Megado pulls up visible gold at Chakata project, doubles size of drill program

Encouraging signs of visual mineralisation prompts explorer Megado Gold (ASX:MEG) to double the size of an initial drilling program.

Megado is searching for large, multi-million-ounce deposits in Ethiopia, a world-class but underexplored gold jurisdiction.

220m of a 2,400m trenching program has been completed at the newly identified ‘Dragon Target’ at Chakata, with visible gold evidenced in first trench.

Holes completed as part of the initial drilling program have also intercepted zones of several-metre-wide quartz veins with visible tourmaline-pyrite-chalcopyrite-galena mineralisation.

This is encouraging, the company says, because gold rich zones at the nearby Lega Dembi and Sakaro gold deposits (>3Moz) display a similar assemblage and mineralisation.

A new target called ‘Elle’ in west of tenement was identified, with first pass trenching and rock sampling completed.

Drilling will continue at the Contact Target (CT) and subsequently the Granodiorite Target (GT), where historical trench results include 25m at 2.57g/t gold.

Encouraging early results have encouraged Megado to double the size of the diamond drilling program at Chakata to 3,000m. An additional drill rig is expected on site in early May.

Further drilling at newly identified targets is anticipated shortly thereafter.

The first samples from the work program at Chakata, including trenching and drilling, have now arrived in Perth for analysis. This ambitious exploration program at Chakata is progressing briskly, Megado boss Michael Gumbley says.

“We are seeing encouraging signs with visual mineralisation observed in drill core giving us confidence to double the meterage of the first phase drilling program,” he says.

“This is interesting in the context that Chakata is only five kilometres south along strike from the country’s largest producing gold mines, Lega Dembi and Sakaro.

“Simultaneous trenching at Chakata’s Dragon Target has produced mineralised quartz and rocks with visible gold.

“Moreover, a new target in the west of the tenement has already been subjected to trenching and rock sampling.

“The Company is extremely pleased with the initial drilling activity and visual logging as it starts to establish a foundation for our exploration thesis that there is considerable discovery potential across our hand-picked projects in southern and western Ethiopia.”

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.