AuMEGA Metals Commences Diamond Drilling on Major Electromagnetic Target at Cape Ray

On November 17, 2025, AuMEGA Metals announced the commencement of a diamond drilling program at its Cape Ray Gold Project in Newfoundland. The drilling is focused on a newly defined, major airborne electromagnetic (EM) conductor located in the hangingwall of the existing Central Zone gold deposit. The CEO, Sam Pazuki, stated that this compelling target was identified through a convergence of till geochemistry, geophysics, and structural interpretation. The area was historically overlooked due to a lack of surface exposure but is associated with a historical heavy mineral concentrate sample of 111.5 g/t gold. This is the first time the anomaly has been drill-tested, and the program is fully funded.

The commencement of drilling is a material positive development as it represents the execution of a well-defined exploration strategy and the testing of a high-priority, previously undrilled target. This follows a logical sequence of news over the past two months: - October 2, 2025: AuMEGA announced the identification of this major EM anomaly, noting it was just 500 metres from their main Central Zone deposit and had never been tested. - October 16, 2025: The company announced the definition of a new multi-kilometre gold corridor at Cape Ray West based on high-grade gold-in-till anomalies.

These preceding announcements built the case for significant discovery potential at Cape Ray, beyond the existing resource. The current news confirms that the company is now acting on this potential. While the commencement of drilling is not in itself a discovery, it is the critical step required to make one. The target is compelling due to its proximity to a known deposit, a strong geophysical signature, and association with a (historical and unverified) high-grade sample.

The impact is positive because it advances the project and provides a clear, near-term catalyst for the stock: the drill results. However, the market appears to be in a "wait-and-see" mode, with the stock price having pulled back from its October high of C$0.06 to C$0.04, below the C$0.05 price of the last major financing. This suggests that while the news is positive, a significant re-rating of the stock is contingent on the actual drill results. This news confirms the company is delivering on its stated plans in a timely manner.

AuMEGA Metals Ltd. is a gold exploration company focused on Newfoundland and Labrador, Canada. Its flagship asset is the Cape Ray Gold Project, which hosts a mineral resource of 420,000 ounces of gold in the indicated category and 141,000 ounces in the inferred category. The company controls a district-scale land package of over 100 km along the Cape Ray Shear Zone, a major gold-bearing structure that also hosts Calibre Mining's +5 million ounce Valentine Gold Project. AuMEGA's strategy involves expanding the existing resources at Cape Ray and making new discoveries on its extensive and underexplored landholdings, which also include the Bunker Hill and Hermitage projects.