(TheNewswire)
Kelowna, BritishColumbia – TheNewswire - June 18, 2021 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (OTC:JLRRF) (“ South Atlantic” or the “ Company” ) announces that ithas conducted a review of the historical data from its 100 percent(“%”) owned Big Kidd Project, a copper-gold porphyry, located 25kilometres (“km”) south of Merritt, British Columbia, Canada. Theinitial review was conducted to perform a re-analysis of the drillingdata with consideration to increased copper prices. Analysis of thehistorical Induced Polarization (“IP”) and Diamond Drill(“DD”) data has revealed an area of geologic interest at the BigKidd Project area.
Douglas Meirelles , CEO stated, “Using existing drill and IP data, and re-examining the geologicresults with “new eyes,” there appears to be a high probability toexpand the mineralization at the Big Kidd Project. The drill, soilgeochemistry and geophysical historical results show the potential toincrease the identified mineralization along strike and at depth.Additionally, because there are a number of drill holes that wereterminated in mineralization, the geology is indicating that more workneeds to be conducted at Big Kidd to determine itspotential.”
Highlights
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- Big Kidd consists of three targets, Big Sioux, BigBrother and Breccia with a total of 49 DD holes and 12,249.2 metres(“m”) completed.
- The Big Sioux Zone hosts a 1918shaft that extracted 44 tonsof 12.0% Cu , 68 g/t Ag and 0.57 g/t Au . Significanthistorical intersect 119 m of0.12% Cu and 0.15 g/t Au (Hole 92-6)
- 2019 drilling BK-19-009 intersected a secondmineralized breccia body from 420 m to 644.3 m (EOH) with stronger andstill increasing alteration with strong potential for mineralization at depth.
- To the north of Big Sioux, there is a 3 km low crosscutting linear magnetic high, which is similar to the discovery zone at MPD Gold Copper PorphyryProject , from Kodiak Copper, 23 km southeastfrom the Property.
The Big Kidd Project consists of 4,056 hectares(“ha”) accessed by paved highway (Highway 5A) from Merritt, BC and250 km northeast of Vancouver, BC. The property is crosscut by loggingroads, a powerline runs adjacent to the BK Breccia deposit and thereis a custom mill at the historic Craigmont Mine (30 km to the north).In total, the infrastructure at Big Kidd is excellent. While theproject is 100% owned by the Company, there is a 2.5% net smelterreturn (“NSR”) royalty with full buy-back rights.
The 2019 drill program drilled 9 diamond drill holeswith a total of 4,191.5 m drilled. The drilling program successfullyexpanded the boundaries of the mineralization to the North, South,West at depth and all holes drilled into the Big Kidd Breccia Zoneintersected appreciably widths of gold-copper porphyry stylemineralization and alteration. All the holes drilled into the Big KiddBreccia Zone encountered mineralization. The deepest hole, BK-19-009,was designed to test for a deeper-seated source of mineralization,indicated by increasing alteration and chalcopyrite to pyrite ratiosat depth. This hole intersected a second mineralized breccia body from420 to 644.3 m of depth which was the end of that hole.
2019 Drill Highlights from BK-19-007 and BK-19-009(click here to See press releasedated May 23, 2019).
Big SiouxZone
Annex Figure 1 (click here to view) – Thehighlight in red found on Figure 1 hosts a 1918 shaft that extracted 44 tons of 12%Cu , 68g/t Ag and 0.57 g/t Au inaverage. A recent geophysical study demonstrated a 3 km low crosscutting a linear magnetic high.
Big Brother(“BB”) & Breccia Target Zones
Annex Figure 2 (click here to view) and Figure 3 (click here to view) – Thesefigures demonstrate the Breccia drilling and a cross section throughthe chargeability anomaly at the Big Kidd Project that is termed theBig Brother Zone, respectively. A particularly interesting hole in theBig Kidd Breccia is DD hole number BK-19-009 . This holehad two interesting intercepts including a 7 m intercept grading 0.65g/t AuEq at 77 m depth and the second of 170.5 m grading 0.44 g/t AuEqat 198 m depth. As illustrated in Figure 2, DD hole BK-19-009 shows asecond mineralized zone commencing approximately 520 m depth andcontinuing approximately 124 mto the end of the hole which graded 0.18 g/t AuEq . This second mineralized zone is geologically interestingand merits additional drilling.
Originally, DD hole BK-19-007 was drilledto test a geophysical chargeability anomaly identified from the groundIP survey completed in late 2018 (click here to see press releasedated January 21, 2019). The most significant intersection from thishole was a 2 m interval grading 0.55 g/t AuEq. High concentrations ofpyrite were encountered in the volcanic rocks, indicative of the haloaround a porphyry system. While only one significant intercept wasencountered in this hole, the potassic alteration at the end of thehole is encouraging and potentially indicative of a second mineralized breccia body .
The BB chargeability zone lies approximately 100 m tothe south of DD hole BK-19-007 . This drill hole was drilled downfrom the chimney-shaped anomaly that was most likely influenced by thenearby cell tower. The top of this zone is approximately 300 m below surface (Figure 2). A similar chargeability high can be found some100 m north of BK-19-007 so this re-analysis of thehistorical data yields approximately 200 to 250 m of geologicallyinteresting chargeability anomaly that has not yet been tested .
QA/QC Procedures
For the 2019 drill program, all drill core was logged,photographed, cut and sampled by Jiulian Resources Inc.(“Jiulian”), predecessor company to South Atlantic, personnel.Prior to shipment to ALS Global’s samplepreparation facility in Kamloops, BC, certified reference materialstandards, blanks, and pulp duplicates were inserted at a ratio ofapproximately 1 in every 20 drill core samples. Samples were preparedin Kamloops by crushing the entire sample to 70% passing -2mm, rifflesplitting off 1 kilogram (“kg”) and pulverizing the split tobetter than 85% passing 75 microns. After preparation in Kamloops, theprepared pulps were shipped to ALS Global’s analytical laboratory inNorth Vancouver, BC. The gold assays are determined by Au-AA26 fireassay method which reports results in parts per million(“ppm”)(equivalent to grams per tonne (“g/t”)).
Base metal assays are first determined using theME-MS61 method (four acid digestion with ICP-MS finish), which reportsresults as ppm. All analyses that reach the over limits of ME-MS61 arere-analyzed with an Ore Grade method. The analytical results areverified with the application of industry standard Quality Control andQuality Assurance (“QA-QC”) procedures.
About South Atlantic Gold
South Atlantic Gold is an exploration company engagedin acquiring and advancing mineral properties located in the Americas.The Company’s principal BC asset is the wholly-owned 4,056-hectareBig Kidd property, located near Aspen Grove, BC. Our Brazilianflagship asset is our option to acquire the Pedra Branca project,located 280 km southwest of Fortaleza, Ceara State, Brazil. SouthAtlantic Gold is focused on creating value for its shareholders byengaging in the development and acquisition of high-quality mineralassets located in stable and mining friendly jurisdictions. SouthAtlantic Gold’s is based in Kelowna, British Columbia, and is listedon the TSX-V under the symbol “SAO”.
ON BEHALF OF THE BOARD
Douglas Meirelles, President and CEO
For more information regarding thisnews release, please contact:
Anne Hite, Vice President, Investor Relations
T: 250-762-5777
Email: ir@southatlanticgold.com
QualifiedPerson
Scott Dorion, P.Geo., is thedesignated Qualified Person (“QP”) of the Company as defined byNational Instrument 43-101 and has reviewed and approved the technicalinformation of this release. Scott Dorion was an Independent Directorof Jiulian from September 11 th ,2018, to March 26 th ,2019.
Cautionary NoteRegarding Forward-Looking Information
This news release containsstatements that constitute "forward-lookingInformation", as suchterm is used in applicable Canadian securities laws . Such forward-looking informationinvolves known and unknown risks, uncertainties and other factors thatmay cause the Company’s actual results, performance or achievements,or developments in the industry to differ materially from theanticipated results, performance or achievements expressed or impliedby such forward-looking information. Forward-looking informationincludes statements that are not historical facts and are generally,but not always, identified by the words "expects,""plans," "anticipates," "believes,""intends," "estimates," "projects,""potential" and similar expressions, or that events orconditions "will," "would," "may,""could" or "should" occur.
Although the Company believes theforward-looking information contained in this news release isreasonable based on information available on the date hereof, by itsnature forward-looking information involves assumptions and known andunknown risks, uncertainties and other factors which may cause ouractual results, level of activity, performance or achievements, orother future events, to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking information. There can be no assurance that the Fundamental Acquisition will becompleted as proposed or at all.
Examples of such assumptions, risksand uncertainties include, without limitation, assumptions, risks anduncertainties associated with general economic conditions; theCovid-19 pandemic; adverse industry events; the receipt of requiredregulatory approvals and the timing of such approvals; that theCompany maintains good relationships with the communities in which itoperates or proposes to operate, future legislative and regulatorydevelopments in the mining sector; the Company’s ability to accesssufficient capital from internal and external sources, and/orinability to access sufficient capital on favorable terms; miningindustry and markets in Canada and generally; the ability of theCompany to implement its business strategies; competition; the risk that any of theassumptions prove not to be valid or reliable, which could result indelays, or cessation in planned work, risks associated with theinterpretation of data, the geology, grade and continuity of mineraldeposits, the possibility that results will not be consistent with theCompany’s expectations, as well as other assumptions risks anduncertainties applicable to mineral exploration and developmentactivities and to the Company, including as set forth in theCompany’s public disclosure documents filed on the SEDAR website at www.sedar.com .
THEFORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTSTHE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASEAND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULDNOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULDNOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANYMAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANYPARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLELAWS.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release .
Annex
Figure 1: Highlight of the Big SiouxZone-2018
Figure 2 2019Drilling into the Big Kidd Breccia area showing mineralizationpotential at depth
in holeBK-19-009
Figure 3 Crosssection of high chargeability Big Brother Zone –
approximately 500mEast of the Big Kidd Breccia Zone
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