VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 6, 2016) – Atlantic Gold Corporation (TSX VENTURE:AGB) (“Atlantic” or the “Company”) is pleased to report the first assay results received from the resource definition diamond drilling program being undertaken at its Cochrane Hill Gold Project in Nova Scotia, Canada.
Cochrane Hill is a key gold deposit located near the Company’s Moose River Consolidated (MRC) project with gold resources of 251,000 ounces of gold in 4.5 million tonnes @ 1.8 g/t in the Indicated category and 298,000 ounces of gold in 5.6 million tonnes @ 1.6 g/t in the Inferred category, but not yet included in the MRC life of mine plan.
A 2014 Preliminary Economic Assessment entitled “NI 43-101 Technical Report Preliminary Economic Assessment Nova Scotia, Canada” dated October 14, 2014 indicated that both total life of mine gold production and annual production could be significantly increased at MRC. The technical report can be viewed here.
These results support and continue to define a fairly discrete, tabular, 70° south-dipping zone of disseminated mineralization having a true width of approximately 25m in this part of the deposit.
Two drilling rigs are presently in operation with 9500m in 67 holes having now been drilled. This first phase of drilling will be completed by year-end with the final, second phase to be completed in early 2017.
The accompanying cross section and drill progress plan can be viewed here: http://media3.marketwire.com/docs/agb_map.pdf
Atlantic Gold Chairman and CEO Steven Dean commented, “We continue to demonstrate success in our new look at the style of mineralization in the Meguma in Nova Scotia. This program is confirming consistent wide zones of mineralization at open pit grades with the combination of the traditional quartz veins and the disseminated shale host mineralization amenable to open pit mining at relatively low strip ratios.“
Initial Results of the 2016 infill drilling are tabulated below:
|Hole No.||Northing||Easting||Dip||Az.||Depth (m)||Significant Assays – (≥ 0.5g/t gold and up to 3m internal dilution)|
|From (m)||To (m)||Width(m)||Grade (g/t Au)|
|*Hole abandoned in underground workings|
|**50g fire assay on pulverised whole-sample (to be screen fire assayed).|
|Except where noted all assays are screen fire assays of whole-sample pulverised half-sawn NQ core|
|Hole numbering resumes from CH-09-047 (i.e. CH-16-048 is the first hole drilled in this program)|
The objective of this diamond drilling program is to bring the resources at the Company’s Cochrane Hill deposit to measured and indicated status and thereby adding to the existing mine life at MRC.
The current resource estimate for Cochrane Hill is tabulated below:
|Category||Tonnes (millions)||Grade (g/t) Au||Contained Au (oz.)|
|Resources that are not reserves do not have demonstrated economic viability|
The Mineral Resource estimate for Cochrane Hill is quoted at a cut-off grade of 0.5g/t. It has an effective date of August 1, 2014 and was prepared as part of a technical report in accordance with NI 43-101 by Mr. Neil Schofield, a principal of FSSI (Australia) Pty Ltd, released on August 14, 2014 on SEDAR.
Elsewhere, at the Company’s Fifteen Mile Stream Gold Project, drilling is about to commence and the first hole has now been completed on a regional exploration target, the Plenty prospect, located just to the south of Fifteen Mile Stream.
Results and updates from these drilling programs will be reported progressively.
All assays are on 1m samples of sawn, half NQ core and assayed by total sample screen fire assay with 2x fines fire assays, and insertion of standards and blind blanks. Sample preparation and assaying is conducted at the Sudbury and Vancouver laboratories of ALS Canada Ltd, an entity having no other relationship with the Company. Core recovery is estimated for each metre and averages >98%. Standards and blanks assay results are acceptable.
True width of the mineralization is approximately 80% of the down-hole width.
The individual drill hole assay results underlying the mineralized intersections listed in the table above have been verified by detailed checking against the original assays sheets. The lengths and average grades of each intersection have also been checked against the drill hole assay logs.
Wally Bucknell, Director of Exploration to the Company and a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”) has reviewed and approved the contents of this news release.
Further updates will be provided in due course.
On behalf of the Board of Directors,
Steven Dean, Chairman and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements and information are not historical facts, are made as of the date of this press release, and include, but are not limited to, statements regarding discussions of future plans, guidance, projections, objectives, estimates and forecasts and statements as to management’s expectations with respect to, among other things, the activities contemplated in this news release and the timing and receipt of requisite regulatory, and shareholder approvals in respect thereof. Forward-looking statements in this news release include, without limitation, statements related to proposed exploration and development programs, grade and tonnage of material and resource estimates. These forward looking statements involve numerous risks and uncertainties and actual results may vary.
Important factors that may cause actual results to vary include without limitation, the timing and receipt of certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration estimates and results, timing and success, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), changes in development or mining plans due to changes in logistical, technical or other factors, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third party contractors, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. In making the forward-looking statements in this press release, the Company has applied several material assumptions, including without limitation, the assumptions that: (1) market fundamentals will result in sustained gold demand and prices; (2) the receipt of any necessary approvals and consents in connection with the development of any properties; (3) the availability of financing on suitable terms for the development, construction and continued operation of any mineral properties; and (4) sustained commodity prices such that any properties put into operation remain economically viable. Information concerning mineral reserve and mineral resource estimates also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. Certain of the risks and assumptions are described in more detail in the Company’s audited financial statements and MD&A for the year ended December 31, 2015 and for the quarter ended September 30, 2016 on the SEDAR website at www.sedar.com. The actual results or performance by the Company could differ materially from those expressed in, or implied by, any forward-looking statements relating to those matters. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Except as required by law, the Company is under no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.