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Meadow Bay Gold Corp still eyeing value at Atlanta

The Atlanta site, spanning 12,000 acres, in Lincoln Country, produced 110,000 ounces of the yellow metal as an open pit between 1975 and 1985.
Gold bars and dollars
Meadow Bay on the hunt for gold and Silver in Nevada

There hasn't been much recent news flow from Nevada-focused gold explorer Meadow Bay Gold Corporation (TSX:MAY) but the focus is still on creating value at its flagship project - the formerly producing Atlanta gold mine.

Obviously, life in the junior mining sector has hardly been easy in recent years but the firm's positive discoveries this year and fundraising efforts point  to potential ahead.

Not least significant is the location of the Atlanta project - Nevada - a current hotspot for mining exploration, albeit the focus rather more on lithium, than precious metals gold and silver.

The Atlanta site, spanning 12,000 acres, in Lincoln Country, produced 110,000 ounces of the yellow metal and 800,000 ounces of silver as an open pit between 1975 and 1985.

Key infrastructure, such as power access, water and roads are all still in place.

Meanwhile, a 2011 drill programme by Meadow Bay discovered gold porphyry mineralisation as well as confirming and expanding exploration done previously by bigger players Gold Fields Resources and Kinross.

The project's current resource stands at 683,000 ounces in the higher confidence measured and indicated category and a further 619,000 in inferred, but the firm said last summer it was hoping to push that toward the 2mln ounce mark, along with a development decision.

It is also working to complete a preliminary economic assessment (PEA).

Atlanta is in area that is known in the US as elephant country for gold deposits.

It plays host no fewer than seven giant 20-plus million ounce deposits and is responsible for over 80% of America’s production of the precious metal.

Historically, mining at Atlanta has focused on the higher grade portions of the Atlanta Fault, a ‘breccia zone’ that separates volcanic from sedimentary rock, but excitingly for the firm,  its geologists have identified what they believe is a gold porphyry at the south-west margin of the old Atlanta pit.

Meanwhile, last year, boss Christopher Crupi told Proactive that permitting, while likely to be a long process, shouldn't throw up too many obstacles.

There are no first nations covenants on the land, there isn't much wildlife to speak of in this part of the desert and the environmental impact of re-developing this former mine is expected to be minimal.

Looking further ahead, the company has said the plan would be to bring a partner with deeper pockets than itself to help to actually build the project proper.

So what has 2016 thrown up? Significantly, Meadow Bay reported 9.14 metres (m) of 2.01 grams per tonne of gold (g/t) and 14.3 g/t of silver from two test holes in February, which were in the key untested Western Knolls target area of the property.

Western Knolls lies around 5km west of the Atlanta Pit and represent a new, untested opportunity in the Atlanta District.

A geophysical survey found six large anomalies at Western Knolls comparable to those observed at the Atlanta porphyry-hosted gold discovery.

Crupi said the latest results indicated a very large system where huge volumes of gold-bearing fluids were driven through the rock and that they were working in the "right neighbourhood".

The firm said it  planned detailed petrographic examination of the drill cuttings and synthesis of the geochemistry with the existing geophysics.

And in April it closed a private placing, raising $244,600 for working capital, a month after it rose $254,000 also in a placing.

Crupi has increased his stake 12.1% of the capital, underlining his confidence in the direction of travel.

So there could be exciting times ahead as investors await next news from Atlanta.

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