Megado has kicked off maiden drilling at its Chakata project in Ethiopia where sampling had uncovered outcropping quartz veins with visible gold.

The company plans to drill an initial 10 holes totalling about 1,500m to test walk-up, drill-ready targets that were identified by historical exploration.

Historical trenching at the GT prospect had returned results such as 47m grading 1.55 grams per tonne (g/t) gold including 25m at 2.57g/t gold with no known drill testing at depth beneath the trench or down plunge while the company has delineated additional targets.

Megado Gold (ASX:MEG) believes that Chakata has the potential to host repeat, blind, high-grade plunging shoots similar to those present at the +3Moz Sakaro gold mine.

Managing director Michael Gumbley says that besides reviewing historical work that confirmed the project to be incredibly prospective, the company has also uncovered a massive, extensive gold-bearing quartz tourmaline vein to the southwest of the GT Prospect.

“They have also identified additional targets at Werseti (Contact Target), all of which are exhibiting significant mineralisation at surface,” he added.

“The first phase of drilling will build on our understanding of the geology and structural controls that host the gold mineralisation.”

Megado Gold projects locations
Location of Megado’s Adola Gold Belt projects. Pic: Supplied

Chakata gold potential

Chakata is situated in the highly prospective Adola Gold Belt in southern Ethiopia, just 5km south along strike from the Lega Dembi and Sakaro mines, the largest mines in the country.

Notably, the structure that hosts the Lega Dembi/Sakaro trend extends to the south through Chakata for over 9km and is readily identifiable in geophysical imagery

Limited historical drilling within Chakata returned results such as 2m at 11.15g/t gold from 48.25m and 0.6m at 6.47g/t gold from 190.8m.

Megado plans to orient drilling at the GT prospect perpendicular to local structures and test a much broader zone of mapped intense alteration and veining.

Other activity

The company has also completed the first phase of drilling at the Babicho gold project, which is also located within the Adola Gold Belt.

Drilling had intersected visible sulphides, a positive sign for gold in the region.

Samples from the five-hole program have been prepared and sent to ALS for assaying with results expected by the end of the first quarter.


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.