VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 3, 2017) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from a further 21 holes of the resource definition diamond drilling program ongoing at its Fifteen Mile Stream Gold Project in Nova Scotia, Canada. Fifteen Mile Stream is a key gold deposit not yet included in the Life of Mine Plan (LOM) for the Moose River Consolidated (MRC) gold project which is currently under construction. The project has reached overall completion of 50% and is on target for start up in September 2017. Fifteen Mile Stream is located approximately 57km northeast of the central milling facility at Touquoy and accessible by highway. Fifteen Mile Stream's current inferred mineral resources is 11.72 million tonnes at 1.55 g/t Au for 584,000 oz. Bringing the resource to the higher confidence level of measured and indicated status is an important next step to potentially adding to the existing life of mine plan at MRC. Two rigs are presently operating on the property with 118 holes for 11,560m of the planned 25,000m having been drilled to date. A mineral resource update is targeted for mid-2017 and an updated life of mine plan for MRC by Q3, 2017 around the time of production start up.
Drilling Results:
The new assay drill results continue to reflect those grades, widths and geometry of gold mineralization documented from the 1980s and 2011 drilling programs which support the current inferred resource estimate (see below). Mineralization occurs within argillites, greywackes and bedding-parallel quartz veins across the hinge zone and limbs of the E-W trending Fifteen Mile Stream (FMS) Anticline. The northern limb of the anticline dips moderately north, with the southern limb vertical to overturned (generally steeply north dipping). All holes are therefore declined to the south at various dips and hence true widths vary (see assay table below) depending on which limb of the anticline is intersected, and also depending on hole dip. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.
The drilling to date has generally been predicated on ready access to dry or "upland" drill sites such that at Egerton-MacLean in particular, results on hand are largely peripheral to the central part of the deposit as presently known. Drilling from wetland sites, and upland sites with restricted access, is now in progress. These sites represent the majority of the inferred resources previously reported for Fifteen Mile Stream. Nevertheless, at this point notably strong and shallow mineralization is beginning to emerge along the southern limb of the anticline at 13250E to 13400E (eg holes FMS-17-055, 059, 067 and 076 to 079), with more assays yet to come from this particular position.
The shallow and widespread dissemination of mineralization in multiple layers across a sub-horizontal anticlinal hinge zone continues to support the concept for the delineation of near surface mineralization.
The accompanying cross sections and drilling progress plan can be viewed here:
http://media3.marketwire.com/docs/FMS_Drill_Progress_Plan_and_Sections_170328.pdf
Results subsequent to those previously released are tabulated below. Previous results can be found here: February 10, 2017 and March 1, 2017, and March 16, 2017.
| Hole id | East | North | Dip | Az. | Depth (m) |
Significant Intervals (≥0.5g/t Au and up to 3m internal dilution) |
||||
| From (m) |
To (m) |
Width (m) |
Approx true width (m) | Grade (g/t Au) |
||||||
| FMS-17-056 | 13000 | 10080 | -60 | 175 | 96 | 87 | 94 | 7 | 5 | 1.37 |
| FMS-17-069 | 13275 | 9999 | -60 | 175 | 110 | 19.5 | 32 | 12.5 | 9 | 1.57 |
| and | 82 | 87 | 5 | 3 | 0.63 | |||||
| and | 93 | 101 | 8 | 5 | 1.06 | |||||
| FMS-17-074 | 13100 | 10020 | -60 | 175 | 41 | NSA | ||||
| FMS-17-075 | 13250 | 10040 | -60 | 175 | 110 | 63 | 64 | 1 | 0.7 | 5.38 |
| FMS-17-076 | 13250 | 10020 | -60 | 175 | 92 | 28 | 36 | 8 | 6 | 31.8 |
| (incl. | 35.35 | 36 | 0.65 | 0.5 | 358) | |||||
| and | 41 | 42 | 1 | 0.7 | 21.7 | |||||
| and | 53 | 56 | 3 | 2 | 1.27 | |||||
| FMS-17-077 | 13250 | 10000 | -60 | 175 | 50 | 18 | 34 | 16 | 11 | 3.28 |
| (incl. | 23 | 24 | 1 | 0.7 | 37.2) | |||||
| FMS-17-078 | 13275 | 10050 | -65 | 175 | 131 | 56 | 57 | 1 | 0.7 | 6.14 |
| and | 61 | 62 | 1 | 0.7 | 10.10 | |||||
| and | 67 | 68 | 1 | 0.7 | 14.25 | |||||
| and | 72 | 73 | 1 | 0.7 | 12.30 | |||||
| and | 78 | 83 | 5 | 4 | 0.73 | |||||
| FMS-17-079 | 13300 | 10020 | -45 | 175 | 101 | 12 | 13 | 1 | 0.7 | 4.90 |
| and | 23 | 24 | 1 | 0.7 | 13.75 | |||||
| and | 28 | 33 | 5 | 4 | 7.18 | |||||
| (incl. | 29 | 30 | 1 | 0.7 | 20.8) | |||||
| and | 40 | 43 | 3 | 2 | 1.71 | |||||
| and | 82 | 90 | 8 | 6 | 0.73 | |||||
| FMS-17-080 | 13275 | 9963 | -60 | 175 | 71 | NSA | ||||
| FMS-17-081 | 13275 | 9940 | -60 | 175 | 50 | NSA | ||||
| FMS-17-082 | 13150 | 10020 | -60 | 175 | 41 | 27 | 30 | 3 | 2.5 | 10.88 |
| (incl. | 27 | 28 | 1 | 0.8 | 31.5) | |||||
| FMS-17-083 | 13150 | 10040 | -60 | 175 | 62 | 39 | 40 | 1 | 0.8 | 5.97 |
| and | 47 | 56 | 9 | 7 | 1.37 | |||||
| FMS-17-084 | 13150 | 10060 | -60 | 175 | 80 | NSA | ||||
| FMS-17-085 | 13150 | 10080 | -60 | 175 | 101 | 56 | 58 | 2 | 1.5 | 44.2 |
| (incl. | 56 | 57 | 1 | 0.8 | 86.1) | |||||
| and | 69 | 70 | 1 | 0.8 | 6.47 | |||||
| and | 79 | 80 | 1 | 0.8 | 18.43 | |||||
| FMS-17-086 | 13200 | 10060 | -60 | 175 | 74.5 | NSA | ||||
| FMS-17-087 | 13200 | 10040 | -60 | 175 | 68 | NSA | ||||
| FMS-17-088 | 13200 | 10020 | -60 | 175 | 50 | 34 | 35 | 1 | 0.8 | 3.29 |
| FMS-17-090 | 13500 | 10120 | -85 | 175 | 80 | 4.5 | 12 | 7.5 | 5 | 2.21 |
| and | 39 | 45 | 6 | 5 | 1.61 | |||||
| and | 51 | 74 | 23 | 21 | 5.4 | |||||
| (incl. | 51 | 52 | 1 | 1 | 34.0 | |||||
| (incl. also | 58 | 59 | 1 | 1 | 58.8 | |||||
| and | 78 | 80 | 2 | 2 | 4.88! | |||||
| FMS-17-091 | 13500 | 10120 | -75 | 175 | 101 | 38 | 40 | 2 | 2 | 2.51 |
| and | 45 | 72 | 28 | 26 | 1.21 | |||||
| and | 86 | 87 | 1 | 1 | 5.81 | |||||
| FMS-17-092 | 13500 | 10120 | -65 | 175 | 140 | 52 | 56 | 4 | 3 | 1.14 |
| and | 64 | 65 | 1 | 0.7 | 7.31 | |||||
| FMS-17-095 | 12850 | 10023 | -60 | 175 | 41 | NSA | ||||
| ! Mineralization to end of hole |
| NSA: No significant assays. |
The current resource estimate for Fifteen Mile Stream is as follows:
| Category | Tonnes (millions) | Grade (g/t) Au | Contained Au (oz.) | |
| FIFTEEN MILE STREAM | ||||
| Inferred Resource | 11.72 | 1.55 | 584,000 | |
| Resources that are not reserves do not have demonstrated economic viability | ||||
The Mineral Resource estimate for Fifteen Mile Stream is quoted at a cut-off grade of 0.5g/t. It has an effective date of February 16, 2015 and was prepared as part of a technical report in accordance with NI 43-101 by Mr. Neil Schofield, a principal of FSSI (Australia) Pty Ltd, released on April 2, 2015 on SEDAR.
Results and updates from this drilling program will be reported progressively.
Technical Disclosure
All assays are 50g charge fire assays conducted on whole-sample pulverized 1m samples of sawn, half NQ core with 1-in-10 duplicate 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 >97%, excluding occasional voids, usually <2m, representing historic underground workings. Standards, blanks and duplicate assay results are acceptable.
True width of the mineralization varies according to the dip of the enclosing stratigraphy and declination of the relevant drill hole. It is therefore noted for each intersection (see table above). Particularly in the Egerton-Maclean zone hole collars are necessarily located to minimise, though not entirely avoid, ingress to wetland areas and as a result hole declinations are adjusted to compensate for collar positioning. In many cases holes are drilled at different declinations from the same site. Sample distribution is not materially compromised.
The individual drill hole assay results underlying the mineralized intersections listed in the table above have been verified by detailed checking against the original assays sheets. The lengths and average grades of each intersection have also been checked against the drill hole assay logs.
Wally Bucknell, Director of Exploration 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.
Further updates will be provided in due course.
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 activities contemplated in this news release and the timing and receipt of requisite regulatory, and shareholder approvals in respect thereof. Forward-looking statements in this news release include, without limitation, statements related to proposed exploration and development programs, grade and tonnage of material and resource estimates. 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, the timing and receipt of certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration estimates and 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) market fundamentals will result in sustained gold demand and prices; (2) the receipt of any necessary approvals and consents in connection with the development of any properties; (3) the availability of financing on suitable terms for the development, construction and continued operation of any mineral properties; and (4) 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, 2015 and for the quarter ended September 30, 2016 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, the Company is 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:
Maryse Bélanger
COO
+1 604 689-5564