MEGA PRESENTS NI 43-101 MINERAL RESOURCE ESTIMATE FOR THE LAVERTY DYKE GOLD ZONE ON THE NORTH MADSEN PROJECT
Thunder Bay, Ontario
June 9, 2010 Shares Issued: 44,068,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the completion of the Mineral Resource estimate for the Laverty Dyke Gold Zone on the North Madsen Project in Red Lake, Ontario. The gold resource was independently modeled by P&E Mining Consultants Inc. as a potentially open pittable and underground deposit. The Open Pit optimized pit shell model at a cut-off grade of 0.65g/t has an NI 43-101 compliant Indicated mineral resource of 21,200 ounces of gold contained within 290,000 tonnes at 2.28 g/t gold. An underground resource at a cut-off grade of 2.5g/t has an NI 43-101 compliant Indicated mineral resource of 11,300 ounces of gold contained within 105,000 tonnes at 3.34 g/t gold. Additionally Inferred resources total 3,400 ounces of gold within 32,000 tonnes at 3.32g/t gold. The full NI 43-101 technical report authored by Gerald Harron, P.Geo. of G.A. Harron & Associates and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. may be viewed and will be publicly disclosed by Mega at www.sedar.com and on the company’s website www.megapmi.com within 45 days of this press release.
The resource estimate was derived from 36 diamond drill holes and 15 surface channels that intersected potentially economic mineralization over a strike length of 240 metres and a down dip length of 250 metres. Inverse distance cubed (1/d3) grade interpolation was utilized to populate the 5m x 5m x 5m block model. Au grades were capped at 10 g/t.
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INDICATED
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INFERRED
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Cut-Off
Au g/t |
Tonnes
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Au g/t
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Au oz.
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Tonnes
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Au g/t
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Au oz.
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Pit portion
0.65 g/t Au |
290,000
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2.28
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21,200
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5,000
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2.39
|
400
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UG portion
2.5 g/t Au |
105,000
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3.34
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11,300
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27,000
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3.50
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3,000
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Total
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395,000
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2.56
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32,500
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32,000
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3.32
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3,400
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(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
(3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
(4) The gold price used in this estimate is US$968 per ounce at a C$US$ Exchange rate of 0.95. This is an approximate 2 year trailing average to May 31, 2010.
(5) Process and G&A costs used for the resource estimate cut-off grade calculation were C$20/tonne. Process recovery was 95%. The open pit mining cost was C$2.50/tonne with the underground mining cost at C$58/tonne. Pit slopes utilized were 50 degrees.
Jim Rogers, President and CEO of Mega states, “The NI 43-101 compliant Mineral Resource Estimate for Mega’s Laverty Dyke Gold Zone represents the first documented resource on the North Madsen Project. This resource is open on strike and dip and represents a small portion of the prospective North Madsen Project, however it begins to demonstrate Open Pit Potential helping to confirm Mega’s exploration business model.”
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 the near surface, steeply dipping north-northwest striking diabase Dyke Zone, and the east-west trending, steeply dipping gold mineralization in sheared granodiorite.
The 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.Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. and Gerald Haron of G.A. Harron & Associates are an independent qualified persons as defined by NI 43-101. Mr. Gord Yule, P.Geo., Vice President Exploration is the Qualified Person for Mega Precious Metals Inc., and Mr. Puritch have approved release of the mineral resource estimate contained herein.
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, 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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