Mega Precious Metals Reports Transformational Metallurgical Results
for Monument Bay
THUNDER BAY, ONTARIO--(Marketwired - May 29, 2014) - Mega
Precious Metals Inc. (TSX-VENTURE:MGP) ("Mega" or the "Company") is
pleased to announce a metallurgical processing strategy and
excellent results from the ongoing metallurgical work being
completed by Thibault & Associates Inc. on drill core samples
from the conceptual open pit within the Twin Lakes Deposit at
Monument Bay. These results are based on bench scale metallurgical
testing and the assessment of alternative processing technologies
for optimum grade and recovery. A metallurgical process has been
identified for the production of gold and the co-production of
tungsten from two discrete and identifiable zones within the
deposit, defined as the "Gold Zone" and the "Gold-Tungsten Zone",
both of which demonstrate relatively high recoveries using standard
conventional processes.
Highlights of the Initial Metallurgical Results Include:
- A combined gold recovery of 91.4% from Gold Zone run-of-mine
ore to gold cyanide leach solution.
- 95% gold recovery to a bulk sulfide - gold concentrate
containing 40 g/t gold.
- 96.2% recovery of gold in the bulk sulfide - gold concentrate
using acidic pressure oxidation and subsequent cyanide leaching of
the acid pressure leach residue (about 75% to 80% of the gold is
recovered with cyanide leaching without acid pressure
oxidation).
- The sulphide concentrate has a mass pull of only 5.4% of the
process ore which will allow much smaller hydrometallurgical
circuit than if the whole ore needed to be processed.
- A combined tungsten recovery of 84.9% by bench scale bulk
sulfide flotation followed by tungsten rougher stage flotation
demonstrates the significant economic potential of the Gold -
Tungsten Zone.
- 89.4% Tungsten recovery with a rougher grade of 5.56% WO3) was
achieved in the tungsten rougher stages. This is a result of
selective flotation reagents and the optimum liberation
characteristics of tungsten (which occurs predominately as
scheelite) using a nominal grinding specification to achieve an
optimum tungsten recovery with limited slime loss.
- The relatively high quality of tungsten at Monument Bay
relative to other scheelite deposits is based on a low
concentration of impurities (such as fluoride), improving the
commercial viability of the tungsten concentrate production for end
use tungsten carbide production.
- Based on the relative grade of gold and tungsten in the Gold -
Tungsten metallurgical sample, co-production of tungsten
concentrate with gold has the potential to increase revenue
relative to the base case production of gold from this zone.
The overall process flow to achieve the maximum recovery for
both gold and tungsten is outlined in this release. Mega's
management is pleased that the metallurgical process is
straight-forward and highly conventional. It should be noted that
although the Company is continuing ongoing technical studies on
zones discovered to date, the deposit remains open in all
directions and ongoing exploration work will be directed to
potentially expand the resources by extending the current pit
boundaries and also by potentially discovering new zones along the
deposit's strike length and possible parallel zones and to
depth.
The Gold Zone and the Gold-Tungsten Zone are distinct from each
other (both contain free gold, gold associated with non-sulfide and
gold associated with sulfide mineralization) and can be processed
using commercially proven, widely implemented process technologies
for the production of gold dore (Figure 1).
Within the Gold-Tungsten Zone, the tungsten occurs as scheelite
that can be separated from the gold and upgraded to co-produce a
tungsten concentrate using process flowsheet that is
widely-implemented for the production of tungsten from various
scheelite-type deposits in Canada, Europe and China.
Glen Kuntz, P. Geo, President and CEO of Mega stated "We are
very pleased to have completed the preliminary bench scale
metallurgical tests to define a processing strategy for the
development of the Gold Zone and Gold-Tungsten Zone of the Twin
Lakes Deposit. These results have exceeded our expectations and
compare favorably to similar projects. The pit material shows very
good recovery results for gold and tungsten and bodes well for our
ongoing economic, diagnostic and optimization work. With the
positive metallurgical results for tungsten the Company will be
undertaking a resource update expected in the third quarter of 2014
to include tungsten where assays have indicated a weighted average
increase of 30% to gold equivalent grades when compared to the gold
only assays with the potential to significantly transform the
Monument Bay Project."
The bench scale test program for the development of a fully
integrated process technology (using both metallurgical and
hydrometallurgical processing methods) was based on samples of
drill core containing 2.27 g/t gold with a minor amount of tungsten
(containing 0.021% WO3) in the Gold Zone and 1.32 g/t gold with
0.42% WO3 in the Gold-Tungsten Zone.
The Gold Zone consisted of a total of 1,486 samples for a total
of 1,422 kg from a total of 140 drill core samples, reflecting the
spatial, lithological, mineralogical and grade variations of the
conceptual open pit portion of the deposit. A single 500.10 kg
composite was generated based on appropriate ratios of each of the
types of mineralization and closely following the geological model
of the pit. Overall the sample is representative of the two styles
of mineralization (porphyry vs shear), approximately 73% of the
sample is weighted from the eastern end of the conceptual open pit
(Figure 2).
Gold deportment studies are ongoing; however preliminary results
from the composite indicate the presence of free gold, gold
associated with non-sulphides and gold associated with
pyrite/arsenopyrite. Recent 2014 drilling has indicated an
increased abundance of visible gold. This indicates there may
further benefits to be gained from gravity concentration
testing.
The Gold-Tungsten Zone consisted of a total of 115 samples for a
total of 208 kg from a total of 24 drill core samples, reflecting
the spatial, lithological, mineralogical and grade variations of
the western end of the conceptual open pit. Tungsten assays are
pending from the 2014 drill and ongoing OCAP program from
throughout the deposit which have the potential to impact future
gold-tungsten resources.
An update to the bench scale metallurgical test program by
Thibault & Associates Inc. of Fredericton, New Brunswick
includes the following:
- Bench scale tests have identified a flotation reagent scheme
and grind specifications to achieve a 95% recovery of gold to the
bulk sulfide flotation concentrate. A bulk sulfide flotation also
provides a good separation of the gold and tungsten with 95% of the
tungsten reporting to the bulk sulfide flotation tails. The
concentrate containing approximately 40 g/t gold provides a
significant reduction in the capital cost for a gold
hydrometallurgical process facility - relative to direct
hydrometallurgical processing of the ore. Based on the gold content
in the bulk sulfide concentrate, the throughput tonnage of gold
concentrate processed by the gold hydrometallurgical circuit is
equivalent to about 5.4% of the run-of-mine ore for
processing.
- Bench scale tests to assess an optimum reagent scheme for
scheelite flotation as in progress for rougher flotation (primary
stage of upgrading by flotation). The development of the reagent
scheme for selective scheelite flotation is based on optimization
of the tungsten grade by minimizing the flotation of silicates and
carbonate minerals. Relative to the scheelite flotation feed, the
primary stage rougher recovery of tungsten is 89.4% (to achieve a
rougher grade of 5.56% WO3) based on the development of the reagent
scheme to date. The performance of the rougher flotation is
consistent with commercial scheelite flotation circuits and work on
optimizing the flotation operating conditions for both rougher and
cleaning stages of scheelite flotation is in progress.
- Preliminary tests on direct cyanide leaching of gold in the
bulk sulfide flotation concentrate (without pre-oxidation leaching
of the concentrate) indicated that about 75% - 80% of the gold is
cyanide leachable. With pre-oxidation leaching of the gold
concentrate using "acidic pressure oxidation" to destroy pyrite and
arsenopyrite, the leachability of gold with a cyanide leach is
96.2%. To optimize on the utilization of oxygen and minimize the
partial pressure of carbon dioxide in the pressure leach vessel, an
acid pre-leach was used to remove the carbonates prior to acidic
pressure oxidation.
The definition of the process technology and the integration of
ore pre-concentration by bulk sulfide flotation, tungsten upgrading
by scheelite flotation and gold recovery from bulk sulfide - gold
concentrates by hydrometallurgical processing is defined by Figure
3.
To view Figures 1, 2 and 3 please click on the following link:
http://media3.marketwire.com/docs/MGP0529.pdf
Current and Future Testing
Continuing metallurgical testing is focused on the process
parameters for a preliminary economic assessment, with the results
of the test program expected late Q3 2014.
In addition to defining a processing strategy to upgrade both
gold and tungsten from each zone, the strategy employs tailings and
wastewater treatment technologies to comply with environmental
guidelines.
The performance of the rougher flotation is consistent with
commercial scheelite flotation circuits and work on optimizing the
flotation operating conditions for both rougher and cleaning stages
of scheelite flotation is in progress.
Qualified person:
J. Dean Thibault, P.Eng., Senior Process Chemical Engineer and
Principal of Thibault & Associates Inc., located in
Fredericton, New Brunswick, is acting as a Qualified Person in
compliance with National Instrument 43-101 with respect to the
metallurgical bench scale process development test program and
process flowsheet design information contained in this release and
has reviewed the contents for accuracy.
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