- Megado Gold (MEG) identifies a broad gold zone at the Dragon prospect which is part of the Chakata Gold Project in Ethiopia
- The company receives first trenching results which, it says, confirm the gold zone has potential to host significant gold deposits
- Additionally, four holes have been drilled at the GT prospect to target mineralisation with assay results expected next quarter
- Company shares are trading up 10 per cent at 16.5 cents apiece at 12: 55 pm AEST
Megado Gold (MEG) has identified a broad gold zone at the Dragon prospect which is part of the Chakata Gold Project in Ethiopia.
The company has been undertaking exploration work across the GT, Contact and Dragon prospects.
Megado Gold is also conducting reconnaissance and sampling work to generate new targets across the tenement.
The company received trenching results which returned 25 metres at 0.25 grams of gold per tonne (g/t) including one metre at 1.78g/t gold. This intersection confirmed the broad gold zone at Dragon has potential to host significant gold deposits.
Megado Gold’s CEO and Managing Director Michael Gumbley was pleased the initial trench results confirmed a gold zone.
“The result supports our thesis that Chakata has potential to host significant gold deposits comparable to that of the high-grade Sakaro gold mine less than five kilometres to the north,” Mr Gumbley said.
Furthermore, new field observations identified outcropping quartz veins over one kilometre and up to two kilometres west of Dragon. These results provided a better understanding of the structure, and targets for trenching and drilling programs later this year.
Despite five of the initial seven drill holes at Contact returning low grades, Megado Gold remains confident the prospect is prospective and will undertake further work to better understand the controls to the higher grade gold lodes.
So far, four holes have been drilled at the GT prospect to target mineralisation
along strike and down-dip from the outcrops hosting high-grade rock chips of 4.4g/t gold and 4.17g/t gold.
The company expects to receive the first batch of results from this prospect early in the September quarter.
Company shares were trading up 10 per cent at 16.5 cents apiece at 12: 55 pm AEST.