Megado confident Babicho could host gold deposits of ‘significant scale’
Link copied to
Megado Gold has found broad gold zones in the second trenching program at its Babicho gold project in southern Ethiopia.
The trenching returned results of:
Plus, the company observed quartz veining with visible sulphides (pyrite) up to 7m wide within broad alteration zones 20-30m wide in all trenches.
Assays for the remaining trenches are expected in September but results to date support Megado Gold’s (ASX:MEG) belief that Babicho could host large gold deposits.
The company said the geological observations from drillholes and trenching indicate similar alteration and mineralisation to that of the Lega Dembi and Sakaro deposits to the south.
“The broad mineralisation observed at the Babicho Gold Project is precisely what we expected from this second phase trenching program,” CEO and managing director Michael Gumbley said.
“Throughout Babicho’s trenching and drilling programs thus far, wide zones of quartz veining upwards of 10-20m have been consistently intersected along a strike of 1.5km.
“Moreover, Megado’s team has been struck by the similar lithology to nearby Lega Dembi, which has produced >3Moz gold.
“As such, we firmly believe that Babicho has the capacity to host gold deposits of significant scale.”
Gumbley said the company is eager to continue expanding activities at Babicho for the remainder of the year, with the exploration of the project’s >2km gold-in-soil anomaly ongoing.
Megado is keen to pursue comprehensive trenching and drilling programs throughout CY2021 to test the north trending plunge observed in the first phase drilling program.
The company believes the current trenching program will provide the data to initiate a more informed planned forward drill program testing gold mineralisation down plunge and along strike.
Megado has also commenced exploration of 19 high order spectral targets at the 139km2 Mormora gold project which is around 10km south of the company’s Chakata project.
The targets were identified during a pre-IPO remote sensing program which was instrumental in securing the company’s land portfolio.
The company is excited to commence systematic exploration – as both the Chakata and Babicho projects have fewer targets combined but have already produced encouraging results.
Megado’s expectation is that Mormora will prove to be equally if not more prospective.
This article was developed in collaboration with Megado Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.