RED LAKE LAVERTY DYKE GOLD ZONE DRILLING COMPLETED, NI 43-101 COMPLIANT RESOURCE EXPECTED IN APRIL
Thunder Bay, Ontario
March 3, 2010 Shares Issued: 43,935,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the completion of a 36 hole diamond drill program designed to evaluate the resource potential of the Laverty Dyke Gold Zone horizon to a 200m depth. Twenty three of the 36 holes or 64% of the drilling that spans the 350m long x 200m deep horizon encountered significant mineralization with a width weighted average grade of 2.5 g/t over a minimum average true width (~50% of intersection width) of 8.6m.
The longitudinal section can be viewed in our photo gallery at http://www.megapmi.com/north_madsen_gallery.
Both drilling and surface channel sampling assays are consistent over broad widths of the dyke and demonstrate continuity of mineralization for 190m of the 210m strike length of the exposed zone. The detailed channel sampling returned an average grade of 3.63g/t over an average true width of 6.15m. Highlights of the diamond drill program include; 33.0m of 2.72g/t (ML0903), 27.9m of 3.56g/t (ML0905) and 21m of 3.56g/t (ML0928) gold. Highlights of the most recent drilling include 16.0m of 1.91g/t (ML0933), 13.7m of 1.98g/t (ML0942) and 6.5m of 3.57g/t (ML0936) gold. The current drilling is of sufficient quality and density to calculate a preliminary NI 43-101 compliant resource estimate. Mega has engaged G.A. Harron & Associates Inc. to complete an independent NI 43-101 resource on the Laverty Dyke Gold Zone.
A summary of all results for the Laverty Dyke Gold Zone are listed below. Results of the Laverty Dyke surface channel sampling were previously released on October 13, 2009. The first 26 drill holes (ML0901-ML0908 and ML0914-ML0931) were released on October 13, 2009, November 17, 2009 and January 14, 2010. To date, Mega has completed 6,144m on the Laverty Dyke Gold Zone.
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MEGA 2010 Laverty Dyke Zone Drill Results
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HOLE#
* Previously Released
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SECTION
|
CORE INTERVAL (m)
|
VERTICAL DEPTH
(m) |
Au Grade (g/t)
|
Core length
INTERCEPT
(m) |
|
*ML0901
|
128N
|
50.0-62.1
|
-52
|
3.34
|
12.1
|
|
*ML0902
|
128N
|
88.5-91.5
|
-90
|
1.25
|
3.0
|
|
*ML0903
|
128N
|
113.0-146.0
|
-110
|
2.72
|
33.0
|
|
Includes
|
|
113.0-118.8
|
-98
|
3.01
|
5.8
|
|
and
|
|
128.0-146.0
|
-117
|
3.93
|
18.0
|
|
*ML0904
|
128N
|
175.6-210.0
|
-175
|
2.18
|
34.4
|
|
Includes
|
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175.6-180.6
|
-161
|
2.12
|
5.0
|
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And
|
|
183.6-186.6
|
-168
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10.53
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3.0
|
|
And
|
|
201.4-210.0
|
-186
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2.84
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8.6
|
|
*ML0905
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94N
|
43.0-79.9
|
-44
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3.56
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27.9
|
|
Includes
|
|
43.0-50.0
|
-36
|
4.3
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7.0
|
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and
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53.5-70.9
|
-48
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3.93
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17.4
|
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*ML0906
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63N
|
50.2-63.6
|
-40
|
2.45
|
13.4
|
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Includes
|
|
50.2-55.2
|
-37
|
4.57
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5.0
|
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and
|
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61.7-63.6
|
-44
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3.07
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1.9
|
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*ML0907
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32N
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31.0-49.6
|
-31
|
2.21
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18.6
|
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*ML0908
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0N
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21.0-41.5
|
-23
|
3.0
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20.5
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ML0909 to ML0913 not drilled on Dyke Zone
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|||||
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*ML0914
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160N
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43.7 – 57.9
|
-33
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1.81
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14.2
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Includes
|
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43.7-45.0
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|
11.05
|
1.3
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*ML0915
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160N
|
80.0 – 83.0
|
-71
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2.1
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3.0
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*ML0916
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180N
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71.0 – 77.5
|
-48
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1.5
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6.5
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*ML0917
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93N
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71.0 – 81.0
|
-54
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4.0
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10.0
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*ML0918
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93N
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90.2 – 92.7
|
-78
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2.63
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2.5
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*ML0919
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50N
|
72.1 – 88.7
|
-59
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1.19
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16.6
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Includes
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72.1-77.5
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2.15
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5.4
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*ML0920
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17N
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82.0 – 89.5
|
-61
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3.28
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7.5
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*ML0921
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60N
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156.0-161.3
|
-110
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1.42
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5.3
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*ML0922
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58N
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221.0-237.5
|
-189
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2.44
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16.5
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*ML0923
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92N
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176.0-191.6
|
-149
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2.84
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15.6
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*ML0924
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96N
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162.3-187.7
|
-124
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1.57
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25.4
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*ML0925
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97N
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238.1-248.5
|
-198
|
2.06
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10.4
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*ML0926
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52N
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219.0-227.2
|
-159
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0.95
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8.2
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*ML0927
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193N
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92.2-107.4
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-70
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3.7
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15.2
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*ML0928
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153N
|
128.0-149.0
|
-108
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3.55
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21.0
|
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*ML0929
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225N
|
N
|
-100
|
-NSV-
|
|
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*ML0930
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153N
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134.9-165.8
|
-110
|
1.48
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30.9
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*ML0931
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196N
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126.5-137.4
|
-92
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2.64
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10.9
|
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ML0932
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210N
|
N
|
-110
|
-NSV-
|
|
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ML0933
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175N
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140.5-156.5
|
-115
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1.91
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16.0
|
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ML0934
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260N
|
N
|
-37
|
-NSV-
|
|
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ML0935
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260N
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135.5-143.0
|
-97
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1.77
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7.5
|
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ML0936
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315N
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93.0-99.5
|
-66
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3.57
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6.5
|
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ML0937
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315N
|
N
|
-130
|
-NSV-
|
|
|
ML0938
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Abandoned before intersecting Dyke Zone
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||||
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ML0939
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315N
|
N
|
-183
|
-NSV-
|
|
|
ML0940
|
260N
|
N
|
-136
|
-NSV-
|
|
|
ML0941
|
210N
|
NSV
|
-200
|
-NSV-
|
|
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ML0942
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165N
|
256.3-270.0
|
-181
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1.98
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13.7
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Average Length Weighted Grade of 23 significant holes that grade > than 5 gram-metres = 2.50 g/t over 17.3m. Note :True Width is 50% to 70% of Intersection Width
NSV (No Significant Values) < 1g/t Au
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MEGA Laverty Dyke Zone Channel Sample Results
September 2009 |
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Zone
|
Section
|
Vertical Intercept (m)
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Au
core length
(opt/feet)
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Au Grade (g/t)
|
Channel Interval
(m)
|
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Dyke
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230N
|
0
|
0.033/9.5’
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1.13
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2.90
|
|
|
|
|
|
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Dyke
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190N
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0
|
0.02/13.8’
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0.64
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4.20
|
|
|
|
|
|
|
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Dyke
|
180N
|
0
|
0.01/22.3’
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0.17
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6.80
|
|
|
|
|
|
|
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Dyke
|
170N
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0
|
0.13/15.4’
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4.34
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4.70
|
|
|
|
|
|
|
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Dyke
|
160N
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0
|
0.07/30.3’
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2.39
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9.25
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|
|
|
|
|
|
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Dyke
|
150N
|
0
|
0.04/12.3’
|
1.25
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3.75
|
|
|
|
|
|
|
|
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Dyke
|
140N
|
0
|
0.07/18.2
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2.38
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5.55
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|
|
|
|
|
|
|
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Dyke
|
130N
|
0
|
0.05/25.6’
|
1.85
|
7.80
|
|
|
|
|
|
|
|
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Dyke
|
120N
|
0
|
0.31/39.0’
|
10.71
|
11.90
|
|
|
|
|
|
|
|
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Dyke
|
110N
|
0
|
0.04/12.0’
|
1.43
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3.65
|
|
|
|
|
|
|
|
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Dyke
|
100N
|
0
|
0.10/20.3’
|
3.25
|
6.20
|
|
|
|
|
|
|
|
|
Dyke
|
90N
|
0
|
0.12/35.3’
|
4.00
|
10.75
|
|
|
|
|
|
|
|
|
Dyke
|
65N
|
0
|
0.11/22.64’
|
3.66
|
6.90
|
|
|
|
|
|
|
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Dyke
|
40N
|
0
|
0.16/5.9’
|
5.61
|
1.80
|
|
|
|
|
|
|
|
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Dyke
|
20N
|
0
|
0.02/2.3’
|
0.56
|
0.70
|
|
|
|
|
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Assays for samples < 3.0 g/t are the original fire assays and for fire assay samples > 3.0 g/t the rerun sample done by gravimetric method is included in the average.
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 property mineralization hosts two styles of gold mineralization, including near surface, steeply dipping north-northwest striking diabase Dyke Zone, and the east-west trending, steeply dipping gold mineralization in sheared granodiorite similar to the neighbouring past producers, Howey and Hasaga mines.
Mega has compiled historic geological and geophysical work on the East My-Ritt and Laverty Properties and has completed geological mapping, outcrop stripping, channel sampling and INSIGHT Induced Polarization geophysical surveys. The Dyke Gold Zone was the first target to be tested. Red Lake drilling continues to test other North Madsen targets with a planned 2010 diamond drilling program that consists of up to 14,000m. The focus of that program will be to continue to confirm and extend other historic drill intercepts and to test new areas where geophysics and structural mapping support interpreted potential for litho-structural traps that may host economic mineralization. Mega continues to work towards the consolidation of adjacent properties.
The channel sampling and drill programs are 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
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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