Meadow Bay Gold Corporation MAY, with a key Environmental permit now in place, is free to begin exploration drilling on its Western Knolls Project Area, located 5km west of the company's flagship Atlanta Gold Mine Project in Nevada. Western Knolls has never been drilled but 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.
Meadow Bay Gold Corporation (TSX: MAY) announced on March 26, 2014, that it has received a Finding of No Significant Impact (FONSI) from Nevada’s Bureau of Land Management (BLM), which means the company is free to begin the work proposed in its Plan of Operation. This would include exploration drilling on its Western Knolls Project Area, located 5km west of the company's flagship Atlanta Gold Mine Project in Lincoln County, Nevada.
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.
“We’re currently determining the number of drill holes for Western Knolls. We’re probably not looking at any drilling before June, because of road conditions and general mobilization,” said Meadow Bay Gold President & CEO Robert Dinning, adding that the company is also contemplating additional funding for the drill program. Mr. Dinning, though, pointed out that the cost of drilling is “significantly lower” than it was two years ago.
In an interview with SmallCapPower.com back in February, Mr. Dinning said that exploration drilling on the Western Knolls was a priority for the company this year as “multiple targets have been identified but it has never been drilled.”
Meadow Bay Gold is 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 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.
Meadow Bay Gold’s shares have surged 52% so far in 2014 to its recent price of $0.22. The company had approximately 52 million shares outstanding as of November 22, 2013.
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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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