MEGUMAGOLD MAIDEN DRILL CAMPAIGN YIELDS 1KM STRIKE LENGTH GOLD DISCOVERY AT KILLAG

May 9, 2019

The 2019 RC drilling program completed by the Company resulted in the discovery of new, high grade gold mineralization intercepts in zones of combined quartz vein and argillite that occur within, and to both east and west of, areas directly tested by previous exploration. These new mineralized intercepts remain open in both strike and dip extents within the Axial Zone and are targeted for additional drilling during the 2019 field season.The Company temporarily postponed work half-way through the proposed initial 20,000m Phase I drill program to await assays and to adjust its exploration plan to results received to date.

 

Meguma is very pleased with the resulting optimization of its strategy which bore out in the discovery of new high grade drilling intercepts in the Axial Zone at Killag and multiple excellent new targets now drill-ready, coming out of our re-calibrated exploration model.

 

The Company will now target Killag, Ecum Secum, Gold Lake and Touqouy West as a current priority and immediate focus of the Company’s ongoing exploration plans.  Other documented targets are being further developed and added to the pipeline.

 

Table 1: Killag Significant Drill Results

*Killag East Area

Drillhole Number Easting (m) Northing (m) Dip (Deg.) Azimuth (Deg.) Hole Depth (m) Significant Intervals
From (m) To (m) Length (m) Gold Grade (Au g/t)
KGRC-30 529872 4985170 -55 330 100 95 98 3 1.52
KGRC-31 529911 4985174 -55 330 67 23 25 2 0.40
KGRC-31 31 36 5 1.31
Incl. 31 32 1 5.14
KGRC-31 47 51 4 1.27
Incl. 47 48 1 4.48
KGRC-31 55 58 3 0.32
KGRC-31 64 65 1 0.22
KGRC-32 529898 4985231 -55 290 103 62 63 1 0.88
KGRC-32 67 71 4 4.94
Incl. 67 68 1 17.86
KGRC-32 90 91 1 0.23
KGRC-33 529945 4985220 -55 290 60 16 17 1 0.13
KGRC-33 39 40 1 0.21
KGRC-34 529993 4985226 -60 290 36 22 25 3 0.23
KGRC-35 530058 4985241 -55 280 137 11 14 3 0.40
KGRC-35 55 57 2 2.39
Incl. 55 56 1 4.70
KGRC-35 62 64 2 0.36
KGRC-35 70 72 2 1.29
KGRC-35 77 79 2 4.64
Incl.       77 78 1 9.09
KGRC-35 98 99 1 0.185
KGRC-36 530107 4985261 -55 290 119 15 17 2 0.480
KGRC-36 49 53 4 0.76
KGRC-36 57 58 1 1.04
KGRC-36 83 84 1 54.2

*See notes at end of press release

 

Accompanying cross sections and drill plan maps can be viewed here:

https://megumagold.com/wp-content/uploads/2019/05/Meguma-May6-2019-cmbnd50619.pdf

 

 

Killag Gold DistrictSummary and 2019 Drilling Program

 

The Killag Gold District held by MegumaGold lies in the eastern part of Halifax County, Nova Scotia, approximately 13 km north of Sheet Harbour and 20 km east of the producing Touquoy gold mine owned by Atlantic Gold Corporation. The district is reported in Nova Scotia Department of Energy and Mines database records as having produced at least 3,500 ounces of gold from underground mining between 1869 and 1946 at an estimated average gold grade of 0.96 oz/ton (32.91 g/t).  Historic work in the immediate area of past mining is documented in government records and these clearly show that the property has not been extensively explored to date.

 

Gold mineralization at Killag occurs in association with both bedding parallel quartz veinsand discordant quartz vein arrays, both of which are particularly well developed in the hinge area of the tightly appressed Killag anticline (the Axial Zone).Gold also occurs locally in argillite associated with the quartz veined intervals.The anticline is doubly plunging and in the “Killag East” areait plunges moderately to the east. It is also asymmetric in geometry, having a steeply south-dipping to overturned south limb and a moderately north-dipping north limb. Historic underground exploration and mining were primarily focused on bedding parallel quartz veins on the south fold limb, although underground work was also carried out locally on the north limb.

 

The 2019 RC drilling program completed by the Company resulted in the discovery of new, high grade gold mineralization intercepts in zones of combined quartz veins and argillite that occur in the vicinity of past workings and also to both east and west of the workings area, which was most directly tested by previous exploration. These new mineralized intercepts remain open in both strike and dip extents within the Axial Zone and are targeted for additional drilling during the 2019 field season.

 

 

Interpreted results of 2018 airborne geophysics, historic work compilation and 3D modelling programs by MegumaGold were used to target 2019 RC drill holes at Killag. In February and early March of 2019.20 inclined RC drill holes (1622m) were completed to initially test the Axial Zone mineralization concept in the “Killag East” area and to provide stratigraphic assessments in the Killag Central and Killag West areas(https://megumagold.com/wp-content/uploads/2019/05/K3D-mod.png ) Adverse site conditions prevented completion of several planned holes in the latter two areas. Drill hole locations relative to the anticlinal trend and the Axial Zone target area are presented at (https://megumagold.com/wp-content/uploads/2019/05/K3D-mod2.png )

 

The East Killag area that is proximal to the historic mine workings was tested by RC holes configured to intercept the interpreted Axial Zone target at progressively higher and lower stratigraphic levels, east and west, respectively, of the historic workings area. Holes were oriented to either test the anticlinal trend along approximately north-south cross section lines or drilled longitudinally along the Axial Zone target to test east-plunging stratigraphy in the modelled fold hinge area. High grade gold results related to quartz-veined argillite and greywacke intervals were returned from drilling along both types of 2019 RC lines and highlights of the program are detailed by cross sections here:

https://megumagold.com/wp-content/uploads/2019/05/Meguma-May6-2019-cmbnd50619.pdf

 

QAQC Sampling, Assaying Protocol

RC drill chip field samples measuring 1 m in downhole length and approximately 2.5 kg in mass were obtained through rotary splitting at the drill site. Field samples were assigned for processing by either screen metallics methods or regular assay methods on the basis of percentage of recorded quartz. Samples selected for regular assaying were submitted to the Minerals Engineering Center (MEC) at Dalhousie University, in Halifax, Nova Scotia, for crushing and subsequent pulverization to create >80% passing 200 mesh pulp material. Pulp material was riffle split to produce a 100 g subsample that was sent by commercial carrier to ALS Canada Ltd. (ALS) in Sudbury, ON  for processing, with subsequent gold analysis at that firm’s Vancouver, BC facility by Fire Assay – Atomic Absorption (FA-AA) methods using a 30 g pulp split. Multi-element analysis of specified pulp samples was also carried out at ALS.  Samples selected for screen metallics processing were shipped by commercial carrier to Eastern Analytical Limited (Eastern) in Springdale, NL for crushing to -10 mesh followed by pulverization to 95 % passing -150 mesh.

 

The plus 150 mesh fraction and one 30 g split of the minus 150 mesh fraction were separately analysed for gold using standard FA-AA methods and a mass-weighted average of results for the two analyses was recorded as the gold grade for the sample. Archived splits from certain samples analyzed initially at ALS that returned anomalous gold levels were submitted to Eastern for screen metallics processing using the method described above.

 

MegumaGold’s Quality Control and Quality Assurance (QAQC) protocol for RC samples includes (1) field measurement of sample split weights, (2) blind insertion of certified reference materials at 1 in 40 frequency, (3) blind insertion of blank samples at 1 in 40 frequency, and (3) analysis of duplicate pulp

splits at 1 in 40 frequency. QAQC samples are inserted/analysed in offset sequences. Both ALS and Eastern are independent, commercial analytical services firms registered to ISO 17025 and accredited by

the Canadian Association for Laboratory Accreditation Inc. (CALA). MEC is an independent, analytical services laboratory operated by Dalhousie University that provides analytical and metallurgical

processing services to commercial and academic clients. Both ALS and Eastern have internal QAQC protocols that include analysis and results monitoring for certified reference materials, blank samples and duplicate split samples. MEC has an internal QAQC protocol that applies to sample preparation parameters of the MegumaGold program. Results of all QAQC programs are continuously monitored by MegumaGold and acceptable results were received for all analytical work associated with this press release.

 

Table 1 Notes 

  • UTM NAD 83 Zone 20 coordinates
  • Weighted average interval >.10 g/t Au; maximum of 3 x 1m samples @ <.1 g/t included
  • Assay Values are uncut; included (incl.) higher grade subintervals are indicated
  • Assay values reflect Fire Assay- Atomic Absorption methods applied to (1) regular 30 g pulp

Splits from ~2.5 kg Reverse Circulation (RC) drill chip samples and/or screen metallics processing of ~2.5 kg RC drill chip samples from selected intervals

  • Downhole sample intervals are represented; insufficient geological control is available at present to accurately estimate true widths from RC drilling results

 

Review and Qualified Person

This press release has been reviewed and approved by Regan Isenor, Chief Executive Officer of MegumaGold Corp.; Michael Cullen, P. Geo., of Mercator Geological Services Ltd., an “Independent Qualified Person” as defined under National Instrument 43-101, has reviewed and approved reporting of the drilling program results included in this press release.

 

 

About MegumaGold Corp.

MegumaGold is a Canadian junior gold exploration company engaged in the business of acquiring, exploring and developing natural resource properties. During 2018, the Company has centered its exploration focus on the developing Meguma formation of Nova Scotia. As a result, the Company has assembled a strategically-positioned tenureof 180,754 hectares within the Meguma Gold District.

 

For more information please contact

Mr. Regan Isenor, Chief Executive Officer

902-233-4381

info@meguamgold.com

www.megumagold.com

 

Forward-Looking Statements

 

All statements in this presentation, other than statements of historical fact, are “forward-looking information” with respect to MegumaGold within the meaning of applicable securities laws including, without limitation economic estimates and any statements related to estimated mining costs. MegumaGold provides forward-looking statements for the purpose of conveying information about

 

current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations,

forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in MegumaGold’s public filings under its SEDAR profile at www.sedar.com. Although MegumaGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated,

estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.

 

 

MegumaGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

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