The mineral resource estimates used the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by CIM Standing Committee on Reserve Definitions and adopted by CIM Council on November 27, 2010. The mineral resource estimates are classified as "measured", "indicated", or "inferred" as defined by CIM. The Corporation intends to file a National Instrument 43-101 ("NI 43-101") compliant technical report in respect of the updated mineral resource estimate on SEDAR and on the Corporation's website within 45 days of this news release.
According to the CIM definitions, a Mineral Resource must be potentially economic in that it must be "in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction."
The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Technical Discussion and Analysis
The currently announced resource represents the first consolidated statement of three deposits comprising the 100%-owned Monument Bay Gold Project. The Twin Lakes Deposit represents 96% of the total Measured and Indicated (M+I) ounces and 41% of the total Inferred ounces.
Some choices (and changes) have been made in completing the estimation in June 2013 estimate that Mega believes results in an improved overall resource estimate. Some of these include:
-- Revised Geological Model using domain modeling and improved understanding of the geological setting-- Cut-off grades-- Revised block sizes for underground (U/G) and open pit (O/P) material at the deposits-- Inclusion of detailed surface mapping/sampling-- Inclusion of University of Manitoba related research
The aggregate impact of these choices and adjustments has resulted in a 138% increase of M+I and 92% Inferred ounces reported at Twin Lakes O/P Deposit. These changes do not include the addition of Tungsten as a gold equivalent. Tungsten assays to date are increasing the gold equivalent grade by an average of 32% (See news release dated Feb 25, 2013).
In Mega's opinion, this change to the quality of the ounces is a significant improvement in how the block model reflects the data and in-situ mineralization both locally and regionally.
Monument Bay Gold Project is located 52 kms North of Red Sucker First Nation located on Red Sucker Lake, Manitoba. The property is located in an area of low topographic relief and outcrop is fairly rare. Manitoba's Current Northern Development Strategy is building all-purpose roads and infrastructure improvements within the region. Once these are complete, we will have all purpose roads and power lines that are within approximately 52 kms of our project area.
All of the open pit mineralization has been identified where mineralized gold/tungsten bearing veins come to surface/near surface and the underground component consists of veins that are the continuation of these veins below the conceptual open pit.
The Mid East deposit is located on the same gold/tungsten bearing structure, approximately 2 kms to the east of the Twin Lakes Deposit and the AZ Zone is located on a parallel structure that is less than 300 m to the south of the Twin Lakes Deposit. Both of these deposits are surface/near surface deposits and may be amenable to being evaluated as an open pit mining resource. Mega currently regards the Mid-East and AZ Zone deposits as early stage resources with potential to grow. Their proximity to the Twin Lakes Deposit may be beneficial to any potential future development at these sites.