Sep. 9, 2010 (Filing Services Canada) -- Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased to report the resolution of their staking dispute, with Goldcorp, which was a result of a competitive staking rush in the North Madsen area of Red Lake, Ontario. The letter of agreement has been presented to the Ministry of Northern Development, Mines and Forestry and is awaiting necessary approvals. (Reference Map available at http://www.megapmi.com/north_madsen_gallery)
Success continues at North Madsen as drilling on the Laverty Property has expanded on earlier results of 40 metres (m) at 1.33 grams per tonne (g/t) in hole ML1048, drilled at the south west extent of the "Laverty Corridor". Hole ML1060, drilled 50m east of hole ML1048, confirms the zone with an average 1.21g/t over 27.0m. Hole ML1064, drilled on the same section as ML1048 at 75m below the original intercept, has intersected visible gold (vg) in a quarts vein structure averaging 17.30 g/t over 1.3m within a broader intersection of 54.8m averaging 1.02 g/t. (Reference Map available at http://www.megapmi.com/north_madsen_gallery)
Jim Rogers, President and CEO of Mega states, "Mega's objective is to outline a large economic gold resource at the North Madsen Project within 12-18 months. Resolution of the staking dispute demonstrates the positive working relationship that Mega has with Goldcorp and is a significant step toward the realization of this objective. I have always believed that the future of Red Lake will include open pits and a large central milling facility. Success at North Madsen will enhance and accelerate this vision."
A summary of the results for drilling on the Laverty Property are listed below.
MEGA 2010
Laverty Drill Results
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HOLE# ZONE FROM TO INTERCEPT (m) Au Grade (g/t)
(m) (m)
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ML1055 HW 2 12.0 19.5 7.5 1.17
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ML1056 HW 2 19.0 31.5 12.5 0.88
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ML1056 HW 2 126.0 132.0 6.0 1.32
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ML1057 HW 2 84.5 96.5 12.0 1.12
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ML1058 HW 2 9.0 16.0 7.0 0.77
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ML1058 HW 2 55.5 68.3 12.8 0.64
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ML1058 HW 2 94.5 99.0 4.5 3.77
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ML1058 HW 2 139.5 147.0 7.5 0.76
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ML1059 HW 2 16.5 36.0 19.5 0.72
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ML1059 HW 2 105.0 111.0 6.0 1.01
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ML1060 Main / HW 70.5 97.5 27.0 1.21
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incl Main / HW 70.5 79.5 9.0 1.14
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incl Main / HW 88.5 97.5 9.0 2.17
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ML1060 Main / HW 206.7 207.7 1.0 4.66
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ML1061 HW 2 147.0 153.7 6.7 0.76
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ML1062 N/A - - - NSV
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ML1063 HW 2 204.0 211.5 6.5 1.00
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ML1064 Main / HW 99.0 153.8 54.8 1.02
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incl Main / HW 152.5 153.8 1.3 17.30 (vg)
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Note: True Width is approximately 65% of Intersection Width
Minimum reported interval of >/= 5 gram-metres using a variable cut-off grade of 0.4 g/t to 0.2 g/t
Mega management believe that their North Madsen Property (comprised of Laverty, East My-Ritt & Skookum) are all part of a much larger gold system that encompasses the adjacent Howey, Hasaga and Gold Shore mines which historically produced approximately 640,000 ounces of gold. Mega has an option to acquire a 100% interest in both Laverty and East My-Ritt properties and holds mineral rights on the Skookum properties. The property mineralization hosts three styles of gold mineralization, including steeply dipping north-northwest striking diabase Dyke Zone, the east-west trending, gold mineralization in steeply dipping sheared granodiorite and clusters of late gold bearing quartz tourmaline veins.
In 2010, diamond drilling at North Madsen has successfully outlined:
* A NI-43-101 indicated resource of 395,000t at 2.56 g/t on a portion of the Laverty Dyke zone,
* The "Laverty Corridor", a broad east-west zone of gold mineralization, is over 235m wide and extends for more than 1000m in length. The 300m spaced drill holes include:
o 2.51 g/t over 16.4m (1.33/40), 4.93 g/t over 10.0m and 7.7 g/t over 11.2m
* Identified the Buffalo deposit extension onto the East My-Ritt property including 2 holes of:
o 1.02 g/t over 31.4m, 2.56 g/t over 13.3m, 1.85 g/t over 11m in one hole and
o 1.94 g/t over 33.5m, 1.15 g/t over 8.5m 1.74 g/t over 5.0m and 1.43 g/t over 8.5m in the second (*Note that assays represent 3 to 4 separate zones in each hole)
Mega is continuing reconnaissance testing of anomalies and drilling is currently underway on the Skookum claims. A large phase 2 program consisting of systematic drilling to delineate resources within the Laverty corridor will start later this fall.
The prolific Red Lake camp has produced more than 23 million ounces of gold to date and continues to produce approximately 700,000 ounces of gold per year from the district's production base at Goldcorp's Red Lake Gold Mines. When compared to other camps, Red Lake is still a young and developing camp where consolidation, mechanization, improvements to processing technology and "Big Picture" economics will improve margins and drive future success.
The drill programs are being conducted under NI 43-101 quality assurance and quality control reporting standards. QA/QC procedures include the insertion of blind independent gold standards and blank samples in the sample stream. Assay results from channel samples were received from Accurassay Laboratories, mineral analysis laboratory in Thunder Bay, Ontario, accredited for preparation and mineral analysis utilizing both fire assay and screen metallic methods. A Chain of Custody protocol for the handling and shipping of samples is being rigorously followed.
Jim Rogers, President and CEO, is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101. Jim is 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.
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
O: 807-766-3380
TF: 877-592-3380
info@megapmi.com
Forward-looking Statements
Certain statements in this press release relating to the Company's 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 management's 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 Metal's 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.
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