FIFTEEN MILE STREAM

Location

Fifteen Mile Stream is located approximately 57km northeast of the central milling facility at Touquoy and is readily accessible by highway. The project lies along the same geological trend as the Company’s other related deposits – Touquoy, Beaver Dam and Cochrane Hill – and all are hosted within the same critical stratigraphy and structure, over a strike length of 80 km.

History

Gold was discovered at Fifteen Mile Stream in 1867 with production of about 19,400oz documented during 1883-1911. During 1985-88 Pan East Resources drilled 134 diamond drillholes (26,612m) with a further 29 holes (3,741m) drilled in 2011 by Acadian Mining Corporation, now a wholly-owned subsidiary of Atlantic.   

Mineral Reserve Statement

Classification Ore
Tonnes
(Mt)
Diluted Gold
Grade (g/t)
Mined Gold
oz's ('000's)
Fifteen Mile Stream      
Proven Reserves 5.58 1.09 196
Probable Reserves 11.18 1.06 380
Total Proven and Probable Reserves 16.76 1.07 576
  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.
  4. Mineral Reserves are mined tonnes and grade, the reference point is the mill feed at the primary crusher.
  5. Mineral Reserves are reported at a cut-off grade of 0.30 g/t Au for Touquoy, Fifteen Mile Stream and Cochrane Hill, and 0.5 g/t Au for Beaver Dam.
  6. Cut-off grade assumes US$1,300/oz. Au at a currency exchange rate of 0.77 C$ per US$; 99.9% payable gold; $5.00/oz. offsite costs (refining and transport), a 2% royalty; and uses a 92% metallurgical recovery. The cut off-grade covers processing costs of $11.00/t at Touquoy, $8.22/t at Fifteen Mile Stream, $8.64/t at Cochrane Hill, and $18.00/t at Beaver Dam and general and administrative (G&A) costs of $2.50/t.

Mineral Resource Estimate

    Measured Indicated
 Fifteen Mile
 Stream
Deposits
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.)
Egerton-
MacLean
0.30 3.4 1.22 133 11.2 1.14 411
  0.35 3.1 1.29 130 10.2 1.21 400
  0.40 2.9 1.36 127 9.4 1.28 386
  0.50 2.5 1.51 120 7.9 1.43 364
Hudson 0.30 0.8 0.88 23 1.0 0.70 22
  0.35 0.7 0.91 22 0.9 0.76 21
  0.40 0.7 0.96 21 0.7 0.80 19
  0.50 0.6 1.06 19 0.6 0.90 16
Plenty 0.30 1.7 1.08 60 0.9 0.93 28
  0.35 1.6 1.13 58 0.9 0.99 28
  0.40 1.5 1.17 57 0.8 1.03 27
  0.50 1.3 1.27 54 0.7 1.11 26

 

    Measured+Indicated Inferred
 Fifteen Mile
Stream
Deposits
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.)
Egerton-
MacLean
0.30 14.6 1.16 544 1.4 1.28 56
  0.35 13.4 1.23 530 1.2 1.40 54
  0.40 12.3 1.30 514 1.1 1.47 53
  0.50 10.4 1.45 484 1.0 1.64 50
Hudson 0.30 1.8 0.78 45 0.4 0.98 13
  0.35 1.6 0.83 43 0.4 1.02 13
  0.40 1.4 0.88 40 0.4 1.09 13
  0.50 1.1 0.98 35 0.3 1.18 12
Plenty 0.30 2.7 1.03 88 0.3 1.69 15
  0.35 2.5 1.08 86 0.2 1.83 15
  0.40 2.3 1.12 84 0.2 1.84 15
  0.50 2.0 1.21 80 0.2 1.88 15
  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.

FMS Deposits

The Phase 3 Resource Expansion diamond drilling program at Fifteen Mile Stream increased in-pit total Measured and Indicated Mineral Resource ounces to 676,000 (at a cut-off grade of 0.3 g/t Au), an increase of 47% or 216,000 ounces between the three deposits of Egerton -Maclean, Hudson and Plenty.

Figure 1:  Increase of Measured and Indicated Mineral Resources - FMS

Drilling at Fifteen Mile Stream totalled approximately 35,710 metres at a cost of CAD $7 million representing a cost of CAD $32 per ounce of Measured and Indicated Mineral Resource ounces added.

At Fifteen Mile Stream, mineralization comprises disseminated gold within argillites and greywackes of the Moose River Formation, as well as coarse gold within bedding-parallel quartz veins. Gold mineralization is concentrated in three zones:  Egerton-MacLean, Hudson, and Plenty.

The Hudson and Egerton-MacLean Zones lie within the hinge and northern limb of the Fifteen Mile Stream anticline. Secondary folding and fault repetition have led to a larger zone of mineralization in the Egerton-MacLean deposit than in the Hudson deposit. The Plenty Zone is a tabular body within the overturned southern limb of the Fifteen Mile Stream anticline. The anticline that hosts the Egerton-MacLean Zone plunges to the east, with the northern limb dipping moderately at 70° to the north, and the southern limb overturned and dipping steeply northwards.

Phase 3 expansion

Exploration at Fifteen Mile Stream in 2019 will continue to test the connection between these zones, as well as investigating the ground between the Egerton-MacLean Zone and the newly-discovered 149 Deposit, 2km to the north-east of Egerton-MacLean.