MEGA PRESENTS HEADWAY DRILLING UPDATE
Thunder Bay, Ontario
August 16, 2010 Shares Issued: 44,068,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased provide the following update for the Headway deep drilling program. The drill rig previously on Hole MH0901 has been moved to Hole MH1002. A new, much larger drill that is capable of safely reaching, exploring and wedging daughter holes to the target horizon is currently being commissioned. The Big Rig capable of depths in excess of 3500m is 90% ready and we expect that Hole MH0901 will resume drilling before the end of August.
As can be seen on the Schematic Cross Section Looking NW at Headway and Red Lake Gold Mines (http://www.megapmi.com/headway_gallery) Hole MH0901 has been in Balmer Volcanics since a depth of 2121m and is currently at 2408m depth. From 2121m to 2361m the hole has been in garnet-magnetite altered mafic volcanics and from 2361m to 2408m the hole has been in “Rhyolitic-Andesite” an aluminosilicate altered mine unit commonly found in the Hanging Wall of high grade zones.
The second hole (MH1002) is currently at 405m depth and is tracking as planned to the north-east. The intersection of Confederation Sediments at 300m suggests that this hole will encounter the unconformity at 1700m, further solidifying the model’s correlation. Navigational drilling will be employed for short periods to keep the dip steeper than 80 degrees.
Jim Rogers, President of Mega states; “When we started the program, we had a conceptual model. Results to date confirm a strong correlation with Mega’s geological model and while progress has been slow, Mega is doing everything to ensure that operational risk is minimized. The strong correlation between the model and actual drill results has been extremely encouraging. Each new box of core is very exciting to see. We have 600m of Balmer drilling left in MH0901 and the model projects that the second hole, MH1002, should encounter 1300m of Balmer Rock. Given our success to date, we are confident that each of these holes will be well placed to delineate the target area. I remain optimistic.”
The updated August corporate presentation on the company’s website www.megapmi.com, includes an updated plan, cross section and a picture of core showing strong mineralization within the unconformity proximal to the mafic volcanic contact.
The Headway property abuts Goldcorp’s Red Lake Gold Mines southern boarder and lies just 2 kilometres (km) south west of the Goldcorp “High Grade Zone”. Deep drilling technology is allowing Mega to explore for high grade, bonanza, replacement-type zones below the unconformity, in the underlying Balmer Rocks. Drilling commenced on November 6th, 2009, and while technical navigational challenges have slowed the progress, we are extremely pleased that the hole location will provide for an excellent test of the deep target horizon.
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 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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