MegumaGold Corp. has offered updates on its in-progress exploration and corporate activities.
Osprey Gold Acquisition Update
MegumaGold has been continuing its talks with Osprey Gold Development Ltd. with regards to the proposed business combination transaction. As part of the transaction, MegumaGold will obtain 100% of the issued and outstanding shares of Osprey Gold.
Information related to the transaction is explained in a press release from MegumaGold, dated March 23rd, 2020. MegumaGold and Osprey Gold are dedicated to completing the transaction, and they are now involved in finalizing the terms of a definitive agreement.
MegumaGold has been continuously advancing targeting and permitting work as a preparation for core drilling operations on its Touquoy West Property. The 2019 soil survey programs and extensive ground geophysics together with the latest IP survey were successful in determining three huge anomalies on the Moose River anticlinal structure’s western extension, hosting St Barbara’s functional Touquoy mine.
Earlier, none of the well-established exploration targets were drilled. At present, the locations of drill collar are being established on the new targets, with permitting work to be followed. At Touquoy West, a core drilling program will be started as soon as permissions are obtained and the COVID-19 situation changes.
Outcomes of a reverse circulation (RC) drilling program (2,247 m) completed on the Killag Property in early 2019 seem to denote that highly anomalous gold values over considerable widths occur in bedrock sequences of quartz-veined greywacke and argillite that exist on the property.
Such anomalous gold values are concentrated across the hinge zone of the historically mapped Killag-Goldenville anticline and exist within a wide geochemical alteration halo that also forms a crucial anticlinal hinge zone.
The outcomes of the 2019 RC program reported earlier establish a gold anomalism corridor that coincides with the hinge zone and has a minimum length of 1 km.
This anomalous trend is open to both the west and east beyond the 2019 RC program limits. Outcomes from core drilling and historical mining closeby seem to support the possibility of additional gold mineralization on the property.
At present, MegumaGold has completed a bedrock gold distribution study and in-depth geological modeling for the Killag Property. Additionally, the scheduling and permitting activities for the drill program are in progress to make sure that fieldwork starts quickly as soon as the working conditions become stable.
Optioned Genius Licences
Right now, MegumaGold is designing and making an in-depth ground survey program on exploration licenses optioned from Genius Metals Inc. located adjacent to the western extension of MegumaGold’s Touquoy West Property.
The program under preparation for the Genius licenses will include earlier exploration targeting methods utilized on the Touquoy West Property, which was successful in defining various anomalies on the Touquoy West Property. It will also include soil sampling, geological mapping, combined VLF and ground magnetometer surveys, as well as an IP survey. MegumaGold expects that fieldwork on the Genius licenses will begin once the COVID-19 situation improves, which would enable a safe working environment for field staff.
Expanding Nova Scotia Footprint
Moreover, MegumaGold has further extended its mineral claims footprint in Nova Scotia by acquiring 21 exploration licenses, which include 477 mineral claims (7,727 hectares). These mineral claims lie adjacent to numerous exploration licenses already in possession of the company in the Meguma Terrane.
Such additional mineral claims were obtained from an arm’s-length vendor at a cost nearly equivalent to mineral license fees paid to the Government of Nova Scotia. A 2% gross royalty was awarded on the claims with respect to the purchase.