SOURCE: ATAC Resources Ltd.

ATAC Resources Ltd.

October 23, 2017 07:30 ET

ATAC Resources Ltd. Intersects Near-Surface, High-Grade Oxide and Sulphide Gold Mineralization at the Tiger Gold Deposit

VANCOUVER, BC--(Marketwired - October 23, 2017) - ATAC Resources Ltd. (TSX VENTURE: ATC) is pleased to announce the results of 12 diamond drill holes from the Tiger Gold Deposit and Tiger East Anomaly, within ATAC's 100% owned Rau Project at the Rackla Gold Property, Yukon. The Rau Project is located at the west end of the Rackla Gold Property and is wholly outside of the area currently under option to Barrick Gold Corporation.

The 2017 drilling program at the Tiger Gold Deposit focused on testing for additional high-grade gold mineralization in order to expand known sulphide and oxide resources within and adjacent to the proposed open pit as defined in the 2016 Preliminary Economic Assessment (PEA).

Highlights

  • High-grade oxide mineralization at the Tiger Gold Deposit was extended to the east with 51.82 m of 5.66 g/t gold intersected in hole RAU-17-159;
  • Hole RAU-17-156 intersected 56.77 m of 4.08 g/t gold and confirms sulphide grade and continuity;
  • Hole RAU-17-154 extends sulphide mineralization to the west with an intersection of 64.01 m of 2.46 g/t gold; and,
  • Discovery of new oxide gold mineralization from the Tiger East Anomaly where hole RAU-17-160 intersected 21.34 m of 2.59 g/t gold.

"These high-grade results confirm both the continuity of gold mineralization and the potential to increase the value at the Tiger Gold Deposit. These results reinforce ATAC's commitment to advance Tiger through feasibility and permitting," states ATAC's President and CEO, Graham Downs. "The 2017 drilling was designed to build upon positive results from the Company's updated 2016 PEA which demonstrated that sulphide gold mineralization, previously classified as waste in the 2014 PEA, could be processed to increase the deposit's recoverable ounces of gold."

  
 Tiger Gold Deposit Diamond Drill Results
                    
Drill Hole  From
(m)
 To
(m)
 Interval*
(m)
 Au
(g/t)
 Gold**
(g x m)
 Type
                   
RAU-17-151  4.57  65.76  61.19  1.32  81  Sulphide
incl.  4.57  9.54  4.97  5.01  25  Oxide
                   
RAU-17-152  13.72  50.29  36.57  2.02  74  Sulphide
                   
RAU-17-153  1.79  41.15  39.36  2.41  95  Sulphide
incl.  24.38  38.10  13.72  4.46  61   
                   
RAU-17-154  42.67  106.68  64.01  2.46  158  Sulphide
incl.  94.49  103.63  9.14  5.29  48   
                   
RAU-17-155  6.10  53.64  47.54  1.73  82  Sulphide
                   
RAU-17-156  49.63  106.40  56.77  4.08  232  Sulphide
incl.  49.63  67.06  17.43  6.06  106   
and incl.  94.49  103.63  9.14  8.07  74   
                   
RAU-17-157  42.13  79.25  37.12  5.23  194  Sulphide
incl.  50.29  59.97  9.68  11.35  110   
and  94.49  127.59  33.10  2.80  93  Sulphide
                   
RAU-17-158  46.32  61.57  15.25  4.61  70  Sulphide
and  76.81  121.01  44.20  1.03  45  Sulphide
                   
RAU-17-159  30.48  82.30  51.82  5.66  293  Oxide
incl.  70.10  82.30  12.20  13.54  165   
*The reported intersections are drilled thicknesses and are believed to represent approximately 80 to 100% true widths.
**Gram metres are calculated by multiplying the gold grade (g/t) by the interval (m) and rounding to the nearest integer.
              

Please see ATAC's website www.atacresources.com for cross-sections and an updated Tiger Deposit plan map.

TIGER GOLD DEPOSIT GEOLOGY AND MINERALIZATION

The Tiger Deposit is an intrusion-related carbonate replacement style gold deposit. The mineralization is hosted within a moderately northeast dipping carbonate horizon located within a folded series of stacked limestone and volcaniclastic horizons. Gold mineralization occurs within both oxide and sulphide facies.

Tiger Sulphide Mineralization

Tiger sulphide mineralization is developed within ferruginous dolomite and iron carbonate minerals replacing the host limestone horizon. The sulphide zone exhibits at least three stages of mineralization consisting of disseminated to banded pyrite and arsenopyrite with subordinate pyrrhotite, bismuthinite, sphalerite and scheelite.

Drilling of the sulphide portion of the Tiger Deposit in 2017 was designed to confirm grade and continuity of the sulphide resources and expand the areas of known sulphide mineralization. Eight drill holes targeted sulphide gold mineralization and all returned significant mineralized intercepts.

Drill holes RAU-17-151 through 156 targeted mineralization along the western edge of the existing sulphide resource, while holes 157 and 158 were drilled to add confidence to sulphide grade. RAU-17-156 returned 56.77 m of 4.08 g/t gold including 9.14 m of 8.07 g/t gold with the three phases of sulphide mineral development present in the hole. This hole demonstrates the continuous, high-grade potential of the sulphide mineralization where previous drilling was widely spaced.

Tiger Oxide Mineralization

Oxide mineralization at the Tiger Deposit is completely devoid of sulphide minerals and ranges from very competent, weakly porous limonitic mud to rubbly porous limonitic grit. Complete oxidation extends from surface down to depths exceeding 250 m where cross faulting has facilitated the circulation of groundwater at depth.

Hole RAU-17-159 targeted near-surface oxide mineralization on the eastern side of the Tiger Deposit and returned a high-grade intersection of 51.82 m of 5.66 g/t gold.

Tiger East Anomaly

Prospecting in 2016 of an underexplored gold-in-soil geochemical anomaly returned numerous samples with significant gold-in-rock values. Ten out of 21 oxide float composite grab samples collected over a 150 m long area at the Tiger East Anomaly returned values greater than 1 g/t gold with the most notable sample returning 18.30 g/t gold.

  
 Tiger East Anomaly Diamond Drill Results
  
Drill Hole  From
(m)
 To
(m)
 Interval*
(m)
 Au
(g/t)
 Gold**
(g x m)
 Type
                   
RAU-17-160  9.14  30.48  21.34  2.59  55  Oxide
incl.  27.43  30.48  3.05  9.97  30   
                   
RAU-17-161  No significant intersections
*Based on the character of the mineralization and the limited drilling, it is not possible to determine the true width of the intersections at this time.
**Gram metres are calculated by multiplying the gold grade (g/t) by the interval (m) and rounding to the nearest integer.
    

Three drill holes targeted the Tiger East Anomaly in 2017. RAU-17-160 returned 21.34 m of 2.59 g/t gold including 3.05 m of 9.97 g/t gold within a strongly oxidized interval of dolomitized limestone. Hole RAU-17-161 was drilled outside the apparent alteration and mineralized zone while RAU-17-162 was terminated short of its target due to mechanical issues with the drill. Future drilling is warranted at Tiger East.

Additional prospecting and mapping was conducted in 2017 near the Tiger Deposit and throughout the Rau Project. Results from this program are pending.

TIGER DEPOSIT RESOURCES AND ECONOMICS

ATAC has explored the Tiger Deposit since 2008, and has defined a combined oxide and sulphide resource comprising measured and indicated resources of 485,700 oz gold (5,680,000 tonnes grading 2.66 g/t gold) and inferred resources of 188,500 oz gold (3,230,000 tonnes grading 1.81 g/t gold). Mineral resources are reported at a 0.5 g/t cut-off in oxides and 1.0 g/t cut-off in sulphides.

An updated PEA was completed on the Tiger Deposit in 2016, with a pre-tax NPV (5%) of $105.5M, an IRR of 34.8%, and a payback period of less than 2 years, with a total production of 302,000 ounces of gold (see ATAC news release dated May 31, 2016).

ATAC is currently in the process of permitting a private 65 km all-season tote road from the existing Yukon highway network near Keno City to the Tiger Deposit.

                
Tiger Deposit Combined Oxide and Sulphide Resources
                
Type  
 
Classification  
 
Au Cut-off (g/t)  
 
Tonnes > Cut-off  Grade > Cut-off  Contained Metal
 Au (g/t)  Ag (g/t)  Au (oz)  Ag (oz)
Oxides  Measured  0.5  2,600,000  3.1  4.77  259,100  398,700
 Indicated  0.5  1,720,000  2.47  4.1  136,300  226,700
Sulphides  Indicated  1  1,360,000  2.07  0.56  90,300  24,500
Total  M+I     5,680,000  2.66  3.56  485,700  649,900
Oxides  Inferred  0.5  280,000  1.52  5.67  13,700  51,000
Sulphides  Inferred  1  2,950,000  1.84  0.47  174,800  44,600
Total  Inferred     3,230,000  1.81  0.92  188,500  95,600
               

QA/QC

Diamond drill samples were forwarded to ALS Minerals in Whitehorse, Y.T. or North Vancouver, B.C. where they were fine crushed before a 250 gram split was pulverized to better than 85% passing 75 microns. The pulverizing circuit was cleaned with quartz sand twice between samples. Pulps were then analyzed at ALS Minerals in North Vancouver, B.C. where gold determinations were carried out. Splits of the pulverized fraction were dissolved using a multi acid digestion and analyzed for 49 elements using inductively coupled plasma (ICP) together with mass spectrometry (MS) and atomic emission spectroscopy (AES). Gold analyses were by the Au-AA26 procedure that involves fire assay preparation using a 50 gram charge with an atomic absorption spectroscopy (AAS) finish. Mercury analyses were digested with aqua regia and analyzed by inductively coupled plasma mass spectrometry (ICP-MS).

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream of diamond drill samples to ensure integrity of the assay process. All diamond drill samples included in this news release have passed the QA/QC procedures as described above.

PEA Disclosure

It should be noted that the Tiger Deposit PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA forecast will be realized or that any of the resources will ever be upgraded to reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Additional information about the Tiger Deposit PEA is summarized in ATAC's May 31, 2016 technical report titled "Technical Report and Preliminary Economic Assessment for the Tiger Deposit, Rackla Gold Project, Yukon, Canada" which can be viewed at www.sedar.com under the ATAC profile or on the ATAC website at www.atacresources.com.

The 2017 program was managed by Archer, Cathro & Associates (1981) Limited (Archer Cathro). Technical information in this news release has been approved by Matthew R. Dumala, P. Eng., a geological engineer with Archer Cathro and qualified person for the purpose of National Instrument 43-101.

About ATAC

ATAC is a Yukon-based exploration company focused on developing Canada's only Carlin-type gold district at the Rackla Gold Property. Recent work on the ~1,700 km2 property has resulted in a positive Preliminary Economic Assessment for the Tiger Gold Deposit, drilling of multiple high-grade Carlin-type gold zones and the identification of numerous early-stage gold exploration targets. ATAC and Barrick recently partnered to explore the Rackla Gold Property's Orion Project, with Barrick having the option to earn up to 70% of Orion by spending $55 million in exploration. ATAC is well-financed with approximately $14 million in its treasury and has recently completed a budgeted $10 million exploration program at the Osiris and Rau Projects (which are not subject to Barrick's earn-in right), while concurrently working with Barrick to advance the Orion Project.

On behalf of the Board of Directors
of ATAC Resources Ltd.

Graham Downs, President and CEO

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 NEWS RELEASE.

Contact Information

  • For further information, please contact:
    Vanessa Pickering, Manager, Corporate Communications
    ATAC Resources Ltd.
    T: 604-687-2522 ext. 260
    info@atacresources.com