- A fresh approach in Nova Scotia
- Canadian province is enjoying a resurgence of gold mining
- Well financed to expand the resource potential
What MegumaGold Corp does:
MegumaGold Corp (CSE:NSAU) is pursuing a new approach to gold exploration in Nova Scotia, Canada, which already has a rich history of mining. Between 1862 and 1927 almost a million ounces of the precious metal were extracted from the province.
The company has put together a land package of over 127,000 hectares consisting of nearly 8,000 claims and is one of Nova Scotia’s single largest mineral claim holders.
Previously, mining and exploration was focused on high-grade nuggety style quartz-hosted gold, which is comparatively expensive to extract but the firm is interested in exploiting the disseminated, widespread, mineralization which also characterizes the area.
This is exciting because it's simple to extract the gold via an open pit, while cheap processing methods can also be used.
Within its land package, MegumaGold holds the Killag project, the Dufferin gold project (218 claims), the Goldboro Isaacs Harbour claims (174 claims), the Mooseland area project (243 claims), the Greater Goldenville area (233 claims) and the Greater Beaverdam project (114 claims), the Fifteen Mile Stream regional project (177 claims), the Cochrane Hill regional project (556 claims), and the Moose River area project (282 claims).
The group aims to develop a "fingerprint" model for identifying new deposits and targets, and reckons it could have a district-scale opportunity.
Atlantic Gold Corp. was a first mover in the region. Its Touquoy gold mine began production last year and generated and sold around 90,000 ounces of the yellow metal in 2018 at the extremely low all-in-sustaining cost of C$731 per ounce. Notably, the Torquoy mine lies near the extensive exploration ground of MegumaGold.
How is it doing:
In June, 2021, the company told investors that geologist Fred Tejada, who has over 35 years' international mining experience, will become interim CEO of the company following the resignation of Regan Isenor after three years in the role.
Isenor, who has decided to pursue other opportunities, will continue to work with the explorer on operational matters, assisting in field programs and ensuring a smooth management transition.
It comes after, late last year, MegumaGold completed its amalgamation with Nova Scotia-focused Osprey Gold Development Ltd (CVE:OS), which consolidated highly prospective ground in Nova Scotia by combining Osprey’s historically producing projects with the underground exploration ground owned by Meguma and created a leading precious metals explorer in the Canadian province.
The initial focus of the combined firm will be on developing target areas close to St Barbara Limited's operating Touquoy mine in the Moose River Gold Mines area, which includes Osprey's Caribou project and MegumaGold's Killag and Touqouy West properties, Meguma had said.
The Touquoy open-pit mine, acquired by St Barbara for C$802 million in 2019, lies around 10 kilometres (km) south of Osprey’s Caribou project and 4 km west of MegumaGold’s Touquoy West asset. The ultimate goal is to advance existing early-stage exploration targets for maiden resource estimates for the combined entity's resource portfolio.
And in January, this year, MegumaGold said it was set to buy all of Canadian GoldCamps Corp (CSE:CAMP) (OTCMKTS:SMATF) (FRA:A681) assets in a deal replacing the previously announced share exchange merger agreement announced in late 2020, which had been terminated.
The pair struck an asset purchase agreement, which sees gold explorer Canadian GoldCamps sell to MegumaGold all of its Canadian assets and associated working capital in exchange for MegumaGold shares.
And on June 22, this year, the firm said it had completed soil geochemistry, till sampling and prospecting at its Murchyville South option property in Nova Scotia ahead of potential drill targeting.
Murchyville South comprises exploration licences previously optioned from Genius Metals Inc and this latest work is estimated to have cost more than C$100,000 - the minimum expenditure required for MegumaGold to earn a 49.9% interest, including related rights and data.
The Genius licences span 1,619 hectares and MegumaGold reckons the ground encompasses the Western Extension of the Moose River trend, which hosts St. Barbara Ltd's (ASX:SBM) (OTCMKTS:STBMF) (FRA:BM1) operating Touquoy gold mine, along with its Beaver Dam and Fifteen Mile Stream development projects.
Previous work by MegumaGold at its adjoining Touqouy West project was successful in defining large arsenic in soil anomalies and elevated gold results along a trend interpreted to be the west extension of the Moose River anticline that hosts the open pit Touqouy gold mine.
At Murchyville South, MegumaGold now plans to carry out detailed mapping and prospecting during Q2 ahead of further investigation of the highest priority target areas through Induced Polarisation (IP) geophysical surveying in Q3, success in which will lead to target testing through core drilling.
- More exploration results from Murchyville South and elsewhere
- Further M&A activity in Nova Scotia
- Gold price moves
What the boss says:
In a statement accompanying recent news of the completion of sampling at the Murchyville South project, CEO Fred Tejada, on behalf of MegumaGold, highlighted a geological trend, which the company belives is the west extension of the Moose River anticline that hosts St. Barbara's open pit Touqouy gold mine.
"The company believes that this structure can be traced along an aeromagnetic trend that extends from the Touquoy Gold Mine area southwesterly across St. Barbara Limited’s holdings and then across MegumaGold’s Touquoy West holdings. At that point it is interpreted to continue beyond MegumaGold’s west property boundary onto the optioned Genius property."
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