Meadow Bay Gold Corporation

Meadow Bay Gold Corporation

October 30, 2013 16:40 ET

Meadow Bay Gold Continues to Advance Its Atlanta Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 30, 2013) - Meadow Bay Gold Corporation ("Meadow Bay Gold" or the "Company") (TSX:MAY) (OTCQX:MAYGF) (FRANKFURT:20M)(WKN A1C3DN) is pleased to report progress at its Atlanta Gold Mine Project in Lincoln County, Nevada. In what has been a difficult year where many exploration juniors have been forced to suspend activities, Meadow Bay Gold has steadily advanced its flagship project in eastern Nevada.

The single most important accomplishment has been the publication of a resource estimate. Gustavson Associates, LLC, prepared a NI 43-101 Technical Report for the Atlanta Gold Project for the Company. Below is a table summarizing the Atlanta resource using a 0.015 opt Au cut-off. The eAu ounces represent the equivalent ounces of gold if the silver is combined with the gold at an Au:Ag ratio of 1.53.

Category Tons Au (opt) Au Ounces Ag (opt) Ag Ounces eAu Ounces
Measured Resource 5,527,000 0.040 219,600 0.444 2,451,800 265,900
Indicated Resource 9,976,000 0.035 352,500 0.345 3,441,800 417,700
Measured + Indicated Resource 15,503,000 0.037 572,100 0.380 5,893,500 683,600
Inferred Resource 18,538,000 0.029 544,300 0.213 3,955,400 618,700

The 3D computer model used to derive the resource estimate also has allowed the Meadow Bay Gold to identify areas for future exploration. Potential exists to expand the resource both within the Atlanta Shear Zone and the adjoining Atlanta Porphyry.

The Company's efforts to secure the necessary exploration permits are ongoing. Assisted by Sunrise Engineering, the Company has completed the biologic and cultural studies required for an Environmental Assessment (EA). A draft version of this document has been submitted to the Bureau of Land Management (BLM) as part of a Plan of Operation (PoO) permit needed for future drilling.

Exploration in 2013 was focused primarily at the Western Knolls which lies 5km east of the historic Atlanta Mine. A recent gravity survey by Magee Geophysical Services will augment the existing geophysical and geochemical data sets. The results of age dating from the Western Knolls were also received. Exploration north of Atlanta has focused of evaluating the potential for continuations of the mineralization within the Atlanta Shear Zone.

Infrastructure upgrades at the project site include renovation of the former guard shack into additional office space and the ongoing removal of former mill building used by Standard Slag when the mine was in production. Since the drill core had been stored within the mill building, a new core storage facility was erected on the patented mining claims. The new core storage building has sufficient capability for any anticipated future drilling.

With the final approval of a PoO from the BLM, discovery drilling will be conducted at the Western Knolls. The Western Knolls is a large, target-rich environment that has never been drilled and represents an opportunity to find new precious metal deposits. Initial testing will be of areas where geophysical and geochemical surveys suggest undiscovered mineralization.

In-fill drilling is also planned to expand the published resource on the Atlanta Fault and Porphyry. A small drill program late in 2012 shows the potential for adding higher-grade material to the existing resource. A review of the 3D model suggests that as much as 40% of the area within the published resource lack adequate drilling to be categorized as even an inferred resource. These represent areas where cost-effective drilling can significantly expand the resource. The resource also remains open to the north and down dip.

Dana Durgin, 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.

Forward-looking information

This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information includes, 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 the calculation of a new mineral resource estimate.

Often, but not always, forward-looking information 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 information is 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 breakdowns, 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 information involves 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 information. 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 and silver; 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 information, 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 information 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 information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

Contact Information

  • Meadow Bay Gold Corporation
    Robert Dinning
    Chairman, President & CEO

    Meadow Bay Gold Corporation
    Charles William Reed, Director

    Meadow Bay Gold Corporation
    Danny Gravelle
    Investor Relations