Atlantic Gold Corporation
TSX VENTURE : AGB
ASX : AGB

Atlantic Gold Corporation

November 03, 2014 09:34 ET

Atlantic Gold Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 3, 2014) - 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"). The Quarterly Report is available for review on the ASX (www.asx.com.au) and on the Company's website (www.atlanticgoldcorporation.com).

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 June 30, 2014 the Company has met a number of corporate and development milestones:

  • Announced and completed the acquisition of Acadian Mining Corporation ("Acadian") from LionGold Mining Canada Inc. and made significant progress in integrating the operations of both Acadian and Atlantic Gold NL ("NL");
  • Completed and filed a Preliminary Economic Assessment ("PEA") analyzing two potential development cases in respect of the Company's Touquoy, Beaver Dam and Cochrane Hill Gold Projects. The PEA is available for review on the Company's website and at www.sedar.com;
  • Continued 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;
    • Commencing a resource definition drilling program of approximately 4,500-5,000 metres at the Beaver Dam Project, expected to be completed by the end of the year;
    • Planning for a resource definition drilling program at the Cochrane Hill Project of approximately 6,000 -7,000 metres expecting to commence in early 2015;
    • Regulatory consultation, planning, scoping and initial environmental fieldwork related to the Beaver Dam Project;
  • Recently hosted a number of institutional analysts, as well as major shareholders and potential project financing institutions on site visits to the Company's project sites in Nova Scotia;
  • The Company's cash position at September 30, 2014 is $21,034,000.

PROJECT UPDATE AND NEXT STEPS

As noted above, the key technical consultants have been engaged and work on the Feasibility Study is underway. Drilling at Beaver Dam has commenced and drilling at the Cochrane Hill Project is expected to commence in the New Year. No additional drilling or significant technical work is being undertaken in respect of the Touquoy Project given all major permits are already in place.

In addition, as the production plan in the Company's Preliminary Economic Assessment assumes that material from Beaver Dam will be trucked approximately 37km and processed at the Touquoy plant, further metallurgical testwork will be completed 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. Additional testwork will also be undertaken on Cochrane Hill, which will have its own plant facility to produce concentrate, to further optimize the gravity / flotation process, provide design data for the plant and to confirm recoveries expected in the Touquoy leach 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 has also commenced starting 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 the environmental and permitting 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 has also commenced. In addition, discussions with the Nova Scotia Mi'kmaq have also begun, building on the Memorandum of Understanding that was signed with them in May of this year, working toward the execution of a Mutual Benefits Agreement.

CAPITAL MARKETS, PROJECT FINANCING AND STAKEHOLDER ACTIVITIES

As noted above, the Company recently hosted site visits for institutional analysts, certain significant shareholders and potential project finance providers. Over the coming months, the Company's objectives with respect to expanding its capital markets and project financing activities, include:

  • Hiring of an investor relations professional or firm to lead the Company's marketing initiatives;
  • Initiation of research analyst coverage by financial institutions active in the mining space;
  • Attendance at major industry conferences;
  • Retail and institutional investor roadshows and one on one meetings;
  • Ongoing review, due diligence and negotiation related to potential project financing.

Further updates will be provided in due course.

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, other than in respect of the Fifteen Mile Stream deposit (see above).

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