Megado Gold hits the ground running with maiden drilling in Ethiopia

Special Report: In a few days Megado Gold (ASX:MEG) will be drilling Babicho, an exciting project in a multi-million-ounce gold province.

In October, Megado listed on the ASX having raised $6 million in a strongly supported IPO.

Its focus is Ethiopia’s strongly endowed greenstone belts, which have only been minimally explored in the past.

Megado identified over 50 high priority targets across the portfolio, with the most advanced being the major gold-in-soil anomalies and outcropping gold-bearing quartz veins at the Babicho project.

A number of different elements coincide to make this drill program – due to kick off in about a week — one to watch.

First, Megado geologists keep finding artisanal (small scale) workings and indications of significant occurrences of primary hard rock gold.

Here’s some visible gold Megado panned. The coarse flakes indicate the mineralisation could be easier to process:

Secondly, this is over an area where historic soil sampling in the 90s delineated a consistent, highly significant 2km long gold-in-soil anomaly.

Trench sampling has returned wide, high grade gold like 10m at 3.5g/t, and 1m at 24.8g/t.

And thirdly, this anomaly coincides with spectral targets and a major shear zone – a source of ancient gold-bearing fluids – that also hosts the +3Moz Lega Dembi and Sakaro deposits.

The initial Babicho drilling campaign will kick off next week, Megado Gold chief exec Michael Gumbley says.

“Importantly for Megado, the current geological mapping and sampling programs have delivered a far deeper understanding of the local geology,” he says.

“Programs executed to date have greatly assisted the planning and execution of Babicho’s maiden drilling program, confirming our thesis that Babicho is a highly prospective asset for the company.”

Moreover, whilst historical exploration programs produced extremely encouraging results and high gold grades, Megado firmly believes that previous companies misinterpreted the geology and structural controls to the gold mineralisation, Gumbley says.

“We are incredibly fortunate that Megado’s staff have had extensive hands-on experience at the nearby Lega Dembi and Sakaro gold deposits,” he says.

“Our team has been able to apply their extensive knowledge of these along-strike deposits to inform our strategy for the drilling program at Babicho.”

This article was developed in collaboration with Megado ,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.