Atlantic Gold Corporation
TSX VENTURE : AGB
ASX : AGB

Atlantic Gold Corporation

February 06, 2015 08:00 ET

Atlantic Gold Announces Second Set of Assay Results From Beaver Dam Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 6, 2015) - Atlantic Gold Corporation (TSX VENTURE:AGB)(ASX:AGB) ("Atlantic" or the "Company") is pleased to announce assay results from the next 14 holes of its 36-hole, 7,826m resource delineation diamond drilling program at the Company's Beaver Dam Gold Project in Nova Scotia. Assays from 23 holes have now been returned.

This drilling was directed to defining resource extensions over 500m strike length on 50m-spaced sections (700E to 1,200E) beneath the resources drilled by the previous owner, Acadian Mining Corporation, now a wholly owned subsidiary of the Company. The drilling is therefore expected to extend the known mineralization to depth and identify additional in-pit resources.

Assay results for the most recent 14 holes are presented in the table below. Associated cross-sections from 800E to 1150E as well as the drill plan, which highlights drill hole collar locations, will be posted on the Company's website in due course (www.atlanticgoldcorporation.com):

Best Assays*
Hole East North Dip Grid Az. Depth From
(m)
To
(m)
Width
(m)
Grade
(g/t Au)
BD14-162 800 1150 -60° 180° 182 no significant assays
BD14-164 1000 1165 -60° 180° 251 174 175 1 5.04
191 221 30 1.38
BD14-165 950 1115 -60° 180° 185 107 125 18 3.5
130 132 2 2.92
138 158 20 1.3
BD14-166 1000 1140 -60° 180° 221 160 173 13 1.11
183 199 16 7.1
204 206 2 2.84
BD14-167 950 1145 -60° 180° 212 154 161 7 2.25
179 187 8 1.13
BD14-168 1000 1115 -60° 180° 218 117 118 1 3.17
151 161 10 0.83
BD14-169 1050 1150 -60° 180° 269 171 185 14 1.54
214 220 6 1.62
BD14-170 1045 1087 -60° 180° 173 113 120 7 1.24
129 135 6 0.52
139 144 5 4.44
BD14-171 1050 1105 -60° 180° 212 122 124 2 1.92
135 136 1 5.01
144 163 19 1.32
BD14-172 700 1165 -60° 180° 180 114 119 5 1.29
142 152 10 2.40
BD14-174 1098 1080 -60° 180° 149 80 91 11 3.3
95 117 22 1.6
121 125 4 1.00
BD14-175 800 1125 -60° 180° 149 93 97 4 1.11
103 104 1 36.7
113 114 1 10.6
124 125 1 66.4
129 133 4 1.45
BD14-176 1100 1150 -60° 180° 263 173 177 4 1.73
181 190 9 2.15
194 223 29 1.37
BD14-185 1150 1175 -60° 180° 284 214 218 4 1.19
222 225 3 2.04
232 244 12 1.33
251 271 20 0.98

*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 will enable identification of additional in-pit resources.

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.

With significant mineralization intersected on the westernmost section drilled (700E) two additional holes (BD14-190 and 191A for 250m) have now been drilled further west on 650E to test for further extensions westwards. Results on these assays are pending.

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