AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF) earlier this week confirmed the start of a diamond drilling program at its Cape Ray Project in Newfoundland and Labrador, Canada. The company said the campaign is focused on a newly identified electromagnetic (EM) anomaly located approximately 500 metres southeast of the project’s central zone deposit.
The company told investors the anomaly is near an access road and has been overlooked historically, despite being close to a 111.5 grams per tonne gold sample collected years ago. It highlighted that this area had never been explored due to being mostly under cover. AuMEGA said the target area is intersected by significant structural features and is close to the highest-grade section of its resource.
CEO Sam Pazuki said early data encouraged the team to move quickly. “Once we saw the data, we did some ground-truthing work over the past few weeks, and now we’re drilling,” he said.
The company added that it has now mobilized a second drill rig and plans to advance the program through the end of the year. Pazuki said the company would “drill as much as we can before Christmas.”
Beyond the EM anomaly, AuMEGA is also pursuing targets at Cape Ray West. It said a recent till program revealed a multi-kilometre gold trend along the edge of the Isle aux Morts granite — a large intrusive unit previously believed to be unmineralized. Pazuki stated that early indications suggest otherwise. “We’re pretty excited to see what comes back from an assay perspective,” he said.
Additional assays from Bunker Hill and Hermitage are pending. The company noted that results from multiple exploration zones are expected to inform an expanded pipeline of drill targets going into 2026.
Proactive:
AuMEGA Metals has begun a diamond drilling program in its Cape Ray project in Canada, testing a major airborne electromagnetic target. Joining me to discuss the significance of the campaign is CEO Sam Pazuki. Sam, it's good to see you.
Sam Pazuki:
Yeah. Likewise, Jonathan. Good to see you as well.
Proactive:
So let's talk about this campaign. Talk me through what you're hoping to find through this EM target.
Sam Pazuki:
Yeah, absolutely. We announced about a month ago that we completed the electromagnetic survey, mainly around the resource corridor of the project, which we call Cape Ray. The results exceeded our expectations. We had several anomalies around the property, including one major EM anomaly only half a kilometre southeast of our central zone deposits — where most of our gold is. It's also where we have the highest-grade gold in our mineral resource.
This anomaly sits right next to an access road that’s been driven past for 20 years without any exploration work being done. Interestingly, not far from the EM anomaly itself — on its northeastern fringe — a historic 111.5 grams per tonne gold sample was collected, but no follow-up work was ever done.
So there's definitely a lot of smoke around this anomaly. When we overlay that data with previous geophysics, we see major structures running through it. The area is mostly under cover, which is one reason why it hasn’t been explored. Once we saw the data, we did some ground-truthing work over the past few weeks, and now we’re drilling.
Proactive:
So that 111.5g per tonne gold sample, plus the fact that it's underexplored — there's a lot to look forward to, you'd think?
Sam Pazuki:
Yeah, there's a ton of smoke here, and a lot of good indicators. We'd like for it to be a repeat trend of the central zone, which would create a lot of shareholder value. Drilling will determine that. It's early days, but we're positive and encouraged with what we've seen.
Proactive:
I want to also talk about some of the results from the Isle aux Morts granite survey. How does that help you choose your next target?
Sam Pazuki:
Cape Ray hosts our mineral resource, and we see opportunities to grow it even within the current pit shells. The EM anomaly we're drilling now is just half a kilometre away from the central zone. If a discovery is made, it could quickly add ounces.
In the broader area, where there’s never been exploration, we completed a comprehensive till program. About a month ago, we announced a multi-kilometre gold trend in an area we call Cape Ray West. A lot of the anomalies were along the western edge of the Isle aux Morts granite — a massive intrusive unit historically considered unmineralized. But the work we’ve done shows it’s mineralized and has big structures running through it.
When we saw the preliminary data, we sent our geologists to cover the entire granite area. We’re still waiting on assay results. Visually, it's very attractive, and we're excited to see what comes back. The analogy is Snowline in Canada — they had gold anomalies around a similar intrusive unit and went on to define a significant deposit.
If there’s time before Christmas, we’ll try to drill. We now have multiple drill targets almost ready to go at Cape Ray West and Isle aux Morts granite.
Proactive:
So plenty to look forward to pre-Christmas. What are the key goals for the program? When will you bring in a second rig?
Sam Pazuki:
We’ve started with one drill rig and I’m happy to say we’ve mobilized a second. So we should see two diamond drill rigs turning within the next week, depending on timing. We’ll do as much as we can before Christmas.
We’ve got a lot happening on the ground. It’s been a full year. We’re waiting on several assay results — including Isle aux Morts granite — and we also ran a survey over this EM anomaly. That data helped inform our drilling.
We’re waiting on Bunker Hill assays as well. We spent the summer exploring Bunker Hill and early results are promising. At Hermitage, we ran a till program and should get those assays in January. With all that data, we’ve built a strong pipeline of drill targets. We’re pretty excited with what the year’s work has achieved.
Proactive:
Plenty to look forward to and I’m sure we’ll speak again as results come through. Thanks for your time, and good luck with the rest of the program going into Christmas.
Sam Pazuki:
Yeah. I appreciate that, Jonathan. Thanks so much.