MegumaGold Corp (CSE:NSAU) told investors it is seeing encouraging signs of a large gold deposit at its Touquoy West project in Nova Scotia as it reported the latest geochemical results.
The firm has found more elevated arsenic and gold values from soil survey work, it said. It comes after last month it said two large geochemical anomalies were present, supported by low-level, anomalous gold and lie on what's called the Moose River anticline, which plays host to the Touquoy deposit (part of St Barbara Ltd's (ASX:SBM) Touquoy gold mine).
"Many of the larger gold deposits in Nova Scotia are associated with arsenic haloes in surrounding rocks and soils. We’re seeing the proper geo-chemical indicators along a structure with proven ability to host large, low cost, disseminated gold deposits," said the mining firm's president Theo Van der Linde.
"The Touquoy West anomalies occur right over top of the magnetic trend that extends westward from the Touquoy Mine through the previously operating Higgins and Lawlor Mine, the Stillwater Mine and on to the Sheelite Mine.”
READ: MegumaGold acquires strategic ground northeast of the Touquoy mine, expanding its footprint in the Meguma Gold Belt
The company boss added that MegumaGold was "eagerly awaiting receipt of remaining results".
"We are also revising current exploration plans for this area to include an expanded program of grid-based Induced Polarization (IP) surveying over a longer strike length to account for the sheer size of the soil anomaly trend. The company’s intention is to accelerate exploration work on this very significant target area.”
The two well-developed soil anomalies boast elevated gold values ranging from 5 to 34 parts per billion (ppb), within a halo of anomalous arsenic values ranging from 30 and 900 parts per million (ppm).
The western geochemical anomaly is expanded to a strike length exceeding 2,000 metres (m) and a width ranging from 100 to 700 m. The western anomaly remains open along strike to the southwest.
Further analytical results are expected within the next two weeks.
MegumaGold holds a package of 107,114 hectares within the well-known Meguma gold district in Nova Scotia.
Shares added nearly 3% in Toronto to stand at C$0.18 a pop.
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