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Killag Project

KILLAG GOLD DISTRICT

The Killag Gold District is a historic Nova Scotia gold district held by MegumaGold and lies in the eastern part of Halifax County, approximately 13 km north of Sheet Harbour and 20 km east of Atlantic Gold’s Touquoy Mine. This district has produced more than 3,500 ounces of gold between 1869 and 1946 from an average grade of 0.96 oz/ton. The geology of the deposit is well known from previous mapping, underground development and diamond drilling. MegumaGold’s initial work at Killag included the evaluation and compilation of all historic assessment work on the property, including the georeferencing of old mine workings and a historic diamond drill hole database that supported the development of a 3D model for target generation of a phase 1 RC drilling program in Killag East.

KILLAG EAST TARGET

Gold mineralization is known to occur in associated narrow quartz veins within the tightly folded, easterly plunging Killag anticline. Historic gold mining focused on quartz veins that generally occur on the steep dipping south side, or south limb of the fold axis, and a small number of veins have been worked to date. Of these, the Flat Lead lies on the hanging wall of a 1.21 m thick argillite belt. The Stuart Lead occurs on the south limb, and has a near vertical orientation. While gold occurs within the quartz veins, historic information suggests that gold occurs in distinct ore-shoots within bedding-parallel quartz veins. These shoots may be controlled by geological structures, but the location and frequency are not currently well understood. The quartz veining occurs in association with argillite rock packages and the thickness of these packages is variable. These argillites were not typically sampled by past exploration and mining projects.

EXAMPLE OF THICKENING OF THE AXIS ZONE- ATLANTIC GOLD’S 149 DEPOSIT (ATLANTIC GOLD FEB 6, 2019 PRESS RELEASE).

Data compilation and 3D modelling suggests that gold mineralization occurs in association with quartz veined argillite packages and that these packages are folded along the Killag Anticline to create an Axis Zone target. The Axis Zone target is defined as an area of argillite thickening and increased vein density that occurs in the hinge of the fold. Similar styles of gold mineralization are known to occur at Goldboro (Anaconda Mining) and the 149 Zone (Atlantic Gold). In the Axis Zone the frequency of quartz veining and the thickness of the argillite is typically greatest

Killag East 2019 Work

*1km strike length Containing Anomalous Gold*

The 2019 RC program resulted in discovery of new, high grade gold in zones of combined quartz vein and argillite that occur both east and west of areas directly tested by previous exploration. These new mineralized intercepts remain open in both strike and dip extents within the Axis Zone and are targeted for additional drilling early in the 2019 field season.  Results of the 2019 Killag RC drilling program confirm the Axis Zone as an important focus of gold mineralization along the Killag anticline.      

Interpreted results of 2018 airborne geophysical surveying, an historic work compilation and 3D modelling programs by MegumaGold were used to target the phase 1 2019 RC holes at Killag. In February and early March of 2019. 20 inclined RC drill holes (1622m) were completed to initially test the Axis Zone mineralization concept in the “Killag East” area and to provide stratigraphic assessments in the Killag Central and Killag West areas. High grade gold results related to quartz-veined argillite and greywacke intervals were returned form drilling along both 2019 RC lines
Follow up in-fill drilling of newly established high priority targets with in Killag East will take place 4th quarter 2019.

KILLAG CENTRAL AND KILLAG WEST TARGET

MegumaGold feels the potential exists to expand this gold camp adjacent to the historic workings along the greater Killag regional anticline trend. The Killag anticline that runs to the west from the historic Killag gold mine (Killag East) appears to have a very similar geological fold structure to Killag East zone. The Killag Central target area occurs in the middle of the anticlinal trend and appears to represent the apex near surface fold closure. According to the aeromagnetics, the holes in this area will test what appears to be similarly folded stratigraphy and thickened vein/argillite packages to those at Killag East. Interpretation of the aero magnetics for the Killag West target suggests that a similar fold closure exists in the westerly plunging stratigraphy

TOTAL MAGNETIC INTENSITY MAP KILLAG ANTICLINE