AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF) has begun a diamond drilling program at its Cape Ray Project in Newfoundland and Labrador, Canada, testing a major airborne electromagnetic (EM) target within its district-scale landholding.
AuMEGA is exploring a 110-kilometre, district-scale land package along the Cape Ray Shear Zone, Canada’s largest identified gold structure. The shear zone hosts Equinox Gold’s multi-million-ounce Valentine Gold Project and AuMEGA’s growing gold resource. The company is backed by a diverse register of global institutional investors, including a strategic investment from intermediate gold producer B2Gold Corp.
AuMEGA also controls 27 kilometres of the Hermitage Flexure and holds an option over the Blue Cove Copper Project in southeastern Newfoundland, which is considered prospective for copper and other base metals. Across its Cape Ray Shear Zone holdings, AuMEGA has defined an Indicated Mineral Resource of 6.2 million tonnes at 2.25 g/t gold for 450,000 ounces, and an Inferred Mineral Resource of 3.4 million tonnes at 1.44 g/t gold for 160,000 ounces. The company acknowledges financial support from the Junior Exploration Assistance Program of Newfoundland and Labrador’s Department of Industry, Energy and Technology.
AuMEGA Metals portfolio on the Cape Ray Shear Zone and Hermitage Flexure.
The drilling program is designed to evaluate a large, newly defined EM conductor situated in the hanging wall of the Central Zone along the Cape Ray Shear Zone (CRSZ), a proven high-grade gold system. The conductor measures about 500 metres by 1,000 metres, is open along strike and lies roughly 500 metres southeast of AuMEGA’s high-grade Central Zone deposits. Despite its scale and proximity, the target has not previously been drill-tested.
“We are very excited about this drill program. Our extensive till geochemistry, high-resolution geophysics and structural interpretation have converged to deliver a compelling new drill target located near our existing high-grade gold resource at Central Zone,” AuMEGA Metals managing director and CEO Sam Pazuki said.
“What makes this area so exciting is that it was historically overlooked due to no surface exposure, yet it sits on a similar structural network that hosts the Central Zone. The area historically delivered a standout 111.5 g/t gold heavy mineral concentrate sample on the flank of this new conductor, and now, with a significant EM anomaly mapped, we are stepping in with the first-ever drill holes.”
Potential gold trend
Initial drilling will test priority structures interpreted within the EM anomaly, which is believed to represent a potential new gold-bearing trend parallel to the Central Zone. With most of the target undercover and effectively unexplored, the program aims to assess the potential for a new discovery.
Major Airborne Electromagnetic Anomaly Southeast of the Central Zone deposits.
“This fully funded drill program, the identification of several drill targets within the EM anomaly as well as the previously announced new multi-kilometre gold corridor identified at Cape Ray West marks the beginning of what we believe is a new chapter of discovery at the Cape Ray Gold Project,” Pazuki said.
Drilling will start with one diamond rig, with capacity to add a second rig depending on results. The fully funded program is expected to progress quickly through the pre-Christmas field window.
AuMEGA has also completed a till geochemical survey over the Isle aux Morts Granite, another high-priority target within a previously identified multi-kilometre gold corridor.
Cape Ray Project area, till results pending on the Isle aux Morts Granite.
Results from this survey are expected in the near term. Once received, the company plans to refine drill targets at Cape Ray West and, subject to weather and logistics, mobilise for additional fully funded drilling.