Category: Silver / Gold

Atlantic Gold Corporation ( AGB )

Published: 16 March 2018
Written by Editor
Drill Results   TSXV  

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

INFILLING, AND IDENTIFYING EXTENSIONS TO KNOWN MINERALIZATION  AT FIFTEEN MILE STREAM AND COCHRANE HILL
 
HIGHLIGHTS INCLUDE:
 
FMS - PLENTY: 
9m @ 4.11g/t Au from 23m (incl 1m @ 28.5g/t Au)
11m @ 4.04g/t Au from 119m (incl 1m @ 36.2g/t Au)
12m @ 2.39g/t Au from 97m
 
COCHRANE HILL:
31m @ 2.90g/t Au from 149m (incl 1m @ 42.5g/t Au)
31m @ 2.87g/t Au from 205m
11m @ 2.41g/t Au from 187m, then 6m @ 3.16g/t Au from 208m, then 1m @ 31.2 from 218m
6m @ 4.29g/t Au from 191m
VANCOUVER, March 15, 2018  - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to report further assay results received from the Phase 3 Resource Expansion drilling program at the Fifteen Mile Stream and Cochrane Hill gold deposits.
 
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 Phase 3 Resource Expansion diamond drilling program at Fifteen Mile Stream was completed at the end of February with a total of 221 holes for 24,325m having been drilled. Holes were generally drilled on 25m x 20m centres, although for the first-pass drilling along the 350m gap between Plenty and Egerton MacLean holes were drilled on 50m-spaced sections.

Assay results have now been received from a further 39 holes, with all assays expected from this program, but for a single hole, having now been received. At Plenty, further 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 on 25m-spaced sections infilling laterally and up-dip and testing the peripheries of these deposits as presently known. 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.

The accompanying cross sections and drilling progress plan can be viewed here:
http://files.newswire.ca/1485/FMS-PLY_Drill_mar14.pdf

 

1

The MineralResource 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-17-289^

13075

10040

-45

175

72

33

34

1

8.59

and

          

41

43

2

3.05

FMS-17-291^

13075

10020

-45

175

50

17

23

6

1.05

FMS-17-293^

13025

10060

-45

175

92

63

65

2

0.80

FMS-17-295^

13025

10040

-45

175

71

38

39

1

3.39

FMS-17-299^

12975

10060

-45

175

92

      

NSA

FMS-17-302^

12975

10020

-45

175

50

      

NSA

FMS-18-314^

13500

10020

-40

175

61

23

32

9

0.98

FMS-18-315

13425

10032

-42

175

52

13

30

17

1.01

and

          

48

52

4

0.91!
                   

HUDSON

FMS-18-310^

12475

10120

-45

175

142

27

35

8

0.81

and

          

64

65

1

5.49

and

          

73

74

1

3.86

and

          

94

102

8

1.30

and

          

106

109

3

1.69

and

          

135

136

1

26.70

FMS-18-311^

12500

10100

-60

175

122

51

54

3

2.74

and

          

86

100

14

0.91

FMS-18-312

12525

10075

-49

175

115

53

56

3

9.80

incl.

          

53

54

1

27.20

and

          

91

92

1

6.04

FMS-18-313

12525

10060

-45

175

91

49

56

7

1.97

FMS-18-317

12500

10115

-63

175

142

97

109

12

2.39
                   

PLENTY

PL-17-087^

12700

9720

-60

175

61

      

NSA

PL-18-092^

12625

9760

-60

175

131

91

104

13

0.79

PL-18-099^

12575

9760

-60

175

142

98

101

3

1.02

PL-18-100^

12600

9700

-60

175

76

      

NSA

PL-18-101^

12550

9780

-60

175

160

119

122

3

1.35

and

          

131

137

6

0.77

PL-18-102^

12625

9720

-45

175

61

18

19

1

5.75

PL-18-103

12575

9740

-60

175

121

78

79

1

40.70

and

          

92

93

1

8.04

PL-18-104

12575

9700

-60

175

61

23

32

9

4.11

incl.

          

23

24

1

28.50

PL-18-105^

12525

9780

-60

175

160

119

130

11

4.04

incl.

          

121

122

1

36.20

PL-18-106^

12575

9720

-60

175

91

      

NSA

PL-18-107^

12550

9760

-60

175

142

98

107

9

0.80

PL-18-108^

12550

9720

-57

175

100

71

72

1

4.19

PL-18-109^

12525

9760

-55

175

142

      

NSA

PL-18-110^

12550

9740

-57

175

121

      

NSA

PL-18-111^

12550

9700

-57

175

70

      

NSA

PL-18-112^

12525

9740

-55

175

124

      

NSA

PL-18-113^

12675

9720

-60

175

79

6

7

1

3.45

PL-18-114^

12675

9760

-60

175

112

68

69

1

12.75

PL-18-115^

12525

9720

-55

175

100

      

NSA

PL-18-116

12525

9700

-52

175

82

      

NSA

PL-18-117^

12675

9740

-60

175

82

36

37

1

47.60

and

          

69

70

1

3.36

PL-18-118^

12550

9680

-57

175

40

      

NSA

PL-18-119^

12525

9680

-52

175

52

      

NSA

PL-18-120^

12700

9740

-60

175

82

25

26

1

6.59

and

          

35

36

1

6.37

PL-18-121^

12725

9740

-45

175

61

37

40

3

7.30

incl.

          

39

40

1

21.10

PL-18-122

12575

9680

-60

175

40

      

NSA

!

Mineralization to end of hole

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.

2. COCHRANE HILL

The Cochrane Hill Gold deposit is located approximately 80km northeast of 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 a further 15 holes, with assays pending for the remaining eleven holes. Most notable from these results is the strong mineralization intersected at depth beneath previous drilling – 31m @ 2.90g/t in CH-17-229, 31m @ 2.87g/t in CH-17-227 and 11m @ 2.41g/t with further mineralization beneath in CH-17-225 – with assays from adjacent holes in this zone yet to come. This mineralization is open at depth. 

The accompanying cross sections and drilling progress plan can be viewed here: 
http://files.newswire.ca/1485/Cochrane_HillMAR14.pdf

 

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-17-225

3075

3160

71

171

251

104

105

1

4.75

and

          

143

146

3

1.36

and

          

169

183

14

1.08

and

          

187

198

11

2.41

and

          

208

214

6

3.16

and

          

218

219

1

31.20

CH-17-227

3100

3180

70

171

272

183

186

3

14.95

incl.

          

185

186

1

44.00

and

          

205

236

31

2.87

CH-17-228

3325

3160

60

171

230

138

155

17

0.60

and

          

184

188

4

2.54

CH-17-229^

3125

3150

70

171

242

103

104

1

3.98

and

          

126

132

6

3.96

and

          

149

180

31

2.90

incl.

          

149

150

1

42.50

CH-17-234

3500

3150

45

171

151

107

108

1

4.67

and

          

122

136

14

0.83

CH-17-235

3225

3210

60

171

263

202

223

21

1.49

and

          

236

241

5

3.27

and

          

246

247

1

41.30

CH-17-236

3500

3150

-52

171

161

9

10

1

3.04

and

          

131

141

10

2.33

CH-17-239

3148

3187

63

171

242

184

187

3

6.44

and

          

191

197

6

4.29

and

          

223

227

4

3.92

CH-17-241

3525

3110

45

171

112

72

75

3

2.21

and

          

88

92

4

0.79

and

          

100

104

4

2.15

CH-17-244

3450

3120

45

171

131

77

88

11

1.00

and

          

94

102

8

0.58

CH-17-251

3425

3100

60

171

152

60

69

9

0.78

and

          

81

86

5

0.78

and

          

94

98

4

0.80

CH-17-252

3550

3130

45

171

130

105

110

5

1.34

and

          

121

122

1

3.74

CH-17-254

3475

3150

45

171

160

132

133

1

3.40

CH-17-260

3575

3150

45

171

151

129

133

4

1.75

CH-17-266

3600

3110

45

171

112

      

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 whole 1m NQ

 

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 <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, blind blanks and duplicate assay results are acceptable.

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 ("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

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.

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 2018systematically 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.

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 for the quarter endedSeptember 30, 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.

SOURCE Atlantic Gold Corporation

 

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Contact:

about Atlantic, please contact: Maryse Bélanger (COO), +1 604 689-5564; Sean Thompson (Director Investor Relations), Toll Free: 1 877 689-5599