Atlantic Gold Corporation
TSX VENTURE : AGB

Atlantic Gold Corporation

March 01, 2017 08:00 ET

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

Highlights Include: 20m @ 2.74 g/t from 32m, 15m @ 2.56 g/t from 39m, 14m @ 2.43 from 56m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 1, 2017) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from a further eighteen holes of the resource definition diamond drilling program being undertaken at its Fifteen Mile Stream Gold Project in Nova Scotia, Canada. Drilling is ongoing with 95 holes for 8,200m 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 the Moose River Consolidated (MRC) gold project.

Drilling Results:

These results continue to reasonably reflect those grades, widths and disposition of mineralization documented from the 1980s drilling programs, and which underpin the current inferred resource estimate for Fifteen Mile Stream (see below). Mineralization occurs within argillites, greywackes and 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 results further support our understanding of the essential continuity of this mineralization, and often across substantial widths. Its shallow and widespread disposition across a sub-horizontal anticlinal hinge zone continue to encourage the prospect for the delineation of open pittable reserves.

The accompanying cross section and drill progress plan can be viewed here:
http://media3.marketwire.com/docs/atla0224.pdf

Results subsequent of those previously released are tabulated below. Previous results can be found here: February 10, 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-17-021 12450 10060 -60 175 91.9 38 39 1 1 69.1
and 51 54 3 2.5 2.37
and 66 71 5 4 1.45
FMS-17-022 13625 10200 -60 175 110 83 85 2 2 4.78
and 102 110 8 8 1.17!
FMS-17-023 12450 10040 -60 175 71 47 53 6 5 1.86
FMS-17-024 12450 10020 -60 175 50 NSA
FMS-17-025 12400 10080 -60 175 110 39 41 2 1.5 11.97
and 55 56 1 1 5.26
and 69 75 6 4 3.75
and 84 85 1 1 30.0
and 92 94 2 1.5 1.68
FMS-17-026 13625 10180 -60 175 101 68 83 15 15 0.47
and 88 92 4 4 1.03
FMS-17-027 12400 10060 -60 175 92 12 16 4 3 0.81
and 21 25 4 3 0.92
and 32 52 20 15 2.74
and 56 61 5 4 1.25
and 71 75 4 3 1.36
FMS-17-028 13625 10160 -60 175 92 59 67 8 8 0.84
72 78 6 6 1.27
FMS-17-030 12400 10020 -60 175 50 25 37 12 9 1.39
and 48 50 2 1.5 2.05!
FMS-17-033 12350 10040 -60 175 101 37 62 25 19 0.90
and 76 84 8 6 0.96
FMS-17-036 13450 10080 -60 175 152 92 102 10 7 0.92
FMS-17-047 13425 10040 -60 175 68 39 54 15 10 2.56
(incl. 49 50 1 0.5 23.2)
FMS-17-049 12850 10040 -60 175 62 20 21 1 0.5 4.47
FMS-17-051 13400 10100 -60 175 170 14 26 12 11 0.83
and 31 39 8 7 1.03
and 44 60 16 14 0.91
and 66 69 3 2.5 1.92
and 77 90 13 11 1.17
and 94 115 21 15 0.98
and 128 140 12 8 2.79
(incl. 136 136 1 0.5 21.2
FMS-17-052 12950 10040 -60 175 62 46 49 3 2 1.64
FMS-17-053 12950 10020 -60 175 41 14 15 1 0.5 13.9
FMS-17-054 12950 10080 -60 175 101 25 26 1 1 9.60
FMS-17-055 13400 10080 -60 175 131 8 9 1 1 58.8
and 36 42 6 5 0.81
and 56 70 14 12 2.43
and 75 81 6 5 1.24
and 94 96 2 1.5 2.30
and 100 111 11 8 0.82

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%, 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. 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

  • Maryse Bélanger (COO)
    +1 604 689-5564