Feb. 25, 2010 (Filing Services Canada) -- Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased to provide an update on the 2009 field work program on the Yukon-based Spiderman and Fisher silver projects.
The diamond drilling program was successful in expanding the known Eagle vein fault structure mineralization to over 600m in total strike length. The 350m of newly discovered north east trending strike length, on the 100% Mega owned Spiderman claims, is defined by the results from holes D09EE-05 to D09EE-09. As exemplified by hole D09EE-07, average weighted grades of 1.15 g/t Au, 310.4 g/t Ag, 1.4% Pb and 13.06% Zn over 10.9 metres are more polymetallic than the typical veins in the Keno camp. Where assayed for, potentially economic levels of indium have also been identified associated with the higher grade zinc intercepts, including a weighted average result of 4.55% Zn and 139.23 ppm Indium over 2.5m in drill hole D09EE-09. Currently, the spot price for Indium is over $600 per kg.
The 2009 diamond drilling on the Eagle, Spiderman and Fisher properties total 4,022.3m in 16 NQ-TW diamond drill holes. Work was completed between May 27 and September 17, 2009 and drilling was focused along the trends of two structural targets including the Eagle Vein and the McLeod-Fisher fault structure. The 2009 drill map can be viewed in Megas Yukon photo gallery, http://www.megapmi.com/yukon_gallery.
The Eagle Vein structure(s) are open at depth, open and untested to the northeast and based on the recent and historic drill results, narrow to the southwest on the "Eagle property". The 2009 drilling also identified mineralization to the 840m elevation, extending the known vertical extent of the vein by more than 300m.
Drilling on the west end of the Eagle grid and the Fisher property was designed to test the coincident occurrence of the McLeod-Fisher structural lineament, the Fisher Ag-Pb-Zn-Cu-As-Sb-Hg geochemical soil anomaly and a linear anomaly identified in total field and tilt derivative airborne geophysics. The work was limited by bad ground and poor drill core recoveries. Other than weakly mineralized fault hosted vein zones encountered in holes D09EF0-01 and 02, no significant results were encountered in the Fisher drilling. For further information on the 2009 Eagle Exploration project, refer to Tupper, D. and Bennett, V., 2010. Observations of polymetallic Ag-Pb-Zn ( Au In) mineralization at the Eagle and Fisher vein-faults, airborne total field magnetics and identification of Tombstone age-equivalent aplite dykes in the Galena Hill area, Keno City, Yukon, Yukon Exploration and Geology 2009, K.E. MacFarlane, L.H. Weston and L.R. Blackburn (eds.), Yukon Geological Survey, p. 305-330, which is available online at http://www.geology.gov.yk.ca/search_publications_maps.html
On November 5, 2009 Mega terminated the Eagle Option Agreement with "Avino" Silver and Gold Mines Ltd. (Avino). Under the agreement, dated November 12, 2008, Mega had the exclusive right to and option to acquire a 100% title and interest in the Eagle property by incurring exploration costs totaling $7.1 million over five years, making total cash payments of $400,000 over five years to Avino and issuing 500,000 common shares of Mega in Years 4 and 5 to Avino.
Jim Rogers, President and CEO of Mega states; "with clear goals to find economic potential and add value to Mega, we tested the known and theorized mineralization on the properties. Other than the Spiderman property that contained broad widths of potentially economic material, the results on the Main Eagle Vein and the Fisher claims were disappointing. This combined with a timely option payment and other considerations, lead Mega to drop the Eagle Option in November, 2009. In 2010 we plan to focus our efforts on adding value to the 100% Mega owned Spiderman property."
To view the results from the Fisher and Spiderman properties 2009 diamond drilling work please click on the following link: http://www.usetdas.com/images/megatable.pdf. Note that results from the Avino owned Eagle Claims (west portion of the "Eagle Vein") that were dropped in November 2009 are not included in the table.
The Fisher option agreement was entered on July 7, 2008 with StrataGold Corporation (June 4, 2009 Strata was acquired by Victoria Gold Corp) to earn the exclusive right and option to acquire a 100% title and interest in the Fisher claims. To fully exercise the option Mega must; Incur Exploration Costs totaling $4 million over four years, Make total cash payments of $625,000 over four years to StrataGold, Issue 1 million common shares of Mega over four years to StrataGold and Mega shall grant StrataGold a 2% Net Smelter Royalty (NSR). At any time Mega may purchase 1% of the NSR by paying StrataGold $1 million. This option is currently in good standing.
The drill program was conducted under NI 43-101 quality assurance and quality control reporting standards. QA/QC procedures include the insertion of blind independent standards and blank samples in the sample stream. Assay results from diamond drill core samples were received from ACME Analytical Laboratories (Vancouver) Ltd. Laboratories, a mineral analysis laboratory in Vancouver, British Columbia, accredited for preparation and mineral analysis utilizing both fire assay and screen metallic methods. A Chain of Custody protocol for the secure handling and shipping of samples was rigorously followed.
This press release is approved by Mr. Gord Yule, P.Geo, Vice President - Exploration and Qualified Person for Mega Precious Metals Inc.
Jim Rogers, P.Geo, President and CEO, 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.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with sufficient cash to carry out all planned exploration programs on properties in Northwestern Ontario, Nunavut and the Yukon. The Company is committed to an accelerated growth strategy, and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Megas common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information and presentation material, please review the Mega website at www.megapmi.com
For further information, please contact:
Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
Certain statements in this press release relating to the Companys exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent managements best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Mega Precious Metals filings which are posted on SEDAR at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maximum News Dissemination by Filing Services Canada Inc. *