UPDATED MRC PRODUCTION SCHEDULE
MINERAL RESERVES INCREASE BY 401,000 OUNCES OR 27%
MINE LIFE INCREASES TO 10+ YEARS
TOTAL MINERAL RESERVES OF 1.9 MILLION OUNCES
COMPOUND ANNUAL GROWTH RATE OF PRODUCTION OF 21%
COCHRANE HILL PIT OPEN AT DEPTH AND TO THE EAST
FURTHER MINE LIFE POTENTIAL AT 149 AND OTHER REGIONAL TARGETS
March 25, 2019
Vancouver, British Columbia - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to announce an updated mineral reserve statement and life of mine production plan for its Moose River Consolidated ("MRC") Mine. Following successful drilling campaigns at the Touquoy, Fifteen Mile Stream and Cochrane Hill deposits and the updated resource statements issued on March 13, 2019, Proven and Probable Mineral Reserves have increased to approximately 1.9 million ounces.
"Today's update marks another milestone in the continuation of growing our Reserve base at MRC and represents a work in progress. Testing the extension of the high grade shoots at Cochrane Hill, establishing Mineral Resources at the 149 deposit, and potentially extending the strike to the east, will be priorities for 2019. We also remain very excited about leveraging the value of the potential discovery of multiple additional deposits from our ongoing Corridor Regional Exploration Program." said Maryse Bélanger, President and COO.
Highlights
• Proven and Probable Mineral Reserves increased by 401,000 ounces Au or 27% of the depleted Reserve base (as at December 31, 2018) as a result of additions to Mineral Reserves at the Touquoy, Fifteen Mile Stream and Cochrane Hill deposits which are now included in the Life of Mine (LoM) production schedule below;
• Mine life at the Moose River Consolidated Mine now exceeds 10 years;
• Total Mineral Reserves for all deposits are now approximately 1.9 million ounces Au;
• Compound annual growth in production at MRC is 21%;
• An increased percentage of Reserves are now in the highest confidence Proven category as a result of the infill drilling program;
• At Cochrane Hill, Mineral Reserves include only a small portion of the newly defined easterly plunging higher grade shoots. These recently identified zones require further testing through a proposed extension drilling program in 2019;
• Further planned drilling as part of the Corridor Regional Exploration Program including at the 149 deposit and other targets along the 45 km strike length of the Corridor also have potential to add to the MRC mine life.
Table 1: Current Mineral Reserve Statement
Touquoy | |
Proven Reserves | |
Probable Reserves | |
Existing Stockpile Reserves | |
Total Proven and Probable Reserves | |
Beaver Dam | |
Proven Reserves | |
Probable Reserves | |
Total Proven and Probable Reserves | |
MRC Phase 1 (Touquoy and Beaver Dam) | |
Proven Reserves | 7.17 |
Probable Reserves | 10.23 |
Existing Stockpile Reserves | 2.41 |
Total Proven and Probable Reserves | 19.81 |
Fifteen Mile Stream | |
Proven Reserves | 5.58 |
Probable Reserves | 11.18 |
Total Proven and Probable Reserves | 16.76 |
Cochrane Hill | |
Proven Reserves | 10.25 |
Probable Reserves | 5.13 |
Total Proven and Probable Reserves | 15.38 |
MRC, Phase 2 Expansion (Fifteen Mile Stream and Cochrane Hill)
Tonnes | Diluted Gold | Mined Gold |
(Mt) | Grade (g/t) | oz's ('000's) |
3.36 | 1.10 | 119 |
7.14 | 1.28 | 295 |
2.41 | 0.57 | 44 |
12.91 | 1.10 | 458 |
3.81 | 1.54 | 188 |
3.09 | 1.43 | 142 |
6.90 | 1.49 | 330 |
1.33 | 307 | |
1.33 | 437 | |
0.57 | 44 | |
1.24 | 788 | |
1.09 | 196 | |
1.06 | 380 | |
1.07 | 576 | |
1.08 | 355 | |
0.96 | 158 | |
1.04 | 513 | |
550 | ||
539 | ||
1,089 | ||
857 | ||
975 | ||
44 | ||
1,877 |
Proven Reserves Probable Reserves
15.83 1.08
16.32 1.03
Total Proven and Probable Reserves
32.14
1.05
Total Moose River Consolidated Proven Reserves
Probable Reserves Existing Stockpile Reserves
22.99 1.16
26.55 1.14
2.41 0.57
Total Proven and Probable Reserves
51.95
1.12
Telephone: (604) 689-5564 Fax: (604) 566.9050www.atlanticgoldcorporation.com
3
Notes for the Mineral Reserve Estimates;
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. Touquoy Proven Mineral Reserves include existing stockpiled ore of 2.41 Mt at 0.57 g/t gold grade. This material is not included in, and is additional to, the Mineral Resource estimate.
4. The Mineral Reserves are based on an engineering and technical information developed at a Pre-Feasibility level for each of the included four deposits.
5. Mineral Reserves are mined tonnes and grade, the reference point is the mill feed at the primary crusher.
6. 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.
7 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.
8. Mining recovery of 98.4% and external mining dilution of 1.6% at 0.20 g/t Au grade is applied in addition to the modelled in-block dilution.
9. As Touquoy is an ongoing operation, a surveyed topographic surface dated December 31, 2018 is used as the basis for the Mineral Reserves.
10. Factors that may affect the estimates include: metal price assumptions, changes in interpretations of mineralization geometry and continuity of mineralization zones, changes to kriging assumptions, metallurgical recovery assumptions, operating cost assumptions, confidence in the modifying factors, including assumptions that surface rights to allow mining infrastructure to be constructed will be forthcoming, delays or other issues in reaching agreements with local or regulatory authorities and stakeholders, and changes in land tenure requirements or in permitting requirement. Any other known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Reserves are detailed below in the section entitled "Forward-Looking Statements".
11. Estimates have been rounded and may result in summation differences.
Table 2 - MRC Consolidated Operations Forecast Life of Mine Production Table
TOTAL MINE PRODUCTION - MRC | ||||||||||||||
Year | LOM | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
TOTAL Ore Milled | ktonnes | 51,954 | 2,240 | 2,240 | 2,315 | 4,115 | 5,330 | 6,000 | 6,000 | 6,000 | 6,000 | 4,844 | 4,000 | 2,869 |
AU | g/t | 1.12 | 1.42 | 1.51 | 1.29 | 1.40 | 1.44 | 1.41 | 1.31 | 1.10 | 0.92 | 0.74 | 0.54 | 0.42 |
Mill Feed Gold | koz. | 1,877 | 103 | 109 | 96 | 186 | 247 | 272 | 252 | 213 | 178 | 116 | 69 | 38 |
PRODUCED GOLD | koz. | 1,736 | 97 | 103 | 91 | 174 | 231 | 254 | 234 | 195 | 161 | 103 | 59 | 32 |
TOTAL Ore Mined | ktonnes | 49,540 | 2,927 | 2,435 | 3,374 | 6,031 | 7,191 | 8,292 | 7,324 | 5,946 | 4,271 | 1,338 | 411 | - |
AU | g/t | 1.15 | 1.22 | 1.42 | 1.15 | 1.10 | 1.21 | 1.17 | 1.14 | 1.07 | 1.03 | 1.10 | 1.17 | - |
TOTAL Stockpile Retrieval to Mill | ktonnes | 15,207 | 30 | - | 75 | 300 | 50 | - | 650 | 1,158 | 2,706 | 3,744 | 3,624 | 2,869 |
AU | g/t | 0.55 | 0.63 | - | 1.30 | 1.15 | 0.69 | - | 0.67 | 0.63 | 0.59 | 0.59 | 0.46 | 0.42 |
TOTAL Waste Mined | ktonnes | 150,508 | 3,859 | 4,365 | 11,454 | 26,247 | 31,920 | 28,879 | 23,637 | 15,207 | 4,310 | 580 | 51 | - |
TOUQUOY | ||||||||||||||
Ore Milled from Touquoy | ktonnes | 12,914 | 2,240 | 2,240 | 2,240 | 1,979 | 352 | - | 343 | 1,000 | 1,674 | 845 | - | - |
AU | g/t | 1.10 | 1.42 | 1.51 | 1.29 | 1.17 | 1.11 | - | 0.62 | 0.62 | 0.53 | 0.42 | - | - |
Process Recovery | % | 93.1 | 95.0 | 95.0 | 95.0 | 94.5 | 94.5 | - | 89.0 | 89.0 | 89.0 | 89.0 | - | - |
Ore Mined from Touquoy | ktonnes | 10,500 | 2,927 | 2,435 | 2,492 | 2,280 | 365 | - | - | - | - | - | - | - |
AU | g/t | 1.23 | 1.22 | 1.42 | 1.20 | 1.08 | 1.08 | - | - | - | - | - | - | - |
Stockpile Retrieval to Mill from Touquoy | ktonnes | 3,892 | 30 | - | - | - | - | - | 343 | 1,000 | 1,674 | 845 | - | - |
AU | g/t | 0.54 | 0.63 | - | - | - | - | - | 0.62 | 0.62 | 0.53 | 0.42 | - | - |
Waste Mined from Touquoy | ktonnes | 17,343 | 3,859 | 4,365 | 5,172 | 3,605 | 342 | - | - | - | - | - | - | - |
BEAVER DAM | ||||||||||||||
Ore Milled from Beaver Dam | ktonnes | 6,897 | - | - | - | 236 | 1,678 | 2,000 | 1,657 | 1,000 | 326 | - | - | - |
AU | g/t | 1.49 | - | - | - | 1.74 | 1.60 | 1.52 | 1.42 | 1.32 | 1.38 | - | - | - |
Process Recovery | % | 95.0 | - | - | - | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | - | - | - |
Ore Mined from Beaver Dam | ktonnes | 6,897 | - | - | - | 236 | 1,685 | 2,000 | 1,650 | 1,000 | 326 | - | - | - |
AU | g/t | 1.49 | - | - | - | 1.74 | 1.59 | 1.52 | 1.42 | 1.32 | 1.38 | - | - | - |
Stockpile Retrieval to Mill from Beaver Dam | ktonnes | 7 | - | - | - | - | - | - | 7 | - | - | - | - | - |
AU | g/t | 0.62 | - | - | - | - | - | - | 0.62 | - | - | - | - | - |
Waste Mined from Beaver Dam | ktonnes | 40,384 | - | - | 165 | 9,194 | 13,348 | 9,934 | 5,865 | 1,754 | 124 | - | - | - |
FIFTEEN MILE STREAM | ||||||||||||||
Ore Milled from Fifteen Mile Stream | ktonnes | 16,764 | - | - | 75 | 1,900 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 789 |
AU | g/t | 1.07 | - | - | 1.30 | 1.60 | 1.50 | 1.40 | 1.38 | 1.04 | 0.84 | 0.65 | 0.41 | 0.41 |
Process Recovery | % | 88.3 | - | - | 91.3 | 93.1 | 92.5 | 92.0 | 91.9 | 89.4 | 87.3 | 84.4 | 79.2 | 79.2 |
Ore Mined from Fifteen Mile Stream | ktonnes | 16,764 | - | - | 883 | 3,448 | 2,874 | 3,446 | 2,743 | 2,144 | 1,226 | - | - | - |
AU | g/t | 1.07 | - | - | 1.00 | 1.08 | 1.20 | 1.04 | 1.12 | 0.97 | 0.90 | - | - | - |
Stockpile Retrieval to Mill from Fifteen Mile Stream | ktonnes | 6,554 | - | - | 75 | 300 | - | - | 300 | 158 | 932 | 2,000 | 2,000 | 789 |
AU | g/t | 0.59 | - | - | 1.30 | 1.15 | - | - | 0.72 | 0.70 | 0.70 | 0.65 | 0.41 | 0.41 |
Waste Mined from Fifteen Mile Stream | ktonnes | 39,384 | - | - | 6,117 | 7,214 | 6,968 | 4,641 | 6,557 | 7,030 | 856 | - | - | - |
COCHRANE HILL | ||||||||||||||
Ore Milled from Cochrane Hill | ktonnes | 15,380 | - | - | - | - | 1,300 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 | 2,080 |
AU | g/t | 1.04 | - | - | - | - | 1.24 | 1.30 | 1.25 | 1.30 | 1.25 | 0.97 | 0.66 | 0.42 |
Process Recovery | % | 91.4 | - | - | - | - | 92.7 | 93.0 | 92.7 | 92.9 | 92.8 | 91.6 | 89.6 | 86.6 |
Ore Mined from Cochrane Hill | ktonnes | 15,380 | - | - | - | 67 | 2,266 | 2,846 | 2,931 | 2,802 | 2,720 | 1,338 | 411 | - |
AU | g/t | 1.04 | - | - | - | 0.65 | 0.96 | 1.07 | 1.01 | 1.05 | 1.04 | 1.10 | 1.17 | - |
Stockpile Retrieval to Mill from Cochrane Hill | ktonnes | 4,754 | - | - | - | - | 50 | - | - | - | 100 | 900 | 1,624 | 2,080 |
AU | g/t | 0.50 | - | - | - | - | 0.69 | - | - | - | 0.64 | 0.63 | 0.53 | 0.42 |
Waste Mined from Cochrane Hill | ktonnes | 53,397 | - | - | - | 6,233 | 11,262 | 14,304 | 11,214 | 6,423 | 3,330 | 580 | 51 | - |
Suite 3083 - 595 Burrard Street, P.O. Box 49298, Vancouver B.C. Canada V7X 1L3
Telephone: (604) 689-5564 Fax: (604) 566.9050
www.atlanticgoldcorporation.com
5
Attachments
- Original document
- Permalink
Disclaimer
Atlantic Gold Corporation published this content on 25 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 March 2019 12:19:04 UTC