Meadow Bay Gold Corporation (“Meadow Bay Gold”) (TSX:MAY) (OTCQX:MAYGF) (Frankfurt: 20M, WKN A1C3DN) is pleased to report on assay results from five reverse circulation and one core drill hole at its Atlanta Gold Mine Project, Lincoln County, Nevada.
Drilling in 2011 discovered porphyry-hosted gold mineralization to the west of the historic Atlanta open pit. The porphyry-hosted mineralization is distinctly different from the gold-silver mineralization within jasperoid breccias in the Atlanta Fault that were mined previously. After the discovery was made, drilling was redirected to explore the extent of the porphyry mineralization and determine if gold mineralization extends further northward.
Gold mineralization has been identified in all five of the porphyry holes for which results have been received to date. This includes hole DHRC-11-RCN03 on northern extent of the Atlanta Porphyry, and hole DHRC-11-RCN05 which is close to the center of the porphyry. Hole DHRC-11-RCN06 also intersected porphyry-hosted gold mineralization but recovery was poor within the target interval. Holes DHRC-11-15C and DHRC-11-RCN07 intersected low-level gold mineralization. The significant intercepts are listed in the table below.
Assay results were also received for hole DHRC-11-RCN02. This hole intersected the jasperoid breccia northwest of the Atlanta pit and hit an unusually long intercept of gold and silver mineralization. This hole is 50m northwest of hole DHRC-11-07C which also encountered a long mineralized intercept but failed to reach the target depth. Results for DHRC-11-07C were previously reported.
The results obtained to date show that gold mineralization occurs within the Atlanta Porphyry over approximately 300m in an east-west direction and 400m north-south. The southern margin of the porphyry is terminated by the same east-west high-angle fault that truncates the jasperoid breccia-hosted mineralization in the Atlanta Fault. The porphyry butts up against the Atlanta fault on the east and appears to be cut by another high angle fault to the west. The northern limit of the porphyry has not yet been tested by drilling.
Robert Dinning, CEO commented, “Following the discovery of porphyry-hosted gold mineralization last Fall, the question in the back of our minds was whether we would find gold north of the discovery holes. Confirming that mineralization extends the length of the porphyry has resolved a fundamental uncertainty. Our current focus is gaining a better understanding of the distribution of precious metals within the Atlanta Porphyry. On the exploration side, we are looking at areas with similar geophysical characteristics with the intent of finding additional gold bearing porphyries within the Atlanta District which we control in its entirety.”
Table showing new significant intercepts from 2011 Atlanta drill program.
The Company considers these results highly significant but also cautions that they are preliminary in nature and not conclusive evidence of the likelihood of the occurrence of an economic mineral deposit. Insufficient information is available to determine the true width of these drill intercepts; all of the above holes were drilled vertically.
The QA/QC program employed for this drill program includes monitoring the results of blind duplicate samples inserted into the sample stream at a frequency of 2%, certified standard reference samples inserted at a frequency of 1% to 5%, and blank samples inserted at a frequency of at least 1%. Geochemical analyses were done at the ALS Minerals laboratory in Elko Nevada, which is an independent certified laboratory (ISO 9001:2008). Gold was determined by fire assay with a gravimetric finish.
Four additional core holes and three more RC holes also intersected the Atlanta Porphyry, and four other holes were drilled to test the Atlanta Fault mineralization. Assays from these holes are pending. Results are expected over the next few weeks.
Drill hole location maps, cross sections and tables of results are also available on the Meadow Bay Gold website at www.meadowbaygold.com. Full details of the Atlanta project and the 2011 drill program are given in the last Technical Report filed at www.sedar.com.
Dr. Matt Ball, P.Geo., a Qualified Person as defined by National Instrument 43-101 and independent consultant to the Company, has reviewed the contents of this press release.
Meadow Bay Gold is focused on developing the former producing Atlanta Gold Mine in Nevada, USA. Permitting for the next round of exploration drilling is ongoing.
For further information please contact:
Meadow Bay Gold Corporation Robert Dinning, Chairman and CEO 604-641-4450
Danny Gravelle, Investor Relations Goal Capital 949-481-5396
Bobby Mullins, First Canadian Capital Corp. 1.866.580.8891
This release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate” or “belief” or describes a “goal” or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.