Description and Ownership

The Beaver Dam Gold Project, located approximately 37 km by road from the Touquoy project, is an earlier stage high grade open pittable deposit, 100% owned by Atlantic.

The area was previously mined as an underground deposit at various times from 1895 until 1939. There have been various stages of exploration with in excess of 20,000 metres of drilling completed to date.

Beaver Dam is being developed as a satellite deposit to the planned Touquoy operation with haulage of ore 37km by road to the Touquoy processing plant following completion of mining at Touquoy. The combined operation that includes milling ore from Touquoy and Beaver Dam is entitled the Moose River Consolidated project.  Beaver Dam lies along the same geological trend as the Company’s other related deposits – Touquoy, Fifteen Mile Stream and Cochrane Hill – and all are hosted within the same essential stratigraphy and structure, over a strike length of 80km.

Permitting and Environmental Approvals

Discussions on permitting at Beaver Dam are underway with the relevant authorities. The Company made its formal submission of the Company's Beaver Dam Project Description to CEAA, which is now under CEAA's 365-day federal review process. Approvals are anticipated by the end of 2019, or early 2020.The full project description and the summaries of the project description (in English and French) can be accessed by clicking on the links below.

Mineral Reserve Statement

Classification Ore Tonnes (Mt) Diluted Gold Grade (g/t) Mined Gold oz's ('000's)
Beaver Dam      
Proven Reserves 3.81 1.54 188
Probable Reserves 3.09 1.43 142
Total Proven and Probable Reserves 6.90 1.49 330
  1. The Mineral Reserve Estimates were prepared by Marc Schulte, P.Eng. (who is also the independent Qualified Person for these Mineral Reserve Estimates), in accordance to the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, with an effective date of March 13, 2019.    
  2. The Mineral Reserve estimates are a subset of the February 15, 2019 Mineral Resource estimates (see news release dated March 13, 2019).
  3. The Mineral Reserves are based on an engineering and technical information developed at a Pre-Feasibility level for each of the included four deposits. Mineral Reserves are mined tonnes and grade, the reference point is the mill feed at the primary crusher.
  4. Mineral Reserves are reported at a cut-off grade of  0.5 g/t Au for Beaver Dam.

Mineral Resource Estimate
 

    Measured Indicated
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Beaver Dam 0.30 5.1 1.28 209 4.6 1.23 182
  0.40 4.4 1.42 203 4.1 1.34 176
  0.50 3.9 1.56 195 3.7 1.44 169

 

    Measured+Indicated Inferred
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Beaver Dam 0.30 9.7 1.26 392 1.0 1.41 47
  0.40 8.5 1.38 378 0.9 1.55 45
  0.50 7.6 1.50 365 0.8 1.71 43
  1. Mineral Resources have an effective date of February 15, 2019.  The Qualified Person for the estimates is Mr. Neil Schofield, MAIG, an employee of FSSI Consultants (Australia) Pty Ltd.
  2. Mineral Resources are reported at a base case cut-off grade of 0.3 g/t Au.  The cut-off grade includes the following considerations: assumption of open pit mining methods; gold price of US $1,400/oz; and an exchange rate of 0.77 US$: CDN$.
  3. Mineral Resources are reported inclusive of those Mineral Resources that have been converted to Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  4. Estimates have been rounded and may result in summation differences.

Geology

The Beaver Dam property is centered on the Moose River-Beaver Dam Anticline as do the Touquoy and Fifteen Mile Stream properties.  The mineralization is contained within the overturned southern limb of the anticline which dips to the north at between 75 and 90 degrees.  The anticline and host stratigraphy are sinistrally off-set by two northwest trending faults – the Mud Lake Fault and the Cameron Flowage Fault – at the eastern end of the orebody.  The mineralization has largely been defined in the Main Zone within a stratigraphic package comprising alternating argillite and greywacke units.  As a result of the folding, a well-developed axial planar cleavage is present in both rock types.  At Beaver Dam, the highest gold grades are typically associated with bedding-parallel tabular quartz veins.  However, the host rock material between quartz veins also carries significant gold grades.  Quartz vein hosted gold mineralization augmented by disseminated style mineralization forms the basis of the geological model which underpins the on-going exploration and development of the Beaver Dam gold deposit.

Community Liaison Committee

The Touquoy/Beaver Dam Community Liaison Committee (CLC) is comprised of community members in areas adjacent to the mine site. Their purpose is to allow a respectful and transparent exchange of information between Atlantic Gold Corporation and the residents of local communities. The CLC provides input on matters regarding approvals and permits or operations that are perceived to have environmental, social or economic impacts. The members are also tasked with providing a voice to those in the community who have concerns, suggestions or questions.

The Touquoy/Beaver Dam CLC meets quarterly and, as they are approved, meeting minutes will be posted below:

June 24, 2017 Touquoy CLC Approved Meeting Minutes
September 16, 2017 Touquoy CLC Approved Meeting Minutes
April 7, 2018 Touquoy CLC Approved Meeting Minutes
July 7, 2018 Touquoy CLC Approved Meeting Minutes