Atlantic Gold Corporation
TSX VENTURE : AGB
ASX : AGB

Atlantic Gold Corporation

February 02, 2015 08:00 ET

Atlantic Gold Issues Quarterly Activities Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 2, 2015) - Atlantic Gold Corporation (TSX VENTURE:AGB)(ASX:AGB) ("Atlantic" or the "Company"). Earlier today, the Company filed its Quarterly Activities Report (the "Quarterly Report") on the Australia Securities Exchange ("ASX"). Under ASX rules, the Company is required to file a quarterly activities report, which is due one month after the Company's most recent fiscal quarter-end date.The Quarterly Report is available for review on the ASX (www.asx.com.au) and on the Company's website (www.atlanticgoldcorporation.com).

In December, 2014, the ASX approved the Company's application to de-list from the ASX, and is expected to be officially de-listed on March 6, 2015. As such, the Company does not expect to file these reports in the future.

A summary of the update on activities outlined in the Quarterly Report follows.

OVERVIEW

Since publishing its interim financial statements and MD&A for the period ending September 30, 2014 the Company has undertaken the following:

  • Completion of a 36-hole, 7,826m resource delineation diamond drilling program at the Company's Beaver Dam Gold Project;
  • Following the delivery of a Preliminary Economic Analysis in September 2014, the Company has continued with technical work in preparation for delivery of a Feasibility Study as well as environmental impact assessment and permitting, including:
    • Engaging Ausenco Canada Inc., FSSI International Consultants Pty Ltd. and Moose Mountain Technical Services to lead the preparation of the Company's Feasibility Study, which the Company expects to complete in mid-2015;
    • Regulatory consultation, planning, scoping and initial environmental fieldwork related to the Beaver Dam Project, using Conestoga, Rovers & Associates as lead consultants;

BEAVER DAM DRILLING PROGRAM

As noted above, in December 2014, the Company completed a 36-hole, 7,826m resource delineation diamond drilling program at the Company's Beaver Dam Gold Project.

The 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. Geotechnical data for pit design are also being documented for a series of selected resource delineation drill holes and dedicated geotechnical drill holes, and this drilling has also been completed.

Assay results for the first nine holes are presented in the table below. Accompanying cross-sections on 700E, 750E, 800E and 850E as well as the drill plan, which highlights drill hole collar locations, can be located on the Company's website (www.atlanticgoldcorporation.com):

Best Assays*
Hole East North Dip Grid Az. Depth From
(m)
To
(m)
Width
(m)
Grade
(g/t Au)
BD14-154 700 1135 -60° 180° 161 94 112 18 4.1
includes 110 111 1 353
116 120 4 0.82
BD14-155 750 1095 -60° 180° 173 47 74 27 1.00
78 91 13 1.28
BD14-156 750 1120 -60° 180° 158 89 96 7 3.81
BD14-157 750 1140 -60° 180° 170 110 116 6 0.57
BD14-158 850 1100 -60° 180° 140 88 96 8 3.13
104 110 6 1.18
BD14-159A 800 1105 -60° 180° 122 75 76 1 6.42
83 88 5 14.7
99 104 5 0.89
BD14-160 850 1125 -60° 180° 170 100 104 4 3.91
120 132 12 1.93
145 148 3 6.4
BD14-161 850 1150 -60° 180° 194 153 165 12 2.0
BD14-163 900 1160 -60° 180° 221 167 178 11 0.98
* 0.5g/t cut-off, max 3m internal dilution. 50.0g/t top cut for composite interval calculations.

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.

The Company incurred a total of $1.8 million on exploration and development activities in the three month period ended December 31, 2014.

PROJECT UPDATE AND NEXT STEPS

Work on the Feasibility Study is in progress with the assistance of Ausenco Canada Inc., FSSI International Consultants Pty. Ltd and Moose Mountain Technical Services as the principal consultants to complete the Feasibility Study.

The Company anticipates the receipt of assay results from the remaining 27 unreported holes in the coming weeks, at which time the Company will make announcements as required. In addition, the Company is undertaking further metallurgical testwork at Beaver Dam to confirm the initial indications that Beaver Dam mill feed will meet the expected recovery levels as it is run through the Touquoy plant.

The completion of the drilling and metallurgical testwork will provide the geological and other important data that is be required to complete the Feasibility Study.

Environmental work is also in progress with various studies and the collection of base line data at Beaver Dam and Cochrane Hill as part of the process required to facilitate the receipt of the necessary environmental approvals.

As part of this process, discussions with stakeholders including Provincial and Federal agencies which have, or may have, a permitting and approval role in the development of Beaver Dam and Cochrane Hill is also in progress. Additionally discussions with the First Nations group in Nova Scotia, the Mi'kmaq, have also begun building on the Memorandum of Understanding that was signed with them in May of 2014 working toward the signing of a Mutual Benefits Agreement.

NI 43-101 QUALIFIED PERSON - Neil Schofield, MS Applied Earth Sciences, MAusIMM, MAIG, a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this report.

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 DISCLOSURE

This report contains "forward-looking statements". Forward-looking statements include, but are not limited to, statements with respect to the Company's current review of potential mineral project investments and/or acquisitions, the estimation of mineral resources, the timing and content of upcoming programs, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; actual results of planned expansion activities; changes in project parameters as plans continue to be refined; future prices of resources; exchange rates for Canadian and U.S. currencies; possible variations in grade or recovery rates, accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. In making the forward-looking statements in this report, the Company has made certain key assumptions, including, but not limited to, the assumptions that merited mineral assets or projects can be acquired and financings are available. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements or information made in this report, except as required under applicable securities legislation.

Contact Information

  • Atlantic Gold Corporation
    Steven Dean
    Executive Chairman
    +1 (604) 689-5564

    Atlantic Gold Corporation
    John Morgan
    President and CEO
    +1 (604) 689-5564

    Atlantic Gold Corporation
    Wally Bucknell
    Director
    Sydney, Australia
    +61 2 9410 0993