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Atlantic Gold Reports Additional Results from the Phase 3 Resource Expansion Drill Program at Fifteen Mile Stream and Cochrane Hill

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Atlantic Gold Reports Additional Results from the Phase 3 Resource Expansion Drill Program at Fifteen Mile Stream and Cochrane Hill

 

 

 

 

 

Atlantic Gold Corporation (TSX-V: AGB) is pleased to report further assay results received from the Phase 3 Resource Expansion drilling program at the Fifteen Mile Stream gold deposit and first assay results from the Cochrane Hill gold deposit.

 

 

As per previous news releases the objectives of the Phase 3 Resource Expansion drilling program are (i) to identify additional gold resources immediately peripheral to those resources previously defined at Fifteen Mile Stream and Cochrane Hill, (ii) at Cochrane Hill and at Fifteen Mile Stream – particularly at the Hudson and Plenty zones, to upgrade previously defined inferred resources to measured and indicated categories, and (iii) to seek additional new resources within the 350m gap between the Plenty and Egerton MacLean zones at Fifteen Mile Stream.  

 

  1. FIFTEEN MILE STREAM

 

 

Fifteen Mile Stream is located approximately 57km northeast of the central processing facility at Touquoy and is readily accessible by highway. Fifteen Mile Stream’s current measured and indicated mineral resources stand at 10.59 million tonnes at 1.33 g/t Au for 452,000 oz. at 0.35g/t cut-off grade.  Inferred mineral resources amount to 6.64 million tonnes at 1.12 g/t Au for 240,000 oz. at 0.35g/t cut-off grade (see Company announcement July 21, 2017)1.

 

 

The remainder of the Phase 3 Resource Expansion drilling program to be undertaken at Fifteen Mile Stream in 2018 has now been completed with 36 holes for 3,325m having been drilled. This brings the total Phase 3 Resource Expansion drilling program completed at Fifteen Mile Stream to 221 holes for 24,325m. Holes have generally been drilled on 25m x 20m centres, although for the first-pass drilling along the 350m gap between Plenty and Egerton MacLean holes have been drilled on 50m-spaced sections.

 

 

Assay results have now been received from a further 45 holes, with about 80% of all assays expected from this program having now been received. At Plenty, infill and step-out drilling westwards from earlier drilling on 25m-spaced sections continues to outline a steep, northerly dipping, tabular zone of gold mineralization over more than 400m strike length, frequently represented by wide intervals of moderate grade material enhanced by high grade, single sample (1m) mineralization (eg. the three highlighted intervals above). At this time mineralization appears to be more vein-hosted than that along the hinge of the Fifteen Mile Stream anticline at Hudson and Egerton MacLean just to the north and it’s possible that plunging high grade shoots are present.

 

 

Assays reported here from Egerton MacLean and Hudson, the eastern and western deposits respectively along the Fifteen Mile Stream anticline, are from widely distributed positions infilling and testing the peripheries of these deposits as presently known on 25m-spaced sections. While fairly well defined mineralized zones continue to persist, drill information appears to be approaching the lateral limits of these two deposits, as presently understood.

 

 

First-pass drilling further east from Plenty on 50m-spaced sections in the hitherto un-drilled gap between Plenty and Egerton MacLean continues to encounter encouraging shallow mineralization possibly offset to the north of the eastern projection of the Plenty mineralization.

 

 

The accompanying cross sections and drilling progress plan can be viewed here:
Fifteen Mile Streem Gold Project Drill Hole Plan

 

1The Mineral Resource estimate for Fifteen Mile Stream is quoted at a cut-off grade of 0.35g/t. It has an effective date of July 20, 2017 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 September 1, 2017 on SEDAR.

 

 

 

Assay results 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)

Grade

(g/t Au)

EGERTON MACLEAN
FMS-17-275^ 13175 10060 -45 175 92       NSA
FMS-17-277 13175 10040 -45 175 71 48 50 2 2.73
FMS-17-280^ 13175 10020 -45 175 50       NSA
FMS-17-282^ 13125 10080 -45 175 110 77 78 1 4.05
FMS-17-283^ 13125 10060 -45 175 92 62 65 3 1.48
FMS-17-286 13125 10020 -45 175 50 20 23 3 2.41
FMS-17-287 13075 10060 -45 175 92 63 68 5 0.63
FMS-17-288^ 13075 10080 -45 175 110 13 14 1 5.73
and           68 69 1 6.89
FMS-17-292^ 13025 10080 -45 175 110       NSA
FMS-17-296^ 13025 10020 -45 175 50 22 24 2 16.89
incl.           22 23 1 31.10
FMS-17-298^ 12975 10080 -45 175 110 75 83 8 1.10
FMS-17-300^ 12975 10040 -45 175 71       NSA
 
HUDSON
FMS-17-237^ 12325 10120 -45 175 172 99 102 3 3.16
and           121 126 5 0.77
FMS-17-301^ 12275 10120 -45 175 170 120 124 4 1.18
and           145 150 5 0.94
FMS-17-303^ 12275 10100 -45 175 151       NSA
FMS-17-307^ 12275 10040 -45 175 80 26 28 2 2.03
and           42 43 1 13.75
FMS-17-309 12275 10020 -45 175 61       NSA
 
PLENTY
PL-17-036^ 12675 9800 -60 175 161 131 132 1 152
PL-17-039 12775 9780 -60 175 110 83 85 2 7.92
PL-17-047^ 12800 9820 -60 175 161 116 128 12 1.71
PL-17-067^ 13000 9820 -45 175 100 30 43 13 3.03
incl.           42 43 1 21.50
PL-17-070^ 12900 9770 -50 175 52 9 10 1 25.70
and           21 22 1 36.30
PL-17-071^ 12875 9780 -60 175 110 45 46 1 15.75
PL-17-080^ 12750 9745 -50 175 61       NSA
PL-17-082^ 12700 9760 -60 175 100 62 68 6 0.61
and           73 81 8 0.42
PL-17-084^ 12650 9760 -60 175 112 76 79 3 7.20
incl.           76 77 1 21.00
and           84 88 4 1.50
PL-18-089^ 12625 9720 -60 175 82       NSA
PL-18-090^ 12650 9720 -60 175 76       NSA
PL-18-091^ 12625 9740 -60 175 100       NSA
PL-18-093^ 12650 9740 -60 175 82 39 47 8 2.33
PL-18-094^ 12600 9760 -60 175 127 95 96 1 11.55
PL-18-095^ 12600 9780 -60 175 160 98 99 1 4.32
and           114 125 11 5.92
incl.           122 123 1 61.20
and           129 130 1 8.37
PL-18-096^ 12600 9740 -60 175 100       NSA
PL-18-097^ 12575 9780 -60 175 160 102 107 5 1.01
and           127 128 1 20.40
and           132 140 8 12.84
incl.           132 133 1 88.70
PL-18-098^ 12600 9720 -60 175 85       NSA
 
PLENTY TO EGERTON MACLEAN GAP
PL-17-051^ 13100 9860 -45 175 100       NSA
PL-17-053^ 13100 9840 -45 175 100       NSA
PL-17-055^ 13100 9920 -45 175 100 44 64 20 0.66
PL-17-057^ 13150 9940 -45 175 100 54 59 5 0.74
PL-17-059^ 13050 9860 -45 175 97 43 50 7 0.69
PL-17-081^ 13175 9951 -50 175 140 51 55 4 0.93
PL-17-083^ 13175 9890 -45 175 100       NSA
PL-17-085^ 13175 9870 -45 175 101       NSA
PL-17-086^ 13075 9860 -45 175 101 14 15 1 26.90
and           44 45 1 5.01
PL-17-088^ 13075 9840 -45 175 101       NSA
   

NSA: No significant assays; that is, no intervals ≥ 3.0g/t x m.  

  ^ fire assays of 50g charge from 1kg pulverized sub-sample split from -2mm crushed parent of half sawn
1m NQ core. All others are fire assays of 50g charge from 1kg pulverized sub-sample split from -2mm
crushed parent of whole 1m NQ.

 

 

 

True width of the mineralization varies according to the dip of the host stratigraphy and declination of the relevant drill hole. For intersections quoted above true width averages approximately 90% of the down-hole width.

 

 

Nature of the mineralization:

 

 

Mineralization at Egerton MacLean and Hudson 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 overturned (generally steeply north dipping).  All holes are therefore declined to the south. Highest grades so far encountered occur within the hinge zone of the anticline. Mineralization at Plenty is tabular in overall disposition and is thought to be hosted in a deeper, up-faulted southern limb of the Fifteen Mile Stream anticline.  Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

 

 

  1. COCHRANE HILL

 

 

The Cochrane Hill Gold deposit is located approximately 80km northeast the central milling facility at Touquoy and is readily accessible by highway. Cochrane Hill’s current measured and indicated mineral resources stand at 10.66 million tonnes at 1.16 g/t Au for 398,000 oz. at 0.35g/t cut-off grade.  Inferred mineral resources amount to 1.63 million tonnes at 1.32 g/t Au for 69,000 oz. at 0.35g/t cut-off grade (see Company announcement July 21, 2017)1.

 

 

The Phase 3 Resource Expansion drilling program at Cochrane Hill has been completed with 44 holes for 6,900m having been drilled. The Cochrane Hill deposit is a fairly predictable and continuous tabular body dipping about 70o to the north with an average true width of approximately 15-20m. These holes have been drilled on 25m x 20m centres to test for resource extensions of this body eastwards and at depth to the northeast.

 

 

Assay results have been received from 18 holes. Strong mineralization on 3525E (6m @ 9.77g/t and 5m @ 8.08g/t in CH-17-245 and CH-17-242 respectively) extends the resource eastwards. Depth extension is indicated by encouraging results on 3400E (16m @ 1.70g/t in CH-17-240, with multiple narrow high grade intervals beneath) with further assay data pending from adjacent holes at this elevation.

 

 

The accompanying cross sections and drilling progress plan can be viewed here:
Cochrane Hill Gold Project Drill Hole Plan

 

1 The Mineral Resource estimate for Cochrane Hill is quoted at a cut-off grade of 0.35g/t. It has an effective date of July 20, 2017 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 September 1, 2017 on SEDAR.

 

 

 

Current results 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)

Grade

(g/t Au)

CH-17-226 3350 3175 60 171 230 156 157 1 11.05
and           172 175 3 1.26
and           212 222 10 1.78
CH-17-240 3400 3132 60 171 178.5 114 130 16 1.70
and           137 138 1 22.80
and           143 144 1 3.65
and           152 153 1 33.90
and           158 159 1 50.60
CH-17-242 3525 3150 45 171 151 114 117 3 1.13
and           133 138 5 8.08
incl.           134 135 1 22.6
CH-17-243 3400 3150 60 171 200 145 149 4 2.57
CH-17-245 3525 3090 45 171 91 70 76 6 9.77
incl.           73 74 1 22.00
CH-17-247 3525 3070 45 171 61 47 54 8 0.77
CH-17-249 3525 3050 45 171 40 25 30 5 1.24
and           38 39 1 7.46
CH-17-256 3550 3110 45 171 112 67 68 1 19.75
            85 93 8 0.49
CH-17-257 3550 3150 45 171 151 124 125 1 5.79
CH-17-258 3575 3130 45 171 130       NSA
CH-17-259 3575 3090 45 171 91 82 83 1 3.50
CH-17-261 3575 3050 45 171 40       NSA
CH-17-262 3600 3150 45 171 151 149 150 1 4.16
CH-17-263 3575 3070 45 171 61       NSA
CH-17-264 3600 3130 45 171 130       NSA
CH-17-265 3600 3090 45 171 91 71 72 1 3.38
CH-17-267 3600 3050 45 171 40       NSA
CH-17-268 3600 3070 45 171 61       NSA
   

NSA: No significant assays; that is, no intervals ≥ 3.0g/t x m.  

     

 

 

 

True width of the mineralization is approximately 75-85% of the down-hole width depending on dip of the drill hole.

 

 

Nature of the mineralization:

 

 

The Cochrane Hill deposit is a fairly predictable and continuous tabular body dipping about 70o to the north with an average true width of approximately 15-20m. Host rocks are moderately silicified greywacke and argillite protoliths metamorphosed to upper amphibolite facies with notable layer-parallel quartz veining. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

 

 

Technical Disclosure

 

 

At Fifteen Mile Stream all assays by default are 50g charge fire assays of 1kg pulverized sub-sample split from -2mm crushed parent of whole 1m NQ core, with 1-in-10 duplicate assays of the same pulp. Where otherwise noted (^) assays 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. Standards and blind blanks are routinely inserted. 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
 

At Cochrane Hill all assays by default are 50g charge fire assays of 1kg pulverized sub-sample split from -2mm crushed parent of half, sawn 1m NQ core, with 1-in-10 duplicate assays of the same pulp. Standards and blind blanks are routinely inserted. 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, blind blanks and duplicate assay results are acceptable.

 

 

Results and updates from this drilling program will be reported progressively.

 

 

Wally Bucknell, Director of Exploration to the Company and a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the contents of this news release.

 

 

About Atlantic:

 

 

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 owns Canada’s newest open pit gold mine Moose River Consolidated in Nova Scotia with first gold pour and initial production achieved in October 2017. Phase 1 Life of Mine production guidance for 2018 is between 82,000-90,000 oz. gold at All-In-Sustaining-Costs (AISC) between $CAD675/oz.-$735/oz. (US$540-588/oz.) as stated in the Company’s news release (January 19, 2018).

 

 

The Phase 2 Life of Mine Expansion will have gold production ramping up to + 200,000 ounces per annum while maintaining the company’s industry lowest quartile cash costs at all-in sustaining cash cost (AISC) of CAD$692/oz. Au (USD$555/oz. Au) as stated in the Company’s news release (January 29, 2018).

 

 

The company’s planned future development of the region will be based on a central processing facility concept with staged integration of satellite deposits into the production schedule and staged capital expenditures for expansion opportunities managed with cashflow from operations at Touquoy and additional debt capacity as a long term low cost gold producer.  

 

 

A Phase 3 expansion is expected to come from success of its expected extensions of mineralization and definition drilling program at its FMS and CH deposits, and a regional program commencing in March 2018 systematically drilling 80kms of prospective structure targeting the Atlantic model for disseminated style gold deposits amenable to open pit mining.

 

 

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.

 

Posted February 22, 2018

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