Headway Property

Mega Precious Metals has entered into a Definitive Acquisition Agreement to acquire a 100% interest in the Headway property in the Red Lake, Ontario area from King's Bay Gold Corporation (King's Bay). Details can be viewed in the October 5, 2009 news release.

The Headway property is located adjacent to Hwy 105, between the towns of Red Lake and Balmertown, Ontario, 2 km southwest of the High Grade Zone, in the shadow of Goldcorp’s Red Lake Gold Mines Headframes. The property consists of six (6) patented claims and one (1) unpatented claim units totaling approximately 320 acres. The property appears to have all of the essential geological elements including a well-developed intersection pattern of stratigraphic, shear / deformation zones that are associated with the high grade gold system on the adjacent mine properties. The Bonanza Replacement High Grade Zone is postulated to be hosted in Balmer age rocks occurring below the unconformity with the Confederation age rocks at 1,500 to 2500 metres deep.

The range of diamond drill intercepts carried out under NI-43101 compliant guidelines by King’s Bay in 2005 include 63.52 grams/tonne over 0.5 metres and 3.08 grams/tonne over 10.8 metres. Highlights of historical, none NI-43101 compliant exploration includes 0.61 oz/ton gold over 3.08 feet in drill core (H-13) and several surface grab samples exceeding 1.0 oz/ton gold. Gold is developed within quartz-carbonate +/- tourmaline +/- arsenopyrite veins associated with quartz-feldspar porphyry dykes that intrude altered and sheared mafic volcanics. These quartz-feldspar porphyry dykes are deep-seated structures that are intruded during the late stages of ore emplacement. This is evidenced by their structural relationships adjacent to and within the “ESC” and “High Grade” zones of Red Lake Gold Mines. The property contains two east-west trending, gold-bearing structural zones in intersection with the deep-seated extension of the north east trending Madsen deformation zone.

The Company is currently deep drill testing the conceptual exploration model which may be viewed in our gallery.