Atlantic Gold Corporation
TSX VENTURE : AGB
ASX : AGB

Atlantic Gold Corporation

February 25, 2015 08:00 ET

Atlantic Gold Announces Final Assay Results From Beaver Dam Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 25, 2015) - Atlantic Gold Corporation (TSX VENTURE:AGB)(ASX:AGB) ("Atlantic" or the "Company") is pleased to announce assay results from the remaining 15 holes of its 38-hole, 8,076m resource delineation diamond drilling program at the Company's Beaver Dam Gold Project in Nova Scotia. Assays from all holes have now been returned.

This drilling was directed to defining resource extensions over 550m strike length on 50m-spaced sections (650E to 1,200E) beneath the resources drilled by the previous owner, Acadian Mining Corporation, now a wholly owned subsidiary of the Company. The drilling has extended the known mineralization to depth, as expected, and expects to identify additional resources. A revised resource estimate incorporating results of this drill program has commenced and will be announced upon completion.

Assay results for these remaining 15 holes are presented in the table below. Associated cross-sections from 650E to 1200E as well as the drill plan, which highlights drill hole collar locations, will be posted on the Company's website (www.atlanticgoldcorporation.com) in due course:

Hole East North Dip Grid Az. Depth Best Assays*
From (m) To (m) Width (m) Grade (g/t Au)
BD14-173 1050 1125 -60° 180° 254 153 160 7 1.36
177 187 10 0.78
BD14-177 900 1135 -60° 180° 191 139 149 10 1.05
BD14-178 1100 1175 -60° 180° 281 194 221 27 2.9
227 236 9 2.3
BD14-179 950 1180 -60° 180° 248 182 186 4 1.08
200 213 13 2.4
218 222 4 4.6
BD14-180 1100 1200 -60° 180° 290 253 280 27 2.3
BD14-181 1150 1100 -45° 180° 162 106 139 33 1.6
154 157 3 1.29
BD14-182 1100 1100 -60° 180° 191 124 125 1 81.9
129 130 1 3.35
147 175 28 1.19
BD14-183 1150 1150 -60° 180° 251 194 233 39 1.63
BD14-184 1050 1175 -60° 180° 285 201 220 19 1.25
229 238 9 0.67
242 248 6 0.81
BD14-186 1200 1105 -60° 180° 215 143 144 1 4.13
160 185 25 1.22
BD14-187A 1200 1175 -60° 180° 278 218 224 6 0.52
228 252 24 0.61
260 265 5 1.32
BD14-188 1150 1125 -60° 180° 212 158 196 38 1.44
BD14-189 1200 1135 -60° 180° 242 181 200 19 0.56
BD14-190 650 1100 -60° 180° 110 55 63 8 6.8
70 71 1 5.24
BD14-191A 650 1116 -65° 180° 140 90 105 15 1.12
*0.5g/t cut-off, max 3m internal dilution. 50.0g/t top cut for composite interval calculations over 1m.

All assays are on 1m samples of half NQ core sawn and sampled with formally randomized selection of halves, 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 were acceptable.

True width of the mineralization is approximately 75% of the down-hole width.

Results are generally in line with expectations and provide encouragement that this drilling program expects to convert inferred resources into the measured or indicated categories and identify additional resources. The current resource estimate for Beaver Dam titled "NI 43-101 Technical Report Preliminary Economic Assessment Nova Scotia Canada dated October 14, 2014" ("PEA"), filed on October 17, 2014, included inferred resources which required additional infill drilling for potential conversion to the measured or indicated categories. The Company is preparing an updated report in accordance with NI 43-101 which will incorporate the results from this drill program to provide an updated resource estimate for Beaver Dam. The updated resource estimate will be utilized in a new Feasibility Study which is also being prepared with targeted completion by mid-2015. The PEA showed the extraction of approximately six million tonnes of mill feed from the satellite Beaver Dam pit to be transported 35 kilometers to the Touquoy mill for processing, extending the life of the operation at Touquoy by three years after the Touquoy pit is exhausted following five years of mining.

The individual drill hole assay results underlying the mineralized intercepts listed in the table above have been verified by detailed checking against the original assays sheets. The lengths and average grades of each intercept have also been checked against the drill hole assay logs.

Geotechnical data for pit design have also been documented for a series of specified drill holes – four resource delineation drillholes and eight dedicated geotech drillholes – all of which have now been completed.

The Beaver Dam deposit is known to be truncated on the east by the NW-striking Mud Lake Fault. From high resolution aeromagnetic data it appears the host stratigraphy on the eastern side of the Mud Lake Fault has been offset about 1.5km to the northwest. Several diamond holes will be drilled to test this apparently offset position as soon as the appropriate land access permission has been obtained.

Neil Schofield MS – Applied Earth Sciences, MAusIMM, MAIG, an independent consultant 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.

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.

Forward-Looking Statements:

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 transactions contemplated in this news release and the timing and receipt of requisite regulatory, court and shareholder approvals in respect thereof. 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, certain transactions, the successful completion of the transaction, the timing and receipt of certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration 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) the receipt of necessary consents and approvals and satisfaction of all conditions precedent for the closing of the transaction in a timely manner; (2) market fundamentals will result in sustained gold demand and prices; (3) the receipt of any necessary approvals and consents in connection with the development of any properties; (4) the availability of financing on suitable terms for the development, construction and continued operation of any mineral properties; and (5) 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, 2013 and the quarter ended September 30, 2014 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, we are 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.

Contact Information

  • Atlantic Gold Corporation
    John Morgan
    President and COO
    +1 604 689-5564

    Atlantic Gold Corporation
    Wally Bucknell
    Director
    +61 2 9410 0993
    www.atlanticgoldcorporation.com