Megado’s mineralised strikes match region’s mega-mines
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Special Report: Megado Gold has intersected visible sulphides during ongoing maiden drilling at its Babicho project in southern Ethiopia – a positive sign for gold in the region.
Megado Gold’s (ASX:MEG) Babicho sits on the Adola Gold Belt, along strike from the globally significant Sakaro and Lega Dembi mines, and early drill core has shown the geology, alteration, quartz veining and sulphide mineralisation at the project is consistent with those projects.
That’s nothing to be sneezed at – Lega Dembi is a 3-million-ounce gold mine, while Sakaro has turned out more than 600,000oz.
Intersections at Babicho include a 40m wide zone containing quartz veining with visible pyrite, chalcopyrite and pyrrhotite mineralisation within highly altered meta-sediments which include graphitic schists.
This composition is very similar to that found at Lega Dembi.
One drill hole has been completed at Babicho and one is currently underway. A total of up to six will be drilled in the initial program for a total distance of 1100m.
First rock chip samples from Babicho and the nearby Chakata project are due to Australian labs this week.
“It has been exciting to have the drill rig turning and encouraging rocks observed,” Megado Gold CEO and managing director Michael Gumbley said.
“These early returns are very much in line with our expectations for Babicho. It is fantastic that our team continues to harness Megado’s opportunity at Babicho.
“We look forward to sharing results early in the New Year.”
Current drilling at Babicho is focused on a coherent and highly significant 2km gold-in-soil anomaly which coincides with the major north-south trending shear zone that hosts Lega Dembi and Sakaro.
Previous work at Babicho included four trenches with shallow drill holes, which delivered standout results headlined by 10m at 3.5 grams per tonne gold and 1m at 35.3g/t.
The first drill target in the current program is focused on trench six, where a historical trenching program uncovered the highest gold grades. Here, a single historical drill hole was completed but it was collared around 90m to the south of the trench.
Recent mapping by Megado geologists suggests this drill hole did not penetrate the more prospective hinge zone underground. Current drilling is designed to test the possible down-dip continuity of the mineralisation in the shear intersected in trench six.
The second drilling target is a shear zone located on the hinge of a west-south-west-east-south-east trending synform expressed at surface by a creek.
Here, the limbs of the folds are dominated by meta-basalts and/or other meta-volcanics, which are generally an indication of their presence in the shear zone.
Local artisanal miners selectively target quartz veins to mine, crush and pan gold, and there have been anecdotal reports of gold nuggets exposed within these veins.
Once the initial phase of drilling is complete at Babicho, the drill rig will be immediately deployed to nearby Chakata.
Here a number of targets will be tested, including the GT prospect where visible gold was recently identified.
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.