MegumaGold Corp (CSE:NSAU) (OTCMKTS:NSAUF) (FRA:2CM2) has completed soil geochemistry, till sampling and prospecting at its Murchyville South option property in Nova Scotia ahead of potential drill targeting.
Murchyville South comprises exploration licences previously optioned from Genius Metals Inc and this latest work is estimated to have cost more than C$100,000 - the minimum expenditure required for initial exploration, which would allow MegumaGold to earn a 49.9% interest, including related rights and data.
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The work included 670 soil samples, 44 till samples and was aimed to assess geochemical signatures of bedrock gold mineralization that may be present along the so-called Moose River trend. Lab results are pending.
The Genius licences span 1,619 hectares and MegumaGold reckons the ground encompasses the Western Extension of the Moose River trend, which hosts St. Barbara Ltd's (ASX:SBM) (OTCMKTS:STBMF) (FRA:BM1) operating Touquoy gold mine, along with its Beaver Dam and Fifteen Mile Stream development projects.
Previous work by MegumaGold at its adjoining Touqouy West project was successful in defining large arsenic in soil anomalies and elevated gold results along a trend interpreted to be the west extension of the Moose River anticline that hosts the open pit Touqouy gold mine.
"The company believes that this structure can be traced along an aeromagnetic trend that extends from the Touquoy Gold Mine area southwesterly across St. Barbara Limited’s holdings and then across MegumaGold’s Touquoy West holdings. At that point it is interpreted to continue beyond MegumaGold’s west property boundary onto the optioned Genius property," MegumaGold told investors.
At Murchyville South, MegumaGold now plans to carry out detailed mapping and prospecting during Q2 ahead of further investigation of the highest priority target areas through Induced Polarisation (IP) geophysical surveying in Q3, success in which will lead to target testing through core drilling.
This year's production guidance at St Barbara's Touquoy gold mine is for between 100,000 and 110,000 ounces of gold at all-in-sustaining-costs (AISC) of between US$738 and US$809 per ounce, making it one of the lowest-cost producers in the world.
MegumaGold is a Canadian junior gold explorer, focused on acquiring, exploring and developing natural resource properties. It is focused on the Meguma Supergroup of Nova Scotia that hosts the producing Touquoy gold mine plus several other advanced-stage gold deposits.
Contact the author at giles@proactiveinvestors.com