Atlantic Reports Q1 2018 Production of 18,183 Ounces First Month of Commercial Production in March of 8,810 Ounces Gold Recoveries of 94% on Track to Meet Annual Production Guidance

 

Canadian dollars unless otherwise noted

VANCOUVER, April 13, 2018 /CNW/ - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to report gold production and gold revenue for the first quarter 2018. The Company declared commercial production effective March 1^st 2018 as a result of a successful ramp up of mine and milling facilities at its Moose River Consolidated Gold Mine ("MRC"). For accounting and reporting purposes March 1^st is therefore the effective date for reporting commercial operations.

Operations in the months of January and February 2018 were pre-declaration of commercial operations. The company is however providing operating and production statistics for both the full quarter and for March 2018, the first month of commercial operations.

 

Q1 2018 Highlights Include:

• Gold ounces sold in the quarter were 17,187 ounces at an average sale price of CAD$1,619 per ounce for total revenue of CAD$27.8m.
• Gold ounces sold in March 2018 were 7,755 ounces at an average price of CAD$1,663 per ounce for total revenue of CAD$12.9m and will be credited as revenue in the income statement of the Company.

For accounting purposes all gold sales prior to March 1^st are pre-commercial production and under accounting standards are credited to development costs.

Maryse Bélanger, Chief Operating Officer, commented "We experienced some extreme winter conditions in January and February with a +100 year precipitation event and power outages which caused several days of operating downtime. We also took the opportunity in those ramp-up months to refine the circuit particularly in terms of materials handling associated with the crushing circuit. Notwithstanding, we are very pleased to have achieved strong production statistics for our first full quarter of operations. The efforts of the team have led to good grade reconciliation combined with mill throughput and recoveries that have exceeded design criteria. March was a particularly good month with production of 8,810 ounces supporting our full year production guidance announced on January 19^th,2018."

The Company plans to release its first quarter financial results on May 23, 2018 pre-market.

Conference Call Details

Atlantic Gold Corporation is hosting a live Q&A conference call to discuss the results on May 23rd at 2:00 pm Eastern time (11:00 am Pacific time) with the Atlantic executive team.  Participants may join the call by dialing:

Participant Dial-in Numbers:

 

Additional International Dial-in Numbers: UK: 08006522435, Switzerland: 0800312635, Germany: 08007240293, Hong Kong: 800962712

Please provide the company name (Atlantic Gold Corporation) to the operator.  A recorded playback of the call will be available one hour after the call's completion until June 23^rd, 2018 by dialing:

 

Enter the playback passcode: 179232#, an MP3 recording will also be available on the Atlantic website.

Further updates will be provided in due course.

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.

About Atlantic:

Atlantic is a well-financed, growth-oriented gold development group with a long term strategy to build a mid-tier gold production company focused on manageable, executable projects in mining-friendly jurisdictions.

Atlantic is focused on growing gold production in Nova Scotia beginning with its MRC phase one open pit gold mine which declared commercial production in March 2018, and its phase two Life of Mine Expansion which will ramp up gold production to + 200,000 ounces per year at industry lowest quartile cash and all-in-sustaining-costs (as stated in the Company's news releases dated January 19, 2018 and January 29, 2018).

Atlantic is committed to the highest standards of environmental and social responsibility and continually invests in people and technology to manage risks, maximize outcomes and returns to all stakeholders.

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 for the quarter ended September 30, 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.

SOURCE Atlantic Gold Corporation

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