AuMEGA Metals Announces Significant Gold Discovery

RC Drilling Program Delivers "Most Significant Gold Discovery Yet" with Peak Values of 893 ppb

AuMEGA Metals has reported promising results from its winter drilling program at the Bunker Hill Project in Newfoundland, Canada, where the company has identified what appears to be a major gold-bearing structure along the Cape Ray Shear Zone.

The standout highlight came from reverse circulation (RC) drill hole CRC0284, which returned an impressive 417 ppb gold average over six metres with a peak value of 893 ppb gold and associated silver values of 3.7 g/t and lead of 0.92%.

Sam Pazuki, Managing Director and CEO of AuMEGA Metals, described the discovery as "the strongest BOH result the Company has drilled to date," noting that the hole intersected the Branch Fault, a significant structure splaying off the Cape Ray Shear Zone.

Bottom-of-Hole Drilling: An Underutilised Exploration Method

The discovery of gold by AuMEGA Metals stems from utilising bottom-of-hole (BOH) and base-of-till (BOT) drilling methods that, while uncommon in Canada, have proven highly effective in leading to major gold discoveries in Australia and Finland.

This reconnaissance-style drilling involves shallow holes that test the glacial cover-bedrock interface, providing a cost-effective way to screen large areas before committing to deeper diamond drilling. The technique has led to several world-class gold discoveries:

Branch Fault: A Structure with Major Potential

What makes the CRC0284 intersection particularly exciting is its location. The drill hole targeted the Branch Fault, which is situated just five kilometres from a historical outcrop sample that yielded 18.7 g/t gold.

The mineralogy is also encouraging, with the drill hole intersecting "several metres of finely disseminated galena," which AuMEGA describes as "a key pathfinder for gold at both Cape Ray and Bunker Hill West."

"The assays confirm that gold is associated with the galena in CRC284, making it the strongest BOH result the Company has drilled to date," said Sam Pazuki, AuMEGA's CEO.

Additional Gold Anomalies Point to Broader Mineralisation

Beyond the headline result, three additional RC holes returned significant gold anomalism:

• CRC0216: 219 ppb gold
• CRC0273: 160 ppb gold
• CRC0215: 129 ppb gold

These anomalies were intersected along a splay structure off the Cape Ray Shear Zone, positioned between a gabbroic unit and the Billard's sedimentary formation – a setting described as a "strong rheological structure conducive for hosting mineralised systems."

What is Bottom-of-Hole (BOH) Sampling?

Bottom-of-hole sampling represents an innovative exploration technique that allows companies to cost-effectively test large areas under glacial cover. The method involves:

1. Drilling shallow RC holes through glacial till to just penetrate bedrock
2. Collecting samples from both the lowermost till and uppermost bedrock
3. Analysing these samples for gold and pathfinder elements
4. Using the results to identify anomalies for follow-up diamond drilling

This approach has proven particularly effective in regions like Australia and Finland, where major gold discoveries often begin with subtle gold anomalies in the economic mineral concentrations range of 10-2,000 ppb.

The discovery of gold by AuMEGA Metals demonstrates how this methodology can be successfully applied in the underexplored regions of Newfoundland, potentially opening up new areas for gold exploration that have been overlooked by conventional methods.

Aggressive Follow-Up Plans Backed by Strong Treasury

Following these encouraging results, AuMEGA has already completed two diamond drill holes to test the Branch Fault at depth, with assays pending. The company is well-positioned to advance exploration with C$13.1 million in cash reported at the end of Q1 2025.

The company's exploration plans include:

• Resuming fieldwork at Cape Ray in mid-May 2025
• Conducting an airborne electromagnetic survey over the Cape Ray Project
• Beginning a 5,000-metre diamond drill program at Cape Ray in June
• Resuming exploration at Bunker Hill in mid-July, focusing initially on Bunker Hill West

Why Investors Should Take Notice

AuMEGA Metals presents a compelling investment case based on several factors:

1. Strategic Land Position: The company controls 110 kilometres along the Cape Ray Shear Zone, Newfoundland's largest identified gold structure and home to Calibre Mining's Valentine Gold Project (+5 million ounces).

2. Proven Exploration Methodology: By applying successful Australian exploration techniques to the underexplored Canadian landscape, AuMEGA is generating high-potential targets that others may have missed.

3. Existing Resource Base: Beyond exploration upside, the company already holds a defined gold Mineral Resource of 450,000 ounces in the Indicated category (6.1 million tonnes at 2.25 g/t) and 160,000 ounces in the Inferred category (3.4 million tonnes at 1.44 g/t).

4. Multiple Catalysts: With several drilling programs planned and numerous assay results pending, investors can expect a steady flow of news throughout 2025.

5. Strong Financial Position: With C$13.1 million in cash, AuMEGA is fully funded to execute its ambitious 2025 exploration program without near-term dilution concerns.

The discovery of gold by AuMEGA Metals along the Branch Fault represents a potential game-changing breakthrough for the company, particularly if follow-up diamond drilling confirms the presence of an economic gold system. For investors seeking exposure to early-stage gold exploration with substantial upside potential, AuMEGA Metals presents an intriguing opportunity worth monitoring closely.

Understanding Gold Exploration in Glacial Terrains

Gold exploration in regions with significant glacial cover presents unique challenges that require specialised approaches. In areas like Newfoundland, traditional surface exploration methods such as soil sampling and rock chip sampling are often ineffective because the bedrock is hidden beneath layers of glacial till.

This is where bottom-of-hole and base-of-till sampling techniques become valuable. These methods allow explorers to effectively "see through" the glacial cover to sample the bedrock directly. The approach has several advantages:

1. Efficiency: Companies can rapidly test large areas at relatively low cost
2. Effectiveness: The method directly samples the bedrock, providing more reliable data than surface techniques
3. Minimal Environmental Impact: Shallow drilling has less environmental footprint than larger diamond drilling operations

When significant anomalies are identified, as in the case of AuMEGA's CRC0284 drill hole, they can be followed up with targeted diamond drilling to test the potential gold system at depth. This staged approach allows for more efficient allocation of exploration resources and increases the probability of making an economic discovery.

Furthermore, companies like AuMEGA are increasingly embracing digital transformation in mining to enhance their exploration success. The integration of digital technologies with traditional exploration methods creates new opportunities for discovering previously overlooked mineral deposits.

Australia, with its rich mining history, continues to influence global exploration methods. The country's lithium ambitions and future prospects show similar patterns of innovation in mineral discovery, while companies face comparable governance challenges and strategic decisions as they progress from exploration to development.

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