A fresh approach to gold discovery in Nova Scotia
Large land package
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.
And MegumaGold has now put together a land package of over 107,000 hectares consisting of thousands of claims in this new emerging camp 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 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 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.
Significantly, in May last year, Atlantic Gold was bought by the Australian miner St Barbara for C$722 million (US$536 million), offering C$2.90 a share - a 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:
Last year was a busy one for MegumaGold, which saw it start exploration and expand its footprint in the exciting area.
In October, it kicked off exploration at the Touquoy West property, which it described as the next priority gold target. It covers the southwest extension of the geological sequence that hosts St Barbara Ltd's producing Touquoy mine.
And in November, it started planning and site permitting work for drilling at Killag - an area, which produced over 3,500 ounces of gold between 1869 and 1946 from an average grade of 0.96 ounce per ton.
The same month MegumaGold acquired an additional 47 claims, 761 hectares to the northeast of St Barbara's Touquoy mine and the following month it struck an option agreement with Genius Metals Inc (CSE:GENI) to acquire up to a 100% interest in six mineral exploration licences totalling 100 claims on 1,620 hectares directly adjoining the company’s Touquoy West licences.
And on January 6, 2020, the group confirmed it had discovered three main arsenic-gold targets so far at Touquoy West after it received all soil sampling results from 2019.
These final assays from the 6,230-hectare property showed a third large target area, which lies along the interpreted trend, which is host to the Touquoy deposit, on top of the two large geochemical anomalies, also found at the Moose River anticline, which plays host to the Touquoy mine, identified last year.
- More exploration results
- Further company acquisitions in area
What the boss says:
In its most recent statement, MegumaGold President Theo Van der Linde told investors: "We’re very pleased to see these large arsenic and gold anomalies taking shape and believe there is similarity of the grade and size of these large arsenic and gold anomalies to the adjacent mine.
"The significance of arsenic in the surrounding rocks and soils of many of the major deposits in Nova Scotia is well documented and we now have three such anomalies on an anticlinal corridor which has the proven ability to host multiple large, low-cost gold deposits."