PHASE 2 EXPANSION LIFE OF MINE PLAN SCHEDULED FOR JANUARY 2018
HIGHLIGHTS INCLUDE:
14m @ 1.79 g/t from 77m, 17m @ 1.12g/t from 80m, 4m @ 7.27g/t from 19m (incl 1m @ 23.4g/t) and 12m @ 1.44g/t from 194m
INFILLING, AND IDENTIFYING EXTENSIONS TO, KNOWN MINERALIZATION AT FIFTEEN MILE STREAM
VANCOUVER, Dec. 20, 2017 /CNW/ - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to report the first assay results received from the Phase 3 Resource Expansion drilling program at the Fifteen Mile Stream gold deposit.
Fifteen Mile Stream is located approximately 57km northeast of the central processing facility at Touquoy and is readily accessible by highway. 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 oz. at 0.35g/t cut-off grade. Inferred mineral resources amount to 6.64 million tonnes at 1.12 g/t Au for 240,000 oz. at 0.35g/t cut-off grade (see Company announcement July 21, 20171).
The objectives of the Phase 3 Resource Expansion drilling program are to:
| i. | identify additional gold resources immediately peripheral to those resources previously defined at Fifteen Mile Stream and Cochrane Hill; |
| ii. | at Cochrane Hill and at Fifteen Mile Stream – particularly at the Hudson and Plenty zones, upgrade previously defined inferred resources to measured and indicated categories; and |
| iii. | seek additional new resources within the 350m gap between the Plenty and Egerton MacLean zones at Fifteen Mile Stream. |
| _________________________ |
| 1 The Mineral Resource estimate for Fifteen Mile Stream is quoted at a cut-off grade of 0.35g/t. It has an effective date of July 20, 2017 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 September 1, 2017 on SEDAR. |
At the present time a total of 178 holes for 20,053m have been drilled at Fifteen Mile Stream and 44 holes for 6,903m have been drilled at Cochrane Hill. While the planned program at Cochrane Hill has been completed, some 6,000m of planned and likely follow-up drilling remains to be undertaken at Fifteen Mile Stream, mainly on the Plenty zone. Holes are nominally drilled on 25m x 20m centres, though as first-pass drilling along the 350m gap between Plenty and Egerton MacLean holes have been drilled on 50m-spaced sections.
Assay results have now been received from 28 holes, all from Fifteen Mile Stream, and representing about 13% of all assays expected; no assays have yet been returned for Cochrane Hill. Although these assayed holes are widely distributed along the trend of the mineralized anticline it appears that:
| a) | the Egerton MacLean zone remains open eastwards where FMS-17-200 on the easternmost section (13675E) cut 14m @ 1.79g/t flanked by supporting mineralization in adjacent holes |
| b) | initial infill on 25m-spaced sections at the western end of Egerton MacLean suggests continuity of shallow mineralization (eg. 4m @ 7.27g/t from 19m); and |
| c) | results from a 25m infill section on the eastern side of Hudson similarly indicates continuity of mineralization between the existing 50m-spaced sections (eg. 17m @ 1.12g/t from 80m). |
The accompanying cross sections and drilling progress plan can be viewed here:
https://files.newswire.ca/1485/AtlanticGoldPlan.pdf
Assay results are tabulated below:
| Hole id | Easting | Northing | Dip | Az. | Depth (m) | Significant Intervals (≥0.5g/t Au and up to 3m internal dilution) |
| From (m) | To (m) | Width (m) | Grade (g/t Au) |
| EGERTON MACLEAN |
| FMS-17-192 | 13475 | 10280 | -60 | 175 | 302 | 151 | 158 | 7 | 1.15 |
| and | | | | | | 169 | 172 | 3 | 2.78 |
| and | | | | | | 200 | 201 | 1 | 8.45 |
| and | | | | | | 209 | 210 | 1 | 33.2 |
| FMS-17-193 | 13500 | 10320 | -60 | 175 | 260 | 180 | 193 | 13 | 0.98 |
| and | | | | | | 233 | 234 | 1 | 5.20 |
| FMS-17-194 | 13475 | 10280 | -70 | 175 | 251 | 158 | 173 | 15 | 0.78 |
| and | | | | | | 194 | 206 | 12 | 1.44 |
| and | | | | | | 218 | 222 | 4 | 3.22 |
| FMS-17-195 | 13225 | 10040 | -45 | 175 | 82 | 35 | 40 | 5 | 0.63 |
| and | | | | | | 50 | 51 | 1 | 3.95 |
| FMS-17-196 | 13675 | 10220 | -60 | 175 | 140 | 101 | 105 | 4 | 0.55 |
| and | | | | | | 109 | 113 | 4 | 3.10 |
| and | | | | | | 117 | 123 | 6 | 0.95 |
| FMS-17-197 | 13225 | 10060 | -45 | 175 | 121 | | | | NSA |
| FMS-17-198 | 13675 | 10200 | -60 | 175 | 122 | 91 | 105 | 14 | 0.77 |
| FMS-17-199^ | 13225 | 10080 | -45 | 175 | 142 | 130 | 131 | 1 | 9.44 |
| FMS-17-200^ | 13675 | 10180 | -60 | 175 | 110 | 77 | 91 | 14 | 1.79 |
| FMS-17-201^ | 13675 | 10160 | -60 | 175 | 92 | 62 | 70 | 8 | 0.79 |
| FMS-17-202^ | 13225 | 10020 | -45 | 175 | 61 | 43 | 44 | 1 | 3.93 |
| and | | | | | | 49 | 50 | 1 | 11.55 |
| FMS-17-203^ | 13675 | 10140 | -60 | 175 | 80 | 51 | 54 | 3 | 1.14 |
| FMS-17-204^ | 13225 | 10000 | -45 | 175 | 52 | 19 | 23 | 4 | 7.27 |
| Incl. | | | | | | 20 | 21 | 1 | 23.4 |
| FMS-17-205^ | 13650 | 10220 | -60 | 175 | 140 | 102 | 124 | 22 | 0.65 |
| FMS-17-207^ | 13250 | 9980 | -45 | 175 | 100 | 91 | 92 | 1 | 3.12 |
| FMS-17-208^ | 13200 | 9940 | -45 | 175 | 100 | 31 | 36 | 5 | 0.95 |
| FMS-17-209^ | 13625 | 10220 | -60 | 175 | 140 | 88 | 89 | 1 | 3.52 |
| FMS-17-211^ | 13600 | 10220 | -60 | 175 | 140 | 91 | 98 | 7 | 0.48 |
| and | | | | | | 130 | 131 | 1 | 19.4 |
| | | | | | | | | | |
| HUDSON | | | | | | | | | |
| FMS-17-210^ | 12475 | 10020 | -45 | 175 | 52 | 18 | 19 | 1 | 12.50 |
| FMS-17-212^ | 12475 | 10040 | -45 | 175 | 70 | 7 | 8 | 1 | 9.27 |
| FMS-17-213^ | 12475 | 10060 | -45 | 175 | 82 | 60 | 65 | 5 | 2.25 |
| FMS-17-214^ | 12375 | 10140 | -45 | 175 | 172 | 47 | 49 | 2 | 1.59 |
| and | | | | | | 92 | 114 | 22 | 0.78 |
| FMS-17-220^ | 12300 | 10120 | -45 | 175 | 170 | 114 | 120 | 6 | 1.60 |
| | | | | | | 125 | 130 | 5 | 0.70 |
| | | | | | | 138 | 145 | 7 | 0.63 |
| FMS-17-224^ | 12375 | 10120 | -45 | 175 | 151 | 48 | 49 | 1 | 3.94 |
| and | | | | | | 79 | 83 | 4 | 1.82 |
| and | | | | | | 87 | 91 | 4 | 1.74 |
| and | | | | | | 103 | 106 | 3 | 5.96 |
| and | | | | | | 116 | 120 | 4 | 1.29 |
| FMS-17-230^ | 12300 | 10040 | -45 | 175 | 80 | | | | NSA |
| FMS-17-235^ | 12300 | 10140 | -45 | 175 | 190 | 68 | 69 | 1 | 12.65 |
| and | | | | | | 125 | 126 | 1 | 13.80 |
| FMS-17-240^ | 12475 | 10100 | -45 | 175 | 122 | 7 | 8 | 1 | 8.79 |
| and | | | | | | 62 | 63 | 1 | 3.88 |
| and | | | | | | 80 | 97 | 17 | 1.12 |
| FMS-17-242^ | 12475 | 10080 | -45 | 175 | 101 | 58 | 63 | 5 | 1.65 |
| and | | | | | | 78 | 81 | 3 | 2.08 |
| NSA: No significant assays; that is, no intervals ≥ 3.0g/t x m. |
| ^ Fire assays of half NQ core, otherwise whole NQ core (see Technical Disclosure below) |
True width of the mineralization varies according to the dip of the host stratigraphy and declination of the relevant drill hole. For intersections quoted above true width averages 90% of the down-hole width.
Nature of the mineralization:
Mineralization occurs within argillites, greywackes and bedding-parallel quartz veins across the hinge zone and limbs of the E-W trending Fifteen Mile Stream (FMS) Anticline. The northern limb of the anticline dips moderately north, with the southern limb overturned (generally steeply north dipping). All holes are therefore declined to the south. Highest grades so far encountered occur within the hinge zone of the anticline. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.
Technical Disclosure
At Fifteen Mile Stream all assays by default are 50g charge fire assays of 1kg pulverized sub-sample split from -2mm crushed parent of whole 1m NQ core, with 1-in-10 duplicate assays of the same pulp, and 1-in-10 assays of a second 1kg pulverized sub-sample split from the same crushed parent. Where otherwise noted (^) assays are 50g charge fire assays of 1kg pulverized sub-sample split from -2mm crushed parent of sawn half 1m NQ core, with 1-in-10 duplicate assays of the same pulp. Standards and blind blanks are routinely inserted. 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%, excluding occasional voids, usually <2m, representing historic underground workings. Wing samples to voids may be less than 1m to re-establish routine sampling on 1mintervals. Drill core in the hangingwall of the northern limb of the anticline 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.
Results and updates from this drilling program will be reported progressively.
Phase 2 Expansion Life of Mine Plan Scheduled for January 2018
The Company has now scheduled the release of the Phase 2 Expansion Life of Mine Plan and supporting Pre-Feasibility Study for January 2018 due to un-anticipated delays in respect of receipt of engineering inputs.
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.
Further updates will be provided in due course and as new results come to hand.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer