Meadow Bay Gold Investor Presentation
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December, 2011 Exploring Nevada’s First Gold Porphyry THE ATLANTA GOLD MINE, EASTERN NEVADA OTCQX:MAYGF March 2012 TSX:MAY
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Transcript of Meadow Bay Gold Investor Presentation
December, 2011
Exploring Nevada’s First Gold Porphyry
THE ATLANTA GOLD MINE, EASTERN NEVADA
OTCQX:MAYGF March 2012
TSX:MAY
Forward Looking Statement
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Statements relating to the estimated or expected future production and operating results and costs and financial condition of Meadow Bay Gold Corporation(“Meadow Bay” or the “Company”), planned work at the Company’s projects and the expected results of such work and the anticipated use of proceeds of this offering are forward-looking statements within the meaning of United States and Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently 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, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company’s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of mineral reserves and resources; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company’s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of metals and other risks and uncertainties, including those described in the Company’s filings with the Ontario Securities Commission on SEDAR in Canada (available at www.sedar.com) for the fiscal year ended March 31, 2011. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management or its independent professional consultants on the date the statements are made. We do not undertake to update these forward-looking statements as a result of new information, future events or otherwise, other than as requested by applicable law. Cautionary Note to U.S. Investors - All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (“SEC”) Industry Guide 7. Canadian and Guide 7 standards are substantially different. Note re Historical Resources – all estimates of the quantity, grade, and metal or mineral content which have been made in respect of its Atlanta Gold Mine Project are historical estimates under National Instrument 43-101 (“NI 43-101”), as such estimates have not been verified as a current mineral resource and were prepared before the Company acquired the property. The Company confirms that it is not treating such historical estimate as current mineral resources and readers are cautioned not to rely on historical estimates.
Key Personnel Robert Dinning – CEO is a Chartered Accountant and a lifetime member of the Alberta Institute of Chartered Accountants.and has been actively involved in the Resource Industry for the past 35 years. Mr. Dinning is also Chairman of Paramount Gold and Silver Corp, and was formerly CFO of ATAC Resources Ltd from 2008 to 2011. Mr. Dinning's background includes exploration projects in Canada, USA, South America, Asia and Africa. Keith Margetson – CFO is a chartered accountant and has been in public accounting for over three decades. He is a member of the British Columbia Institute of Chartered Accountants and a member of the Illinois CPA Society. Charles (Bill) Reed – Director of Exploration & Chief Geologist is a professional geologist with 40 years in the mining business. He was the Chief Geologist and co-founder of Paramount Gold and Silver and is credited with discovering the San Miguel project in Mexico. Bill was previously the Chief Geologist for Hecla Mining and worked with Echo Bay and Kennecott prior to that. Dr. Douglas Oliver – Atlanta Project Manager is a career geologist with 30 years experience in mineral exploration. He received his Bachelor’s degree in Geology from Rutgers University and has an MBA from the University of Texas at Austin and a PhD in Tectonics from Southern Methodist University. Doug is responsible for implementing the exploration program at the Atlanta Mine. Dr. Matt Ball – Geologist is a Qualified Person and a member of the Association of Professional Engineers and Geoscientists of British Columbia and the Society of Economic Geologists, USA and has 30 years international experience in exploration and operations geology. He was a semi‐finalist winner of the "Goldcorp Challenge" and subsequently employed by Goldcorp and the overall winner, Geoinfomatics Explorations Inc.
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Atlanta Gold & Silver Mine, Nevada
§ Atlanta is located in northeastern Lincoln County
§ Area is high desert with warm summers and cold, dry winters
§ Located 4.5 hours north of Las Vegas or 5 hours southwest of Salt Lake City
§ Ely and Pioche, Nevada, are the closest cities
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Atlanta Mine
Carlin-type Gold Deposits
Atlanta Project Infrastructure
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Land Ownership at Atlanta
§ Meadow Bay has staked and acquired over 600 claims within the Atlanta District and in the adjacent Limestone Hills including the former producing Atlanta Gold Mine
§ At present, Meadow Bay controls the entire Atlanta District with a total land position exceeding of 12,000 acres.
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Atlanta Land PosiJon
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Total Total Land Position as of 2/25/2012 ~12,000 acres
SchemaJc Block Diagram of Atlanta Geology
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Porphyry Discovery announced October 13, 2011 Geometry appears to be 400mx300mx60m
Gold MineralizaJon at Atlanta Gold mineralization is primarily hosted in silicified breccias with the Atlanta Fault
§ The Atlanta Fault zone separates Tertiary volcanic rocks from Paleozoic sedimentary rocks. It strikes to the north and dips steeply to the west.
§ The ~100’ wide breccia zone was repeatedly silicified and re-brecciated during mineralization.
§ Past mining focused on the shallow and higher-grade portions of the Atlanta Fault.
§ 1.5 million tons grading 3 g/t Au and 39 g/t Ag were mined. Recovery was by milling and agitated leach with cyanide.
§ A shallow igneous porphyry intrusive to the southwest of the historic open pit is a secondary un-mined target.
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Intrusive Porphyry-‐related MineralizaJon § A previously unrecognized intrusive porphyry occurs to the southwest of the historic Atlanta pit.
§ Gold and silver mineralization is both thicker and higher in grade around the margins of the intrusive.
§ Thick intercepts of gold mineralization have been found within the porphyry itself.
§ The geometry and extent of the intrusive have not yet been constrained. It is open to the north and west.
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Atlanta Porphyry
2.54 g/t Au
Atlanta Drilling Program
2011 plan concluded with 21 core holes and 18 RC holes for a total of 30,647 ft. of drillings.
§ Seven twinned core holes drilled in consultation with Gustavson Associates to evaluate the historic resource.
§ Ongoing in-fill drilling to the north and southwest of the former mine area to expand the resource base.
§ Step-out drilling further to the north where geophysics predicts the extension of the Atlanta structure.
§ Drilling of new exploration targets to the west and east in late 2012.
§ Complete assay results expected by April 2012.
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2011 Drill-‐hole LocaJons at the Atlanta Gold Mine Project with Surface ProjecJon of Cross-‐ SecJons
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2011 Drilling Highlights (Results as of Feb, 2012) Drill Hole Area Total Depth (m) From (m) To (m) Width (m) Au g/t Ag g/t
DHRC-‐11-‐01C Atlanta Pit 123.14 74.68 96.01 21.33 2.00 21.4
DHRC-‐11-‐03C Jasperoid Breccia West of Pit 170.99 150.88 170.69 19.81 2.52 52.8
DHRC-‐11-‐04C Margin of Quartz LaJte Porphyry 365.76 198.12 260.60 62.48 1.58 2.8
DHRC-‐11-‐04C Margin of Quartz LaJte Porphyry 269.75 301.75 32.00 0.79 29.7
DHRC-‐11-‐06C Quartz LaJte Porphyry 317.60 228.60 292.61 64.01 1.11 18.8
DHRC-‐11-‐07C Jasperoid Breccia NW of Pit 292.91 202.69 292.91 90.22 0.95 25.4
DHRC-‐11-‐09C Jasperoid Breccia SW of Pit 256.49 172.21 188.98 16.77 0.49 16.8
196.60 231.65 35.05 2.86 35.1
DHRC-‐11-‐10C Jasperoid Breccia South of Pit 160.93 76.20 114,30 38.10 1.80 24.0
DHRC-‐11-‐11C Quartz LaJte Porphyry 447.45 266.70 301.75 35.05 0.18 52.9
324.61 350.52 25.91 0.74 2.8
411.48 437.39 25.91 1.92 21.6
DHRC-‐11-‐10R Jasperoid Breccia South of Pit 144.78 108.23 129.57 21.34 1.75 11.4
DHRC-‐11-‐N02 Jasperoid Breccia NW of Pit 339.85 208.84 314.02 105.18 2.00 13.5
DHRC-‐11-‐N03 Quartz LaJte Porphyry 377.95 263.72 321.65 57.93 3.83 21.1
DHRC-‐11-‐N05 Quartz LaJte Porphyry 396.24 312.50 371.95 59.45 1.66 9.7
Cross-‐SecJon 99860N through Atlanta Porphyry
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Cross-‐SecJon 99500N through Atlanta Fault
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Reconnaissance ExploraJon Targets Exploration adjacent to the Atlanta Mine has discovered new target areas
§ Western Knolls / PEG – Large areas of silicified volcanic rocks occurs to the west of the Atlanta Mine.
§ Initial rock-chip samples contained anomalous gold and pathfinder elements
§ Target area was acquired by staking
§ Current exploration includes geologic mapping, soil sampling and geophysics
§ Limestone Hills – An area of altered sedimentary rocks in the next range to the east of the Atlanta Mine
§ Initial exploration revealed favorable alteration and old drill pads
§ Target area was acquired by staking
§ Current exploration includes geologic mapping and geochemical sampling
Drill Targetting areas in 2012
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Plans for Moving Forward
Work at the Atlanta Project is structured to efficiently move the project toward eventual production
§ Geophysics – IP survey over Atlanta Porphyry and Western Knolls
§ Definition Drilling – In-fill drilling on the Atlanta Porphyry
§ Metallurgy – Initial ore characterization by Kappes, Cassiday & Assoc.
§ GIS Database – Continued expansion of data base in conjunction with Sunrise Engineering (on–going)
§ Metallurgy – Initial ore characterization by Kappes, Cassiday & Assoc.
§ Exploration Drilling – Initial testing of new targets along the Atlanta Fault and in the Western Knolls
§ Resource Estimate – Creation of new NI 43-101 compliant resource estimate in conjunction with Gustavson Associates
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Atlanta Gold-‐Silver Mine Summary
§ Land position to in excess of 12,000 acres creating a district § Porphyry-hosted gold discovery announced in October 2011. § Past open pit production – 110,000 oz gold, 800,000 oz silver from 1.5
million tons.
§ Significant historic resource within existing pit area consisting of 338,520 indicated and 125,959 inferred ozs gold, respectively, plus silver credit drilled by Kinross in 1990’s.
§ Offers excellent resource expansion potential
§ No environmental or cultural restrictions on open pit mining – existing infrastructure includes 3-phase electricity to the mine, roads and abundant water
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Capital Structure
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Post Acquisition and Initial Offering: Common Shares Issued 43,993,994 Warrants @ $1.00 929,213 Recent Price $1.48* Market Cap $ 65 Million
MAY trades on TSX and OTC-QX ($US) * As of Feb. 29, 2012.
Contact InformaJon Meadow Bay Gold Corporation Robert Dinning, Chairman & CEO 300 – 905 West Pender Street Vancouver BC Canada V6C 1L6 Tel +1-604-641-4450 Fax +1-855-557-462
Email: [email protected]
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Danny Gravelle Investor Relations 1-949-481-5396
Appendix
Supplemental Information on the Atlanta Project
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History of Gold Exploration at Atlanta
§ Gold was discovered in the Atlanta Mining District in the 1860s. Intermittent exploration is conducted over the next 100 years.
§ Standard Slag / Bobcat JV puts Atlanta in production from 1975 to 1985. The 800 tpd mill produced 110,000 ounces of gold and 800,000 ounces of silver from 1.5 million tons of ore
§ Gold Fields Resources options the project from 1990 to 1991. Conducts geochemical sampling, geophysics and drills 56,021’ in 82 core and RC holes.
§ Kinross Gold options the project from 1997 to 1998. Drills 54,225’ in 80 RC holes and conducts a resource estimate. The historic resource comprises 6.2 million tons indicated grading 0.054 opt Au and 3.0 million tons inferred grading 0.041 opt Au at 0.02 opt cut off grade for 338,520 and 125,959 contained ozs Au, respectively, plus silver credits.
§ Meadow Bay acquires the project in March 2011 - expands claim position
§ Meadow Bay discovers gold porphyry Fall 2011
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Gold Price During Recent History at Atlanta
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Silicified Fault Breccia
Overlying Volcanics Underlying
Dolomite /Limestone
High grade
60 ‘ benches
Looking South at Main Deposit Pit Wall
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North Extension of Deposit Looking Northeast
Hangingwall Volcanics Silicified Breccia
(110’ thick)
Overlying Alluvial Gravels
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Atlanta Infrastructure
Existing infrastructure facilitates both exploration and eventual production at the Atlanta project § County maintained roads link the project with both Ely and Pioche
§ A 15 mile electrical power line is operational to the site. A local substation provides 3-phase electricity adequate for all needs.
§ A private water well 8.5 miles to the west in Lake Valley delivers water to the project via a 6” water pipeline. Water rights are adequate to support eventual production.
§ A telephone land line provides both voice and data to the project site.
§ A 48’ X 60’ modular building has be purchased to provide crew quarters during the exploration phase. The building can be re-configured to serve as a future mine office.
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