Growing Gold Production in Nova Scotia
Atlantic Gold Corporation (Atlantic) is a well-financed, growth-oriented gold development group with a long-term strategy to build a mid-tier gold production group focused on manageable, executable projects in mining-friendly jurisdictions. Its board and management team, with extensive experience in geology, mining and mine development, process and metallurgy and project financing, is currently focused on growing gold production in Nova Scotia beginning with its MRC phase one open pit gold mine which declared commercial production in March 2018, and its phase two Life of Mine Expansion at industry lowest decile cash and all-in-sustaining-costs (as stated in the Company’s news releases dated January 16, 2019 and January 29, 2018).
Phase 1 operations include the mining of two open-pit gold deposits, Touquoy and Beaver Dam. The Company’s planned future development of the region will be based on a central processing facility concept at Touquoy with staged integration of satellite deposits into the production schedule and staged capital expenditures for expansion opportunities managed with cash flow from operations at Touquoy and additional debt capacity as a long-term low-cost gold producer.
Phase 1 Life of Mine production guidance for 2019 is between 92,000-98,000 oz. gold at All-In-Sustaining-Costs (AISC) between $CAD695/oz.-$755/oz. (US$521-566/oz.) as stated in the Company’s news release (January 16, 2019).
Phase 2 Expansion
The Phase 2 Life of Mine Expansion will have gold production ramping up to + 200,000 ounces per annum while maintaining the company’s industry lowest decile cash costs at all-in sustaining cash cost (AISC) of CAD$692/oz. Au (USD$555/oz. Au) as stated in the Company’s news release (January 29, 2018). Please see technical report entitled (Moose River Consolidated Project, Nova Scotia Canada, NI 43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion here). Updated Reserves & Life of Mine production schedule based on March 25, 2019 news release.
The company’s planned future development of the region will be based on a central processing facility concept with staged integration of satellite deposits into the production schedule and staged capital expenditures for expansion opportunities managed with cashflow from operations at Touquoy and additional debt capacity as a long term low cost gold producer.
Phase 3 Growth
The objectives of the Phase 3 Expansion Drilling Program were to:
- tighten drill spacing within the designed pit limits;
- identify additional mineralization immediately peripheral to the estimated Mineral Resources at FMS and CH;
- potentially support upgrade of some or all of the previously-estimated Inferred Mineral Resources to higher-confidence categories at CH and at FMS – particularly at the Hudson and Plenty zones;
The Phase 3 Resource Expansion Drill Programs at the Fifteen Mile Stream and Cochrane Hill Gold Deposits between September 2017 and February 2018 successfully identified additional gold mineralization immediately adjacent to previously defined mineral resources at both locations. Compilation and analysis of the results of these programs determined that in the Egerton-MacLean Zone at Fifteen Mile Stream and at Cochrane Hill there remained potential to extend known mineralization.
Drill programs totaling 11,385 m in 69 drill holes and 16,242 m in 70 drill holes were completed at Fifteen Mile Stream and Cochrane Hill, respectively, between mid-September and mid-December 2018 to test interpreted extensions to the known resources. Results for these drill campaigns were announced in earlier press releases (See News Releases dated December 5, 2018; January 21, 2019; and, February 6, 2019, and February 21, 2019).
At Touquoy, 44 drillholes for 5,264 m were completed to the south and south-west of the current resources, as reported in the News Release of December 5, 2018.
Phase 4 Corridor Regional Exploration
Recognition of disseminated style mineralization in recent years has changed the understanding of the potential of the region. Shale hosted mineralization previously overlooked combined with traditional quartz veins results in 50-100 m wide bulk mineable zones in open pit. The Region is underexplored for this deposit model.
A phase 4 corridor regional program commenced in April 2018 and will systematically explore the + 45km corridor of prospective un-tested structure targeting the Atlantic model for disseminated style gold deposits amenable to open pit mining.
The 149 Deposit was the first discovery of the Corridor Regional Program, and encouraging results were also obtained from the Seloam Brook, Mill Shaft and Cameron Flowage traverses.
Atlantic Gold is committed to the highest standards of environmental and social responsibility and continually invests in people and technology to manage risks, maximize outcomes and returns to all stakeholders.