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

HIGHLIGHTS INCLUDE:
Fifteen Mile Stream: 31m @ 2.42 g/t from 90m, 18m @ 4.36g/t from 96m, 6m @ 15.3 g/t from 34m

Cochrane Hill: 6m @ 10.1 g/t from 107m, 14m @ 15.4g/t from 55m (incl 1m @ 199.5g/t), 7m @ 9.6g/t from 169m

IDENTIFYING EXTENSIVE BROAD ZONES OF SHALLOW MINERALIZATION AT FIFTEEN MILE STREAM AND DEPTH EXTENSIONS AT COCHRANE HILL

VANCOUVER, British Columbia, June 20, 2017 (GLOBE NEWSWIRE) — Atlantic Gold Corporation (TSX-V:AGB) (“Atlantic” or the “Company”) is pleased to report 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 is nearing completion 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 width, grade and relatively shallow depth. Total widths of significantly mineralized intervals intersected in hole FMS-17-150 (see table below) aggregate to 78m @ 2.61g/t commencing from 16m depth and in adjacent hole FMS-17-149 aggregate to 84m @ 1.76g/t starting at 18m depth. In addition, mineralized intersections are recorded elsewhere across the anticline (eg. 9m @ 8.06g/t from 63m in FMS-17-162 on the southern limb, 18m @ 4.36g/t from 96m in FMS-17-129 on the northern limb and 6m @ 15.3g/t from 34m in FMS-17-141 in the core).

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 23,424m having been drilled. New assay results reported herein are from a further 33 holes with assays pending from the final 32 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 vertical to 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 continue to be received from a suite of 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. Using the descriptive product of grade and down-hole width there are over a 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://www.globenewswire.com/NewsRoom/AttachmentNg/1486b7a4-d850-4731-85d8-0b4658a65aa0

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 and May 24, 2017.

Hole id East North Dip Az. Depth
(m)
Significant Intervals
(≥0.5g/t Au and up to 3m internal dilution)
From
(m)
To
(m)
Width
(m)
Approx. true width (m) Grade
(g/t Au)
FMS-17-121 13450 10200 -60 175 260 48 49 1 1 6.01  
and           90 115 25 24 1.09  
and           125 139 14 13 2.40  
and           212 213 1 1 5.10  
and           230 238 8 6 1.16  
FMS-17-123 13400 10222 -60 175 242 100 105 5 5 3.19  
and           166 168 2 2 2.26  
and           187 188 1 1 13.1  
FMS-17-125 13425 10180 -60 175 263 64 67 3 3 2.01  
and           79 93 14 12 0.72  
and           97 100 3 3 1.09  
and           176 181 5 4 2.53  
and           205 206 1 1 3.40  
and           216 222 6 5 1.23  
FMS-17-126 13400 10200 -60 175 260 68 69 1 1 4.62  
and           74 93 19 18 1.80  
(incl.           87 88 1 1 20.4 )
FMS-17-127 13425 10200 -60 175 281 85 95 10 10 0.75  
and           99 102 3 3 1.32  
and           116 117 1 1 7.88  
and           137 138 1 1 3.27  
and           201 202 1 1 9.09  
and           212 226 14 10 0.53  
FMS-17-128 13400 10200 -45 175 122 79 91 12 12 0.83  
FMS-17-129 13425 10220 -60 175 245 96 114 18 18 4.36  
(incl.           96 97 1 1 59.5 )
and           125 128 3 3 1.25  
and           204 205 1 1 42.9  
and           241 245 4 3 1.39  
FMS-17-131 13425 10220 -70 175 140 96 103 7 7 2.66  
and           107 119 12 12 0.85  
FMS-17-133 13450 10167 -65 175 164 59 65 6 6 0.91  
and           71 99 28 27 1.61  
and           135 139 4 3 1.19  
FMS-17-137 13400 10180 -45 175 92 32 33 1 1 3.60  
and           57 74 17 17 3.67  
(incl.           70 71 1 1 47.8 )
FMS-17-138 13425 10120 -75 175 113 35 44 9 5 0.89  
and           55 80 25 18 1.33  
and           84 89 5 4 0.76  
and           100 106 6 5 0.97  
FMS-17-139 13425 10120 -60 175 191 19 20 1 1 23.7  
and           31 112 81 75 0.97  
and           116 128 12 9 0.59  
and           140 151 11 8 1.37  
FMS-17-140 13475 10120 -80 175 74 39 74 35 28 2.24  
(incl.           46 47 1 1 25.8 )
FMS-17-141 13475 10120 -60 175 161 34 40 6 6 15.3  
(incl.           34 35 1 1 35.7 )
(incl. also           35 36 1 1 50.2 )
and           45 46 1 1 4.11  
and           57 60 3 3 1.84  
and           79 87 8 8 0.46  
and           121 126 5 4 0.76  
and           131 136 5 4 0.94  
and           146 155 9 7 1.01  
FMS-17-142 13525 10100 -45 175 122 7.5 48 40.5 40.5 1.41  
and           53 55 2 1 2.21  
and           63 67 4 3 0.90  
and           72 73 1 1 4.37  
and           77 82 5 4 9.5  
(incl.           78 79 1 1 42.6  
and           86 104 18 16 0.67  
FMS-17-143 13550 10080 -90 175 41 10 16 6 3 1.68  
and           22 26 4 2 1.70  
and           30 31 1 0.5 2.82  
and           35 40 5 3 2.42  
FMS-17-144 13550 10080 -45 175 101 10 11 1 1 25.6  
and           33 47 14 12 4.11  
(incl.           40 41 1 1 37.6 )
and           62 66 4 3 1.05  
FMS-17-145 13550 10080 -65 175 92 6 40 34 26 1.14  
and           44 70 26 19 1.77  
(incl.           45 46 1 0.7 19.3  
FMS-17-146 13575 10217 -70 175 182 100 105 5 4 1.50  
and           139 159 20 17 0.98  
FMS-17-149 13450 10130 -75 175 145 18 19 1 1 23.2  
and           27 50 23 19 1.67  
and           54 98 44 38 1.41  
and           107 108 1 1 5.45  
and           130 145 15 11 1.25  
FMS-17-150 13450 10130 -65 175 202 16 17 1 1 17.45  
and           26 33 7 6 3.39  
and           41 47 6 5 11.0  
(incl.           43 44 1 1 63.2 )
and           51 52 1 1 4.90  
and           56 85 29 26 1.15  
and           94 123 29 26 1.83  
(incl.           94 95 1 1 24.4 )
and           146 151 5 4 1.06  
FMS-17-151 13450 10130 -55 175 142 25 27 2 2 1.85  
and           33 37 4 4 3.28  
and           60 90 30 28 1.00  
and           120 131 11 8 0.95  
FMS-17-155 13350 10100 -45 175 142 20 31 11 10 0.93  
and           90 121 31 28 2.42  
(incl.           91 92 1 1 45.9 )
FMS-17-157 13550 10200 -75 175 182 78 81 3 3 1.02  
and           105 107 2 2 3.40  
and           112 114 2 2 1.60  
and           119 154 35 31 1.08  
FMS-17-159 13550 10200 -55 175 161 49 50 1 1 10.83  
and           117 124 7 6 3.91  
(incl.           119 120 1 1 20.1 )
FMS-17-161 13300 10070 -55 175 151 20 21 1 1 4.00  
and           91 100 9 7 1.17  
FMS-17-162 13300 10070 -45 175 130 63 72 9 7 8.06  
(incl.           69 70 1 1 42.3  
and           76 90 14 11 1.80  
FMS-17-164 13550 10060 -45 175 82 57 58 1 1 4.13  
FMS-17-170 13325 10110 -65 175 181 96 97 1 1 3.38  
and           133 146 13 8 0.79  
FMS-17-173 13350 10120 -75 175 181 17 22 5 4 1.05  
FMS-17-182 13375 10200 -55 175 241 51 56 5 5 0.75  
and           66 67 1 1 7.69  
and           165 166 1 1 3.08  
and           177 180 3 3 3.11  
and           217 226 9 7 1.62  
FMS-17-183 13525 10050 -45 175 76 6 16 10 8 0.69  
and           38 47 9 7 0.90  
FMS-17-191 13325 10150 -45 175 70 34 39 5 5 0.90  
TOTAL 191 holes completed for: 23,424 metres        

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:

  Category Tonnes (millions) Grade (g/t) Au Contained Au (oz.)
FIFTEEN MILE STREAM
  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.

  1. 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 a further 30 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 new assay results come mostly from west of the main body of mineralization. They continue to reflect the trend and geometry of the main zone – a fairly predictable and continuous tabular body dipping about 70o to the north with a true width of approximately 15-20m – though in places with varying widths of included internal dilution.  Mineralization attenuates west of the highway #7 (around 2750E) though it remains open to the east as indicated, for example, by hole CH-17-155 on the easternmost section (3500E) which intersected 14m @ 1.89g/t from 82m depth.

The accompanying cross sections and drilling progress plan can be viewed here:

http://www.globenewswire.com/NewsRoom/AttachmentNg/123eac39-bcb9-405d-9883-cc0934129230

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 and May 24, 2017.

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)
CH-17-153 2950 3080 -70 171 122 14 15 1 3.31*
and           72 80 8 0.49  
and           87 88 1 20.9  
CH-17-155 3500 3110 -45 171 110 82 96 14 1.89  
CH-17-158 3500 3070 -45 171 62 22 25 3 5.22  
and           30 33 3 5.59  
and           48 56 8 1.13  
CH-17-159 2950 3080 -45 171 82 33 36 3 1.20  
and           40 41 1 24.0  
and           57 65 8 0.59  
CH-17-160 3500 3050 -45 171 41       NSA
CH-17-161 2750 3150 -60 171 200 101 102 1 9.87  
and           110 114 4 2.09  
and           150 151 1 11.85*
CH-17-171 2875 3100 -60 171 154.9 54 57 3 2.91*
and           102 103 1 5.49  
CH-17-172 2725 3130 -60 171 170 90 91 1 4.01  
and           108 114 6 1.34  
CH-17-175 2950 3120 -60 171 160 89 103 14 0.64  
and           107 113 6 10.1  
(incl.           110 111 1 58.5 )
and           122 126 4 1.50*
CH-17-179 2700 3050 -60 171 92       NSA
CH-17-182 2925 3130 -70 171 200 124 145 21 0.81  
and           149 159 10 0.98  
CH-17-183 2700 3088 -60 171 131 36 40 4 1.55  
and           45 46 1 7.89  
and           108 109 1 40.5  
CH-17-184 2825 3100 -60 171 130 37 38 1 20.9  
and           55 69 14 15.4  
(incl.           57 58 1 199.5 )
and           74 76 2 15.2  
(incl.           75 76 1 20.3 )
and           92 95 3 2.83  
CH-17-185 2925 3130 -60 171 171 118 123 5 0.87  
and           146 147 1 4.86  
CH-17-186 2825 3100 -45 171 112 51 59 8 2.18  
CH-17-187 2700 3130 -60 171 170       NSA
CH-17-188 2747 3060 -90 171 80 3.8 16 12.2 0.93  
and           55 56 1 3.83  
CH-17-189 2747 3060 -60 171 101 12 17 5 0.84  
            32 37 5 4.87  
CH-17-190 2825 3070 -45 171 82 31 32 1 4.86  
and           50 51 1 6.10  
CH-17-191 2975 3100 -60 171 131 56 57 1 22.1  
and           76 81 5 1.35  
and           100 102 2 2.56  
and           109 110 1 5.19  
CH-17-192 2825 3145 -70 171 190 128 133 5 0.79  
CH-17-193 2825 3145 -60 171 172 125 130 5 1.31  
and           134 143 9 0.47  
CH-17-194 2975 3100 -45 171 100 83 86 3 35.9  
(incl.           85 86 1 101.5 )
CH-17-197 3050 3200 -60 171 272 195 216 21 1.27  
CH-17-198 2975 3050 -70 171 61 5 7 2 2.32  
and           24 29 5 0.63  
and           40 42 2 7.52  
and           49 51 2 3.62  
CH-17-199 2975 3050 -45 171 52 30 31 1 3.02  
and           35 36 1 20.8  
CH-17-200 2800 3145 -70 171 212 129 137 8 1.43  
and           169 176 7 9.6  
(incl.           175 176 1 64.9 )
and           180 181 1 5.84  
CH-17-201 2800 3145 -60 171 191 70 71 1 9.15  
and           113 119 6 1.11  
and           134 138 4 3.04  
and           147 148 1 14.45  
CH-17-208 2875 3165 -70 171 240 133 134 1 3.59  
and           163 175 12 0.68  
CH-17-216 2800 3098 -45 171 121 59 62 3 1.00  

*Wholly or partly includes 50g fire assay on pulverised whole-sample. All other assays in these particular holes are screen fire assays.

NSA: No significant assays.

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:

  Category Tonnes (millions) Grade (g/t) Au Contained Au (oz.)
COCHRANE HILL
  Indicated Resource 4.5 1.8 251,000
  Inferred Resource 5.6 1.6 298,000
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.

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 75µm (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. 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

For further information about Atlantic, please contact:

Maryse Bélanger (COO)
+1 604 689-5564

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.