The ASX will be joined by another pure gold play on 27 October 2020 when Megado Gold boards for the first time following a strongly supported A$6 million IPO.
The Company will join the ASX with 71.5 million ordinary shares on issue and A$6 million in cash after a significantly oversubscribed IPO.
The Ethiopian-focused gold explorer is planning to commence drilling the first of its priority targets within just two weeks, and already has extensive sampling, mapping and trenching underway on its projects.
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In a sign of the forward work intensity, Megado also expects to double its full-time on-ground geologist team from 6 to at least 12 in-country employees to accelerate the on-ground review of anomalies and first-pass grass roots exploration across its holdings.
Drill pad preparation is being completed at the first prospect within the Babicho project, with drilling expected to commence by early November. This drilling will initially target a significant 2 km long gold-in-soil anomaly with outcropping gold-bearing quartz veins.
A number of trenches are also planned with work about to start on testing the gold-in-soil anomaly and outcropping veins, as well as numerous other prospects across multiple projects – with the aim to deliver additional drilling targets.
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Drilling will then move immediately to the Chakata Project, located 5 km along strike from the 3 Moz Lega Dembi and 0.6 Moz Sakaro gold mines.
The Babicho Gold Project is one of six Ethiopian Gold Projects covering an area of more than 700 km2 in total.
Five of the Projects covering 511 km² are granted permits, with an additional licence application in train covering an area of approximately 227 km2.
Importantly, there is significant scale, with some of its ground analogous to WA’s Eastern Goldfields’ prolific greenstone terrane.
Megado’s push into Ethiopia coincides with the Ethiopian Government (The Ministry of Mines and Petroleum) looking to attract increasing international investment in the country’s rich but under-developed gold sector with the objective of generating 137 tonnes (approx. 4.4Moz) of gold production over the next decade.
Ethiopia hosts a number of major gold interests including MIDROC’s 3Moz Lega Dembi and 0.6Moz Sakaro gold mines, KEFI Minerals’ 1.7Moz Tulu Kapi deposit and Allied Gold Corp’s 1.5Moz Dish Mountain deposit (MEG’s Technical Director, Dr Chris Bowden is credited with the discovery of Dish Mountain).
Its Mormora, Dawa and Chakata projects are 100% controlled by Megado, whilst the Babicho and Chochi projects are owned 80% in partnership with local Ethiopian partners. The Dermi Dama Licence will be owned 100% by the Company once awarded.
Megado Managing Director and CEO, Mr Michael Gumbley, said a significant number of new targets are being identified by its ground teams and a substantial trenching program is planned with a number of historical trenches being re-opened and extended, in addition to numerous new trenches.
“Fundamentally important to us, as emerging gold exploration leaders in Ethiopia as well as to our success as a company, is building a strong relationship with the local communities and stakeholders around our project areas.
“Our impact investment approach to gold exploration will create life-changing prosperity for our local partners which will in turn ensure the success of our company,” he said.