Cochrane Hill is a key gold deposit located near the Company's Moose River Consolidated (MRC) project with gold resources of 251,000 ounces of gold in 4.5 million tonnes @ 1.8 g/t in the Indicated category and 298,000 ounces of gold in 5.6 million tonnes @ 1.6 g/t in the Inferred category, but not yet included in the MRC life of mine plan.
A 2014 Preliminary Economic Assessment entitled "NI 43-101 Technical Report Preliminary Economic Assessment Nova Scotia, Canada" dated October 14, 2014 indicated that both total life of mine gold production and annual production could be significantly increased at MRC.
Drilling Results:
These results support and continue to define a fairly discrete, tabular, 70° south-dipping zone of disseminated mineralization having a true width of approximately 25m in this part of the deposit.
Two drilling rigs are presently in operation with 9500m in 67 holes having now been drilled. This first phase of drilling will be completed by year-end with the final, second phase to be completed in early 2017.
Atlantic Gold Chairman and CEO Steven Dean commented, "We continue to demonstrate success in our new look at the style of mineralization in the Meguma in Nova Scotia. This program is confirming consistent wide zones of mineralization at open pit grades with the combination of the traditional quartz veins and the disseminated shale host mineralization amenable to open pit mining at relatively low strip ratios."
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.
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, drilling is about to commence and the first hole has now been completed 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.
Technical Disclosure
All assays are on 1m samples of sawn, half NQ core and assayed by total sample screen fire assay with 2x fines fire assays, and insertion of standards and blind blanks. 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.
