Atlantic Gold Corporation
TSX VENTURE : AGB

Atlantic Gold Corporation

February 02, 2017 08:00 ET

Atlantic Gold Reports Resource Drilling Results From the Cochrane Hill Gold Deposit and Completion of Phase One Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 2, 2017) -

Highlights Include: 11m @ 3.41 g/t From 144m, 27m @ 3.34 g/t From 102m
30m @ 2.61 From 139m and 21m @ 2.99 g/t From 86m
Step-Out Holes: 5m @ 2.80 g/t From 38m and 6m @ 4.04 g/t From 108m

Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from an additional forty-one holes of the resource definition diamond drilling program being undertaken at its Cochrane Hill Gold Project in Nova Scotia, Canada and completion of phase one of the drill program. With 12,888 m in 89 holes having been drilled to the end of 2016 and all assay results received for the first phase of the program the second phase will commence in February 2017. The second phase drilling will focus on infilling the 400m gap between the completed step out drill holes and the previous drilling and extending the mineralization further west from 2775E. The objective of this diamond drilling program is to bring the resources at the Company's Cochrane Hill deposit to measured and indicated status and thereby adding to the existing life of mine plan at MRC.

Drilling Results:

These additional results continue to define a fairly discrete, tabular, 70° north-dipping zone of continuous disseminated mineralization having a true width of approximately 25m. New assay results from holes CH-16-111 (5m @ 2.80g/t from 38m) and CH-16-117 (6m @ 4.04g/t from 108m and 3m @ 8.03g/t from 170m) on previously reported step-out section (2775E) 400m west of most of the previously reported drilling enhance this shallower-than-expected position and direct potential for western extension. Mineralization also remains open at depth, notwithstanding economic parameters yet to be appropriately applied at the completion of this drilling campaign, and to a modest extent to the east from shallow intersections.

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

Results subsequent to those previously released are tabulated below. Previous results can be found here: Dec 6, 2016, Jan 3, 2017, and Jan 25, 2017.

Hole id Northing Easting Dip Az. Depth
(m)
Significant Intervals
(≥0.5g/t Au and up to 3m internal dilution)
From
(m)
To
(m)
Width
(m)
Grade
(g/t Au)
CH-16-084 3400 3120 -45 171 134 78 87 9 1.31
and 103 108 5 1.24
and 120 123 3 6.45**
CH-16-092 3450 3031 -45 171 31 3 4 1 6.34
and 12 17 5 0.71
CH-16-094 3125 3130 -70 171 212 91 95 4 1.54**
and 99 103 4 1.36**
and 126 130 4 1.12
and 134 153 19 1.47
and 173 180 7 1.99
CH-16-095 3025 3080 -60 171 98 51 75 24 0.79
and 82 84 2 4.22
CH-16-096 3125 3110 -70 171 182 101 131 30 0.82
and 142 145 3 2.06
CH-16-097 3025 3130 -75 171 221 139 141 2 1.84
and 159 160 1 3.27
and 172 177 5 3.12**
CH-16-098 3125 3110 -60 171 160 48 49 1 3.75**
and 84 104 20 1.24
and 121 126 5 1.75
and 130 131 1 5.49**
CH-16-099 3025 3130 -60 171 170 80 81 1 3.00
and 107 114 7 0.78
and 120 136 16 0.99
CH-16-100 3125 3070 -60 171 101 34 36 2 2.56
and 43 60 17 1.89
CH-16-101 3050 3090 -60 171 91* 63 69 6 3.26
and 76 90 14 1.57
CH-16-102 3100 3140 -70 171 212 144 155 11 3.41
(incl. 151 152 1 28.4
and 159 170 11 0.73
and 175 190 15 1.31
and 194 195 1 24.8**
CH-16-103 3075 3140 -70 171 212 116 124 8 0.70
and 149 156 7 1.72
and 163 176 13 2.54
(incl. 163 164 1 22.4)
and 180 181 1 302
and 191 198 7 1.56**
CH-16-104 3100 3110 -60 171 149 86 107 21 2.99
(incl. 91 92 1 49.0)
and 111 118 7 1.19
and 129 132 3 1.50**
CH-16-105 3075 3140 -60 171 182 99 101 2 3.34
and 118 151 33 1.76
and 155 166 11 2.49**
(incl. 165 166 1 20.5**
CH-16-106 3100 3070 -58 171 98 27 41 14 1.62
and 52 58 6 0.79
CH-16-107 3075 3100 -60 171 143 51 52 1 25.9
and 75 80 5 1.26
and 84 100 16 8.8
(incl. 98 99 1 122.5)
and 111 114 3 28.2
(incl. 113 114 1 72.9)
CH-16-108 3000 3140 -70 171 203 134 142 8 2.77
and 149 152 3 5.19
and 178 183 5 0.57
CH-16-109 3050 3180 -60 171 245 127 128 1 7.94
and 172 179 7 0.68
and 183 204 21 0.85
CH-16-110 2975 3200 -60 171 251 216 218 2 29.6
(incl. 216 217 1 58.6)
CH-16-111 2775 3070 -60 171 95 38 43 5 2.80
CH-16-113 2975 3180 -60 171 233 181 191 10 1.18
and 196 205 9 3.40
CH-16-116 2975 3160 -60 171 212 136 146 10 1.16
and 169 170 1 3.79
CH-16-117 2775 3150 -60 171 200 108 114 6 4.04
and 120 121 1 9.41
and 170 173 3 8.03**
(incl. 171 172 1 22.8**)
CH-16-118 2975 3140 -60 171 182 82 83 1 17.6**
and 131 134 3 2.24
and 145 156 11 0.55
CH-16-119 3050 3160 -60 171 212 126 128 2 1.65**
and 147 166 19 0.71
and 172 185 13 2.41
CH-16-120 2975 3120 -60 171 161 74 75 1 4.69**
and 88 104 16 0.43
and 112 117 5 0.92
CH-16-121 3048 3135 -60 171 191 118 149 31 1.64
CH-16-122 3050 3110 -60 171 152 30 31 1 15.45**
and 41 42 1 4.10**
and 86 124 38 1.74
CH-16-123 3475 3090 -45 171 110 55 73 18 1.20**
CH-16-124 3000 3100 -60 171 131 NSA
CH-16-125 3325 3052 -45 171 56 10 23 13 1.63**
37 38 1 3.26**
42 43 1 13.25
CH-16-126 3248 3160 -60 171 215 126 127 1 201
and 139 169 30 2.61
(incl. 168 169 1 26.5)
CH-16-127 3000 3120 -60 171 161 89 95 6 0.63
and 105 107 2 3.47
CH-16-128 3075 3120 -60 171 164 68 79 11 0.91
and 91 97 6 1.36
and 102 129 27 3.34
(incl. 114 115 1 27.6)
and 134 135 1 67.8
and 145 148 3 1.40**
CH-16-129 3177 3170 -60 171 242 154 164 10 2.02
and 169 179 10 1.36
and 188 189 1 4.75
and 208 209 1 3.10
CH-16-130 3100 3125 -60 171 161 110 112 2 2.24
and 118 126 8 0.81
and 134 138 4 30.4
(incl. 134 135 1 111.5)
CH-16-131 3125 3090 -60 171 140 60 84 24 1.65
and 94 98 4 2.78
and 103 110 7 9.78
(incl. 108 109 1 29.5)
(incl. also 109 110 1 27.0)
CH-16-132 3175 3130 -60 171 185 92 99 7 0.84
and 104 132 28 1.48
and 147 150 3 2.34
and 158 159 1 4.39**
CH-16-133 3150 3097 -60 171 131 57 61 4 0.80
and 65 90 25 1.35
and 107 109 2 1.70
CH-16-134 3150 3116 -60 171 161 87 110 23 1.26
and 133 143 10 0.90**
CH-16-135 3150 3055 -60 171 86 13 41 28 2.45
(incl. 31 32 1 27.7)
and 61 62 1 3.02
CH-16-136 3150 3035 -60 171 50 1.65 14 12.35 1.02
36 37 1 4.01
12,888
*Hole abandoned in underground workings
**Wholly or partly includes 50g fire assay on pulverised whole-sample (to be screen fire assayed).
NSA: No significant assays.

The current resource estimate for Cochrane Hill is tabulated below:

Category Tonnes (millions) Grade (g/t) Au Contained Au (oz.)
COCHRANE HILL
Indicated Resource 4.5 1.8 251,000
Inferred Resource 5.6 1.6 298,000
Resources that are not reserves do not have demonstrated economic viability

The Mineral Resource estimate for Cochrane Hill is quoted at a cut-off grade of 0.5g/t. It has an effective date of August 1, 2014 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 August 14, 2014 on SEDAR.

Elsewhere, at the Company's Fifteen Mile Stream Gold Project, 62 holes for 5600m have now been completed. The Plenty prospect, which is located 300m south of Fifteen Mile Stream recently released results from eight holes for 944m please see the news release here. High grade intercepts hosted in both the argillites and quartz veins were reported at the Plenty prospect and additional drilling is scheduled to fully assess the potential to establish a mineral resource at Plenty.

Results and updates from these drilling programs will be reported progressively.

Technical Disclosure

All core drilled is assayed. All assays are conducted on 1m whole-sampled pulverized samples of sawn, half NQ core and, where mineralization is expected, assayed by total sample screen fire assay with 2x fines fire assays, and insertion of standards and blind blanks. In the hangingwall and footwall of expected mineralization samples are assayed by 50g charge fire assay with any mineralized samples (generally >0.5g/t), and adjacent samples as appropriate, returned for screen fire assay. 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 are acceptable.

True width of the mineralization is approximately 80% of the down-hole width.

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