MegumaGold Corp (CSE:NSAU) said Monday that it has strategically expanded its exploration holdings by acquiring an additional 47 claims, 761 hectares to the northeast of St Barbara's Touquoy Gold Mine.
In a statement, the company said the acquisition provides the company with an expanded and now continuous land position along the northern side of the favourable Moose River, Beaver Dam, 15-mile-stream mineralized/structural corridor, or the St Barbara's Moose River Corridor.
The newly acquired claims provide infill between the company's existing Touquoy West Project area, that adjoins to the west of St Barbara's Touquoy Gold Mine holdings, and its extensive holdings in the vicinity surrounding that company's Beaver Dam gold deposit. Both of these gold deposits occur within a common, broad, mineralized/structural corridor and were central to the St Barbara take-over of Atlantic Gold for $722 million in 2019.
The company's interpretation of reprocessed historic airborne magnetometer survey results for the newly staked area indicates that second-order folding may have locally resulted in repetition of favourable mineralized/structural corridor stratigraphy to a near-surface position in the northeast portion of the holding. The effects of a major northwest-trending fault corridor in this northeast area are also apparent in airborne survey results and increase local structural complexity. Multiple structural complexity influences plus local potential for favourable argillite-bearing stratigraphy combine to make the new holding an attractive exploration target for MegumaGold.
MegumaGold is initiating a detailed compilation of historic geological, geochemical and geophysical survey results for the area to specifically assess prospectivity and potential for near-term drilling target development.
"We're very excited to have been able to acquire this ground immediately when it became available given its strategic location within/adjacent to St Barbara's Moose River Corridor,” said MegumaGold president Theo Van der Linde.
“This ground provides the company with a new exploration opportunity beginning approximately 4.2 kilometers north-northeast from the Touquoy Gold Mine. The company is poised to build near-and long-term value through this and other strategic district-scale landholdings and ongoing work programs," he added.
The company holds a package of 107,114 hectares within the well-known Meguma gold district and Killag lies in Halifax county, around 20 km east of Atlantic Gold’s Touquoy mine.
MegumaGold is a Canadian junior gold exploration company engaged in the business of acquiring, exploring and developing natural resource properties.
During 2018, the company has centered its exploration focus on the developing Meguma formation of Nova Scotia. As a result, the company has assembled a tenure of 107,114 hectares within the Meguma Gold District.
District-Scale land package development
Since initially acquiring 3,888 claims covering 62,985 hectares in late 2017, the company has expanded that footprint by approximately 70% to its current holdings of 6,613 claims that cover 107,114 hectares.
The current exploration property portfolio now forms the largest gold exploration land position present in the under-explored and emerging Nova Scotia gold camp, where St Barbara is leading the way with 2019 annual gold production of 93,000 ounces from its open pit Touquoy Gold Mine. This company's proven and probable gold reserves total 1,877,000 contained ounces within the entire Moose River Consolidated project.
In August, the company began to diversify its exposure to the Meguma gold camp, announcing the company's participation in a non-brokered private placement of Osprey Gold Development Ltd. The company acquired 13,100,000 units of Osprey at a price of $0.05 per unit.
"We saw this as a great way to further our exposure to an emerging gold camp where we already have a huge footprint of under explored ground. The synergies between Osprey and MegumaGold are clear from a geological and geographical point of view, it only makes sense that we would work in the same direction,” said Theo Van der Linde.
“There is a real potential for growth at both of Osprey's Goldenville and Caribou projects, and their close proximity to operating or soon to be operating facilities is a bonus. We see any future consolidation in the Meguma terrane as being very beneficial for all stakeholders involved,” he added.
Shares soared 21% in Toronto to stand at C$0.17 each.
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