Meadow Bay Extends Atlanta Shear Zone to South at Atlanta Mine Project

Mr. Robert Dinning reports


Meadow Bay Gold Corp.’s recent drilling has extended gold and silver mineralization within the Atlanta shear zone to the south of the historic open pit. Assay results from hole DHRC-11-10R intersected 21.34 metres containing 1.75 grams per tonne gold and 11.4 grams per tonne silver. In addition, hole DHRC-11-11R has also intersected breccias along the Atlanta shear zone. Although assays are still pending on hole DHRC-11-11R, the effect is to extend the shear zone 110 metres farther to the south of any previous drilling. This extension remains open both to the south and at depth.

The attached table summarizes the significant drill results from the new drill hole.

Drill hole area       Total depth    From       To    Width     Au     Ag
                               (m)     (m)      (m)      (m)  (g/t)  (g/t)
Jasperoid breccia
south of pit               144.78  108.23   129.57    21.34   1.75   11.4

Note: True width has not been determined.

The drilling, completed in December, 2011, was part of a 9,150-metre (30,000-foot) program for 2011. A total of 39 core and reverse circulation holes were drilled by Meadow Bay Gold at the Atlanta gold mine project. The goals of the program were threefold:

  1. Twinning of drill holes from previous exploration within the Atlanta fault zone;
  2. Increasing the drill density in areas of known mineralization;
  3. Extending the known mineralization.

Extending the mineralization has largely focused on drilling to the north and at depth although these latest results indicate that there is additional potential to the south as well.

Following the discovery of porphyry-style gold mineralization to the southwest of the historic pit, defining the limits of the intrusive porphyry was added as a fourth goal. Five core holes and six reverse circulation holes have intersected the porphyry and are currently being assayed at the ALS Chemex lab in Elko, Nev. These are in addition to drill holes DHRC-11-04C, DHRC-11-06C and DHRC-11-11C which intersected the porphyry and which results were previously reported.

Thus far, gold mineralization has been traced along the southern margin of the porphyry for over 300 metres in an east-west direction. The widely spaced core and reverse circulation drilling has intersected quartz latite porphyry with similar alteration and sulphide mineralization for over 400 metres along a north-south transect. The northern limit of the porphyry has yet to be defined.

Updated drill hole location maps and a table of results are available on the Meadow Bay Gold website.

Charles (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 program is being employed, including blank, duplicate and reference standards, with samples 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.