Nov. 2, 2010 (Filing Services Canada) -- Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased provide the following update for the Headway deep drilling program. Hole MH1002 has passed through the unconformity and is in Balmer mafic volcanics at 1,958m. Hole MH0901 is at a depth of 2,603m and is successfully progressing towards target depth as the drillers deal with structure and increasing alteration.
Diamond Drill hole MH0901 has been in Balmer volcanics since a depth of 2,121m. From 2,121m to 2,361m the hole was in garnet-magnetite altered mafic volcanics. From 2,361m to the current depth of 2,603m the hole has been in an inter-bedded mixture of variably altered mafic to felsic volcanics that are commonly called "Rhyolitic-Andesite". This is an aluminosilicate altered mine unit commonly found in the Hanging wall of high grade zones in Red Lake. Also within the previously described interval from 2,538m to 2,566m the hole encountered a swarm of lamprophyre dykes. As we approach the target area there has been an increasing presence of black line faults, biotite and silica altered mafic inter-beds and sporadic quartz-tourmaline +/- ankerite (iron carbonate) veins containing arsenopyrite and pyrite. The Big Rig on Hole MH0901 is capable of depths in excess of 3,500m and we expect that it will reach our target depth of 3,000m. The remaining 400m to the bottom of the planned MH0901 drill hole will test the Modeled High-Grade Zone Target area.
The second drill hole (MH1002) encountered the unconformity at 1958m which is slightly deeper than the projection of 1700m but consistent with the model interpretation that the unconformity shallows at depth. Hole MH1002 has progressed rapidly, is tracking as planned to the north-east and will test the target area to the northern boundary of Headway with Goldcorp. Based on the location of the unconformity, 1050m of the favourable Balmer volcanic rocks remain to be tested.
Jim Rogers, President of Mega states; "Results to date continue to confirm a strong correlation with Mega's geological model. Based my previous experience at the Red Lake Gold Mines (RLGM), I believe that this hole has been a great success and that we could be very close to confirming a similar geological environment as that at RLGM. We are focused on drilling with minimal operational risk and aim to complete the holes as planned. I remain optimistic."
The updated November Corporate presentation on the company's website www.megapmi.com, includes an updated plan and cross section of Headway and Goldcorp's adjacent Red Lake Gold Mines.
The Headway property abuts Goldcorp's Red Lake Gold Mines southern boarder and lies just 2 kilometres (km) south west of the Goldcorp "High Grade Zone". Deep drilling technology is allowing Mega to explore for high grade, bonanza, replacement-type zones below the unconformity, in the underlying Balmer Rocks. Drilling of the first hole (MH0901) commenced on November 6th, 2009, and the second deep hole (MH1002) commenced drilling July 10, 2010. While technical navigational challenges have slowed the progress, Mega is pleased that the drill holes will provide for an excellent test of the deep target horizon. This model for exploration is similar to that recently utilized by Gold Eagle Mines that resulted in the discovery of the Bruce Channel deposit in Red Lake.
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 was Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex, Chief Mine Geologist at the Eskay Creek Gold and Silver Mine and most recently, Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
The prolific Red Lake camp has produced more than 25 million ounces of gold and production of about 700,000 ounces of gold per year continue as the district's production base from 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.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects 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. Mega's 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 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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