Megado reveals 415 potential pegmatite outcroppings
Lots of potential targets early on - with the right geology to boot.
Our North American critical minerals Investment, Megado Minerals (ASX:MEG), announced it has identified 415 occurrences of potential lithium bearing pegmatite within its James Bay lithium project.
We think that gives MEG plenty of opportunities at the Canadian project to find lithium in an upcoming drill program.
Below are the 9 clusters of potential pegmatite outcropping across the project area:
MEG will now be following the same tried and tested playbook that has led to the discoveries of some of the world's biggest lithium deposits, creating hundreds of millions of dollars in value.
The lithium exploration process playbook is fairly simple:
- Company maps outcropping pegmatite structures which are likely to host lithium mineralisation - MEG is currently working towards doing this. Today’s news is the first step in the mapping process. 🔄
- Company samples these outcrops to confirm if there is lithium mineralisation. 🔲
- Company confirms spodumene hosted mineralisation - spodumene is the source rock for the majority of the world’s lithium supply. 🔲
- Company drills into the outcropping pegmatites to prove out a large lithium bearing structure. 🔲
We think MEG has picked a good spot and has the right team in place.
The vendor of the MEG assets also vended part of the Patriot assets into that company - part of the Corvette discovery, which led it from a $553M IPO in December 2022 to its current market cap of ~$1.8BN.
The vendors of the assets to MEG are from Dahrouge Resource Management, a related party of Dahrouge Geological Consulting (the company that did Patriot’s exploration work).
Dahrouge Geological Consulting will be retained as consultants for 3 years at MEG’s lithium project and have MEG shares which means they have skin in the game to deliver success for MEG.
Among other items, there’s a shareholder meeting on Wednesday to approve the issue of the new vendor placement shares - which will leave the vendors with ~18% of MEG shares.
We think Dahrouge being retained as consultants is a good move by MEG, given their strong track record of success in James Bay.
This latest data will be correlated with fieldwork and geophysics at the James Bay project in the coming quarters - and we hope this work yields a major lithium discovery when it is tested with the drill bit.
What’s next for MEG?
As per its timeline in its latest presentation, we expect the following:
🔄Fieldwork and sampling at Canada lithium project (Q1-Q3)
🔄Fieldwork and geophysics at USA rare earths project (Q1-Q3)
🔄Drilling program at USA rare earths project (Q2-Q3)
🔄Geophysics at Canada lithium project (Q3-Q4)
