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Great Atlantic Resources Corp (3)
Symbol GR
Shares Issued 8,582,464
Close 2020-02-27 C$ 0.77
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Great Atlantic plans phase 2 drilling at Golden Promise

2020-02-28 10:23 ET - News Release

Mr. Christopher Anderson reports

GREAT ATLANTIC PLANS 2020 DIAMOND DRILLING - GOLDEN PROMISE GOLD PROPERTY - CENTRAL NEWFOUNDLAND

Great Atlantic Resources Corp. is preparing and planning to submit an application for phase 2 diamond drilling at its Golden Promise gold property, located within the central Newfoundland gold belt. The drilling is planned for 2020 at the Jaclyn zone, specifically the Jaclyn Main zone (JMZ) and along projected strike east of the Jaclyn North zone (JNZ). The JMZ and JNZ host gold-bearing quartz vein systems. Planned drilling east of the JNZ will test an area of high-grade quartz boulders.

The Jaclyn zone is located within the northern region of the Golden Promise property and hosts five gold-bearing quartz veins systems, being the JMZ, JNZ, Jaclyn South zone, Jaclyn East zone and Jaclyn West zone.

The phase 2 drilling application will include a series of drill holes east of and along projected strike of the JNZ, including areas of high-grade quartz boulders. The JNZ is located approximately 250 metres north of the JMZ. During 2017, Great Atlantic excavated high-grade quartz boulders in trenches east of and along projected strike of the JNZ. Assays of quartz boulder samples excavated during 2017 east of the JNZ included 163.99, 208.51 and 332.67 grams per tonne (g/t) gold.

All rock samples collected during the 2017 trenching program were submitted to Eastern Analytical (Springdale, Nfld.) for preparation and analysis. The high-grade quartz vein boulder samples were analyzed for gold by total pulp metallics -- fire assay. The sample submission included gold standard and blank samples.

The phase 2 drilling application will include in-fill drill holes at the JMZ. This will include additional drill holes in the west area of the JMZ within the conceptual open pit area. This area of the JMZ was the focus of the company's 2019 phase 1 drilling program, which consisted of 10 holes totalling 1,063 metres. Drill core samples from seven holes exceeded 10 g/t gold.

Highlights of near-surface gold intersections from the 2019 program include (core length):

  • GP19-137 -- 12.37 g/t gold over 1.90 metres;
  • GP19-138 -- 113.07 g/t gold over 0.55 metre;
  • GP19-139 -- 15.80 g/t gold over 2.70 metres;
  • GP19-140 -- 2.30 g/t gold over 25.25 metres (includes five gold-bearing veins);
  • GP19-144 -- 61.35 g/t gold over 2.04 metres;
  • GP19-145 -- 14.49 g/t gold over 1.52 metres.

The drill core samples from the 2019 program were analyzed at Eastern Analytical Ltd. Samples of main quartz veins and quartz veined zones were analyzed by the total pulp metallics method. This involves crushing of the entire sample to minus 10 mesh and pulverizing to 95 per cent minus 150 mesh. The total sample is then weighed and screened 150 mesh. The plus-150-mesh fraction is fire assayed for gold and a 30-gram subsample of the minus-150-mesh fraction is fire assayed for gold. A calculated weighted average of total gold in the sample is reported as well (gold values reported by the company in news releases are weighted average values). Other samples were assayed for gold by fire assay (30-gram subsamples) and analyzed for 34 elements (200-milligram subsamples totally dissolved in four acids and analyzed by ICP-OES). Eastern Analytical, a certified laboratory, is independent of Great Atlantic. Blank and standard samples were included with the drill core sample submissions to Eastern Analytical. Duplicate analysis was conducted for some samples.

Great Atlantic 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 the attached table.

Resource         Cut-off Au     Au cap     Au uncap       Tonnes      Au ounces capped     Au ounces uncapped
                       (g/t)      (g/t)        (g/t)    

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.

As reported in the National Instrument 43-101 technical report on the Golden Promise property, 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 square centimetre was used. Blocks in the model measured 15 metres east-west, one-meter 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.

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. at the Moosehead gold project and Marathon Gold Corp. at the Valentine gold project. Readers are warned that mineralization at the Moosehead property and Valentine gold project 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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