Atlantic Gold Corporation (TSX-V: AGB) is pleased to provide an update on its exploration activities and to announce assay results from diamond drilling completed at the 149 Prospect, located approximately 1 km east of the eastern limits of the Fifteen Mile Stream deposits, within the prospective Moose River Corridor.
Prioritized as part of the Corridor Regional Program based on favourable interpreted geological and geophysical information and historical anomalous drill hole results, the 149 Prospect was discovered by traverses of widely-spaced diamond drilling. Encouraging initial results were followed-up and near surface mineralization was intersected over a strike length of 350m (See News Release dated June 28, 2018).
Additional infill drilling has now been completed and the zone of mineralization has been extended to over 475m in strike and is still open to the east. Two zones of gold mineralization have been intersected: a shallow, generally higher grade “core” zone which appears to be related to a tight anticlinal structure and a deeper, thicker, but lower grade, zone associated with the over-turned limb of a higher-level overlying anticline.
The mineralization appears to dip approximately 60-75° north, may be up to 25m in true thickness and is covered by a modest 5m glacial till cover. True width of the mineralization varies according to the dip of the host stratigraphy and declination of the relevant drill hole. Initial indications from drilling completed so far are that true widths of mineralized intersections range from 65% to 95% of down-hole widths.
Additional drilling is required to extend the higher grade “core” zone to depth and to follow the deeper zone closer to surface. Aeromagnetic interpretation also indicates potential for similar geological settings to occur further to the east and further reconnaissance-spaced drilling is required to test these zones. Permitting has commenced to allow this work to proceed.
Significant drill results are included in Table 1.
Significant Drill Results
(Gold Assay (g/t Au) * Sample Length (m) ≥ 3.0g/t Au*m)
CORRIDOR REGIONAL PROGRAM
September 10, 2018
(≥0.5g/t Au up to 3m internal dilution)
|•||All assay results are Fire Assays of 50g charge from 1kg pulverized sub-sample split from ~2mm crushed parent of sawn half 1m NQ core|
|•||! Mineralization to the end of hole.|
|•||Table includes all assay results which are deemed significant, with [Sample Length (m) * Gold Assay (g/t Au) ≥ 3.0g/t Au*m]|
The accompanying cross sections and drill plan can be viewed here:
Corridor Regional Program
Atlantic’s mineral properties within the Moose River Corridor, totalling approximately 171 km2, are underlain by units of the Meguma Supergroup which are the preferred host to the style of mineralization being mined by the Company. These units also host the Beaver Dam, Fifteen Mile Stream and Cochrane Hill gold deposits, located within the Corridor, which are currently incorporated in the Phase 2 Life of Mine Expansion Pre-Feasibility Study announced in a news release dated January 29, 2018.
The “Phase 4 Corridor Regional Program” was initiated late April to evaluate the under-explored and geologically prospective 45 km trend which extends northeast from its Touquoy gold deposit at the company’s Moose River Consolidated Gold Mine (“MRC”), to the Beaver Dam gold deposit and through to the Fifteen Mile Stream gold deposits in the northeast. This trend is underlain by the Moose River Formation, a geological unit comprised of a sequence of folded argillites and greywacke which host the gold mineralization at the Touquoy, Beaver Dam and Fifteen Mile Stream deposits. In detail, the mineralization is related to the axial planar region of anticlines, primarily in the argillic units. The Phase 4 Corridor Regional Program will comprise a total of up to 100,000 metres of diamond drilling distributed throughout the Touquoy-Beaver Dam-Fifteen Mile Stream Corridor.
The objective of the program is to explore prospective areas between the three known deposits along this trend and discover new areas of gold mineralization which could result in the definition of additional gold mineral resources for incorporation into the Company’s growth strategy. Historically this area has had very little exploration, owing largely to the fact that the economic viability of the three known deposits had not previously been properly assessed and in part due to extensive glacial overburden masking bedrock exposures. Although the planned program is regional in nature, the Company will strategically locate drill traverses using proprietary airborne geophysical survey data, its knowledge of the mineralization styles gained from previous exploration and resource definition of the three thematic deposits, and other interpretive methods.
It was this approach that led to the early discovery of the 149 Prospect. Drilling has also been completed at a second priority target, Seloam Brook, an area to the west of Fifteen Mile Stream where geological interpretation suggests a continuation of the host lithologies and potential mineralization to the west from the Fifteen Mile Stream Deposits. Anomalous gold mineralization, including some significant intersections, has been located in several holes in favourable locations, highlighting the potential for additional discoveries in this area. Follow-up in this area will be determined on a priority basis as the results of the Corridor Regional Program become available.
Three diamond drill rigs are currently working to complete the initial phase of the Corridor Regional Program, comprising sixteen 1-2 km spaced traverses, totalling approximately 32,000m of diamond drilling; more than 10,000m of drilling has been completed to date.
Resource Expansion Drill Program – Additional Extension Drilling – Fifteen Mile Stream & Cochrane Hill Resource Development Projects
The Phase 3 Resource Expansion Drill Program, which was completed at both Fifteen Mile Stream and Cochrane Hill between September 2017 to February 2018, successfully identified additional gold resources immediately peripheral to mineral resources previously defined (See News Releases dated March 15, 2018 and April 4, 2018). Compilation and interpretation of the results has indicated there may be potential to extend the mineral resources along strike and at depth, particularly at the Egerton-MacLean and Cochrane Hill deposits. To continue to evaluate the potential and to define additional resources to be incorporated in a future updated mineral resource estimation, small drilling programs will be completed at both locations. Drilling has commenced at Egerton-MacLean (2 drills) and will commence at Cochrane Hill early October as drills become available.
Regional Land Acquisition – Southwestern Nova Scotia
In August, Atlantic expanded its exploration property holdings substantially with the acquisition, by staking, of an additional 5,653 claims covering an area of 880.3 km2, bringing the Company’s total exploration properties to 7,746 claims totalling 1206 km2.
The Company’s geologists believe that the areas acquired in the southwestern region of Nova Scotia have unexplored potential to host gold deposits similar in style to those contained in the Moose River Corridor. Preliminary data compilation and interpretation has commenced; current plans are that only limited field work will be completed before year-end, with an extensive exploration program planned for early 2019.
All assays reported are 50g charge fire assays of 1kg pulverized sub-sample split from -2mm crushed parent of sawn half 1m NQ core, with 1-in-10 duplicate assays of the same pulp. Due to the regional nature of this program, Company standards and blind blanks were not routinely inserted; routine insertion of standards and blanks has re-commenced for current drilling. 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. ALS employ a standard routine of duplicate and check assays and reference standards. Core recovery is estimated for each metre and averages 96%.
Douglas A Currie, P. Geo., General Manager-Exploration and a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the contents of this news release.
Atlantic is a well-financed, growth-oriented gold development group with a long term strategy to build a mid-tier gold production company focused on manageable, executable projects in mining-friendly jurisdictions.
Atlantic is focused on growing gold production in Nova Scotia beginning with its MRC phase one open pit gold mine which declared commercial production in March 2018, and its phase two Life of Mine Expansion which will ramp up gold production to + 200,000 ounces per year at industry lowest quartile cash and all-in-sustaining-costs (as stated in the Company’s news releases dated January 19, 2018 and January 29, 2018).
Atlantic is committed to the highest standards of environmental and social responsibility and continually invests in people and technology to manage risks, maximize outcomes and returns to all stakeholders.
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