Mr. Steven Dean reports
ATLANTIC GOLD ANNOUNCES FINAL RESULTS FROM RESOURCE EXTENSION PROGRAMS AT FIFTEEN MILE STREAM & COCHRANE HILL GOLD DEPOSITS
Atlantic Gold Corp. has provided final drill results for its resource extension drill programs which were completed late in 2018 at the Cochrane Hill gold deposit and Fifteen Mile Stream gold deposit.
The phase 3 resource expansion drill programs at the Fifteen Mile Stream and Cochrane Hill gold deposits between September, 2017, and February, 2018, successfully identified additional gold mineralization immediately adjacent to previously defined mineral resources at both locations. Compilation and analysis of the results of these programs determined that in the Egerton-MacLean zone at Fifteen Mile Stream and at Cochrane Hill there remained potential to extend known mineralization.
Drill programs totalling 11,385 m in 69 drill holes and 16,242 m in 70 drill holes were completed at Fifteen Mile Stream and Cochrane Hill, respectively, between mid-September and mid-December, 2018, to test interpreted extensions to the known resources. Partial results for these drill campaigns were announced in earlier press releases (see news releases dated Dec. 5, 2018; Jan. 21, 2019; and Feb. 6, 2019). Final drill results for these drill programs are contained in this release, as displayed in the attached tables.
This news release completes reporting of results from the 2018 phase 3 drill program. All deposits remain open along strike and/or at depth; a review program is currently under way to identify, rate and rank targets across Atlantic Gold's project portfolio to prioritize exploration targets for further drill testing in 2019.
Cochrane Hill gold deposit
The recently completed diamond drilling at Cochrane Hill continues to confirm extensions to the mineralization defined by the phase 3 resource definition drill program, completed earlier in 2018, and supports other recently published results from the program.
Cochrane Hill is located approximately 80 kilometres northeast of the company's central processing facility at the Moose River Consolidated gold mine. Cochrane Hill's current measured and indicated mineral resources stand at 10.66 million tonnes at 1.16 grams per tonne Au for 398,000 ounces at a 0.35 g/t Au cut-off grade. Inferred mineral resources amount to 1.63 million tonnes at 1.32 g/t Au for 69,000 oz at a 0.35 g/t Au cut-off grade (see the company's announcement on Jan. 29, 2018) (1).
The phase 3 resource expansion drilling program at Cochrane Hill was completed in January, 2018, with 44 holes for 6,900 m having been drilled. Holes were drilled on nominal 25 m by 20 m centres to test for resource extensions of this mineralization eastward and at depth to the northeast. The results of this program were announced in prior news releases; however, these results were not included in the resource estimation referred to above (see company announcements on March 15, 2018, and April 4, 2018).
Results of the phase 3 drill program defined a robust zone of mineralization below the current pit design to a depth of approximately 180 m vertically below surface. This zone was interpreted to be open at depth and to the east, with a potential to expand the current in-pit resource and the relatively shallow pit designed in the January, 2018, prefeasibility study (see news release dated Jan. 29, 2018).
The resource extension drilling program, completed in November to December, 2018, was designed to test this potential target area. Initial assay results were included in previous news releases (see the company's announcements on Dec. 5, 2018; Jan. 21, 2019; and Feb. 6, 2019); final drill results are shown in the attached table.
Host rocks at Cochrane Hill are moderately silicified greywacke and argillite protoliths metamorphosed to upper amphibolite facies, with frequent layer-parallel quartz veining. The deposit is a continuous tabular body, dipping 70 degrees to the north, and is interpreted to be within the overturned sheared southern limb of a tight, near isoclinal anticline that plunges gently to the west.
The mineralized zone has an average true thickness of 15 to 20 m and lies between two laterally continuous argillite horizons. Gold mineralization, including frequently visible free gold specks, is associated with pyrrhotite and arsenopyrite. Generally, gold assays are distributed evenly across the mineralized zone; however, several intersections do include single metre assays with elevated gold values that are frequently associated with visible gold on the margins of quartz veins within the host rock.
Following the recent drill program, geological interpretation has identified a robust mineralized core zone approximately 325 m along strike (sections 2975E to 3300E). This core zone is thicker than average, at 20 to 25 m true width, with steep easterly plunge, as shown by grade distribution on the long section. Higher grades within this zone are spatially related to greater abundance of quartz veining; there is an indication that this zone becomes wider down dip, and it is open at depth. To the east of this zone, smaller, parallel higher-grade shoots have been identified and are also open down plunge.
Interpretation and modelling of the mineralized zone continue to assist in targeting further down dip and strike extensions of the deposit, particularly to the east where initial observations indicate that drilling may have overshot the target due to changes in the interpreted plunge of the mineralization. The steep easterly plunge of higher-grade mineralization fits with both the current deposit scale and the regional scale structural interpretation. The increased understanding of the structural controls on the deposit will lead to potential additional drill targets, including but not limited to down plunge extension of the core zone and eastern ore shoots, and more regionally to other targets in the vicinity of Cochrane Hill.
SIGNIFICANT DRILL RESULTS
Cochrane Hill gold deposit
Feb. 12, 2019
Significant intervals**
Hole ID Depth (m) From (m) To (m) Width (m) Grade (g/t Au)
CH-18-272 230 171 172 1 12.35
193 203 10 1.03
CH-18-273 350 264 274 10 3.79
incl. 273 274 1 26.00
279 316 37 2.56
incl. 292 293 1 33.60
CH-18-291 266 177 179 2 2.26
188 197 9 1.50
201 207 6 2.65
239 240 1 126.50
CH-18-297 290 204 210 6 0.81
234 248 14 0.67
CH-18-298 260 174 175 1 17.90
200 236 36 1.43
244 249 5 1.51
CH-18-301 296 224 229 5 11.37
incl. 224 225 1 51.30
237 270 33 2.20
incl. 244 245 1 31.00
incl. 257 258 1 25.00
280 281 1 19.55
CH-18-302 247 189 193 4 2.37
216 224 8 1.44
243 244 1 27.40
CH-18-306 275 179 180 1 6.31
198 206 8 1.46
212 223 11 0.59
258 260 2 3.08
CH-18-310 245 180 182 2 7.29
208 211 3 2.65
CH-18-311 82 42 43 1 15.00
CH-18-312 224 144 145 1 4.45
166 188 22 0.59
211 220 9 1.12
CH-18-314 61 33 36 3 3.48
CH-18-315 261 213 224 11 0.54
230 240 10 1.09
CH-18-316 191 129 135 6 0.71
139 140 1 12.00
174 181 7 0.55
CH-18-320 256 198 211 13 1.36
218 219 1 29.80
CH-18-321 290 216 217 1 11.15
221 229 8 1.15
CH-18-322 221 146 148 2 2.63
159 160 1 4.84
CH-18-324 242 176 180 4 2.58
215 221 6 1.02
CH-18-325 383 311 312 1 6.12
320 324 4 2.34
335 338 3 1.24
CH-18-328 320 257 262 5 0.61
274 277 3 1.10
282 300 18 1.70
304 309 5 5.49
incl. 308 309 1 23.50
CH-18-332 357 298 299 1 6.11
304 326 22 1.40
Gold assay (g/t Au) multiplied by sample length (m) greater than or equal to 3.0 g/t
Au multiplied by m.
Notes
Table includes all assay results which are deemed significant, with sample length (m)
multiplied by gold assay (g/t Au) greater than or equal to 3.0 g/t Au multiplied by m
and received subsequent to news release dated Feb. 6, 2019.
** Significant intervals are the calculation of the average assay results across the
given width for samples which are greater than or equal to 0.5 g/t Au allowing for
zones of up to three m length (three by one m length samples) where the assay values
are less than 0.5 g/t Au. Assay values are not cut for the purposes of reporting in
this table and some intervals include higher-grade individual assay values, as shown.
All assay results are fire assays of 50-gram charge from one-kilogram pulverized subsample
split from about two-millimetre crushed parent of sawn half one m NQ core.
True width of the mineralization varies according to the dip of the host stratigraphy and
declination of the relevant drill hole. For intersections quoted in the table, true width
averages approximately 70 to 90 per cent of the down-hole width.
(1)
The mineral resource estimate for the Cochrane Hill gold deposit is quoted at a cut-off grade of 0.35 g/t. It has an effective date of July 20, 2017, and was prepared as part of a technical report entitled Moose River Consolidated Project, Nova Scotia Canada, NI 43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion, in accordance with NI 43-101, by Neil Schofield, a principal of FSSI (Australia) Pty. Ltd., released on March 15, 2018, on SEDAR.
Fifteen Mile Stream gold deposit
The Fifteen Mile Stream gold deposit is located approximately 57 km northeast of the central processing facility at the Moose River Consolidated gold mine. 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 ounces at a 0.35 g/t Au cut-off grade. Inferred mineral resources amount to 6.64 million tonnes at 1.12 g/t Au for 240,000 oz at a 0.35 g/t Au cut-off grade (see company announcement dated Jan. 29, 2018) (2).
The phase 3 resource expansion diamond drilling program at Fifteen Mile Stream was completed at the end of February, 2018, with a total of 221 holes and 24,325 m drilled. Results of this program were announced in earlier news releases (see company announcement dated March 15, 2018).
At Fifteen Mile Stream, mineralization comprises disseminated gold within argillites and greywackes of the Moose River formation, as well as coarse gold within bedding parallel quartz veins. Gold mineralization is concentrated in three zones: Egerton-MacLean, Hudson and Plenty.
The Hudson and Egerton-MacLean zones lie within the hinge and northern limb of the Fifteen Mile Stream anticline. Secondary folding and fault repetition have led to a larger zone of mineralization in the Egerton-MacLean zone than in the Hudson zone. The Plenty zone is a tabular body within the overturned southern limb of the Fifteen Mile Stream anticline. The anticline that hosts the Egerton-MacLean zone plunges to the east, with the northern limb dipping moderately at 70 degrees to the north, and the southern limb overturned and dipping steeply northward. All drill holes are drilled to the south.
Phase 3 drilling reported early in 2018 indicated that mineralization was open both down dip to the north and down plunge to the east. The resource extension program completed between September and December, 2018, comprising 11,385 m in 69 drill holes, was designed to test this potential target.
Resource extension drill results previously announced further defined disseminated mineralization in the eastern Egerton-MacLean zone in the core of the anticline and on the northern limb of the anticline in the central and western Egerton-MacLean zone. High-grade, vein-hosted gold was also intersected in deeper units along the anticline hinge zone (see news release dated Dec. 5, 2018).
The final drill holes completed in the resource extension program were located along the northern and eastern end of the Egerton-Maclean zone, targeting deeper, down dip and easterly plunging mineralization. Results from these holes, presented in the attached table, include broad zones of lower-grade mineralization, essentially defining the northern and easterly limit to the Egerton-Maclean zone.
SIGNIFICANT DRILL RESULTS
Fifteen Mile Stream gold deposit
Feb. 12, 2019
Significant intervals**
Hole ID Depth (m) From (m) To (m) Width (m) Grade (g/t Au)
FMS-18-440 259 216 229 13 1.18
FMS-18-441 266 198 204 6 0.73
210 214 4 1.05
221 235 14 0.80
FMS-18-442 266 198 206 8 1.43
211 230 19 1.02
FMS-18-443 251 191 206 15 0.59
FMS-18-446 295 233 250 17 0.56
Notes
Table includes all assay results which are deemed significant, with
sample length (m) multiplied by gold assay (g/t Au) of greater than or
equal to 3.0 g/t Au multiplied by m and received subsequent to news
release dated Jan. 21, 2019.
** Significant intervals are the calculation of the average assay results
across the given width for samples which are greater than or equal to
0.5 g/t Au allowing for zones of up to three m length (three by one m
length samples) where the assay values are less than 0.5 g/t Au. Assay
values are not cut for the purposes of reporting in this table and
some intervals include higher-grade individual assay values, as shown.
All assay results are fire assays of 50 g charge from one kg pulverized
subsample split from about two mm crushed parent of sawn half one m NQ core.
True width of the mineralization varies according to the dip of the host
stratigraphy and declination of the relevant drill hole. For intersections
quoted in the table, true width averages approximately 70 to 90 per cent of
the down-hole width.
(2)
The mineral resource estimate for the Fifteen Mile Stream gold deposits is quoted at a cut-off grade of 0.35 g/t. It has an effective date of July 20, 2017, and was prepared as part of a technical report entitled Moose River Consolidated Project, Nova Scotia Canada, NI 43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion, in accordance with NI 43-101, by Mr. Schofield, released on March 15, 2018, on SEDAR.
Technical disclosure
All assays reported are 50 g charge fire assays of one kg pulverized subsample split from less than two mm of crushed parent of sawn half one m NQ core, with one-in-10 duplicate assays of the same pulp. Certified standards prepared by a third party laboratory and blind blanks are routinely inserted. Sample preparation and assaying are conducted at the Sudbury and Vancouver laboratories of ALS Canada Ltd., an entity having no other relationship with the company. ALS employs a standard routine of duplicate and check assays and reference standards. Standards, blind blanks and duplicate assay results are within an acceptable range of tolerance. The company completes a monthly review of quality assurance/quality control on all assay results which is reviewed by the qualified person. Core recovery is estimated for each metre and averages 96 per cent.
Douglas A. Currie, PGeo, general manager of exploration, a qualified person (QP) as defined by National Instrument 43-101, has reviewed, verified and approved the contents of this news release.
Further updates will be provided in due course and as new information comes to hand.
About Atlantic Gold Corp.
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 1 open-pit gold mine which declared commercial production in March, 2018, and its phase 2 life of mine expansion at industry lowest decile cash and all-in sustaining costs (as stated in the company's news releases dated Jan. 16, 2019, and Jan. 29, 2018).
We seek Safe Harbor.
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