viewMegado Gold Ltd

Megado Gold initiates work at Ethiopian gold projects with drilling expected to follow

The company has initiated an extensive trenching program at Babicho Gold Project to enhance its understanding of the terrane and structural setting of the mineralisation.

Megado Gold Ltd - Megado Gold initiates work at Ethiopian gold projects with drilling to follow
Babicho is a132 square kilometres exploration licence on the Adola greenstone belt.

Megado Gold Ltd (ASX:MEG) has started an extensive trenching program at Babicho Gold Project as well as fieldwork at Chakata gold deposit, both within the Adola Belt of southern Ethiopia.

The trenching program is expected to enhance the company’s understanding of the terrane and structural setting of the mineralisation evident as well as identifying future drilling targets.

Historical soil sampling at Babicho delineated a coherent and highly significant 2 kilometres long gold-in-soil anomaly with standout results headlined by 10 metres at 3.5 g/t gold and 1-metre at 35.3 g/t in trenching.

This anomaly coincides with the major north-south trending shear zone that hosts the Lega Dembi and Sakaro gold deposits of plus-3 million ounces.

Chakata fieldwork

Five kilometres south along strike from Sakaro, fieldwork also continues at Chakata, where hundreds of rock chip samples have been taken and submitted for analysis.

Further, a bulldozer has been transferred from Babicho to prepare for Chakata’s initial drilling phase.

The company is planning to undertake drilling at these projects after the trenching and fieldwork programs.

Situation in Ethiopia

The company continues to monitor the evolving security situation in Tigray, Ethiopia, although its flagship projects are more than 1,000 kilometres south from the current unrest.

Megado says all staff remain safe and able to implement the exploration strategy without interruption to their daily activities.

The company has been fortunate to progress operations largely unimpeded, with the only disturbance being a supply chain issue delaying the maiden drilling program by around one week.

“Excited to start trenching”

Megado CEO and managing director Michael Gumbley said: “Safety is of preeminent importance to Megado.

“We are fortunate that our staff and operations can proceed with the same impressive rapidity exhibited to date.

“We are extremely excited to have commenced our trenching program at the Babicho Gold Project as well as the sampling undertaken at Chakata.

“We look forward to sharing results with the market as soon as they are at hand.

“On a personal note, myself and our executive director, Chris Bowden, have both spent many months working in Tigray during previous roles.

“These experiences were part of why we were both motivated to work again in Ethiopia."

“Compelling reasons to invest”

Gumbley said: “The country’s enviable political stability, immense economic potential and clear geological prospectivity remain compelling reasons to invest there.

“We are hopeful – and confident – that this recent episode will be swiftly resolved.

“We stand with the United Nations, USA, United Kingdom and other entities urging all parties to reach a swift resolution.”

Quick facts: Megado Gold Ltd

Price: 0.18 AUD

Market: ASX
Market Cap: $7.3 m

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