Atlantic Gold Reports Additional Resource Drilling Results from the Cochrane Hill Gold Deposit Including Step-Out Holes to the West
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 11, 2017) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to report assay results received from an additional twenty-seven holes of the resource definition diamond drilling program being undertaken at its Cochrane Hill Gold Project in Nova Scotia, Canada. The objective of this diamond drilling program is to bring the resources at the Company's Cochrane Hill deposit to measured and indicated status and thereby adding to the existing mine life at MRC.
These results support and continue to define a fairly discrete, tabular, 70° north-dipping zone of disseminated mineralization having a true width of approximately 25m. Of particular note are assay results from a step-out section (2775E) 400m west of most of the previously reported drilling where hole CH-16-112 intersected 12m @ 2.25g/t from 44m and 6m @ 11.5g/t from 65m (includes 1m @ 57.0g/t). Although guidance to this zone was hinted from a single 1970s drill hole it is nevertheless shallower than the expected westward projection of the main body of mineralization previously drilled to the east. It remains open to the west.
With 12,888m in 89 holes having been drilled to the end of 2016 as the first phase of the program the second phase will commence in February 2017 and once all assays from the first phase have been received. The second phase drilling will focus on infilling the 400m gap between the completed step out drill holes and the previous drilling and extending the mineralization further west from 2775E.
Atlantic Gold Chairman and CEO Steven Dean commented, "These results give us confidence that the current resource estimate for Cochrane Hill will be effectively upgraded to Measured and Indicated Resources upon completion of the entire program, and the attractive new step-out results flag real potential for resource expansion. The grades, widths, continuity and near-surface disposition of the mineralization defy conventional expectations of Meguma gold mineralization and support the concept of open pit mineability."
(≥0.5g/t Au and up to 3m internal dilution)
**Wholly or partly includes 50g fire assay on pulverised whole-sample (to be screen fire assayed).
The current resource estimate for Cochrane Hill is tabulated below:
|Category||Tonnes (millions)||Grade (g/t) Au||Contained Au (oz.)|
|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 0.5g/t. It has an effective date of August 1, 2014 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 August 14, 2014 on SEDAR.
Elsewhere, at the Company's Fifteen Mile Stream Gold Project, sixteen holes for 1380m have now been completed and additionally, eight holes for 944m have been drilled on a regional exploration target, the Plenty prospect, located just to the south of Fifteen Mile Stream.
Results and updates from these drilling programs will be reported progressively.
All core drilled is assayed. All assays are conducted on 1m whole-sampled pulverized samples of sawn, half NQ core and, where mineralization is expected, assayed by total sample screen fire assay with 2x fines fire assays, and insertion of standards and blind blanks. In the hangingwall and footwall of expected mineralization samples are assayed by 50g charge fire assay with any mineralized samples (generally >0.5g/t), and adjacent samples as appropriate, returned for screen fire assay. 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 >98%. Standards and blanks assay results are acceptable.
True width of the mineralization is approximately 80% of the down-hole width.
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.