Mega Precious Metals Reports Updated Mineral Resource Estimate for the Monument Bay Project With a Significant Increase in Grade and Resources

Thunder Bay, Ontario October 8, 2014

Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to release an updated gold and initial tungsten mineral resource estimate (“resource; “resources”; “estimate”) for the Company’s 100% owned Monument Bay Project located in northeastern Manitoba. The undiluted and in-situ estimate was completed by WSP utilizing a 3D block model and supported with input from the Company’s geological personnel and an extensive external third party peer review by Tim Twomey, P. Geo. Table 1 provides a deposit summary of the resource categorized by pit constrained and underground constrained cut-off grades (COG). For clarity, a reconciliation of changes with respect to the previously released resource estimate (June 17, 2013) is provided in Table 2 and 3. Three potential resource models were created to demonstrate either a higher grade scenario or utilizing larger and deeper potential pit shells that could be considered in a less-constrained capital markets environment are profiled in Table 6.

A conference call is planned for investors and analysts at 9:00am EST, Thursday, October 9, 2014 to discuss the results. Details of the call can be found at the bottom of the press release.

Highlights of the 2014 Twin Lakes Pit Constrained and Underground Constrained Deposit at a $1,092 USD gold price:

• Overall Measured and Indicated resources of 2.13 million ounces @ 1.51 g/t gold and 253,000 mtu (Metric Tonne Unit) of WO₃; an increase of 9% in grade.
• Overall Inferred resources of 0.63 million ounces @ 1.62 g/t gold and 99,000 mtu of WO₃; an increase of 27% in grade.
• Potential “starter pit” is identified and is based on higher-grade, near-surface mineralization
  • Measured and Indicated resource of 1.07 million ounces @ 2.89 g/t gold representing an increase of 60% in ounces and an increase of 7% in grade.
  • 305,000 Inferred ounces at 2.46 g/t gold.
• Conservative estimate utilizing a 20% reduction in gold price to $1,092 USD, 4.7% less gold recovery, 20% increase in pit constrained costs and a 31% reduction in gold grade cap (compared to the June 13, 2013 Resource Estimate).
• 13,500m of infill drilling, 11,000m OCAP sampling with the inclusion of separate gold and gold/tungsten wireframes were utilized compared to the previous estimate.
• The Indicated and Inferred tungsten resource is an initial resource and the ongoing OCAP sampling program will continue to build upon this tungsten resource in the coming months. Only one-quarter of the OCAP core has been sampled for tungsten.

Glen Kuntz, P.Geo, President and CEO, stated “Mega has produced a strong and conservative resource update at Monument Bay, Manitoba in challenging market conditions. The Twin Lakes Deposit has stood up well with a significant increase in overall grade and the definition of multiple high grade gold trends at surface that appear to be amenable to open pit mining, assuming the viability of the project is established by a feasibility study.  The forthcoming feasibility analysis will further assess the potential to establish economically viable mineral resources of both gold and tungsten that can be permitted, mined and processed while continuing to build strong partnerships that focus on environmental and socio-economic programs with all local communities to facilitate long term success. The Company believes that the current resource and the significant potential to further grow resources confirms the emergence of a high grade gold and tungsten camp at Monument Bay.”

Read more: http://www.megapmi.com/releases/content/releases/article/mega-precious-metals-reports-updated-mineral-resource-estimate-for-the-monument-bay-project-with-a-significant-increase-in-grade-and-resources

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