RED LAKE DRILLING CONFIRMS STRUCTURAL AND GOLD ASSAY CONTINUITY ON THE LAVERTY DYKE ZONE

Thunder Bay, Ontario                                            

January 14, 2010                                                                                  Shares Issued: 43,935,780

 

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the results of eleven additional drill holes numbered ML09-21 to ML09-31 on the Laverty Red Lake gold property.    Highlights of this most recent drilling include gold assays of; 3.7 grams per tonne (g/t) over 15.2 metres (m) and 3.55 g/t over 21m.

 

 

Results of the Laverty Dyke surface channel sampling and the first eight drill holes (ML0901-ML0908) were previously released on October 13, 2009 and holes ML0909-ML0920 on November 17, 2009. To date, Mega has completed 4,814m on the Laverty Property.

 

Both drilling and surface channel sampling assays are remarkably consistent over broad widths of the dyke and demonstrate continuity of mineralization over the 210 metre (m) strike length of the exposed zone. The detailed channel sampling returned an average grade of 3.63 grams per tonne (g/t) over an average true width of 6.15m.   While further drilling that can only be done in the winter will test the zone to the north, the current drilling is of sufficient quality and density to calculate a preliminary NI 43 101 compliant resource estimate. 

 

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 near surface, steeply dipping north-northwest striking diabase Dyke Zone, and the east-west trending, steeply dipping gold mineralization in sheared granodiorite similar to the near-by Howey and Hasaga mines.   See longitudinal in the North Madsen Gallery.

 

Mega has compiled historic geological and geophysical work on the East My-Ritt and Laverty Properties and has completed geological mapping, outcrop stripping, channel sampling and INSIGHT Induced Polarization geophysical surveys. The Dyke Zone was the first target to be tested. The planned 2010 diamond drilling for the North Madsen project area will consist of up to 14,000m that will continue to confirm and extend other historic drill intercepts as well as new areas where there is interpreted potential for litho-structural traps that may host economic mineralization.

 

Red Lake drilling has resumed from the Christmas break with a small drill working the North Madsen projects and the big drill continuing the 3 km deep hole that will be testing for high grade zones within the favorable Balmer series rocks below the unconformity on the Headway property.   The Headway hole is currently on its projected path at 613m depth in Confederation series rocks.

 

The channel sampling and 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. Gord Yule, P.Geo., Vice President Exploration for Mega Precious Metals Inc. is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101.

 

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.  

 

 

For further information and presentation material, please review the Mega website at www.megapmi.com