MEADOW BAY GOLD DISCOVERS PORPHYRY-HOSTED GOLD MINERALIZATION AT ITS ATLANTA GOLD MINE PROJECT IN NEVADA
Meadow Bay Gold Corp. has provided assay results from three additional core drill holes of its drilling program at the Atlanta gold mine in Lincoln county, Nevada.
The purpose of the drill program is to test for thickness and grade of gold and silver mineralization adjacent to the past-producing Atlanta pit that was closed in 1985 due to low gold prices. The mineralization occurs primarily in a jasperoid fault breccia between overlying Tertiary volcanic rocks and Paleozoic sedimentary rocks.
Drill hole DHRC-11-04C was an exploratory hole directed southwest of the Atlanta pit to test a geophysical anomaly. Historic drilling to the southwest of the pit failed to recognize that disseminated gold mineralization is hosted in a late-state quartz latite intrusive porphyry. In contrast to the gold and silver mineralization in the jasperoid breccias within the Atlanta fault, the porphyry-hosted mineralization is not silificified and is much thicker. The recognition of porphyry-hosted gold mineralization adds a second exploration target to the Atlanta mine project. Highlights of DHRC-11-04C include approximately 62 metres of 1.63 grams per tonne gold (see table).
Drill holes DHRC-11-06C and -09C were collared to the southwest of the pit and are amongst confirmatory holes to test previous drilling. Results from drill holes DHRC-11-01C and -02C were reported by Meadow Bay Gold news release dated Aug. 22, 2011 (see news releases at the company’s website).
Holes DHRC-11-03C and -07C will complete the six-hole confirmation program, in accordance with the guidelines set out by Gustavson Associates LLC of Boulder, Colo., designed to review the current and historic data with a view to preparing an updated estimate of the gold and silver resources pursuant to National Instrument 43-101. Results from these holes are pending assay.
Attached is a table summarizing the significant drill results.
Drill hole Area Total depth From (m) To (m) Interval Au g/t (m) (m) DHRC-11-04C Margin of 365.76 198.12 260.60 62.48 1.63 quartz latite porphyry 269.75 301.75 32.00 1.35 DHRC-11-06C Margin of 317.60 228.60 292.61 64.01 1.43 quartz latite porphyry Including 7.01 6.71 DHRC-11-09C Southwest 256.49 172.21 188.98 16.77 0.56 of Atlanta pit 196.60 231.65 35.05 3.86 Including 16.77 6.60
These drill results show the effects of progressively moving away from the margin of the historic pit toward the quartz latite porphyry. Hole DHRC-11-09 shows both an increase in grade and thickness in altered rocks along the margin of the intrusive. Holes -04C and -06C include marginal faces of the intrusive that contain thick intercepts of gold mineralization. Thus far the extent and geometry of the intrusive porphyry are unknown. However, geophysics indicates that it is open to the west, north and south. Continued drilling (awaiting assay) also suggests in may be thickening to the west.
The drill hole location map and cross-section are also available on the Meadow Bay Gold website.
Robert Dinning, chief executive officer, commented: “We are very excited by this new discovery of a gold-bearing porphyry directly adjacent to the known mineralized shear zone at Atlanta. This discovery has opened up a large additional tonnage opportunity for us in close proximity to the existing open pit. In addition, it has highlighted the need for us to explore — not just laterally along the breccia-hosted orebody to the north — but our other geophysical anomalies at the Atlanta project.”
Bill Reed, a qualified person as defined by National Instrument 43-101, and director of Meadow Bay Gold, has reviewed the contents of this press release. A continuing quality assurance/quality control (QA/QC) program is being employed including blank, duplicate and reference standards with samples are being assayed at the ALS Chemex lab in Elko, Nev., by fire assay with a gravimetric finish. Meadow Bay Gold is focused on developing the former producing Atlanta gold mine in Nevada, United States. Drilling continues as does reconnaissance exploration on recently staked claims to the northwest and southeast.