REPORTS FIRST STAGE RESULTS FROM THE RESOURCE DEFINITION DRILL PROGRAM AT FIFTEEN MILE STREAM
Atlantic Gold Corp. (AGB.V) has released assay results received from the first 20 holes of the resource definition diamond drilling program being undertaken at its Fifteen Mile Stream gold project in Nova Scotia, Canada. Two rigs are presently drilling on the property with 70 holes for 6,300 m of the planned 25,000 m having been drilled to date. The objective of this program is to bring the resources at the Company's Fifteen Mile Stream deposit to measured and indicated status and thereby adding to the existing life of mine plan at MRC.
In terms of grade, width and position, results received to date are generally consistent with the resource base from the previous drilling programs and which underpin the current inferred resource estimate for Fifteen Mile Stream (see below). Most of this drilling - 177 diamond core holes for 30,100m - was conducted during the 1980s. Mineralization occurs within argillites, greywackes and contained bedding-parallel quartz veins across the hinge zone and limbs of an E-W trending anticline. The northern limb of the anticline dips moderately north, with the southern limb vertical to overturned (generally steeply north dipping). All holes are therefore declined to the south and hence true widths vary (see assay table below) depending on which limb of the anticline is intersected. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite. These first stage drilling results support our understanding of the essential continuity of the mineralization. The team continues to explore and discover extensive disseminated mineralization previously overlooked, and combined with mineralized quartz veins, could represent potentially open pittable reserves. The region is underexplored for this deposit model.
It is noted that a significant assay interval was returned from only one hole on the single fence of holes for which assays are available in the sparsely drilled gap between the Hudson and Egerton-MacLean zones (12900E). Geochemically anomalous gold within assay intervals below the selected cut-off for reporting (3g/t x m) were nevertheless intersected in adjacent holes, supporting the view that the mineralization is continuous between these two zones. From an exploration perspective (versus a resource definition perspective) encouragement is drawn from these results for further investigation. Follow up drill holes are planned for this zone.
Atlantic Gold Chairman and CEO Steven Dean commented, "These early results support our expectations of continuity of mineralization and indicate that the current resource estimate at Fifteen Mile Stream is likely to be upgraded to measured and indicated resource categories upon completion of the entire program, and that Fifteen Mile Stream may ultimately contribute additional mill feed to the Moose River Consolidated Project. The paucity of historic drilling in certain parts of the anticline encourage us to believe that the potential for additional resources and reserves here remains high."
Results of the drilling program to date are tabulated below:
Hole From To Width Approx. true width Au (m) (m) (m) (m) (g/t) FMS-16-001 NSA FMS-16-002 56 63 7 6 1.39 FMS-16-003 NSA FMS-16-004 NSA FMS-16-005 75 81 6 6 0.97 FMS-16-006 25 26 1 0.7 3.71 and 30 31 1 0.7 47.4 and 111 123 12 8.5 1.17 FMS-16-007 83 94 11 11 1.05 FMS-16-008 56 82 26 26 1.03 FMS-16-009 43 67 24 24 1.20 FMS-16-010 9.5 26 16.5 11.5 1.29 and 36 41 5 3.5 1.49 and 63 64 1 0.7 19.1 FMS-16-011 7 19 12 8.5 0.66 and 42 68 26 18 0.73 and 74 83 9 6.5 0.93 FMS-17-012 66 75 9 8.5 0.76 FMS-17-013 10 18 8 5.5 3.72 incl. 14 15 1 0.7 26.5 and 43 50 7 5 0.93 and 71 94 23 16 2.44 incl. 71 72 1 0.7 23.3 and 100 105 5 3.5 0.66 FMS-17-014 4 9 5 5 2.20 and 19 20 1 1 3.79 and 42 47 5 5 3.38 FMS-17-015 98 107 9 7 1.21 FMS-17-016 NSA FMS-17-017 60 66 6 6 1.13 FMS-17-018 73 81 8 8 0.81 FMS-17-019 10 14 4 4 1.03 and 20 21 1 1 3.55 and 82 83 1 1 19.1 and 87 90 3 3 1.67 FMS-17-020 64 72 8 8 2.19
The current resource estimate for Fifteen Mile Stream is as follows:
FIFTEEN MILE STREAM Category Tonnes (millions) Grade (g/t) Au 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 0.5g/t. It has an effective date of February 16, 2015 and was prepared as part of a technical report in accordance with NI 43-101 by Mr. Neil Schofield, a principal of FSSI (Australia) Pty Ltd, released on April 2, 2015 on SEDAR.
Results and updates from this drilling program will be reported progressively.
All assays are 50g charge fire assays conducted on whole-sample pulverized 1m samples of sawn, half NQ core with 1-in-10 duplicate assays and insertion of standards and blind blanks. Sample preparation and assaying is 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 >97%. Standards, blanks and duplicate assay results are acceptable.
True width of the mineralization varies according to the dip of the enclosing stratigraphy. It is therefore noted for each intersection (see table above) .
The individual drill hole assay results underlying the mineralized intersections listed in the table above have been verified by detailed checking against the original assays sheets. The lengths and average grades of each intersection have also been checked against the drill hole assay logs.
Wally Bucknell, Director of Exploration to the Company and a Qualified Person as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the contents of this news release.