Atlantic Gold Reports Final Results from the Resource Definition Drill Programs at Fifteen Mile Stream and Cochrane Hill

 

HIGHLIGHTS INCLUDE:

Fifteen Mile Stream: 9m @ 24.6 g/t from 61m (incl 1m @ 172.5g/t), 41m @ 2.05g/t from 110m, 15m @ 13.5g/t from 106m (incl 1m @ 161g/t), 18m @ 9.7g/t from 87m (incl 1m @ 111g/t), 25m @ 9.8g/t from 113 (incl 1m @ 204g/t), 54m @ 88g/t from 91m (incl 1m @ 3180g/t and 1m @ 1490g/t)

Cochrane Hill: 31m @ 4.2 g/t from 176m, 22m @ 2.94g/t from 168m, 6m @ 14.1g/t from 172m, 5m @ 51g/t from 93m (incl 1m @ 241g/t)

IDENTIFYING BROAD ZONES OF HIGH GRADE MINERALIZATION AT FIFTEEN MILE STREAM AND DEPTH EXTENSIONS AT COCHRANE HILL

VANCOUVER, June 27, 2017 /CNW/ - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to report final assay results received from core drilling programs on the Fifteen Mile Stream and Cochrane Hill gold deposits where resource definition drilling on 25m x 20m centres has been undertaken with the objective of upgrading resources to measured and indicated categories. At Fifteen Mile Stream assay results through the core of the anticline in the Egerton MacLean zone continue to return notable intersections in terms of grade, width and relatively shallow depth. Across a 350m strike length (13200E to 13550E) almost forty, one-metre samples, have recorded assays in excess of 20g/t, the bulk of these being included in longer mineralized intervals (ie. not isolated). Of these, six are in excess of 100g/t and two in excess of 1000g/t. High grades are an inherent feature of this part of the deposit.

In the central part of Cochrane Hill (3100E to 3400E) attractive intersections on the lowest tier holes indicate mineralization to still be open at depth (eg. holes CH-17-204 (31m @ 4.2g/t from 176m), CH-17-212 (22m @ 2.94g/t from 168m), CH-17-218 (6m @ 14.1g/t from 172m) and CH-17-220 (4m @ 9.1g/t from 120m).

The Company plans to use the results from the drill programs to undertake further analysis to determine the economic viability of the above-noted deposits which would include analysis of the economics of processing these deposits at the Moose River Consolidated ("MRC") milling facility by way of a Pre-Feasibility Study.

New assay results from the two drilling programs are reported as follows:

1.FIFTEEN MILE STREAM

Fifteen Mile Stream is located approximately 57km northeast of the central milling facility at Touquoy and is readily accessible by highway. Fifteen Mile Stream's current inferred mineral resources stand at 11.72 million tonnes at 1.55 g/t Au for 584,000 oz. The drilling program has now been completed with 191 holes for 23,943m having been drilled. New assay results reported herein are from a further 34 holes with assays pending from the final two holes of the program.

Drilling Results:

The additional assay drill results continue to reflect those grades, widths and geometry of gold mineralization documented from the 1980s and 2011 drilling programs which support the current inferred resource estimate (see below). 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 at various dips and hence true widths vary (see assay table below) depending on which limb of the anticline is intersected, and also depending on hole inclination or declination. Free gold is commonly observed, and in association with pyrrhotite and arsenopyrite.

Results have now been received from a suite of many holes drilled across the hinge zone of the anticline in the central part of the main Egerton MacLean zone. Notable new intersections in terms of width, grade and relatively shallow depth continue to be returned from positions within the hinge zone, or core, of the anticline as well as the two limbs. The ghosted image of this overturned anticline is now apparent from the positions of the many mineralized intersections, on a number of cross-sections (eg 13425E), the mineralization conforming somewhat to the sedimentary layering. Using the descriptive product of grade and down-hole width there are over two dozen composite intersections with grade x width in excess of 40 gram metres per tonne and many of these are near surface commencing at vertical depths of less than 50m.

These shallow and widespread mineralized intersections across the limbs and core of this sub-horizontal anticlinal hinge zone are considered to be highly encouraging in the context of potential open pit extraction.

The accompanying cross sections and drilling progress plan can be viewed here:
http://files.newswire.ca/1485/FMS_Drill_Plan.pdf

Results subsequent of those previously released are tabulated below. Previous results can be found here: February 10, 2017, March 1, 2017, March 16, 2017, April 3, 2017, May 1, 2017, May 24, 2017 and June 20, 2017.

True width of the mineralization varies according to the dip of the host stratigraphy and declination of the relevant drill hole. It is therefore noted for each intersection in the table above. Particularly in the Egerton-Maclean zone hole collars are necessarily located to minimise, though not entirely avoid, ingress to wetland areas and as a result hole declinations are adjusted to compensate for collar positioning. In many cases holes are drilled at different declinations from the same site. Sample distribution is not materially compromised.

The current resource estimate for Fifteen Mile Stream is as follows:

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.

2. COCHRANE HILL

The Cochrane Hill Gold deposit is located within trucking distance (approximately 80km) to the central milling facility at Touquoy and is readily accessible by highway (based on a Preliminary Economic Assessment dated October 14, 2014 prepared by Moose Mountain Technical Services). Mineral resources at Cochrane Hill currently comprise indicated resources of 4.5 million tonnes at 1.8g/t Au for 251,000 oz. and inferred resources of 5.6 million tonnes at 1.6 g/t Au for 298,000 oz.

New assay results reported herein are from the remaining 22 holes of the resource definition diamond drilling program. This program was completed at the end of April with a total of 177 core holes for 26,575m having been drilled. The latter phase of the program targeted potential extensions of mineralization - mainly to the west of the main body of mineralization, west of the step out holes on section 2775E across highway #7, and at depth in the central part of the deposit.

Drilling Results:

These final assay results come mostly from west of the main body of mineralization and at depth in the central part of the deposit. They continue to reflect the trend and geometry of the main zone - a fairly predictable and continuous tabular body dipping about 70^o to the north with a true width of approximately 15-20m - though in places with varying widths of included internal dilution. Best results are from the depth extension drilling between 3100E and 3400E (eg. holes CH-17-204 (31m @ 4.2g/t from 176m), CH-17-212 (22m @ 2.94g/t from 168m), CH-17-218 (6m @ 14.1g/t from 172m) and CH-17-220 (4m @ 9.1g/t from 120m) where drilling indicates mineralization to be open at depth.

The accompanying cross sections and drilling progress plan can be viewed here:
http://files.newswire.ca/1485/CH_Drill_Plan.pdf

Results subsequent to those previously released are tabulated below.Previous results can be found here: Dec 6, 2016, Jan 3, 2017, Jan 11, 2017, Feb 2, 2017, May 1, 2017, May 24, 2017 and June 20, 2017.

True width of the mineralization is approximately 75-85% of the down-hole width depending on dip of the drill hole.

The current resource estimate for Cochrane Hill is tabulated below:

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.

Technical Disclosure

Fifteen Mile Stream
At Fifteen Mile Stream all assays by default 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. However for holes FMS-17-138 and following, the more conventional preparation procedure of crushing the entire sample to P₇₀ 2mm and pulverizing a 1000g split to P₈₅ 75 um (instead of pulverizing the whole sample) for 50g charge fire assay, was adopted. Following program completion a subset of these samples will be whole-sample pulverized (by pulverizing the coarse reject and adding to the pulp) for duplicate comparison. A gravimetric finish is applied to most high grade (>100g/t) samples. 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 1m intervals. 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.

Cochrane Hill
All core drilled at Cochrane Hill is assayed. All assays have been 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.With almost 600 such fire assayed samples having now also been screen fire assayed it is apparent that correlation of these duplicate assay results is sufficiently close to warrant ongoing assaying by fire assay alone. This methodology is being applied to samples from the final 42 drill holes (CH-17-182 onwards, except CH-17-185). Core recovery is estimated for each metre and averages >98%.Standards and blanks assay results are acceptable.

Results and updates from this drilling program will be reported progressively.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements:

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements and information are not historical facts, are made as of the date of this press release, and include, but are not limited to, statements regarding discussions of future plans, guidance, projections, objectives, estimates and forecasts and statements as to management's expectations with respect to, among other things, the activities contemplated in this news release and the timing and receipt of requisite regulatory, and shareholder approvals in respect thereof. Forward-looking statements in this news release include, without limitation, statements related to proposed exploration and development programs, grade and tonnage of material and resource estimates. These forward looking statements involve numerous risks and uncertainties and actual results may vary. Important factors that may cause actual results to vary include without limitation, the timing and receipt of certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration estimates and results, timing and success, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), changes in development or mining plans due to changes in logistical, technical or other factors, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third party contractors, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. In making the forward-looking statements in this press release, the Company has applied several material assumptions, including without limitation, the assumptions that: (1) market fundamentals will result in sustained gold demand and prices; (2) the receipt of any necessary approvals and consents in connection with the development of any properties; (3) the availability of financing on suitable terms for the development, construction and continued operation of any mineral properties; and (4) sustained commodity prices such that any properties put into operation remain economically viable. Information concerning mineral reserve and mineral resource estimates also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. Certain of the risks and assumptions are described in more detail in the Company's audited financial statements and MD&A for the year ended December 31, 2016 and the unaudited financial statements and MD&A for the three months ended March 31, 2017 on the SEDAR website at www.sedar.com. The actual results or performance by the Company could differ materially from those expressed in, or implied by, any forward-looking statements relating to those matters. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Except as required by law, the Company is under no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

SOURCEAtlantic Gold Corporation

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