Megado Gold kicks off maiden drilling program in Ethiopia
Megado Gold has planned six drill holes to target a historic 2km long gold-in-soil anomaly.
Ethiopia explorer Megado Gold (ASX: MEG) has begun a maiden drilling program on the key Babicho project where, in the 1990s, sampling delineated a “coherent and highly significant” 2km-long gold-in-soil anomaly.
This anomaly coincides with a major north-south trending shear zone that hosts the Lega Dembi and Sakaro gold deposits (with more than 3 million ounces between them).
Megado’s ground lies along strike to the north and south of those deposits.
Six drill holes for a total depth of 1,100m are planned along the anomaly.
The company has noted the historic trench sampling indicated potential for Babicho to host both high grades, and substantial widths, of gold mineralisation.
Meanwhile, Megado continues to carry out an extensive trenching program.
The historic work included four trenches and four shallow drill holes, with the latter returning 10m at 3.5 grams per tonne gold and 1m at 35.3g/t.
Two targets are based on historical work
The company said its preliminary fieldwork on the soil anomaly confirms Babicho’s potential to host significant gold mineralisation.
Based on its geologist’s field work, and the historical data, Megado has selected two specific targets for this maiden drilling program.
The program is expected to be the catalyst for more extensive drilling in early 2021.
Megado chief executive officer and managing director Michael Gumbley said the first phase of drilling will build the company’s understanding of the geology and structural controls that host the gold mineralisation.
“We believe that much of the historical exploration missed the opportunity to uncover the true value of Babicho,” he added.
Upon completion of the program, the drill rig will be moved to the Chakata prospect to test a number of targets.
Visible gold already sighted
Last month, Megado’s geologists continued to confirm strong evidence of artisanal workings and indications of “significant” occurrences of primary hard rock gold.
It also noted visible coarse gold panned at Babicho confirms its free-milling gold potential.
In October, the company raised $6 million through its initial public offering.
Megado’s granted projects cover 511sq km, with a licence application to add another 227sq km.
All of the Megado projects are located on the Arabian-Nubian Shield, which is host to active mines and gold occurrences.
The company’s exploration focus is on Ethiopia’s greenstone belts which have seen minimal modern exploration.
The gold belt targeted by Megado was prospected between 1979 and 1982 by the state mineral resources agency. This identified a number of primary and placer gold targets.