(TheNewswire)
Kelowna, BritishColumbia – TheNewswire - April 20, 2021 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (OTC:JLRRF) (“ South Atlantic” or the “ Company” ) is pleased toannounce it has completed the Phase I exploration program at its PedraBranca Project, located 280 kilometers (“km”) southwest ofFortaleza, Ceará State, Brazil. A consolidation of the entirehistorical and newly acquired data from the Phase I program includes atotal of 122 RC (“reverse circulation”) and 90 Diamond Drillholes, representing 5,022 meters (“m”) of RCdrilling and 8,914 m of Diamond Drilling. All drill holes to date havebeen shallow with a maximum depth of 250 m for diamond drill holes and60 m for RC holes.
Despite the world-wide Covid-19 pandemic, the Companycompleted the Phase I exploration program on budget and on time.
Douglas Meirelles , CEO stated, “Weare very pleased with the progress the Company has made in such ashort amount of time. South Atlantic has informed Jaguar Mining Inc(“Jaguar”) of its completion of the Phase I Exploration Program.In parallel, we are working diligently on the delivery of a NI43-101-compliant technical report that will contain our initialresource estimate at Pedra Branca. Once completed, South Atlantic will satisfy the terms of the option agreement and the Company willhave successfully earned 100% of the Project. Jaguar Mining Inc willhave the option to earn back 25% of the project through the payment toSouth Atlantic of 2.5 times the earn-in expenditures.”
Highlights of Pedra Branca Phase 1Exploration Program (see Annex Map 1 ) :
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- A total of 12,286 m of trenches were excavated whichled to 9,349 trench assay results.
- 122 RC drill holes led to a total of 4,356 RC drillassay results.
- All historical diamond drilling core with originalassay results above 0.35 grams per tonne (“g/t”) were validatedthrough re-assay. This validation has enabled the inclusion of theseresults into the National Instrument 43-101 (“NI 43-101”)technical report currently in progress.
- Tenements under mining designation from AgenciaNacional de Mineração (“ANM”), the national mining agency inBrazil, include the Coelho-Queimadas, Mirador Norte and Mirador Sultargets. These three tenements had 2,600 m of trenching completedwhich resulted in 2,646 assay results and 81 RC drill holes thattotaled 3,334 m of drilling and resulted in 2,474 assay results. Theseresults include the Condado Target that is the southern extension ofthe Coelho-Queimadas Target area.
- NewDiscoveries: The Igrejinha and BombeiroTargets were identified as new mineralized areas that previously hadlittle to no exploration. Combined, these two tenements received 1,950m of trenching and 1,216 m of RC drilling from 30 drill holes. Atotal of 3,429 assays were received from both the trenching anddrilling on these two tenements.
- Legal tenure: All tenements remain in good legal standing. Thecompany is in compliance with all current requirements set out by theANM and continues to diligently monitor all required extensions.
Marcelo Antonio Batelochi, Senior Exploration Manager,stated, “ The Phase 1Exploration program was successful in several aspects. First, wegathered sufficient data to conduct a NI 43-101-compliant resource onthe Pedra Branca property that is currently in progress. We were ableto gain valuable geologic information on this very large project areaand continuously extend the mineralized trend which remains open indepth, length and laterally. As we move toward a Phase 2 explorationprogram, which we plan to commence later in the year, we anticipatethe ability to quickly add to our positive results with higher densitydrilling that will further improve our understanding of the vastpotential that this project possesses.”
Upcoming Catalysts
South Atlantic is pleased to announce that it is hasstarted working with Jaguar to deliver all requirements set out in theoption agreement on the Pedra Branca Project, which was newsreleased July 30, 2020 and can be found by clicking here .
The Phase 2 Exploration Program details are outlined inthe “Technical Report, Geology, Mineralization and Exploration ofthe Pedra Branca Gold Project, Ceará State, Northeastern Brazil”dated August 21, 2020. The details of the Phase 2 program includefurther RC drilling, higher density and deeper diamond drilling,updating geological and structural models, an additional updatedresource estimation, and further community engagement.
QA/QC PROCEDURES
The assays follow Quality Assurance/Quality Control(QA/QC) procedures that included the insertion of standards, blanksand duplicate samples, sent to the lab along with the samples.
All samples were analyzed at either SGS GEOSOL Laboratórios Ltda inMinas Gerais, Brazil, or ALS Brasil Limitada in Minas Gerais, Brazil. Both contracted laboratories follow the same proceduresfor sample preparation and chemical analysis, described below. In thelaboratory, each ±2 kg sample is recorded, dried for 8 to 12 hours,crushed to 70% <2mm (-10 #) split to obtain approximately 250g andthe 250g sub-samples are pulverized to P 85 74 microns (-200 #).
Gold analysis is carried out using fire assaycomprising three stages: Fusion, Cupellation and Analysis.
Samples with a gold fire assay equal to or higher than10.0 g/t Au are re-analyzed by a screen-metallic method. Base metalassays are first determined by ICP-OES (Inductive CoupledPlasma-Optical Emission Spectroscopy). Analyses of ore elements thatexceed the method's upper limits are re-analyzed by appropriateore-grade methods.
Multi-element analysis utilized the same preparationprocedure as the gold analysis, along with an array of analyticalprocedures as follows:
Elements | Analytical Procedure | SGS Code |
Au(ppb); Pd(ppb); Pt(ppb) | Determination by Fire Assay - ICP - 50g | FAI515 |
Al2O3(%); Ba(ppm); CaO(%); Cr2O3(%); Fe2O3(%)K2O(%); MgO(%); MnO(%);Na2O(%); P2O5(%)SiO2(%); Sr(ppm); TiO2(%)Ce(ppm); Co(ppm); Cs(ppm);Cu(ppm); Dy(ppm)Er(ppm); Eu(ppm); Ga(ppm); Gd(ppm); Hf(ppm)Ho(ppm);La(ppm); Lu(ppm); Mo(ppm); Nb(ppm)Nd(ppm); Ni(ppm); Pr(ppm); Rb(ppm);Sm(ppm)Sn(ppm); Ta(ppm); Tb(ppm); Th(ppm); Tl(ppm)Tm(ppm); U(ppm);W(ppm); Y(ppm); Yb(ppm) | Determination by Fusion with Lithium Metaborate - ICP OES | ICP95A |
Ce(ppm); Co(ppm); Cs(ppm); Cu(ppm); Dy(ppm)Er(ppm); Eu(ppm); Ga(ppm);Gd(ppm); Hf(ppm)Ho(ppm); La(ppm); Lu(ppm); Mo(ppm); Nb(ppm)Nd(ppm);Ni(ppm); Pr(ppm); Rb(ppm); Sm(ppm)Sn(ppm); Ta(ppm); Tb(ppm); Th(ppm);Tl(ppm)Tm(ppm); U(ppm); W(ppm); Y(ppm); Yb(ppm) | Determination by Fusion with Lithium Metaborate - ICP MS | IMS95A |
Ag(ppm); Al(%); As(ppm); B(ppm); Ba(ppm); Be(ppm); Bi(ppm); Ca(%);Cd(ppm); Ce(ppm); Co(ppm); Cr(ppm); Cs(ppm); Cu(ppm); Fe(%); Ga(ppm);Ge(ppm); Hf(ppm); Hg(ppm); In(ppm); K(%); La(ppm); Li(ppm); Lu(ppm);Mg(%); Mn(ppm); Mo(ppm); Na(%); Nb(ppm); Ni(ppm); P(ppm); Pb(ppm);Rb(ppm); Re(ppm); S(%); Sb(ppm); Sc(ppm); Se(ppm); Sn(ppm); Sr(ppm);Ta(ppm); Tb(ppm); Te(ppm); Th(ppm); W(ppm); Y(ppm); Yb(ppm); Zn(ppm);Zr(ppm) | Determination by Digestion with aqua regia - ICP OES / ICP MS | ICM14B |
F(ppm) | Determination of Fluorine by Specific Ion | ISE03A |
LOI(%) | Determination of Total Carbon and / or Sulfur by Infrared - LECO | CSA17V |
SiO2(%); Al2O3(%); Fe2O3(%); CaO(%); MgO(%); TiO2(%); P2O5(%);Na2O(%); K2O(%); MnO(%) | Fusion with Lithium tetraborate - XRF | XRF79C |
S(%) | Determination of Total Carbon and / or Sulfur by Infrared - LECO | CSA17V |
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
The scientific and technicalinformation that forms the basis for parts of this press release wasreviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM(CP), the Company’s Exploration Manager who is a Qualified Person"(QP") as defined by National Instrument 43-101.
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
Map 1
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