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

HIGHLIGHTS INCLUDE:

Fifteen Mile Stream: 31m @ 2.42 g/t from 90m, 18m @ 4.36g/t from 96m, 6m @ 15.3 g/t from 34m

Cochrane Hill: 6m @ 10.1 g/t from 107m, 14m @ 15.4g/t from 55m (incl 1m @ 199.5g/t), 7m @ 9.6g/t from 169m

IDENTIFYING EXTENSIVE BROAD ZONES OF SHALLOW MINERALIZATION AT FIFTEEN MILE STREAM AND DEPTH EXTENSIONS AT COCHRANE HILL

 

VANCOUVER, British Columbia, June 20, 2017 -- Atlantic Gold Corporation (TSX-V:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from core drilling programs on the Fifteen Mile Stream and Cochrane Hill gold deposits where resource definition drilling on 25m x 20m centres is nearing completion with the objective of upgrading resources to measured and indicated categories. At Fifteen Mile Stream assay results through the core of the anticline in the Egerton MacLean zone continue to return notable intersections in terms of width, grade and relatively shallow depth. Total widths of significantly mineralized intervals intersected in hole FMS-17-150 (see table below) aggregate to 78m @ 2.61g/t commencing from 16m depth and in adjacent hole FMS-17-149 aggregate to 84m @ 1.76g/t starting at 18m depth. In addition, mineralized intersections are recorded elsewhere across the anticline (eg. 9m @ 8.06g/t from 63m in FMS-17-162 on the southern limb, 18m @ 4.36g/t from 96m in FMS-17-129 on the northern limb and 6m @ 15.3g/t from 34m in FMS-17-141 in the core).

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”) milling 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. The drilling program has now been completed with 191 holes for 23,424m having been drilled. New assay results reported herein are from a further 33 holes with assays pending from the final 32 holes of the program.

 

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 inclination or declination. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

 

Results continue to be received from a suite of holes drilled across the hinge zone of the anticline in the central part of the main Egerton MacLean zone.  Notable new intersections in terms of width, grade and relatively shallow depth continue to be returned from positions within the hinge zone, or core, of the anticline as well as the two limbs. Using the descriptive product of grade and down-hole width there are over a dozen composite intersections with grade x width in excess of 40 gram metres per tonne and many of these are near surface commencing at vertical depths of less than 50m.

 

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.

 

The accompanying cross sections and drilling progress plan can be viewed here: 

http://www.globenewswire.com/NewsRoom/AttachmentNg/1486b7a4-d850-4731-85d8-0b4658a65aa0

Results subsequent of those previously released are tabulated below. Previous results can be found here: February 10, 2017, March 1, 2017, March 16, 2017, April 3, 2017, May 1, 2017 and May 24, 2017.

Hole id	East	North	Dip	Az.	Depth (m)	Significant Intervals (≥0.5g/t Au and up to 3m internal dilution)
						From (m)	To (m)	Width (m)	Approx. true width (m)	Grade (g/t Au)
FMS-17-121	13450	10200	-60	175	260	48	49	1	1	6.01
and						90	115	25	24	1.09
and						125	139	14	13	2.40
and						212	213	1	1	5.10
and						230	238	8	6	1.16
FMS-17-123	13400	10222	-60	175	242	100	105	5	5	3.19
and						166	168	2	2	2.26
and						187	188	1	1	13.1
FMS-17-125	13425	10180	-60	175	263	64	67	3	3	2.01
and						79	93	14	12	0.72
and						97	100	3	3	1.09
and						176	181	5	4	2.53
and						205	206	1	1	3.40
and						216	222	6	5	1.23
FMS-17-126	13400	10200	-60	175	260	68	69	1	1	4.62
and						74	93	19	18	1.80
(incl.						87	88	1	1	20.4	)
FMS-17-127	13425	10200	-60	175	281	85	95	10	10	0.75
and						99	102	3	3	1.32
and						116	117	1	1	7.88
and						137	138	1	1	3.27
and						201	202	1	1	9.09
and						212	226	14	10	0.53
FMS-17-128	13400	10200	-45	175	122	79	91	12	12	0.83
FMS-17-129	13425	10220	-60	175	245	96	114	18	18	4.36
(incl.						96	97	1	1	59.5	)
and						125	128	3	3	1.25
and						204	205	1	1	42.9
and						241	245	4	3	1.39
FMS-17-131	13425	10220	-70	175	140	96	103	7	7	2.66
and						107	119	12	12	0.85
FMS-17-133	13450	10167	-65	175	164	59	65	6	6	0.91
and						71	99	28	27	1.61
and						135	139	4	3	1.19
FMS-17-137	13400	10180	-45	175	92	32	33	1	1	3.60
and						57	74	17	17	3.67
(incl.						70	71	1	1	47.8	)
FMS-17-138	13425	10120	-75	175	113	35	44	9	5	0.89
and						55	80	25	18	1.33
and						84	89	5	4	0.76
and						100	106	6	5	0.97
FMS-17-139	13425	10120	-60	175	191	19	20	1	1	23.7
and						31	112	81	75	0.97
and						116	128	12	9	0.59
and						140	151	11	8	1.37
FMS-17-140	13475	10120	-80	175	74	39	74	35	28	2.24
(incl.						46	47	1	1	25.8	)
FMS-17-141	13475	10120	-60	175	161	34	40	6	6	15.3
(incl.						34	35	1	1	35.7	)
(incl. also						35	36	1	1	50.2	)
and						45	46	1	1	4.11
and						57	60	3	3	1.84
and						79	87	8	8	0.46
and						121	126	5	4	0.76
and						131	136	5	4	0.94
and						146	155	9	7	1.01
FMS-17-142	13525	10100	-45	175	122	7.5	48	40.5	40.5	1.41
and						53	55	2	1	2.21
and						63	67	4	3	0.90
and						72	73	1	1	4.37
and						77	82	5	4	9.5
(incl.						78	79	1	1	42.6
and						86	104	18	16	0.67
FMS-17-143	13550	10080	-90	175	41	10	16	6	3	1.68
and						22	26	4	2	1.70
and						30	31	1	0.5	2.82
and						35	40	5	3	2.42
FMS-17-144	13550	10080	-45	175	101	10	11	1	1	25.6
and						33	47	14	12	4.11
(incl.						40	41	1	1	37.6	)
and						62	66	4	3	1.05
FMS-17-145	13550	10080	-65	175	92	6	40	34	26	1.14
and						44	70	26	19	1.77
(incl.						45	46	1	0.7	19.3
FMS-17-146	13575	10217	-70	175	182	100	105	5	4	1.50
and						139	159	20	17	0.98
FMS-17-149	13450	10130	-75	175	145	18	19	1	1	23.2
and						27	50	23	19	1.67
and						54	98	44	38	1.41
and						107	108	1	1	5.45
and						130	145	15	11	1.25
FMS-17-150	13450	10130	-65	175	202	16	17	1	1	17.45
and						26	33	7	6	3.39
and						41	47	6	5	11.0
(incl.						43	44	1	1	63.2	)
and						51	52	1	1	4.90
and						56	85	29	26	1.15
and						94	123	29	26	1.83
(incl.						94	95	1	1	24.4	)
and						146	151	5	4	1.06
FMS-17-151	13450	10130	-55	175	142	25	27	2	2	1.85
and						33	37	4	4	3.28
and						60	90	30	28	1.00
and						120	131	11	8	0.95
FMS-17-155	13350	10100	-45	175	142	20	31	11	10	0.93
and						90	121	31	28	2.42
(incl.						91	92	1	1	45.9	)
FMS-17-157	13550	10200	-75	175	182	78	81	3	3	1.02
and						105	107	2	2	3.40
and						112	114	2	2	1.60
and						119	154	35	31	1.08
FMS-17-159	13550	10200	-55	175	161	49	50	1	1	10.83
and						117	124	7	6	3.91
(incl.						119	120	1	1	20.1	)
FMS-17-161	13300	10070	-55	175	151	20	21	1	1	4.00
and						91	100	9	7	1.17
FMS-17-162	13300	10070	-45	175	130	63	72	9	7	8.06
(incl.						69	70	1	1	42.3
and						76	90	14	11	1.80
FMS-17-164	13550	10060	-45	175	82	57	58	1	1	4.13
FMS-17-170	13325	10110	-65	175	181	96	97	1	1	3.38
and						133	146	13	8	0.79
FMS-17-173	13350	10120	-75	175	181	17	22	5	4	1.05
FMS-17-182	13375	10200	-55	175	241	51	56	5	5	0.75
and						66	67	1	1	7.69
and						165	166	1	1	3.08
and						177	180	3	3	3.11
and						217	226	9	7	1.62
FMS-17-183	13525	10050	-45	175	76	6	16	10	8	0.69
and						38	47	9	7	0.90
FMS-17-191	13325	10150	-45	175	70	34	39	5	5	0.90
TOTAL	191 holes completed for:				23,424	metres

True width of the mineralization varies according to the dip of the host stratigraphy and declination of the relevant drill hole. It is therefore noted for each intersection in the table above. Particularly in the Egerton-Maclean zone hole collars are necessarily located to minimise, though not entirely avoid, ingress to wetland areas and as a result hole declinations are adjusted to compensate for collar positioning. In many cases holes are drilled at different declinations from the same site. Sample distribution is not materially compromised.

The current resource estimate for Fifteen Mile Stream is as follows:

	Category	Tonnes (millions)	Grade (g/t) Au	Contained Au (oz.)
FIFTEEN MILE STREAM
	Inferred Resource	11.72	1.55	584,000
Resources that are not reserves do not have demonstrated economic viability

The Mineral Resource estimate for Fifteen Mile Stream is quoted at a cut-off grade of 0.5g/t. It has an effective date of February 16, 2015 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 April 2, 2015 on SEDAR.

1. COCHRANE HILL

The Cochrane Hill Gold deposit is located within trucking distance (approximately 80km) to the central milling facility at Touquoy and is readily accessible by highway (based on a Preliminary Economic Assessment dated October 14, 2014 prepared by Moose Mountain Technical Services). Mineral resources at Cochrane Hill currently comprise indicated resources of 4.5 million tonnes at 1.8g/t Au for 251,000 oz. and inferred resources of 5.6 million tonnes at 1.6 g/t Au for 298,000 oz.

New assay results reported herein are from a further 30 holes of the resource definition diamond drilling program. This program was completed at the end of April with a total of 177 core holes for 26,575m having been drilled. The latter phase of the program targeted potential extensions of mineralization – mainly to the west of the main body of mineralization, west of the step out holes on section 2775E across highway #7, and at depth in the central part of the deposit.  

Drilling Results:

These new assay results come mostly from west of the main body of mineralization. They continue to reflect the trend and geometry of the main zone – a fairly predictable and continuous tabular body dipping about 70^o to the north with a true width of approximately 15-20m – though in places with varying widths of included internal dilution.  Mineralization attenuates west of the highway #7 (around 2750E) though it remains open to the east as indicated, for example, by hole CH-17-155 on the easternmost section (3500E) which intersected 14m @ 1.89g/t from 82m depth.

The accompanying cross sections and drilling progress plan can be viewed here:

http://www.globenewswire.com/NewsRoom/AttachmentNg/123eac39-bcb9-405d-9883-cc0934129230

Results subsequent to those previously released are tabulated below.  Previous results can be found here: Dec 6, 2016, Jan 3, 2017, Jan 11, 2017, Feb 2, 2017, May 1, 2017 and May 24, 2017.

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-17-153	2950	3080	-70	171	122	14	15	1	3.31*
and						72	80	8	0.49
and						87	88	1	20.9
CH-17-155	3500	3110	-45	171	110	82	96	14	1.89
CH-17-158	3500	3070	-45	171	62	22	25	3	5.22
and						30	33	3	5.59
and						48	56	8	1.13
CH-17-159	2950	3080	-45	171	82	33	36	3	1.20
and						40	41	1	24.0
and						57	65	8	0.59
CH-17-160	3500	3050	-45	171	41				NSA
CH-17-161	2750	3150	-60	171	200	101	102	1	9.87
and						110	114	4	2.09
and						150	151	1	11.85*
CH-17-171	2875	3100	-60	171	154.9	54	57	3	2.91*
and						102	103	1	5.49
CH-17-172	2725	3130	-60	171	170	90	91	1	4.01
and						108	114	6	1.34
CH-17-175	2950	3120	-60	171	160	89	103	14	0.64
and						107	113	6	10.1
(incl.						110	111	1	58.5	)
and						122	126	4	1.50*
CH-17-179	2700	3050	-60	171	92				NSA
CH-17-182	2925	3130	-70	171	200	124	145	21	0.81
and						149	159	10	0.98
CH-17-183	2700	3088	-60	171	131	36	40	4	1.55
and						45	46	1	7.89
and						108	109	1	40.5
CH-17-184	2825	3100	-60	171	130	37	38	1	20.9
and						55	69	14	15.4
(incl.						57	58	1	199.5	)
and						74	76	2	15.2
(incl.						75	76	1	20.3	)
and						92	95	3	2.83
CH-17-185	2925	3130	-60	171	171	118	123	5	0.87
and						146	147	1	4.86
CH-17-186	2825	3100	-45	171	112	51	59	8	2.18
CH-17-187	2700	3130	-60	171	170				NSA
CH-17-188	2747	3060	-90	171	80	3.8	16	12.2	0.93
and						55	56	1	3.83
CH-17-189	2747	3060	-60	171	101	12	17	5	0.84
						32	37	5	4.87
CH-17-190	2825	3070	-45	171	82	31	32	1	4.86
and						50	51	1	6.10
CH-17-191	2975	3100	-60	171	131	56	57	1	22.1
and						76	81	5	1.35
and						100	102	2	2.56
and						109	110	1	5.19
CH-17-192	2825	3145	-70	171	190	128	133	5	0.79
CH-17-193	2825	3145	-60	171	172	125	130	5	1.31
and						134	143	9	0.47
CH-17-194	2975	3100	-45	171	100	83	86	3	35.9
(incl.						85	86	1	101.5	)
CH-17-197	3050	3200	-60	171	272	195	216	21	1.27
CH-17-198	2975	3050	-70	171	61	5	7	2	2.32
and						24	29	5	0.63
and						40	42	2	7.52
and						49	51	2	3.62
CH-17-199	2975	3050	-45	171	52	30	31	1	3.02
and						35	36	1	20.8
CH-17-200	2800	3145	-70	171	212	129	137	8	1.43
and						169	176	7	9.6
(incl.						175	176	1	64.9	)
and						180	181	1	5.84
CH-17-201	2800	3145	-60	171	191	70	71	1	9.15
and						113	119	6	1.11
and						134	138	4	3.04
and						147	148	1	14.45
CH-17-208	2875	3165	-70	171	240	133	134	1	3.59
and						163	175	12	0.68
CH-17-216	2800	3098	-45	171	121	59	62	3	1.00

*Wholly or partly includes 50g fire assay on pulverised whole-sample. All other assays in these particular holes are screen fire assays.

NSA: No significant assays.

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

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.

Technical Disclosure

Fifteen Mile Stream
At Fifteen Mile Stream all assays by default are 50g charge fire assays conducted on whole-sample pulverized 1m samples of sawn, half NQ core with 1-in-10 duplicate assays and insertion of standards and blind blanks. However for holes FMS-17-138 and following, the more conventional preparation procedure of crushing the entire sample to P₇₀ 2mm and pulverizing a 1000g split to P₈₅ 75µm (instead of pulverizing the whole sample) for 50g charge fire assay, was adopted. Following program completion a subset of these samples will be whole-sample pulverized (by pulverizing the coarse reject and adding to the pulp) for duplicate comparison. 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 <2m, representing historic underground workings. Wing samples to voids may be less than 1m to re-establish routine sampling on 1m intervals. Drill core in the hangingwall of the northern limb of the anticline where adjacent historic holes very clearly indicate this upper stratigraphy to be barren may not be sampled and assayed. Standards, blanks and duplicate assay results are acceptable.

Cochrane Hill
All core drilled at Cochrane Hill is assayed. All assays have been 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.  With almost 600 such fire assayed samples having now also been screen fire assayed it is apparent that correlation of these duplicate assay results is sufficiently close to warrant ongoing assaying by fire assay alone. This methodology is being applied to samples from the final 42 drill holes (CH-17-182 onwards, except CH-17-185). Core recovery is estimated for each metre and averages >98%.  Standards and blanks 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 ("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.

On behalf of the Board of Directors,

Steven Dean
Chairman and Chief Executive Officer

For further information about Atlantic, please contact:

Maryse Bélanger (COO)
+1 604 689-5564

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, 2016 and the unaudited financial statements and MD&A for the three months ended March 31, 2017 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.