MegumaGold Drilling Defines New Gold Halo at Killag Project - Seite 2

Van der Linde continued, “We see this as a significant milestone in the Killag story. Historical gold production from some of the currently most prominent deposits of the Nova Scotia goldfields, including Touquoy, Fifteen Mile Stream and Beaver Dam, was from narrow, high grade quartz veins. It wasn’t until pervasive gold mineralization in the wall rock was discovered in such cases that their potential bulk tonnage was understood. At Killag we are now seeing significant widths of anomalous gold values within wall rock peripheral to the area of old mine workings that exploited narrow quartz veins. Based on experience elsewhere in the Nova Scotia goldfields, we believe that this is a positive development in evaluating the property’s gold potential.”

The 2019 RC drilling at Killag referred to above intercepted high gold values in several quartz veined intervals of altered greywacke and argillite (see previous MegumaGold press release dated May 9, 2019). Longer intervals of continuous, anomalous gold values in the 20 parts per billion (ppb) to 100 ppb range were intercepted in some of the 2019 holes and also have substantial exploration significance (Table 1 technical notes). The Company believes that these may denote presence of a gold-bearing hydrothermal alteration halo centered on the anticlinal corridor at Killag. This concept is supported by in-house alteration index and RC chip logging results. Detailed study and three dimensional modeling of the entire 2019 RC drilling dataset in conjunction with historic drilling and underground mine workings datasets for Killag is now underway and the anomalous gold halo concept is being integrated in that process to define 2020 core drilling targets for the property.

Figure 1:  Cross-section through an idealized model of a Nova Scotia goldfields deposit showing a gold “halo zone” surrounding a mineralized “deposit zone” is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/e55542b3-c05a-4c13 ...

The longitudinal section in Figure 2a below parallels Killag’s east-west trending anticlinal hinge zone corridor and illustrates the spatial extent of the gold halo defined by the 2019 RC drilling results (see plan map in Figure 2b). The longest such interval to date occurs in hole KGRC-36 and has a gold grade of 0.11 g/t over 81 m, beginning at a downhole depth of 8 m. Details of contributing gold assay results appear in Table 1 and show that the intervals of interest are consistently mineralized with gold at low levels and do not simply reflect weighted averaging of high grade gold values over substantial intervening zones of barren wall rock. In each drill hole supporting the current halo assessment illustrated in Figure 2a sample intervals with gold grades greater than 1 g/t were capped at 1 g/t to reduce grade smearing effects. The Company believes that potential exists for this style of gold halo to be transitional to higher gold grades within the Killag anticline’s hinge zone corridor.