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Great Atlantic Resources Corp (3)
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Close 2019-10-10 C$ 0.40
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Great Atlantic to begin drilling at Golden Oct. 18

2019-10-15 12:15 ET - News Release

Mr. David Martin reports


Great Atlantic Resources Corp. plans to initiate a phase 1 diamond drill program at its Golden Promise gold property, located within the central Newfoundland gold belt. The diamond drill is scheduled to be mobilized to the property on Oct. 18 for drilling at the Jaclyn zone, which hosts multiple gold-bearing quartz vein systems.

"Great Atlantic has been building value; currently, we have a 100-per-cent interest in multiple projects in Atlantic Canada. The Golden Promise gold property is a prime example of value add in Great Atlantic. We have completed a current 43-101 with a resource of over a 100,000 ounces gold, as well as multiple exploration programs defining multiple new target areas to be drilled.

"We have watched as our neighbour, Marthon Gold, expand their resource to over four million ounces gold and become a $200-million market cap company. It's our belief that value investing will soon be on the radar of investors as the shift out of momentum investing continues," states Christopher Anderson, chief executive officer Great Atlantic Resources.

The phase 1 drilling program will be a minimum of 1,000 metres, focusing on the Jaclyn Main zone (JMZ) with some holes testing the Jaclyn North zone (JNZ).

The program is expected to:

  • Test the west half of JMZ within the conceptual pit-constrained area;
  • Test the deeper central region of JMZ;
  • Expand the JMZ resource;
  • Test along projected strike east of JNZ in an area of high-grade quartz boulders (boulder samples of 163, 208 and 332 grams per tonne (g/t) gold).

The company reported a National Instrument 43-101 mineral resource estimate for the JMZ in late 2018. The reported inferred mineral resource estimate for the JMZ is as shown in an attached table.

Resource          Cut-off Au  Au capped  Au uncapped        Tonnes     Au capped     Au uncapped
                        (g/t)      (g/t)        (g/t)                        (oz)            (oz)

Total                    1.1        9.3         10.4       357,500       106,400         119,900           
Pit constrained          0.6       11.4         14.1       157,300        57,800          71,200            
Underground              1.5        7.5          7.6       200,200        48,600          48,700  

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding. Mineral resource tonnage and grades are reported as undiluted. Contained gold ounces are in situ and do not include recovery losses.

Five gold-bearing quartz vein systems are reported at the Jaclyn zone, being the JMZ, JNZ, Jaclyn West zone (JWZ), Jaclyn South zone and Jaclyn East zone. Majority of the historic drilling (2002 to 2010) was conducted at the JMZ. The company confirmed gold-bearing quartz vein bedrock and/or float at the JNZ during 2017 trenching. High-grade quartz vein boulders were discovered during this program along the projected strike east of the JNZ, including samples returning 78, 163, 208 and 332 g/t gold. The 2017 trenching and sampling program was supervised by a qualified person. The 2019 phase 1 drilling program is expected to test the area of these high-grade boulders.

The Golden Promise property hosts multiple gold-bearing quartz veins and is located within a region of recent significant gold discoveries. The property is located within the Exploits subzone of the Newfoundland Dunnage zone. Within the Exploits subzone, the property lies along the north-northwestern fringe of the Victoria Lake supergroup (VLSG), a volcano-sedimentary terrane. The northwestern margin of the Golden Promise property occurs proximal to and, in part, contiguous with a major (Appalachian-scale) collisional boundary and suture zone, known as the Red Indian Line (RIL). The RIL forms the western boundary of the Exploits subzone. Recent significant gold discoveries in this region of the Exploits subzone include those of Sokoman Minerals Corp. (SIC) at the Moosehead gold project and Marathon Gold Corp. (MOZ) at the Valentine Lake gold camp.

As reported in National Instrument 43-101 technical report on the Golden Promise property, central Newfoundland (revised), dated Dec. 4, 2018, the JMZ was modelled as a single quartz vein that strikes east-west and dips steeply to the south. Modelled vein thickness was based on true thickness derived from quartz vein intercepts. The estimate is based on 220 assays that were composited to 135 one-metre long composites. A bulk density of 2.7 grams per cubic centimere was used. Blocks in the model measured 15 metres east-west, one metre north-south and 10 metres vertically. The block model was not rotated. Grades were interpolated using inverse-distance squared (ID2) weighting and a search ellipse that measured 100 metres along strike, two metres across strike and 50 metres vertically. Grades were interpolated based on a minimum of two and a maximum of 10 composites with a maximum of one composite per hole so the grade of each block is based on at least two drill holes, thereby demonstrating continuity of mineralization. For the capped mineral resource estimate, all assays that exceed 65 g/t gold were capped at 65 g/t gold. All resources were classified as inferred because of the relatively wide spacing of drill holes through most of the zone.

Because part of the vein is near surface the resource estimate was constrained by a conceptual open pit to demonstrate reasonable prospects of eventual economic extraction. Generic mining costs of $2.50 (U.S.) per tonne and processing costs of $25 (U.S.) per tonne were used together with a gold price of $1,300 (U.S.) per ounce. A conceptual pit slope of 45 degrees was assumed with no allowance for mining loss or dilution. Based on the combined hypothetical mining and processing costs and the assumed price of gold, a pit-constrained cut-off grade of 0.6 g/t was adopted. For the underground portion of the resource, a cut-off of 1.5 g/t was assumed. The cut-off grade for the total resource is the weighted average of the pit-constrained and underground cut-off grades.

Readers are warned that mineralization at the Moosehead property and Valentine Lake gold camp is not necessarily indicative of mineralization on the Golden Promise property.

David Martin, professional geoscientist, a qualified person as defined by NI 43-101 and vice-president of exploration for Great Atlantic, is responsible for the technical information contained in this news release.

About Great Atlantic Resources Corp.

Great Atlantic is a Canadian exploration company focused on the discovery and development of mineral assets in the resource-rich and sovereign risk-free realm of Atlantic Canada, one of the No. 1 mining regions of the world.

We seek Safe Harbor.

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