and 43 metres of 1.66 grams gold, including 5.71 grams gold over 10 metres.
Like a list of previous operators, Mega originally was not looking for tungsten at Monument Bay. That changed in mid-2012 when a Master’s student working at the site realized there was scheelite hiding alongside other minerals in the quartz veins on site.
Around the same time, Mega discovered mineralization in the project’s large dyke, which earlier models assumed did not bear gold. In addition, earlier operators saw the project as an underground mine and therefore focused on deep drilling, while Mega sees open-pit potential at Monument and thus is testing for shallower mineralization.
As a result, when 2013 rolled around Mega found itself looking for both gold and tungsten in a wider range of host rocks and at shallower depths.
These new concepts also meant much of the historic core required re-assaying, because its dyke intercepts had been ignored and its shear zones only tested for gold. Since then Mega has been re-assaying 130,000 metres of core, an endeavor known as the old core assay program (OCAP).
The OCAP already added 650,000 oz. to the gold resource at Monument. Now the cores are being assayed for tungsten as well and the work continues. The company expects the tungsten assays to increase the project’s gold equivalent grade by 20% to 30%.
Mega plans to incorporate the results from 12,000 metres of new drilling and 8,000 metres of historic core re-assaying into a new resource estimate before the end of the year.
There are three deposits spread along 8 km of strike at Monument Bay: Twin Lake, Mid East, and the AZ zone. Twin Lakes is by far the largest, hosting 3 million of the project’s 3.6 million ounces of gold. Most of those ounces come from the site’s open-pittable resources, which totals 67 million measured and indicated tonnes grading 1.3 grams gold plus 25.9 million inferred tonnes averaging 0.7 gram gold. A small underground resource adds 133,000 measured and indicated tonnes grading 5.5 grams gold.
Monument Bay is located near the Manitoba-Ontario border, 570 km northeast of Winnipeg. Mega envisions building a small open pit mine at the site, with a throughput of perhaps 5,000 tonnes per day.
The project is accessible by winter road when the ground is frozen, but Manitoba’s Northern Development Strategy is building a network of all-season roads in the region. Once this work is complete a road will reach within 52 km of the project. Power lines also pass by at about the same distance.
Mega is currently raising additional funds to continue its work at Monument. The company just announced plans to raise up to $3 million by selling non-flow-through units at 11¢ apiece and flow-through units at 12¢ apiece. Each unit will consist of a share and half a warrant exercisable at 15¢ for 18 months. The flow-through monies will fund exploration at Monument while the non-flow-through monies will provide general working capital.
Mega’s share price was unchanged on news of the latest Monument drill results, sticking at 10.5¢. The company has a 52-week share price range of 8.5¢ to 27¢ and has 129 million shares outstanding.
- See more at: https://www.northernminer.com/news/new-ideas-pan-out-for-mega-at-monument-bay/1003117480/#sthash.Nr5m7vx5.dpuf