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.