MEGA UPDATE ON MONUMENT BAY APPOINTS GLEN KUNTZ AS COO
Thunder Bay, Ontario
February 17, 2011 Shares Issued: 61,303,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the appointment of Glen Kuntz, P.Geo to the position of Chief Operating Officer (COO).
“Mega’s strategy to fast track the evaluation and development of the Monument Bay Project in North Eastern Manitoba requires the energy, leadership and technical skills that Glen Kuntz brings to the Company.” says Rogers. “Having worked with Glen at the Campbell Red Lake Mine, I am confident that he brings strength, drive and the get it done attitude that fits well with Mega’s management team.”
Glen is a Professional Geologist with over 20 years of broad-based expertise in all facets of exploration, mineral resources/reserves, reconciliation, production statistics, mine planning/scheduling, mine production, business development, and executive management. Glen has a proven ability to quickly analyze key business requirements, develop strategies and tactically execute solutions that deliver sustained growth. He graduated with a B.Sc. Degree in geology from University of Manitoba in 1991 and a premasters program in geo statistics in 1992. Glen has held positions of increasing responsibility with mining companies including Noranda, Vale, Rea Gold and Placer Dome (Canada and Australian Operations). Glen started his career 20 years ago as an exploration geologist with Noranda Exploration at the Monument Bay/Stull Lake camp and spent 6 years at Placer Dome - Campbell mine in the Red Lake operation in various project/team lead roles. In 2008 Glen augmented his business expertise by completing an executive acumen and leadership program. Glen’s experience and proven track record will contribute to Mega’s ability to move our projects quickly forward.
Mr. Kuntz states “I am truly honored and extremely excited to be an active member of the Mega management team and to be given the opportunity to contribute to business growth and development of the high quality Monument Bay asset. With our top class management and technical team we will deliver important achievements and quickly create sustainable shareholder value.”
The Board of Mega has also granted Mr. Kuntz, pursuant to its stock option plan and subject to TSX Venture Exchange approval, with 300,000 stock options. These stock options are exercisable at $0.62, half of which will vest immediately, half of which will vest in six months and have an expiry date of February 16th, 2016.
Monument Bay
Mega completed the acquisition of Rolling Rock Resources on Dec. 14, 2010 and the Monument Bay property is now Mega’s most advanced project and a key component of Mega's value creation strategy. Mega is pleased to provide the following update the Monument Bay Project potential and future plans.
The property consists of 35 contiguous claims totaling 6,692 hectares and is located 570 km northeast of Winnipeg and 340 km east southeast of Thompson, Manitoba. The project is approximately 25 kilometres long by 15 kilometers wide and hosts high-grade gold mineralization within the Stull Lake greenstone belt, similar to the Red Lake district in northern Ontario. The nearest communities are Red Sucker Lake, 60 km to the southwest, and Gods Lake Narrows, 100 km to the west. Hydro power lines currently run as far as Red Sucker Lake. Mega has a full 100% interest in the project.
On February 17, 2009 Rolling Rock Resources reported the results from the preliminary economic assessment study (the "Study" or, the "PEA") of the Monument Bay gold property. The assessment was completed by Beacon Hill Consultants (1988) Ltd. ("Beacon Hill") of Vancouver, B.C. to the standards of NI-43-101. “The Study includes over 95,000 metres of diamond drilling and some $28 million of expenditures since 2000 and comprises an inferred resource estimate and a conceptual mining plan. The inferred resource estimate at a 3g/t cut-off grade (ID3 math) is 6.3 million tonnes at 5.98g/t for 1,212,000 ounces of gold.
Highlights from this preliminary assessment are outlined below. All dollar figures are in Canadian dollars unless otherwise indicated, (study done at $1C=$1.25US):
- Project Capital Cost of $140 million
- 11 year mine life
- Underground mine plan processing 1000 tonnes per day with average life of mine grade 6.33 g Au/t (gram per tonne) averaging 64,000 ounces per year
- Operating cost of $106/tonne processed
- An economic base case using a US$750/oz gold price gives an after tax IRR (Internal Rate of Return) of 8.14% and an undiscounted NPV (Net Present Value) of $45 million, $7.4 million discounted at 5%
- Based on a gold price of US$950/oz the undiscounted NPV was estimated at $167 million with an after tax IRR of 22.48% and an NPV of $96 million using a 5% discount rate
- The preliminary study recommended an 11,175 metre diamond drill program targeting 8 of the existing zones with 21 drill holes designed to further increase the inferred resource at the Monument Bay project.
Mega management recognizes that in order to truly realize the potential of this high grade, Archean vein complex resource, that an underground advanced exploration program is needed. Mega’s strategy is to continue to expand and upgrade the resource with surface diamond drilling and to advance permitting in order to commence a further, advanced underground exploration program by early 2012.
The current ice drill program, which commenced late January 2011, consists of 12,000m in 28 holes. Initial assay results are expected to be released in early March, and continue throughout the drilling program. The deposit is open on strike and open to depth. A summer drilling program is also being planned to test for the continuation of the deposit to depth.
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.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. 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.
