Description and Ownership

The Fifteen Mile Stream Gold Project, located approximately 37 km north east of the Touquoy project, is an earlier stage high grade open pittable deposit, 100% owned by Atlantic.

The area was previously mined by underground methods periodically between 1868 and 1941.  Three campaigns of diamond drilling were completed from 1985 to 2011 for a total of approximately 30,000 meters.  Atlantic is considering a future drilling program to explore the potential expansion of the mineralized zone along strike and down dip.

Mineral Resource Estimate

On February 18, 2015, the Company announced a mineral resource estimate for Fifteen Mile Stream prepared by Mr. Neil Schofield, a principal of FSSI Consultants (Australia) Pty Ltd.  The table below illustrates the current resource estimate prepared in accordance with NI 43-101  for a range of cut-off grades with the base case (0.5g/t) shown in bold font:

FIFTEEN MILE STREAM - INFERRED RESOURCE ESTIMATE
Effective February 18, 2015
Cut-off grade (g/t) Tonnes (m) Grade (g/t) Au Contained Au (oz)
0.3 16.69 1.21 649,000
0.4 13.94 1.38 618,000
0.5 11.72 1.55 584,000
0.6 10.02 1.72 554,000
0.7 8.66 1.89 526,000
0.8 7.58 2.05 500,000
Resources that are not reserves do not have demonstrated economic viability

A technical report in respect of the above mineral resource estimate entitled “Technical Report of the Fifteen Mile Stream Gold Project, Halifax County, Nova Scotia” with an effective date and signing date of  February 18, 2015 (the "Fifteen Mile Stream Technical Report") was filed on April 2, 2015 on SEDAR and is also available on the Company’s website.

Technical Disclosure

The table above contains the combined Mineral Resource estimates for the Egerton-MacLean and Hudson Zones at Fifteen Mile Stream as of February 16, 2015.  These are current resource estimates that are in accordance with the current Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101 - Standards of Disclosure for Mineral Projects.  A Qualified Person has done sufficient work to classify these resources estimates to current mineral resources prepared in accordance with NI 43-101.

The basis of the estimation of the Mineral Resources includes the following:

  1. The drill hole sampling has provided a reasonably representative set of samples of the gold mineralization in each case.
  2. The drill hole sample data have been verified by reviewing the core from a number of drill holes and checking assay results against observed mineralization during the qualified person’s site visit. The quality control data made available from the resource database generated by Acadian Mining, the previous operator, has also been re-analyzed and the results checked against earlier analysis undertaken by Acadian Mining. Verification of assay logs against lab certificates has not been done for the current resource estimates but has been undertaken for Acadian Mining’s previous resource estimates.
  3. The estimation method used is a standard implementation of multiple indicator kriging with block support correction for the estimation of recoverable resources based on a specified approach to standard selective mining. This methodology is appropriate given that the composite samples show some high grade values resulting in statistical characteristics similar to other gold deposits with higher coefficients of variation.
  4. The Inferred classification for the resource estimates reflects the number and spatial pattern of drill-hole composites informing the estimation of each panel in the resource model, as well as the limited QA/QC protocols applied in relation to the drilling conducted during the 1980s. This classification is consistent with that adopted for previous resource estimates prepared in accordance with NI 43-101 for the Egerton-MacLean Zone at Fifteen Mile Stream conducted by Acadian Mining in May 2008 and August 2012.
  5. Any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resource are detailed below in the section entitled “Forward-Looking Statements”.