07:43:16 EDT Fri 29 Mar 2024
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Atlantic Gold Corp
Symbol AGB
Shares Issued 176,510,449
Close 2017-06-27 C$ 1.60
Market Cap C$ 282,416,718
Recent Sedar Documents

Atlantic Gold drills 54 m of 88 g/t Au at Fifteen Mile

2017-06-27 08:19 ET - News Release

Mr. Steven Dean reports

ATLANTIC GOLD REPORTS FINAL RESULTS FROM THE RESOURCE DEFINITION DRILL PROGRAMS AT FIFTEEN MILE STREAM AND COCHRANE HILL

Atlantic Gold Corp. has released final assay results received from core drilling programs on the Fifteen Mile Stream and Cochrane Hill gold deposits where resource definition drilling on 25-metre-by-20-metre centres has been undertaken with the objective of upgrading resources to measured and indicated categories. At Fifteen Mile Stream assay results through the core of the anti-cline in the Egerton MacLean zone continue to return notable intersections in terms of grade, width and relatively shallow depth. Across a 350 m strike length (13200E to 13550E) almost 40 one-metre samples have recorded assays in excess of 20 grams per tonne, the bulk of these being included in longer mineralized intervals (that is not isolated). Of these, six are in excess of 100 g/t and two in excess of 1,000 g/t. High grades are an inherent feature of this part of the deposit.

In the central part of Cochrane Hill (3100E to 3400E) attractive intersections on the lowest-tier holes indicate mineralization to still be open at depth (such as holes CH-17-204 (31 m at 4.2 g/t from 176 m), CH-17-212 (22 m at 2.94 g/t from 168 m), CH-17-218 (six m at 14.1 g/t from 172 m) and CH-17-220 (four m at 9.1 g/t from 120 m)).

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 prefeasibility study.

New assay results from the two drilling programs are reported as follows.

Fifteen Mile Stream

Fifteen Mile Stream is located approximately 57 kilometres 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 ounces. The drilling program has now been completed with 191 holes for 23,943 m having been drilled. New assay results reported herein are from a further 34 holes with assays pending from the final two 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. Mineralization occurs within argillites, greywackes and bedding-parallel quartz veins across the hinge zone and limbs of the east-west-trending Fifteen Mile Stream (FMS) anti-cline. The northern limb of the anti-cline dips moderately north, with the southern limb overturned (generally steeply north dipping). All holes are therefore declined to the south at various dips and hence true widths vary (see assay table) depending on which limb of the anti-cline is intersected, and also depending on hole inclination or declination. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

Results have now been received from a suite of many holes drilled across the hinge zone of the anti-cline 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 anti-cline as well as the two limbs. The ghosted image of this overturned anti-cline is now apparent from the positions of the many mineralized intersections, on a number of cross-sections (such as 13425E), the mineralization conforming somewhat to the sedimentary layering. Using the descriptive product of grade and down-hole width there are over two dozen composite intersections with grade times width in excess of 40 gram metres per tonne and many of these are near surface commencing at vertical depths of less than 50 m.

These shallow and widespread mineralized intersections across the limbs and core of this subhorizontal anti-clinal hinge zone are considered to be highly encouraging in the context of potential open-pit extraction.

Results subsequent of those previously released are shown in the table. Previous results can be found in press releases dated Feb. 10, 2017, March 1, 2017, March 16, 2017, April 3, 2017, May 1, 2017, May 24, 2017, and June 20, 2017.

                               FIFTEEN MILE STREAM DRILL RESULTS

Hole                  From (m)   To (m)    Width (m)     Approx. true width (m)   Au (g/t)

FMS-17-134                 28       30            2                          2       15.5
incl.                      29       30            1                          1       28.9
and                        46       48            2                          2       2.27
FMS-17-135                                                                            NSA
FMS-17-136                 30       31            1                          1       4.48
FMS-17-147                 79       90           11                         11       0.48
and                       106      107            1                          1       6.03
and                       135      146           11                         11       1.08
FMS-17-148                                                                            NSA
FMS-17-152                 29       30            1                          1       8.44
and                        39       42            3                          3       1.33
and                        64       65            1                          1      14.35
FMS-17-154                 21       26            5                          5       5.06
and                        89       91            2                          2       13.4
incl.                      89       90            1                          1       26.1
and                        98      115           17                         14       1.10
and                       124      131            7                          6       1.02
FMS-17-156                102      107            5                          4       2.06
and                       130      142           12                         10       0.70
and                       147      168           21                         18       0.90
FMS-17-158                118      134           16                         15       1.41
and                       140      141            1                        0.9       3.27
FMS-17-160                 51       52            1                          1       6.39
and                        62       64            2                          2       4.25
and                       115      116            1                          1      16.60
FMS-17-163                                                                            NSA
FMS-17-165                 42       54           12                         12       1.22
and                        72       83           11                         11       2.67
and                       116      122            6                          5       0.85
FMS-17-166                 74       75            1                          1       8.44
and                       109      110            1                          1       3.82
and                       125      128            3                          1       1.36
FMS-17-167                 41       42            1                          1       5.02
and                        46       47            1                          1      17.90
and                        56       57            1                          1       53.2
FMS-17-168                 27       32            5                          5       1.05
and                        60       64            4                          4       3.00
and                        70       72            2                          2         52
incl.                      71       72            1                          1       102)
and                        86       98           12                         12       0.71
FMS-17-169                 29       32            3                          3       4.68
and                        40       50           10                         10       0.88
and                        61       70            9                          9       24.6
incl.                      62       63            1                          1       42.8
incl. also                 63       64            1                          1      172.5
and                        75       82            7                          7       2.04
and                        91       94            3                          3       1.82
and                       105      106            1                          1      12.70
and                       125      142           17                         15       1.08
FMS-17-171                 73       74            1                          1       4.17
and                       113      119            6                          5       1.16
and                       132      142           10                          9       1.30
FMS-17-172                106      121           15                         13       13.5
incl.                     109      110            1                          1       28.7
incl. also                113      114            1                          1        161
and                       129      136            7                          6       0.95
FMS-17-173                 17       22            5                          3       1.05
FMS-17-174                 12       19            7                          5       0.81
and                        59       60            1                          1       14.1
and                       130      132            2                          2       2.05
and                       137      144            7                          6       0.71
FMS-17-175                 98      103            5                          4       0.49
and                       120      121            1                        0.7       10.6
and                       135      167           32                         25       2.33
and                       175      176            1                        0.7      12.75
FMS-17-176                110      151           41                         36       2.05
and                       160      161            1                        0.7       5.53
FMS-17-177                 98       99            1                        0.9       6.29
and                       115      136           21                         19       0.87
and                       141      144            3                          3       3.06
FMS-17-178                 81       82            1                          1       6.68
and                        95       96            1                          1       7.75
and                       102      119           17                         17       1.97
and                       123      135           12                         12       1.81
FMS-17-179                 50       52            2                          2       3.62
and                        77       81            4                          4       1.13
and                        87      105           18                         18        9.7
incl.                      89       90            1                          1       45.3
incl. also                 90       91            1                          1        111
and                       127      130            3                          3       10.0
incl.                     128      129            1                          1       25.8
and                       143      157           14                         14       0.94
and                       188      197            9                          7       0.51
FMS-17-180                 57       58            1                          1      16.65
and                        63       66            3                          3       1.09
and                        79      109           30                         30       2.21
and                       120      126            6                          6       1.64
and                       146    149.5          3.5                          3       1.66
FMS-17-181                 30       33            3                          3       10.0
and                        56       63            7                          7       0.76
and                        68      110           42                         42       1.35
and                       123      131            8                          8       0.91
and                       151      157            6                          6       12.6
incl.                     152      153            1                          1       72.1
and                       178      182            4                          4       1.38
FMS-17-184                 81       89            8                          6       0.96
and                       110      111            1                        0.7      17.55
and                       115      137           22                         17       1.76
and                       141      146            5                          4       0.71
and                       150      163           13                         10        5.9
incl.                     154      155            1                        0.7       27.9
incl. also                158      159            1                        0.7       43.7
and                       172      173            1                        0.7       3.83
FMS-17-185                 69       77            8                          7       0.70
and                        83       84            1                        0.8      112.5
and                        96      107           11                          9        3.6
incl.                      96       97            1                        0.8       24.8
and                       113      138           25                         21        9.8
incl.                     129      130            1                        0.8        204
and                       143      148            5                          4       0.78
FMS-17-186                 59       60            1                        0.9       3.78
and                        80       81            1                        0.9       3.49
and                        91      145           54                         50         88
incl.                     113      114            1                        0.9      3,180
incl. also                124      125            1                        0.9      1,490
and                       191      208           17                         15       0.78
FMS-17-187                 72       73            1                          1       22.2
and                        94      117           23                         23       1.67
and                       122      123            1                          1       5.96
and                       127      171           44                         44       1.23
FMS-17-188                 44       45            1                          1       15.2
and                        77       78            1                          1       3.58
and                        86       88            2                          2       21.8
incl.                      86       87            1                          1       27.2
and                        91      107           16                         16       1.15
and                       130      156           26                         26       0.92
and                       190      194            4                          3       1.15
FMS-17-189                 54       64           10                          7       1.78
FMS-17-190                 19       24            5                          4       1.05
                          171      185           14                         12       0.54

NSA: no significant assays.

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. Particularly in the Egerton-Maclean zone hole collars are necessarily located to minimize, 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 shown in the table.

                   FIFTEEN MILE STREAM RESOURCE ESTIMATE
 
Category            Tonnes (millions)  Grade Au (g/t)   Contained Au (oz) 
                                                        
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 0.5 g/t. It has an effective date of Feb. 16, 2015, and 
was prepared as part of a technical report in accordance with National 
Instrument 43-101 by Neil Schofield, a principal of FSSI (Australia) 
Pty. Ltd., released on April 2, 2015, on SEDAR.

Cochrane Hill

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

New assay results reported herein are from the remaining 22 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 26,575 m 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 stepout holes on Section 2775E across Highway No. 7 and at depth in the central part of the deposit.

Drilling results

These final assay results come mostly from west of the main body of mineralization and at depth in the central part of the deposit. They continue to reflect the trend and geometry of the main zone -- a fairly predictable and continuous tabular body dipping about 70 degrees to the north with a true width of approximately 15 to 20 m -- though in places with varying widths of included internal dilution. Best results are from the depth extension drilling between 3100E and 3400E (such as holes CH-17-204 (31 m at 4.2 g/t from 176 m), CH-17-212 (22 m at 2.94 g/t from 168 m), CH-17-218 (six m at 14.1 g/t from 172 m) and CH-17-220 (four m at 9.1 g/t from 120 m)), where drilling indicates mineralization to be open at depth.

Results subsequent to those previously released are shown in the table. Previous results can be found in press releases dated Dec. 6, 2016, Jan. 3, 2017, Jan. 11, 2017, Feb. 2, 2017, May 1, 2017, May 24, 2017, and June 20, 2017.

                     COCHRANE HILL DRILL RESULTS

Hole            From (m)       To (m)       Width (m)    Au (g/t)

CH-17-195           101          102               1        7.33
and                 109          119              10        1.33
and                 150          151               1        5.81
CH-17-202            93           94               1        3.58
and                 102          103               1        9.30
and                 145          158              13        1.40
and                 191          193               2        22.6
incl.               191          192               1        29.6
CH-17-203           119          120               1        3.47
                    126          132               6        1.24
CH-17-204           125          126               1        92.6
and                 176          207              31         4.2
incl.               178          179               1        93.1
CH-17-205           131          134               3         8.7
incl.               133          134               1        23.6
and                 149          150               1        7.58
and                 154          158               4        1.46
and                 166          173               7        1.85
and                 190          191               1       14.35
CH-17-206           131          134               3        1.49
and                 144          149               5        0.83
CH-17-207           113          114               1        7.16
and                 119          134              15        1.03
and                 145          146               1        11.9
CH-17-209           142          143               1        3.25
and                 148          154               6        1.13
and                 158          159               1        5.66
and                 180          195              15        1.55
CH-17-210            69           74               5        2.65
and                  78           79               1        10.1
and                  85           87               2        1.66
CH-17-211           150          153               3        8.90
and                 172          175               3        1.07
CH-17-212            74           75               1        6.82
and                 147          162              15        0.98
and                 168          190              22        2.94
incl.               184          185               1        22.0
CH-17-213            57           72              15        2.88
incl.                57           58               1        34.8
and                  93           98               5          51
incl.                93           94               1         241
CH-17-214            86           87               1       12.75
and                 119          130              11        1.69
and                 135          149              14        0.81
CH-17-215           127          128               1        4.59
and                 146          164              18        1.45
and                 182          185               3        1.23
CH-17-217            22           28               6        4.54
incl.                26           27               1        22.3
CH-17-218           147          160              13        0.82
and                 172          178               6        14.1
incl.               175          176               1        39.2
incl. also          176          177               1        26.6
CH-17-219                                                    NSA
CH-17-220            79           80               1       11.75
and                 101          106               5        0.87
and                 120          124               4         9.1
incl.               123          124               1        32.1
CH-17-221           167          186              19        1.12
                    217          218               1        5.61
CH-17-222            36           37               1        5.68
and                  64           81              17        1.97
CH-17-223            51           58               7         7.2
incl.                55           56               1        38.1
and                  85           88               3        3.89
CH-17-224            17           35              18        1.54
       
NSA: no significant assays.
True width of the mineralization is approximately 75 to 85 per 
cent of the down-hole width depending on dip of the drill hole. 

The current resource estimate for Cochrane Hill is shown in the table.

 
                     COCHRANE HILL RESOURCE ESTIMATE

Category             Tonnes (millions) Grade Au (g/t) Contained Au (oz) 
                                                              
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 0.5 g/t. It has an effective date of Aug. 1, 2014, and was 
prepared as part of a technical report in accordance with NI 43-101 by 
Mr. Schofield, released on Aug. 14, 2014, on SEDAR.

Technical disclosure

Fifteen Mile Stream

At Fifteen Mile Stream all assays by default are 50 g charge fire assays conducted on whole-sample pulverized 1m samples of sawn, half NQ core with one 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 two millimetres and pulverizing a 1,000 g split to P85 75 micrometres (instead of pulverizing the whole sample) for 50 g 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. A gravimetric finish is applied to most high-grade (greater than 100 g/t) samples. 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. Core recovery is estimated for each metre and averages greater than 97 per cent, excluding occasional voids, usually less than two m, representing historic underground workings. Wing samples to voids may be less than one m to re-establish routine sampling on one m intervals. Drill core in the hangingwall of the northern limb of the anti-cline 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 one m whole-sampled pulverized samples of sawn, half NQ core and, where mineralization is expected, assayed by total sample screen fire assay with two times fines fire assays, and insertion of standards and blind blanks. In the hangingwall and footwall of expected mineralization samples are assayed by 50 g charge fire assay with any mineralized samples (generally greater than 0.5 g/t) and adjacent samples as appropriate, returned for screen fire assay. 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. 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 continuing assaying by fire assay alone. This methodology is being applied to samples from the final 42 drill holes (CH-17-182 onward, except CH-17-185). Core recovery is estimated for each metre and averages greater than 98 per cent. 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, has reviewed and approved the contents of this news release.

We seek Safe Harbor.

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