Desert Hawk Resources Inc., a Wholly-owned Subsidiary of Meadow Bay Gold Corp., Reports Initial In-pit Resource Estimate for its Atlanta Gold Project, in Nevada, USA

By on Jun 18, 2018 in News |

Vancouver, BC – June 15, 2018 Desert Hawk Resources Incorporated (“DHRI” or the “Company”), a wholly-owned US subsidiary of Meadow Bay Gold Corporation (CSE:MAY) (OTCQB:MAYGF) (Frankfurt:A2DYQ5) is pleased to report it has received an initial in-pit resource estimate for its Atlanta Gold Mine Project, in Lincoln County, Nevada. The report was prepared by Gustavson Associates of Lakewood, Colorado.

The in-pit resource is a sub-set of the larger global resource at the Atlanta Project and incorporates the result of additional drilling in 2012 and 2015. The bulk of the resource is along the intersection of the Atlanta Fault with a prominent east-west shear zone. It also includes much to the Atlanta Porphyry which is in the hanging-wall of the Atlanta Fault. No effort was made to differentiate precious metal mineralization in the Atlanta Fault from that of the Atlanta Porphyry.

Atlanta In-Pit Resource –

Resource Category Tonnes (X1000) Au ppm Au ounces (X1000) Ag ppm Ag ounces (X1000)
Measured 3000 1.60 154 14.5 1390
Indicated 2450 1.13 98 10.1 790
M + I 5450 1.39 243 12.5 2180
Inferred 1260 0.76 31 5.8 240

 

In-pit Resources are reported at a cutoff grade of 0.4 gpt Au, and within a Lerchs-Grossman pit shell.

Resources are not reserves and do not have demonstrated economic viability.  There is no certainty that the Mineral Resource will be converted to Mineral Reserves. The quantity and grade is an estimate and is rounded to reflect the fact that it is an approximation. Quantities may not sum due to rounding.

Abbreviations: Au = gold; Ag = silver; g/t = grams per tonne, m = metre

Parameters used in the in-pit resource calculation included –

$1500 per ounce gold price                  $17.50 per ounce silver price

Mill-agitated leach recovery                80% gold recovery                      60% silver recovery

 

The in-pit resource determination was done in conjunction with updated the resource for the Atlanta Project to reflect both the result of additional drilling in 2012 and 2015 and more rigorous criteria for resource classification, consistent with the 2014 CIM standards. While the more rigorous standards reduced the number of ounces in the deep, inferred resource, ounces previously reported in the measured and indicated categories were less impacted.

 

Atlanta Global Resource –

Resource Category Tonnes (X1000) Au ppm Au ounces (X1000) Ag ppm Ag ounces (X1000)
Measured          4,290 1.52 210 14.1          1,940
Indicated          8,290 1.18 315 10.3          2,750
M + I       12,580 1.30 525 11.6          4,690
Inferred       13,710 0.91 401 7.4 3,240

 

Resources are reported at a cutoff grade of 0.40 ppm Au.

Resources are not reserves and do not have demonstrated economic viability.  There is no certainty that the Mineral Resource will be converted to Mineral Reserves. The quantity and grade is an estimate and is rounded to reflect the fact that it is an approximation. Quantities may not sum due to rounding.

Abbreviations: Au = gold; Ag = silver; g/t = grams per tonne, m = metre

“We are encouraged by the results of this in-pit resource estimate,” stated Robert Dinning, Meadow Bay CEO.  “This represents a fundamental shift for the Company from an emphasis on exploration to moving toward becoming a producer. The Atlanta Project is comparable in terms of grade and size with other projects currently being developed in North America by former exploration juniors. Our goal is to continue moving the Atlanta Project forward toward a production decision. Future steps include advanced metallurgical testing, detailed modeling of the resource and CapEx and OpEx estimations. The goal is to initiate a Preliminary Economic Analysis before the end of the year.”

Resource estimates referenced in this statement have been estimated by Thomas Matthews of Gustavson Associates LLC. Mr. Matthews is independent of the Company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

On behalf of the board of directors,

 

Robert Dinning, Chairman & CEO

604-641-4450

meadowbaygold.com

 

 

 

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The company disclaims any intention or obligation to revise or update such statements.