Financed to expand the potential resource at Meguma Gold camp
Neighbor Atlantic Gold has put the area and its potential on the map
Nova Scotia now recognized as a major host of disseminated gold deposits
What Meguma does:
Between 1862 and 1927 almost a million ounces of the precious metal were extracted from the province.
The firm has acquired 11,147 claims covering 179,280 hectares in a new emerging camp and is one of Nova Scotia’s single largest mineral claim holders.
Within that the firm 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).
Following a large airborne study, MegumaGold reckons it controls around a 466 km total strike length of gold-prospective anticlines. It plans a modern exploration program to develop a "fingerprint" model for identifying new deposits and targets, and reckons it could have a district-scale opportunity.
Previously in the province, mining and exploration was focused on the high-grade nuggety style quartz-hosted gold, which is quite expensive to extract but now interest has been awakened in the disseminated, widespread, mineralization which also characterizes the area.
This material cannot often be seen and is scattered across large areas at a lower grade but could potentially exist throughout the massive anticline structures within the Meguma Terrane.
This is exciting because it's simple to exploit the precious metal via an open pit, while cheap processing methods can also be used.
Atlantic Gold was a first mover. 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, Atlantic Gold's license area lies near the extensive exploration ground of junior player MegumaGold.
In May this year, Australian miner St Barbara bought Atlantic Gold for C$722 million (US$536 million), offering C$2.90 a share - an impressive 39% premium to Atlantic Gold's previous closing price, underlining the significant value of potential mineable gold deposits in the area.
How is it doing:
MegumaGold reported promising sampling results from ongoing exploration at the Ecum Secum property in May, including one sample, which graded as high as 49.8 grams per ton (g/t) of gold.
The samples were from waste rock piles associated with previous mining operation. Halifax-based Meguma has started preparation at Ecum Secum to support an upcoming 2,000m drill program, part of a 10,000 metre regional drilling campaign to confirm and expand the known mineralization on the property.
The same month, MegumaGold revealed it had encouragingly found gold over 1km of strike at its Killag exploration property, following a maiden reverse circulation (RC) drill campaign at the Killag East area.
Highlight assays included 1 meter at 54.2 g/t (grams per ton) of the yellow metal in one hole, while another showed 4 meters at 4.94 g/t gold from a depth of 67 meters (m).
What the boss says:
Theo van der Linde. MegumaGold's president said in a regulatory news statement in May: "Nova Scotia is vastly under explored for the bulk mineable concept and we continue to be excited by the exploration potential available to our operations on our massive land package, playing host to the company's pipeline of rapidly developing projects that fit this model."