Ongoing exploration at Megado’s Chakata project in Ethiopia continues to pay off, with the first trench at the Dragon prospect intersecting a broad gold zone.

The trench result of 25m grading 0.25 grams per tonne (g/t) gold confirms that Dragon has the potential to host significant gold deposits, a promising development given that the prospect is less than 5km from the Lega Dembi and Sakaro gold mines.

Drilling by Megado Gold (ASX:MEG) at the Contact prospect has also repeatedly intercepted broad zones of quartz veins that returned significant gold of up to 15.55g/t from surface rock samples.

These samples are analogous to the geological setting at the Sakaro gold mine.

Ongoing drilling at the GT prospect, which targets a historical trench result of 25m at 2.57g/t gold, has also returned encouraging visual intercepts.

“The Chakata gold project is a hive of activity for Megado. The three primary target areas within Chakata have undergone rigorous exploration with Megado’s team generating new targets while conducting decisive trenching and drilling programs,” managing director Michael Gumbley said.

He noted that the identification of a broad gold zone at the first trench at Dragon supports the company’s thesis that Chakata has potential to host significant gold deposits comparable to that of the high-grade Sakaro gold mine to the north.

“Similarly, field observations and consistent intercepts of quartz veining in drilling at the Contact prospect exhibit features analogous to Sakaro whereby high-grade quartz vein mineralisation is at depth,” Gumbley added.

New targets also continue to be identified across the tenement with new field observations of outcropping quartz veins observed over 1km about 2km west of the Dragon prospect.

Early days at Chakata

Megado noted that while the maiden seven-hole program at Contact has repeatedly hit broad zones of the targeted quartz veins, it has only tested a small fraction of their known strike length.

As such, while assays from the five holes received to date have only returned low grades, the company remains confident that Contact is prospective and that further work is required to better delineate the controls to the higher grade gold lodes within the broader vein package.

It noted that the East Sakaro underground gold mine targets similar quartz mineralisation with the mined high-grade lodes located at depth.

More targeted drilling will be carried out following a more detailed review of results.

Assays are also pending from drilling at GT, which targeted mineralisation along strike and down-dip from the outcrops hosting rock chip results of 4.4g/t and 4.17g/t gold along with the historically reported trench results.



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.