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The range of historic shallow diamond drill intercepts carried out under NI 43-101 compliant guidelines by King’s Bay in 2005 include 63.52 grams / tonne (g/t) gold over 0.5 metres (m) and 3.08 g/t over 10.8 m. True widths are unknown. Highlights of historical exploration include; 20.9
g/t gold over 0.94 m in drill core (H-13) and several surface grab samples exceeding 34 g/t gold. Gold is developed within quartz-carbonate +/- tourmaline +/- arsenopyrite veins associated with quartz-feldspar porphyry dykes that intrude altered and sheared mafic volcanics. These quartzfeldspar porphyry dykes appear to be intruded along deep-seated structures during the late stages of ore emplacement. This is evidenced by their structural relationships adjacent to and within the “ESC” and “High Grade” zones of Red Lake Gold Mines. The property appears to contain two east-west trending, gold-bearing structural zones in intersection with the deep-seated extension of the north east trending Madsen deformation zone.
Initial payment obligation at signing of the Definitive Acquisition Agreement between the parties is CAD $340,000, issuance of 200,000 Mega shares and first year project expenditures of $750,000. Of the $340,000 paid on the signing of the Definitive Agreement, $140,000 was paid by Mega to Richview Resources Inc. for their 15 % interest, and $200,000 was paid by Mega to King’s Bay Gold Corporation.
Terms of the staged 3 year option agreement between Mega and King’s Bay include cash payments totalling CAD $460,000, the issuance of 4,425,000 common shares of Mega and project expenditures of $3,000,000. There is a 2.0% Net Smelter Royalty payable to the initial vendors of the property.
Jim Rogers, President and CEO of Mega stated in a Mega news release of October 5th, 2009: “The Headway acquisition adds tremendous upside to our Red Lake base of properties. Modern deep drilling technology will allow us to test this exciting, theoretical, High Grade target.”
Mega is planning a deep drill program to test the conceptual exploration model which may be viewed at http://www.megapmi.com/headway_gallery.
Jim Rogers, President and CEO of Mega, has 30 years experience, 20 in Red Lake as former Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex and most recently Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
Details of King’s Bay Gold’s past drilling programs on this property, Phases I to IV, can be found in the Annual Information Form of June 16th, 2006 for 2005.
View King’s Bay Gold’s Headway National Instrument 43-101 Technical Report
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