Mega Files Updated NI 43-101 Technical Report for the Gold
Resources at the North Madsen Project in Red Lake, Ontario
THUNDER BAY, ONTARIO--(Marketwired - Mar 28, 2014) - Mega
Precious Metals Inc. (TSX-VENTURE:MGP) ("Mega") announces that,
further to the news release of February 13, 2014, it has filed the
National Instrument 43-101 Technical Report entitled "Technical
Report and Updated Resource Estimation on the North Madsen
Property, Red Lake, Ontario" dated March 27, 2014, on SEDAR at
http://www.sedar.com. The report has also been posted on the
Company's website at http://www.megapmi.com. There is no material
differences between the results of the Technical Report filed today
and the disclosure provided in the February 13, 2014 news
release.
The resource estimate has been completed by WSP (formerly
GENIVAR). The new resource at USD $1,200 per ounce gold
demonstrates significant improvements in the metallurgical
recoveries, confidence and grade distribution from the previous
resource estimate which used a gold price of USD $1,400 (see news
release dated September 21, 2011). Mega's North Madsen gold
deposits are adjacent to the Madsen and Buffalo Gold mines, which
are the subject of a recently announced proposed acquisition by
Laurentian Goldfields Ltd. from Claude Resources Inc.
Highlights:
- Surface/near surface (<250m from surface) Measured and
Indicated Resources of 0.9 M Ounces of Gold at 1.2 g/t Au
- Surface/near surface Inferred Resources of 0.38 M Ounces of
Gold
- All resources are open along strike and at depth
- 91-95% Metallurgical Recoveries
- Over 40,000 meters in 327 drill holes were incorporated into
the geological model and includes over 25 new holes totaling 8,200
m of drilling since the previous resource update
- Improved confidence in the deposit with 70% of the resource in
the Measured and Indicated categories
- Robust resource using a gold price of USD $1200 USD per ounce
($200 less than previous resource)
- Approximately 7 kms trucking distance from Madsen Mine Mill
being acquired by Laurentian Goldfields Ltd. and Goldcorp Inc.'s
Red Lake Mill
|
|
|
|
|
Zone |
Category |
Tonnes |
Au Grade (g/t) |
Ounces |
11 (Buffalo Diss) |
Measured |
0 |
0.00 |
0 |
Indicated |
122,800 |
1.07 |
4,244 |
M&I Subtotal |
122,800 |
1.07 |
4,244 |
12 (Buffalo Qtz-Tourm) |
Measured |
0 |
0.00 |
0 |
Indicated |
1,622,100 |
0.97 |
50,528 |
M&I Subtotal |
1,622,100 |
0.97 |
50,528 |
21 (Laverty Dyke) |
Measured |
996,830 |
1.67 |
53,520 |
Indicated |
303,500 |
1.33 |
13,014 |
M&I Subtotal |
1,300,330 |
1.59 |
66,534 |
22 (Laverty Granodiorite) |
Measured |
477,670 |
0.98 |
15,091 |
Indicated |
422,600 |
0.91 |
12,360 |
M&I Subtotal |
900,270 |
0.95 |
27,452 |
41 (Main) |
Measured |
15,253,810 |
1.26 |
617,279 |
Indicated |
3,759,600 |
1.02 |
122,716 |
M&I Subtotal |
19,013,410 |
1.21 |
739,995 |
All Zones |
Measured Total |
16,728,310 |
1.28 |
685,891 |
All Zones |
Indicated Total |
6,230,600 |
1.01 |
202,862 |
All Zones |
Total M&I |
22,958,910 |
1.20 |
888,752 |
|
|
|
|
|
Zone |
Category |
Tonnes |
Au Grade (g/t) |
Ounces |
11 (Buffalo Diss) |
Inferred |
613,000 |
1.32 |
25,947 |
12 (Buffalo Qtz-Tourm) |
Inferred |
1,489,000 |
1.15 |
54,896 |
21 (Laverty Dyke) |
Inferred |
676,000 |
1.52 |
32,929 |
22 (Laverty Granodiorite) |
Inferred |
1,669,000 |
0.84 |
45,172 |
31 (South) |
Inferred |
272,000 |
1.25 |
10,939 |
41 (Main) |
Inferred |
4,526,000 |
1.31 |
190,928 |
51 (Central) |
Inferred |
893,000 |
0.81 |
23,126 |
All Zones |
Total Inferred |
10,138,000 |
1.18 |
383,936 |
Note: due to rounding, some totals may not appear
to total properly |
|
• |
Current resource calculation used USD $1,200 per ounce of
gold |
|
• |
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, socio-political, marketing, or other relevant
issues. |
All composites have been capped where appropriate.
Cut-off grades are based on a price of USD $1,200 per ounce of gold
and a number of operating cost and recovery assumptions (see
details below). |
Sensitivity Analysis
The Updated Resource Estimates represents a rigorous evaluation
of the drilling, channel sampling and surface mapping completed to
the end of December 2013. The most notable difference from previous
estimates is the increase in overall ounces of the deposit at
multiple cut-off grades (see sensitivity table below) and the
continuing definition of the higher grade Buffalo Extension, South
and Central Zones. Furthermore, the infill drilling program was
successful at converting additional Inferred material into the
Indicated category.
The resource remains open along strike and at depth with the
deepest hole drilled to date of 290 vertical meters. The recent
discovery at the South and Central deposits are estimated to
contain an Inferred Resource of 34,000 ounces of gold averaging
0.91 g/t Au, at a 0.6 g/t Au cut-off grade.
The updated resource estimate, which meets the guidelines for
reporting mineral exploration programs as set out in National
Instrument 43-101, was based on 327 diamond drill hole totaling
over 40,000 metres and 52 channel samples that tested five deposits
across our claims and to a vertical depth of over 250 m and at
drill spacing of 5 to 75 m. For the purpose of this news release,
the resource estimate is reported at a cut-off grade of 0.6 g/t Au.
The cut-off was chosen to better represent the higher-grade core to
the mineralized zone and to provide continuity for future resource
estimates when and if the Mega deems it appropriate.
The sensitivity table below presents the tonnes and grades from
the block model used for the updated Mineral Resource Estimate at a
range of cut-off grades in order to demonstrate the sensitivity of
the estimates. The analysis indicates the robust nature of the
overall resource and potential to optimize the grade and maximize
margins.
Sensitivity of the North Madsen Resource Estimates at
Various Cut-off Grades |
Measured and Indicated Resources |
Cut-off (Au g/t) |
Tonnes (000's) |
Gold (Au) Grade (g/t) |
Au Ounces (000's) |
0.3 |
52,879,240 |
0.76 |
1,291,518 |
0.4 |
38,221,180 |
0.92 |
1,128,599 |
0.5 |
29,259,900 |
1.06 |
999,564 |
0.6 |
22,958,910 |
1.20 |
888,752 |
0.7 |
17,795,260 |
1.37 |
781,430 |
0.8 |
14,017,640 |
1.53 |
690,584 |
0.9 |
11,199,400 |
1.70 |
613,796 |
1.0 |
9,305,570 |
1.86 |
556,220 |
Inferred Resources |
Cut-off (Au g/t) |
Tonnes (000's) |
Gold (Au) Grade (g/t) |
Au Ounces (000's) |
0.3 |
19,469,000 |
0.81 |
509,183 |
0.4 |
14,895,000 |
0.96 |
458,806 |
0.5 |
11,990,000 |
1.08 |
416,464 |
0.6 |
10,138,000 |
1.18 |
383,936 |
0.7 |
8,670,000 |
1.27 |
353,257 |
0.8 |
7,505,000 |
1.35 |
325,218 |
0.9 |
5,103,000 |
1.58 |
259,656 |
1.0 |
4,529,000 |
1.66 |
242,220 |
The cut-off value of 0.6 g/t Au was derived using the parameters
listed in the table below.
For the Updated Resource Estimate the Company has adopted the
same approach that was used in previous estimates by specifically
targeting higher-grade mineralization, modelling each of the
mineralized domains, applying a conservative assay cap and
restricting the search radius for all resources. This allows for a
more realistic estimation of contained gold in the deposit and
potential enhancement in the projects economic viability.
Parameters and Assumptions used for North Madsen
Resource Cut-off Grade |
Parameter or Assumption |
|
North Madsen Deposit |
Date of Data Used |
|
December 2013 |
Number of drill holes and Surface Samples |
|
327 holes and 36027 assays |
Long Term Gold Price per Ounce ($/oz) |
|
1,200 |
Processing $/tonne O/P |
|
17 |
Mining $/tonne O/P |
|
6 |
Mill Recovery (%) |
|
92 |
Assumed O/P Slope Angle |
|
50 |
Specific Gravity (SG) |
|
2.68 |
Block Model & Interpolation Software |
|
Surpac 6.5.1 |
Interpolation Method |
|
Ordinary Krig |
Block Sizes (mxmxm) O/P |
|
10 x 10 x 10 with sub-cell to 2.5 x 2.5 x 2.5 |
Cap Grade (g/t) |
|
Varied by Zone (range from no cap to 46) |
Number of Domains |
|
7 |
All costs are in US dollars with 0.9 exchange
rate |
The mineral resource estimates used the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by CIM
Standing Committee on Reserve Definitions and adopted by CIM
Council on November 27, 2010. The mineral resource estimates are
classified as "measured", "indicated", or "inferred" as defined by
CIM. The Corporation intends to file a National Instrument 43-101
("NI 43-101") compliant technical report in respect of the updated
mineral resource estimate on SEDAR and on the Corporation's website
within 45 days of this news release.
According to the CIM definitions, a Mineral Resource must be
potentially economic in that it must be "in such form and quantity
and of such grade or quality that it has reasonable prospects for
economic extraction".
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.
The QAQC protocols and corresponding sample preparation and
shipment procedures for the North Madsen Project have been reviewed
and approved by WSP.
Qualified Person Comments/Quality Control Procedures
This press release has been prepared and revised by Glen Kunz P.
Geo., President and Chief Executive Officer (CEO), Mr. Todd
McCracken P.Geo. of WSP (formerly GENIVAR) all of which are
Qualified Persons under the NI 43-101 guidelines. The resource
estimate has been prepared in compliance with National Instrument
43-101 and form NI 43-101F1, which requires that the estimate be
prepared in accordance with the "CIM Definition Standards on
Mineral Resources and Mineral Reserves as prepared by the CIM
Standing Committee on Reserve Definitions and as adopted by CIM
Council, December 11, 2005".
Glen Kuntz, P. Geo, 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. Glen was
Sr. Resource Geologist at the Campbell Gold Mine and Global Spatial
Data Systems Coordinator for Placer Dome, Vice President Enterprise
Mining Solutions for Runge Ltd., and most recently, Chief Operating
Officer with Mega Precious Metals.
Mega Precious Metals Inc. is a leading Canadian-based
exploration company with a high quality pipeline of projects
located in the mining friendly jurisdictions of Manitoba,
Northwestern Ontario and Nunavut. The Company's significant
portfolio includes the flagship Monument Bay Gold Tungsten Project
in NE Manitoba as well as the N. Madsen Gold Project in the
prolific gold mining district of Red Lake, Ontario. Mega has
established a record of delivering rapid growth through their
focused and low cost approach to exploration and resource
development. The Company'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.
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.
Mega Precious Metals Inc.Glen Kuntz, P.Geo.President, Chief
Executive Officer & Director807-766-3380 or TF:
877-592-3380info@megapmi.comwww.megapmi.com