Shares in Meadow Bay Gold (TSE:MAY) advanced 12.5 per cent on Monday as the gold explorer prepares for the next round of exploration drilling at the former-producing Atlanta Gold mine.
Permitting for the next round of drilling is ongoing. Last month, the company received the first assays from 2012 drilling at itsAtlanta Gold Mine project, in Lincoln County, Nevada.
The company noted that hole DHRC-12-MRC01, completed in mid-November, is the first in a series of holes intended to confirm and offset “specific results” from its 2011 drill program.
The gold explorer resumed drilling at its Atlanta Gold Mine before the end of October, following the resolution of a number of legacy permitting issues.
Meadow Bay said the new hole was drilled to a total depth of 349 metres in Jasperoid breccia, northwest of the historic Atlanta pit.
Significant results included 2.25 grams per tonne (g/t) gold and 14.3 g/t silver, over a width of 67.06 metres, from 281.94 metres to 349.0 metres.
Drilling at the project was halted in December 2011 as part of an agreement with the Bureau of Land Management, but on November 14, Meadow Bay said all permits - including an occupancy permit for the Atlanta exploration camp – were in place to allow in-fill drilling adjacent to the historic Atlanta open pit.
The drilling program is focused on both in-fill drilling for the widely-spaced 2011 holes, as well as step-out drilling to the north.
The company recently raised proceeds from a private placement financing to use for exploration work at the Atlanta mine, and to complete the mineral resource estimate and technical report currently in process.
Shares in Meadow Bay were lately up 12.5 per cent late Monday morning, trading at 36 cents.
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