AuMEGA Metals Ltd (ASX:AAM, TSX:AUM, OTCQB:AUMMF, FRA:FRA: MA30) earlier this week announced the mobilisation of field crews to southwestern Newfoundland and Labrador, marking the start of a major 2026 exploration campaign that will lead into diamond drilling across priority targets on the Cape Ray Shear Zone.
Managing director and CEO Sam Pazuki told Proactive that the company had begun preparatory fieldwork ahead of drilling, which was delayed by persistent winter conditions across Newfoundland.
Pazuki said the immediate focus is the Isle aux Morts Granite target at Cape Ray West, a large intrusive body located only a few kilometres from the company's existing gold resource. He noted that previous operators had largely ignored the target after concluding it was unmineralised, but AuMEGA's work had identified evidence suggesting otherwise.
According to Pazuki, the company believes the target may represent an intrusive-related gold system, drawing comparisons with notable discoveries such as Hemi in Australia and exploration successes pursued by Snowline Gold in Canada.
Alongside exploration, AuMEGA is reviewing its current resource model, which contains approximately 610,000 ounces of gold, including around 450,000 ounces in measured and indicated categories at an average grade of roughly 2 g/t gold. Pazuki said historical and recent drilling data are being reassessed as part of a potential resource update later this year.
A key catalyst for investors will be the commencement of drilling at the Isle aux Morts Granite target, which has never been drill tested. Initial drilling results could provide the first indication of whether the target hosts a significant mineralised system.
Another catalyst will be any future resource update, particularly if reinterpretation of existing data identifies opportunities to expand the current resource base.
The company is also entering the exploration season with a strengthened balance sheet after completing a $30 million capital raising in April. Pazuki said the financing attracted strong support from institutional investors, including strategic shareholder B2Gold.
He further highlighted the support of Condire Investors, which now owns approximately 20% of AuMEGA. Following a recent site visit, Pazuki said the investor remained highly supportive of the company's strategy and exploration approach.
Discussing the broader opportunity, Pazuki said, "This is a belt that just has not been explored, hasn't been explored properly."
He added that AuMEGA's objective is to make "the next big discovery in Newfoundland" by systematically exploring underexplored sections of the Cape Ray Shear Zone, where the company controls one of the largest land positions on the trend.
Key highlights
- AuMEGA Metals has mobilised field crews for its 2026 exploration campaign in Newfoundland and Labrador.
- Drilling has not yet started but preparatory fieldwork is underway ahead of a planned drilling campaign in the coming weeks.
- Initial focus is the never-before-drilled Isle aux Morts Granite target at Cape Ray West.
- The target is located near AuMEGA's existing 610,000-ounce gold resource.
- Management believes the granite may host an intrusive-related gold system.
- The company is reviewing its existing resource model and may release a resource update during 2026.
- AuMEGA controls one of the largest land packages along the Cape Ray Shear Zone.
- Equinox Gold's Valentine project is located on the same regional trend.
- The company recently completed a $30 million financing.
- B2Gold remains a strategic investor and supporter.
- Condire Investors has become AuMEGA's largest shareholder with approximately 20% ownership.
- Management's exploration strategy is focused on discovering a major new gold deposit rather than only expanding existing resources.
Proactive: Welcome back to Proactive Investors. I'm your host, Kerry Stevenson. I've asked Sam Pazuki to come back and join us. He's the Managing Director and CEO of AuMEGA Metals. They're listed on both the ASX and TSX. Sam, great to see you. You've just kicked off some exploration activity, although I know there was a bit of a delay due to weather. Can you give our audience an update on what's happening at AuMEGA?
Sam Pazuki: Good to see you, Kerry. Great to be on again. We haven't kicked off drilling yet, but we have started the field program. We're doing the groundwork ahead of a drill campaign that we hope will begin in the next few weeks. Winter has been very stubborn in Canada, particularly in Newfoundland. Everything behind me was snow-covered just a couple of weeks ago.
We've finally been able to mobilise and the team is now on the ground doing the work required before drilling our never-before-drilled target, the Isle aux Morts Granite at Cape Ray West. It's located a few kilometres from our existing gold resource. We're excited to get started and very eager to begin drilling.
Proactive: Can you remind our audience about your current gold resource and where it sits relative to this new target?
Sam Pazuki: We have a resource of approximately 610,000 ounces, including about 450,000 ounces in measured and indicated categories at roughly 2 grams per tonne gold. The resource was completed in 2023 using a gold price of US$1,750 per ounce.
We're currently reviewing the resource model, historical drilling and our own drilling data as part of a potential resource update this year.
The Isle aux Morts Granite is a large intrusive unit. For decades it was considered unmineralised, but our work last year indicated otherwise. We believe it may represent an intrusive-related gold system. Comparable examples include Hemi in Australia and projects explored by Snowline in Canada.
It's an area that hasn't received meaningful exploration because previous operators didn't believe it was mineralised. We've identified it as a major target.
Proactive: So rather than focusing solely on the existing resource, you're looking for larger exploration opportunities?
Sam Pazuki: Exactly. Our strategy is to make the next big discovery in Newfoundland. Equinox Gold's Valentine project is on the same trend as where we operate. We control one of the largest land packages on that structure.
Valentine is a five-million-ounce deposit that has moved into production, and new discoveries continue to be made in the region. This belt remains underexplored.
Historically, junior companies have tended to focus on known resources because they haven't had the capital to pursue broader exploration programs.
We recently raised $30 million, closing the financing in mid-April. The raise received strong support from both existing and new institutional investors, including strategic investor B2Gold.
Major companies recognise the potential of the Cape Ray Shear Zone as a future mining district, which is one reason I left a gold producer to join AuMEGA several years ago.
Proactive: The area behind you in the image, is that where you're exploring?
Sam Pazuki: Yes. That's the Cape Ray Shear Zone. It's a massive area and we hold a substantial land package.
Our largest shareholder, Condire Investors, now owns about 20% of the company. They built their fund from approximately US$25 million in 2012 to more than US$1 billion through selective investments.
We hosted them on site recently. Despite the snow, they left with a very favourable impression of our project, our team and the opportunities ahead.
Proactive: What would they like to see? Are they comfortable with the strategy you're pursuing?
Sam Pazuki: They're long-term shareholders. They invested because they believe in the scale of the opportunity. Their feedback was simple: don't change a thing.
They've reviewed many projects and companies and believe our story meets all the criteria they look for. After visiting the site, they became even more confident in what we have.
Proactive: Slow and steady wins the race. It's important to do the work properly. I always enjoy having you back on Proactive to provide updates. We'll look forward to hearing more once drilling results start coming through.
Sam Pazuki: Thanks very much, Kerry. Great to see you as well.