Atlantic Gold Reports Additional Results from the Resource Definition Drill Programs at Fifteen Mile Stream and Cochrane Hill

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 24, 2017) - HIGHLIGHTS:

 

Fifteen Mile Stream: 36m @ 2.33 g/t from 112m, 16m @ 2.47g/t from 9.5m, 22m @ 1.86 g/t from 108m

Cochrane Hill: 18m @ 1.66 g/t from 65m, 13m @ 2.22g/t from 198m, 5m @ 5.50g/t from 48m

 

IDENTIFYING EXTENSIVE BROAD ZONES OF SHALLOW MINERALIZATION AT FIFTEEN MILE STREAM

DEPTH EXTENSIONS AT COCHRANE HILL

 

Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from drilling programs on the Fifteen Mile Stream and Cochrane Hill gold deposits where resource definition drilling on 25m x 20m centres is underway with the objective of upgrading resources to measured and indicated categories.

In particular, it is noted that assay results are now being returned from those holes at Fifteen Mile Stream drilled through the core of the anticline, and these are indicating considerable widths of attractive grades. Total widths of significantly mineralized intervals intersected in hole FMS-17-124 (see table below) aggregate to 78m @ 1.75g/t and in hole FMS-17-113, to 60m @ 1.73g/t. Previously reported holes from this same locale, FMS-17-104 and FMS-17-090, had recorded aggregated significantly mineralized intervals of 88m @ 1.79g/t and 36.5m @ 4.12g/t respectively.

 

The Company plans to use the results from the drill programs to undertake further analysis to determine the economic viability of the above-noted deposits which would include analysis of the economics of processing these deposits at the Moose River Consolidated ("MRC") processing facility by way of a Pre-Feasibility Study.

 

New assay results from the two drilling programs are reported as follows:

 

FIFTEEN MILE STREAM

Fifteen Mile Stream is located approximately 57km northeast of the central milling facility at Touquoy and is readily accessible by highway. Fifteen Mile Stream's current inferred mineral resources stand at 11.72 million tonnes at 1.55 g/t Au for 584,000 oz. New assay results reported herein are from a further 14 holes of the ongoing resource definition diamond drilling program. At this time 177 holes for 21,387 of the planned 25,000m have now been drilled and three drilling rigs are presently operating on the property with completion expected in a week's time.

 

Drilling Results:

 

The additional assay drill results continue to reflect those grades, widths and geometry of gold mineralization documented from the 1980s and 2011 drilling programs which support the current inferred resource estimate (see below). Mineralization 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 vertical to overturned (generally steeply north dipping). All holes are therefore declined to the south at various dips and hence true widths vary (see assay table below) depending on which limb of the anticline is intersected, and also depending on hole dip. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

 

Results are now being returned from a suite of holes drilled across the hinge zone of the anticline in the central part of the main Egerton MacLean zone, where drill access had previously been impeded owing to the location of certain wetlands. Apart from holes previously noted (FMS-17-090 and 104), attention is drawn here to new holes FMS-17-113 and 124 where appreciably mineralized intervals combine to down-hole widths of up to 78m. As well as the northern and southern limbs of the anticline, the central core or hinge zone of the anticline is now being shown to be well mineralized.

 

These shallow and widespread mineralized intersections across the limbs and core of this sub-horizontal anticlinal hinge zone are considered to be highly encouraging in the context of potential open pit extraction.