Atlantic Gold Corporation
TSX VENTURE : AGB

Atlantic Gold Corporation

February 10, 2017 08:00 ET

Atlantic Gold Reports First Stage Results from the Resource Definition Drill Program at Fifteen Mile Stream

Highlights Include: 23m @ 2.44 g/t from 71m, 8m @ 3.72 g/t from 10m, 24m @ 1.20 g/t from 43m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 10, 2017) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from the first twenty holes of the resource definition diamond drilling program being undertaken at its Fifteen Mile Stream Gold Project in Nova Scotia, Canada. Two rigs are presently drilling on the property with 70 holes for 6,300m of the planned 25,000m having been drilled to date. The objective of this program is to bring the resources at the Company's Fifteen Mile Stream deposit to measured and indicated status and thereby adding to the existing life of mine plan at MRC.

Drilling Results:

In terms of grade, width and position, results received to date are generally consistent with the resource base from the previous drilling programs and which underpin the current inferred resource estimate for Fifteen Mile Stream (see below). Most of this drilling - 177 diamond core holes for 30,100m - was conducted during the 1980s. Mineralization occurs within argillites, greywackes and contained bedding-parallel quartz veins across the hinge zone and limbs of an E-W trending 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 and hence true widths vary (see assay table below) depending on which limb of the anticline is intersected. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite. These first stage drilling results support our understanding of the essential continuity of the mineralization. The team continues to explore and discover extensive disseminated mineralization previously overlooked, and combined with mineralized quartz veins, could represent potentially open pittable reserves. The region is underexplored for this deposit model.

It is noted that a significant assay interval was returned from only one hole on the single fence of holes for which assays are available in the sparsely drilled gap between the Hudson and Egerton-MacLean zones (12900E). Geochemically anomalous gold within assay intervals below the selected cut-off for reporting (3g/t x m) were nevertheless intersected in adjacent holes, supporting the view that the mineralization is continuous between these two zones. From an exploration perspective (versus a resource definition perspective) encouragement is drawn from these results for further investigation. Follow up drill holes are planned for this zone.

The accompanying cross section and drill progress plan can be viewed here:
http://media3.marketwire.com/docs/FMS_Drill_Progress_Plan_and_Sections.pdf

Atlantic Gold Chairman and CEO Steven Dean commented, "These early results support our expectations of continuity of mineralization and indicate that the current resource estimate at Fifteen Mile Stream is likely to be upgraded to measured and indicated resource categories upon completion of the entire program, and that Fifteen Mile Stream may ultimately contribute additional mill feed to the Moose River Consolidated Project. The paucity of historic drilling in certain parts of the anticline encourage us to believe that the potential for additional resources and reserves here remains high."

Results of the drilling program to date are tabulated below:

Hole id Easting Northing 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-16-001 12900 10080 -60 175 101 NSA
FMS-16-002 12900 10060 -60 175 80 56 63 7 6 1.39
FMS-16-003 12900 10040 -60 175 60 NSA
FMS-16-004 12900 10020 -60 175 41 NSA
FMS-16-005 13600 10200 -60 175 101 75 81 6 6 0.97
FMS-16-006 13475 10100 -60 175 140 25 26 1 0.7 3.71
and 30 31 1 0.7 47.4
and 111 123 12 8.5 1.17
FMS-16-007 13600 10180 -60 175 101.5 83 94 11 11 1.05
FMS-16-008 13600 10160 -60 175 92 56 82 26 26 1.03
FMS-16-009 13600 10140 -60 175 80 43 67 24 24 1.20
FMS-16-010 13475 10040 -60 175 63 9.5 26 16.5 11.5 1.29
and 36 41 5 3.5 1.49
and 63 64 1 0.7 19.1
FMS-16-011 13475 10060 -60 175 83 7 19 12 8.5 0.66
and 42 68 26 18 0.73
and 74 83 9 6.5 0.93!
FMS-17-012 12500 10080 -60 175 101 66 75 9 8.5 0.76
FMS-17-013 13475 10080 -60 175 122 10 18 8 5.5 3.72
(incl. 14 15 1 0.7 26.5)
and 43 50 7 5 0.93
and 71 94 23 16 2.44
(incl. 71 72 1 0.7 23.3)
and 100 105 5 3.5 0.66
FMS-17-014 12500 10040 -60 175 62 4 9 5 5 2.20
and 19 20 1 1 3.79
and 42 47 5 5 3.38
FMS-17-015 13650 10200 -60 175 113 98 107 9 7 1.21
FMS-17-016 12500 10020 -60 175 41 NSA
FMS-17-017 12500 10060 -60 175 80 60 66 6 6 1.13
FMS-17-018 13650 10180 -60 175 101 73 81 8 8 0.81
FMS-17-019 12450 10080 -60 175 110 10 14 4 4 1.03
and 20 21 1 1 3.55
and 82 83 1 1 19.1
and 87 90 3 3 1.67
FMS-17-020 13650 10160 -60 175 92 64 72 8 8 2.19
NSA: No significant assays.
! Mineralization to end of hole

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%. Standards, blanks and duplicate assay results are acceptable.

True width of the mineralization varies according to the dip of the enclosing stratigraphy. It is therefore noted for each intersection (see table above) .

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

  • Atlantic Gold Corporation
    Maryse Belanger
    COO
    +1 604 689-5564