Meadow Bay Gold Corporation Looks To Expand Its Atlanta Resource With Drilling On The Western Knolls Target Area

Nevada is a great place to search for large gold deposits. The U.S. state has at least seven, each of which exceeds 20 million ounces. In 2011 alone, Nevada accounted for more than 80% of all the gold mined in the United States.

It is not surprising, then, that companies such as Meadow Bay Gold Corporation MAY would want to expand an existing gold mine there. Meadow Bay is currently advancing its Atlanta gold project, a past producing gold mine with all the infrastructure still in place. This includes 3-phase electricity to the mine, roads, and abundant water. In addition, there are no environmental or cultural restrictions that would impede eventual production.

The Atlanta project had historic open-pit production of 110,000 ounces of gold and 800,000 ounces of silver from 1.5 million tons. Since acquiring the project in early 2011, Meadow Bay Gold has since expanded on previous exploration work done on the property by Gold Fields ( NYSE: GFI) and Kinross Gold (NYSE: KGC) (TSX: K).

During the past year the company completed a 43-101 resource estimate on the Atlanta Shear Zone, which showed 572,100 Measured + Indicated gold ounces as well as 544,300 Inferred ounces of gold. The mineralization on the Atlanta shear Zone is open and Meadow Bay plans to do in-fill drilling and hopefully provide an updated resource estimate later this year. Although advancing this project has not been without its challenges, the fact that the company controls the entire Atlanta District with a land position exceeding 12,000 acres gives it plenty of space to grow.

“For most of the last year our company was somewhat inhibited due to having to submit a Plan of Operation to the Bureau of Land Management (BLM) in order to do additional drilling. This process has taken more than 15 months but it is in its final stages right now,” said Meadow Bay Gold President & CEO Robert Dinning. The company was advised by the BLM on January 3, 2014, that there would be a 30-day public-comments period and, assuming there are no issues, Meadow Bay will be issued its drill permit sometime in February. 

Meadow Bay Gold has also identified a new target area 5km west of the historic Atlanta Mine. The Western Knolls is an exploration target where Meadow Bay Gold has conducted multiple geophysical and geochemical surveys. Rock-chip and soil geochemistry has revealed an area of greater than two square kilometers with anomalous gold, silver, antimony, and arsenic. Values of up to 5.6 grams per tonne (g/t) gold and 140 g/t silver have been received.

“Our objective for the next several months is to begin exploration drilling on the Western Knolls,” he asserted. “Multiple targets have been identified and it has never been drilled.”

“Drill results over the next year are going to dictate our next moves,” Mr. Dinning said.  With additional drilling, he believes the project has the potential to contain three million plus ounces of gold. 

Upward movement for the price of gold in 2014 would also likely propel Meadow Bay Gold’s stock price, as its share structure is investor-friendly at approximately 52 million outstanding as of November 22, 2013.

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To learn more about Meadow Bay Gold Corporation, you can view their initiation research report, research bulletins, analyst commentaries and CEO video interview on their SmallCapPower.com Investor Hub: HERE.

About Meadow Bay Gold:

Meadow Bay Gold Corporation MAY is a gold exploration and pre-production/development company. The Company’s main focus is exploring and developing the Atlanta Gold Mine Project, located in Lincoln County, Nevada. The Atlanta Mine is a past producing gold mine all infrastructure still in place. Meadow Bay Gold has successfully completed an initial 2011 drill program at the Atlanta Gold Project that included a Porphyry-hosted Gold Discovery as well as confirming and expanding the historical drilling by Kinross Gold. Meadow Bay intends to continue to explore and develop the Atlanta Gold Project and move the project toward a production decision.

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About Ubika Research:

Ubika is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small cap stocks at an early stage, thus offering timely market insights. Its specialty is small-cap companies with a market capitalization of <$5 billion.