Osprey and MegumaGold Provide Operations and Exploration Update

HALIFAX, Nova Scotia and VANCOUVER, British Columbia, Aug. 10, 2020 (GLOBE NEWSWIRE) -- MegumaGold Corp. (CSE: NSAU, OTC: NSAUF, FWB: 2CM2) (“MegumaGold”) and Osprey Gold Development Ltd. (TSXV: OS) (“Osprey”) are pleased to provide the following update on their corporate operations and exploration-related activities.

As Meguma and Osprey work toward finalizing the previously announced plan of arrangement (see joint news release dated June 10, 2020), management and technical teams from both companies have been reviewing data from the combined project portfolio and prioritizing targets, budgets, and work plans for an aggressive first phase of work expected to commence immediately following the closing of the plan of arrangement. The combined database supports plans for an extensive multi-phase drilling campaign to test numerous targets on several projects within the combined portfolio. The initial exploration focus of the combined entity will be developing target areas within a close proximity of St Barbara Limited’s (“St Barbara”) operating Touquoy Mine in the Moose River Gold Mines area, which includes Osprey’s Caribou project and MegumaGold’s Killag and Touquoy West properties.

“We’ve been very busy over the past couple of months on the corporate side, working with MegumaGold to complete the proposed business combination in early September 2020,” said Osprey President Cooper Quinn. “Contemporaneously, we have been working on the technical and exploration side; communicating closely with MegumaGold’s technical team to prioritize projects across the combined company and ensure a seamless transition. The exploration potential of the combined land package has yet to be materially tested, and we’re excited to be prioritizing drill targets which we believe have the potential to expand our existing gold resources, and potentially discover new disseminated gold deposits in the area. I look forward to drilling these exciting targets.”

MegumaGold President Theo van der Linde commented, “Our team has been working diligently on developing high priority targets at the Touquoy West property. These target areas are represented by large newly identified soil and IP anomalies, which have yet to be drill tested. Our recent exploration activities have confirmed that disseminated sulphide mineralization is present in the Moose River anticlinal structure and we are continuing to expand on that story as the Touquoy West property takes shape. Concurrently, our amalgamation with Osprey provides shareholders of both groups with a very compelling story of exploration successes and mineral resources in the Caribou deposit.”