MEGA ADDS SECOND DRILL TO NORTH MADSEN PROJECT & CONDUCTING AN AIRBORNE SURVEY
Thunder Bay, Ontario
November 15, 2010 Shares Issued: 44,193,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased report the addition of a second drill on the North Madsen Project. Approximately 1500m of drilling will be performed in the south eastern portion of the East My-Ritt property, referred to as the Buffalo extension. Previously drilled holes, MM1016 and MM1017, intersected multiple mineralized, potentially open pit-style zones believed to be related to the Historical Buffalo Mine located on the adjacent Claude Resources Property.
The Buffalo extension target remains open along strike and at depth and represents a prime target for delineating a potentially significant open pit style gold deposit. Open pit resources are expected to become an important future source of ore in the event that Goldcorp constructs an open pit mine at the Red Lake Gold Mines site as discussed in recent Goldcorp Red Lake news updates. Previous drill results (reported in the June 7, 2010 news release) from Buffalo extension include:
o 1.02 g/t over 31.4m, 2.56 g/t over 13.3m, 1.85 g/t over 11.0m (MM1016) and
o 1.94 g/t over 33.5m, 1.15 g/t over 8.5m, 1.74 g/t over 5.0m and 1.43 g/t over 8.5m (MM1017). (*Note that assays represent 3 to 4 separate zones in each hole)
In addition, Fugro Airborne Surveys will be performing a DIGHEM EM/MAG airborne survey totaling 138 line km over the N. Madsen property area, as the majority of the area has no current geophysical data. This will provide a broader understanding of structural and mineralized trends over the consolidated North Madsen properties, and further expand exploration and development potential.
Jim Rogers, President of Mega states; “I strongly believe that open pit mining will be an important part of the Red Lake Mining Camp’s future. Follow up delineation drilling on the Buffalo extension and within the Laverty Corridor will begin to add measurable resources to our North Madsen Property. The airborne survey will provide continuity of geophysical information beyond our current property coverage.”
Mega management believe that their North Madsen Project (comprised of Laverty, East My-Ritt & Skookum) 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. The property mineralization hosts three styles of gold mineralization, including steeply dipping north-northwest striking diabase Dyke Zone, the east-west trending, gold mineralization in steeply dipping sheared granodiorite and clusters of late gold bearing quartz tourmaline veins.
On the Headway Project, Hole MH1002 has commenced navi drilling to ensure that the drill hole is on path to test the projected target horizon. Hole MH0901 is at a depth of 2,603m and is successfully progressing towards target depth as Layne Christensen drillers wedge to flatten and work through the structure and increasing alteration.
Jim Rogers, President and CEO, is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101. Jim was Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex, Chief Mine Geologist at the Eskay Creek Gold and Silver Mine and most recently, Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
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.
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, 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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