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.
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.
As per previous news releases the objectives of the Phase 3 Resource Expansion drilling program are to identify additional gold resources immediately peripheral to those resources previously defined at Fifteen Mile Stream and Cochrane Hill. At Cochrane Hill and at Fifteen Mile Stream – particularly at the Hudson and Plenty zones, upgrade previously defined inferred resources to measured and indicated categories, and seek additional new resources within the 350m gap between the Plenty and Egerton MacLean zones at Fifteen Mile Stream.
|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.|
2018 drilling has recently re-commenced with three drilling rigs presently operating at the Plenty deposit. Twenty holes for 2217m have so far been completed. Up until the end of 2017 a total of 185 holes for 21,000m had been drilled at Fifteen Mile Stream. Holes are generally 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 36 holes, with about two-thirds of all assays expected from this program having now been received. Assays reported here from Egerton MacLean and Hudson, the eastern and western deposits respectively along the Fifteen Mile Stream anticline, are from widely distributed holes testing the peripheries of these deposits as presently known. Best result is the shallow high grade intersection (20m @ 21.9g/t including 1m @ 419g/t) towards the western end of Egerton MacLean which, at a vertical depth of only 30m, infills an information gap between surface and mineralization intersected in deeper holes beneath.
At Plenty, infill and step-out drilling westwards on 25m-spaced sections is underway to enable definition of measured and indicated resources, as upgrade from existing inferred resources. Drilling continues to outline a steep, northerly dipping, tabular zone of gold mineralization over more than 300m strike length, defined both by wide intersections of moderate grades (eg. 16m @ 1.05g/t) and more isolated, narrow high grade intervals (eg. 1m @ 202g/t). 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.
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 though more assay data are awaited to confirm resource potential.
The accompanying cross sections and drilling progress plan can be viewed here: http://files.newswire.ca/1485/atla0123.pdf
Assay results are tabulated below:
(≥0.5g/t Au and up to 3m internal dilution)
|PLENTY TO EGERTON MACLEAN GAP|
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 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.
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, and 1-in-10 assays of a second 1kg pulverized sub-sample split from the same crushed parent. 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
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 (“NI 43-101”) has reviewed and approved the contents of this news release.
Further updates will be provided in due course and as new results come to hand.
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 announced 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). Additional satellite deposits containing 850,000 oz’s measured & indicated within pit shells and 309,000 oz’s inferred as referenced in a NI 43-101 Technical Report with an effective date of July 20, 2017, form the basis of a Phase 2 expansion currently under study and has potential to add significantly to Life of Mine production. 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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