Category: Silver / Gold

Atlantic Gold Corporation - Updated MRC Production Schedule

MINERAL RESERVES INCREASE BY 401,000 OUNCES OR 27%
MINE LIFE INCREASES TO 10+ YEARS
TOTAL MINERAL RESERVES OF 1.9 MILLION OUNCES
COMPOUND ANNUAL GROWTH RATE OF PRODUCTION OF 21%
COCHRANE HILL PIT OPEN AT DEPTH AND TO THE EAST
FURTHER MINE LIFE POTENTIAL AT 149 AND OTHER REGIONAL TARGETS
 
VANCOUVER, March 25, 2019 - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to announce an updated mineral reserve statement and life of mine production plan for its Moose River Consolidated ("MRC") Mine. Following successful drilling campaigns at the Touquoy, Fifteen Mile Stream and Cochrane Hill deposits and the updated resource statements issued on March 13, 2019, Proven and Probable Mineral Reserves have increased to approximately 1.9 million ounces. 

"Today's update marks another milestone in the continuation of growing our Reserve base at MRC and represents a work in progress. Testing the extension of the high grade shoots at Cochrane Hill, establishing Mineral Resources at the 149 deposit, and potentially extending the strike to the east, will be priorities for 2019. We also remain very excited about leveraging the value of the potential discovery of multiple additional deposits from our ongoing Corridor Regional Exploration Program." said Maryse Bélanger, President and COO.

Highlights

  • Proven and Probable Mineral Reserves increased by 401,000 ounces Au or 27% of the depleted Reserve base (as at December 31, 2018) as a result of additions to Mineral Reserves at the Touquoy, Fifteen Mile Stream and Cochrane Hill deposits which are now included in the Life of Mine (LoM) production schedule below;
  • Mine life at the Moose River Consolidated Mine now exceeds 10 years;
  • Total Mineral Reserves for all deposits are now approximately 1.9 million ounces Au;
  • Compound annual growth in production at MRC is 21%;
  • An increased percentage of Reserves are now in the highest confidence Proven category as a result of the infill drilling program;
  • At Cochrane Hill, Mineral Reserves include only a small portion of the newly defined easterly plunging higher grade shoots. These recently identified zones require further testing through a proposed extension drilling program in 2019;
  • Further planned drilling as part of the Corridor Regional Exploration Program including at the 149 deposit and other targets along the 45 km strike length of the Corridor also have potential to add to the MRC mine life.

 

Table 1:  Current Mineral Reserve Statement

       

Classification

Ore
Tonnes
(Mt)

Diluted Gold
Grade (g/t)

Mined Gold
oz's ('000's)

       

Touquoy

     

Proven Reserves

3.36

1.10

119

Probable Reserves

7.14

1.28

295

Existing Stockpile Reserves

2.41

0.57

44

Total Proven and Probable Reserves

12.91

1.10

458

       

Beaver Dam

     

Proven Reserves

3.81

1.54

188

Probable Reserves

3.09

1.43

142

Total Proven and Probable Reserves

6.90

1.49

330

       

MRC Phase 1 (Touquoy and Beaver Dam)

     

Proven Reserves

7.17

1.33

307

Probable Reserves

10.23

1.33

437

Existing Stockpile Reserves

2.41

0.57

44

Total Proven and Probable Reserves

19.81

1.24

788

       

Fifteen Mile Stream

     

Proven Reserves

5.58

1.09

196

Probable Reserves

11.18

1.06

380

Total Proven and Probable Reserves

16.76

1.07

576

       

Cochrane Hill

     

Proven Reserves

10.25

1.08

355

Probable Reserves

5.13

0.96

158

Total Proven and Probable Reserves

15.38

1.04

513

       

MRC, Phase 2 Expansion (Fifteen Mile Stream and Cochrane Hill)

Proven Reserves

15.83

1.08

550

Probable Reserves

16.32

1.03

539

Total Proven and Probable Reserves

32.14

1.05

1,089

       

Total Moose River Consolidated

     

Proven Reserves

22.99

1.16

857

Probable Reserves

26.55

1.14

975

Existing Stockpile Reserves

2.41

0.57

44

Total Proven and Probable Reserves

51.95

1.12

1,877

 
 

Notes for the Mineral Reserve Estimates;

 

1.

The Mineral Reserve Estimates were prepared by Marc Schulte, P.Eng. (who is also the independent Qualified Person for these Mineral Reserve Estimates), in accordance to the 2014 Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves, with an effective date of March 13, 2019.

   

2.

The Mineral Reserve estimates are a subset of the February 15, 2019 Mineral Resource estimates (see news release dated March 13, 2019).

   

3.

Touquoy Proven Mineral Reserves include existing stockpiled ore of 2.41 Mt at 0.57 g/t gold grade. This material is not included in, and is additional to, the Mineral Resource estimate.

   

4.

The Mineral Reserves are based on an engineering and technical information developed at a Pre-Feasibility level for each of the included four deposits.

   

5.

Mineral Reserves are mined tonnes and grade, the reference point is the mill feed at the primary crusher.

   

6.

Mineral Reserves are reported at a cut-off grade of 0.30 g/t Au for Touquoy, Fifteen Mile Stream and Cochrane Hill, and 0.5 g/t Au for Beaver Dam.

   

7.

Cut-off grade assumes US$1,300/oz. Au at a currency exchange rate of 0.77 C$ per US$; 99.9% payable gold; $5.00/oz. offsite costs (refining and transport), a 2% royalty; and uses a 92% metallurgical recovery.  The cut off-grade covers processing costs of $11.00/t at Touquoy, $8.22/t at Fifteen Mile Stream, $8.64/t at Cochrane Hill, and $18.00/t at Beaver Dam and general and administrative (G&A) costs of $2.50/t.

   

8.

Mining recovery of 98.4% and external mining dilution of 1.6% at 0.20 g/t Au grade is applied in addition to the modelled in-block dilution.

   

9.

As Touquoy is an ongoing operation, a surveyed topographic surface dated December 31, 2018 is used as the basis for the Mineral Reserves.

   

10.

Factors that may affect the estimates include: metal price assumptions, changes in interpretations of mineralization geometry and continuity of mineralization zones, changes to kriging assumptions, metallurgical recovery assumptions, operating cost assumptions, confidence in the modifying factors, including assumptions that surface rights to allow mining infrastructure to be constructed will be forthcoming, delays or other issues in reaching agreements with local or regulatory authorities and stakeholders, and changes in land tenure requirements or in permitting requirement. Any other known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves are detailed below in the section entitled "Forward-Looking Statements".

   

11.

Estimates have been rounded and may result in summation differences.

 

 

Table 2 – MRC Consolidated Operations Forecast Life of Mine Production Table

TOTAL MINE PRODUCTION - MRC

 

Year

LOM

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

TOTAL Ore Milled

ktonnes

51,954

2,240

2,240

2,315

4,115

5,330

6,000

6,000

6,000

6,000

4,844

4,000

2,869

AU

g/t

1.12

1.42

1.51

1.29

1.40

1.44

1.41

1.31

1.10

0.92

0.74

0.54

0.42

Mill Feed Gold

koz.

1,877

103

109

96

186

247

272

252

213

178

116

69

38

PRODUCED GOLD

koz.

1,736

97

103

91

174

231

254

234

195

161

103

59

32

TOTAL Ore Mined

ktonnes

49,540

2,927

2,435

3,374

6,031

7,191

8,292

7,324

5,946

4,271

1,338

411

-

AU

g/t

1.15

1.22

1.42

1.15

1.10

1.21

1.17

1.14

1.07

1.03

1.10

1.17

-

TOTAL Stockpile Retrieval to Mill

ktonnes

15,207

30

-

75

300

50

-

650

1,158

2,706

3,744

3,624

2,869

AU

g/t

0.55

0.63

-

1.30

1.15

0.69

-

0.67

0.63

0.59

0.59

0.46

0.42

TOTAL Waste Mined

ktonnes

150,508

3,859

4,365

11,454

26,247

31,920

28,879

23,637

15,207

4,310

580

51

-

TOUQUOY

Ore Milled from Touquoy

ktonnes

12,914

2,240

2,240

2,240

1,979

352

-

343

1,000

1,674

845

-

-

AU

g/t

1.10

1.42

1.51

1.29

1.17

1.11

-

0.62

0.62

0.53

0.42

-

-

Process Recovery

%

93.1

95.0

95.0

95.0

94.5

94.5

-

89.0

89.0

89.0

89.0

-

-

Ore Mined from Touquoy

ktonnes

10,500

2,927

2,435

2,492

2,280

365

-

-

-

-

-

-

-

AU

g/t

1.23

1.22

1.42

1.20

1.08

1.08

-

-

-

-

-

-

-

Stockpile Retrieval to Mill from Touquoy

ktonnes

3,892

30

-

-

-

-

-

343

1,000

1,674

845

-

-

AU

g/t

0.54

0.63

-

-

-

-

-

0.62

0.62

0.53

0.42

-

-

Waste Mined from Touquoy

ktonnes

17,343

3,859

4,365

5,172

3,605

342

-

-

-

-

-

-

-

BEAVER DAM

Ore Milled from Beaver Dam

ktonnes

6,897

-

-

-

236

1,678

2,000

1,657

1,000

326

-

-

-

AU

g/t

1.49

-

-

-

1.74

1.60

1.52

1.42

1.32

1.38

-

-

-

Process Recovery

%

95.0

-

-

-

95.0

95.0

95.0

95.0

95.0

95.0

-

-

-

Ore Mined from Beaver Dam

ktonnes

6,897

-

-

-

236

1,685

2,000

1,650

1,000

326

-

-

-

AU

g/t

1.49

-

-

-

1.74

1.59

1.52

1.42

1.32

1.38

-

-

-

Stockpile Retrieval to Mill from Beaver Dam

ktonnes

7

-

-

-

-

-

-

7

-

-

-

-

-

AU

g/t

0.62

-

-

-

-

-

-

0.62

-

-

-

-

-

Waste Mined from Beaver Dam

ktonnes

40,384

-

-

165

9,194

13,348

9,934

5,865

1,754

124

-

-

-

FIFTEEN MILE STREAM

Ore Milled from Fifteen Mile Stream

ktonnes

16,764

-

-

75

1,900

2,000

2,000

2,000

2,000

2,000

2,000

2,000

789

AU

g/t

1.07

-

-

1.30

1.60

1.50

1.40

1.38

1.04

0.84

0.65

0.41

0.41

Process Recovery

%

88.3

-

-

91.3

93.1

92.5

92.0

91.9

89.4

87.3

84.4

79.2

79.2

Ore Mined from Fifteen Mile Stream

ktonnes

16,764

-

-

883

3,448

2,874

3,446

2,743

2,144

1,226

-

-

-

AU

g/t

1.07

-

-

1.00

1.08

1.20

1.04

1.12

0.97

0.90

-

-

-

Stockpile Retrieval to Mill from Fifteen Mile Stream

ktonnes

6,554

-

-

75

300

-

-

300

158

932

2,000

2,000

789

AU

g/t

0.59

-

-

1.30

1.15

-

-

0.72

0.70

0.70

0.65

0.41

0.41

Waste Mined from Fifteen Mile Stream

ktonnes

39,384

-

-

6,117

7,214

6,968

4,641

6,557

7,030

856

-

-

-

COCHRANE HILL

Ore Milled from Cochrane Hill

ktonnes

15,380

-

-

-

-

1,300

2,000

2,000

2,000

2,000

2,000

2,000

2,080

AU

g/t

1.04

-

-

-

-

1.24

1.30

1.25

1.30

1.25

0.97

0.66

0.42

Process Recovery

%

91.4

-

-

-

-

92.7

93.0

92.7

92.9

92.8

91.6

89.6

86.6

Ore Mined from Cochrane Hill

ktonnes

15,380

-

-

-

67

2,266

2,846

2,931

2,802

2,720

1,338

411

-

AU

g/t

1.04

-

-

-

0.65

0.96

1.07

1.01

1.05

1.04

1.10

1.17

-

Stockpile Retrieval to Mill from Cochrane Hill

ktonnes

4,754

-

-

-

-

50

-

-

-

100

900

1,624

2,080

AU

g/t

0.50

-

-

-

-

0.69

-

-

-

0.64

0.63

0.53

0.42

Waste Mined from Cochrane Hill

ktonnes

53,397

-

-

-

6,233

11,262

14,304

11,214

6,423

3,330

580

51

-

 

 

This production schedule may change over time due to various factors including delays in permitting, balancing economics and production scheduling, as well as the addition of new reserves from further drilling at Touquoy, Fifteen Mile Stream, Cochrane Hill and the Corridor Regional exploration program.  Detailed engineering will commence shortly for the expansion projects and at this time Capital Costs and Operating costs are expected to be similar to those contained in the Pre-Feasibility Study issued March 2018.

It is anticipated that any reserve additions from Cochrane Hill, the 149 deposit and the Corridor Regional Program will supplement the lower grade production currently scheduled from 2026 onwards.

 

Report Filing

A technical report, based on a Pre-Feasibility Study, prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects in respect of the Reserve Update will be filed on SEDAR (www.sedar.com) and the Company's website (www.atlanticgoldcorporation.com) within 45 days of the date of this news release.

Qualified Persons

Marc Schulte P.Eng., an independent consultant to the Company, and a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical information contained in this news release.

Further updates will be provided in due course.

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 is focused on growing gold production in Nova Scotia beginning with its MRC phase one open-pit gold mine which declared commercial production in March 2018, and its phase two Life of Mine Expansion at industry lowest decile cash and all-in-sustaining-costs (as stated in the Company's news releases dated January 16, 2019 and January 29, 2018).

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 and discussion regarding the updated mineral reserve statement, future increases in the mineral reserve estimate, the updated life of mine production schedule, future changes to the life of mine production schedule, future drilling, the Company's priorities for 2019, discussions of future plans, guidance, projections, objectives, estimates and forecasts and statements as to management's expectations with respect to, among other things, the matters and activities contemplated in this news release. 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 and agreements, 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, agreements 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. 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, 2018 on the Company's SEDAR profile 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 (President and COO), +1 604 689-5564

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