MegumaGold Corp (CSE:NSAU) (OTCMKTS:NSAUF) the Nova Scotia-focused explorer, has encouragingly found gold over 1km of strike at its Killag exploration property, it told investors, sending shares soaring.
It comes after a maiden reverse circulation (RC) drill campaign at the Killag East area of the property - among the 180,754 hectares of prospective land the group holds in the Canadian province.
Shares in Canada surged over 29% to $0.16.
Highlight assays include 1 meter at 54.2 g/t (grams per ton) of the yellow metal in one hole.
Another hole yielded 4 meters at 4.94 g/t gold from a depth of 67 meters (m).
These initial holes were designed to test the extension and continuity of the so-called "Axial Zone" of the gold-bearing anticlinal structure at Killag and follow up drilling will be required, the firm said. Assays will now be included in a new 3D geological model of the Killag property.
MegumaGold reckons this is the first wave of a new golden era in Nova Scotia ushered in by an understanding of how gold is hosted within the Meguma terrane, similar to Atlantic Gold's Touqouy deposit.
"Killag is just the first in MegumaGold's developing pipeline of emerging deposit assessments," it said.
"Until recently Nova Scotia has been vastly under-explored for bulk tonnage mining scenarios similar to Atlantic Gold's Touqouy deposit," added president of the company Theo van der Linde in Thursday's statement. "We're extremely pleased to be assessing our initial results and expand that understanding across our massive land package."
The company says it will now target Killag, Ecum Secum, Gold Lake and Touqouy West as a current priority for ongoing exploration plans.
Other documented targets are being further developed and added to the pipeline, it added.
The Killag gold district held by MegumaGold lies in the eastern part of Halifax County, Nova Scotia, around 13km north of Sheet Harbour and 20km east of the producing Touquoy gold mine owned by Atlantic Gold Corporation.
Official data shows the district has 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).
Rich gold mining heritage
The province of Nova Scotia already has a rich gold mining heritage, but new theories and modern exploration technologies are re-awakening interest in the jurisdiction’s huge potential.
It all started with the discovery of shales at the Touquoy deposit, where Atlantic Gold has commissioned a highly successful open pit mine.
Atlantic Gold, the firm believes, has shown that the disseminated model of low-grade, bulk tonnage is really where the projects that are economically viable are going to be found.
Contact Giles at [email protected]
Follow him on Twitter@Gile74