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Pure gold set Megado Gold (ASX: MEG) debuts on the ASX today and will go live with a first drilling campaign scheduled to begin in the next two weeks.
The Ethiopia-focused explorer already has extensive sampling, mapping and trenching underway at its projects.
Its listing follows a heavily supported $ 6 million initial public offering (IPO) that closed early last month.
Inaugural drilling program
Drilling is slated to begin in early November at the Babicho project, which is 80% owned by Megado, targeting a significant 2km-long ground gold anomaly with outcropped gold quartz veins.
Drilling rig preparation is currently being completed on the first prospect within the project, Megado reported Tuesday.
Drilling will then move to its wholly owned Chakata project located 5km upstream from the 3 million ounce Lega Dembi and 600,000 ounce Sakaro gold mines, operated by MIDROC.
Megado CEO and CEO Michael Gumbley said teams on the ground are identifying “a significant number of new targets” and that a “substantial” trenching program is planned with a series of historic trenches to be They will reopen and expand, in addition to numerous new trenches.
The company also expects to double its team of full-time ground geologists from six to at least 12 local employees to speed up the on-site review of anomalies and basic first-pass exploration at its properties.
Ethiopia in focus
Megado has interests in six Ethiopian gold projects covering 700sq km, including five granted permits and an additional license application.
It has 100% interests in the Mormora, Dawa and Chakata projects and 80% interests in the Babicho and Chochi projects in association with local Ethiopian partners.
Once awarded, the Dermi Dama license will be 100% owned by the company.
Megado’s focus on Ethiopia coincides with the fact that the country’s government seeks to attract international investment in its rich but underdeveloped gold sector with the goal of generating around 4.4 million ounces of gold production over the next decade.
Some large gold deposits in the country include MIDROC’s 3Moz Lega Dembi and 600,000oz Sakaro gold mines, KEFI Minerals’ 1.7Moz Tulu Kapi deposit and Allied Gold Corp’s 1.5Moz Dish Mountain deposit ( discovered by Megado’s technical director, Dr. Chris Bowden).
“Fundamentally important to us as emerging leaders in gold exploration in Ethiopia, as well as to our success as a company, is building strong relationships with local communities and stakeholders in our project areas,” said Mr. Gumbley.
“Our impact investing approach to gold exploration will create life-changing prosperity for our local partners, which in turn will ensure the success of our business.”
Megado’s offering of 25 million shares at $ 0.20 each closed early last month after being “significantly over-subscribed” and the company was able to accept $ 1 million in oversubscriptions to raise a total of $ 6 million. .
He will reach the boards of directors with 71.5 million shares in issue (plus $ 6 million in cash from the IPO), valuing the company at $ 14.3 million.
