(TheNewswire)
Kelowna, British Columbia – TheNewswire - August 31, 2022 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (“ South Atlantic” or the“ Company” ) is pleased toannounce further exploration results from its previously announcedPhase II program (see release dated February 3, 2022 here ). Results includerecently received assays from reconnaissance RC drilling which, whencombined with geophysical, geochemical sampling of soils and trenchesand geological mapping data has, for the first time, informed acomprehensive target generation exercise across the full extent of theCompany´s strategic tenement package.
Highlights
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As previously presented, the Phase II Exploration Program incorporatedboth the requirements of the Brazilian mining agency“Agencia Nacional de Mineraçao or (ANM)”, to ensureexploration work was sufficient to maintain the tenements in goodstanding, as well as to cost effectively complete first passreconnaissance exploration across the southern section of the entiretenement package.
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Exploration results highlight the presence of the favorablestructural, geological, and geochemical trends already identified byprior work extending along the full 60 km strike length influenced bythe primary regional structure into areas with no previous work. MAP 1provides a global view of the currently defined 13 targets (9 new + 4existing) areas supported by geological interpretation. See ANNEX MAP1 (Click here to view high resolution map).
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The Phase II exploration program has successfully expanded thepriority target portfolio from 4 (including 3 areas with NI 43-101defined mineral resources) to a new total of 13 areas.
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15 final exploration reports were filed in May 2022 with the ANM andhave been successfully reported as received by ANM.
Douglas Meirelles, President andCEO stated, “ It is trulyexciting to have such a dominant strategic tenement package at PedraBranca with this potential mineral endowment. When we started PhaseII, we had 4 main targets, including 3 with initial defined mineralresources and now this Exploration Program has produced positiveresults which have allowed the Company to expand its pipeline ofpriority targets to a new total of 13 targets. With limited funding,our team has efficiently delivered the new targets in areas that werenever explored before while fulfilling our legal obligations withrespect to keeping our tenement package in good standing. With no morenear-term obligations attached to the tenement portfolio, the Companyis well placed to focus on progressing the priority targets throughthe next important exploration phases toward further discoveries.
Structured ExplorationApproach
As previously announced in the news release of February 3, 2022 (click here to view release), theCompany completed the Phase II exploration program which focusedbeyond the 4 previously identified targets which included 3 maintargets with defined mineral resources (Queimadas, Mirador andIgrejinha) announced June 28, 2021 (click here to view release).
Phase II Exploration focused on extending the southern limits of themain structural trend (N20E). In parallel, work was completed withinsome 15 tenements that were reaching their ANM expiry date. From thiscombined work, 9 new high priority targets were successfullyidentified. These targets were selected and prioritized in terms of aseries of selection criteria based on soil sampling and trench rockchip sampling geochemistry and comparative geophysical (magnetics)signatures obtained over known mineralization. A total of 6 of thesetargets are positioned within the basal volcanic-sedimentarygreenstone sequence namely (Mir-Coelho, Barra Nova, Mundo Novo,Cruzeta, Cachoeirinha and Dedezinho) and a further 3 targets occurwithin the upper greenstone sequence (V á rzeaFormosa, Moqu é m Norte and Moqu é m Sul).
Reconnaissance Trenching
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During Phase 2, a total of 48 trenches were excavated for a totalof 9,966 m which provided 5,038 trench rock chip channel sample assaysas press released on March 9, 2022 (click here to view release).
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To date a total of 22,290 meters of trenches have been excavated andsampled with 17,208 assays consolidated in the database.
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The trenching program has successfully confirmed bedrock sources tosurface soil anomalism along the targeted structural trend.
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The consolidated results can be seen on our website (click here to view).
Drone Survey
As released June 13, 2022 (click here to view release), thehigh resolution drone survey at 50-meter line spacing was successfulin the identification of magnetic signatures over the current resourcearea (Igrejinha, Queimadas and Mirador). This information along withthe results from Phase I, Phase 2, the geophysical study, and themagnetic survey from Companhia de Pesquisa de Recursos Minerais(“CPRM” or “Geological Survey of Brazil”) at a resolution of500-meter line spacing, formed the base data for target prioritizationand selection of initial reconnaissance drilling.
The total area of Pedra Branca is considerably largewith more than 46,000 hectares that remain unexplored with few limitedsoil lines. When considering further exploration in these areas, theCompany will continue to make use of cost-effective explorationmethods such as unmanned aerial vehicle (“UAV” or “drone”)magnetic survey to cover large sections of this unexplored ground. Newanomalies are highlighted on ANNEX MAP 2 (click here to view).
Reconnaissance RC Drilling
Within the Phase II prioritized area comprising of 9 tenements and 8main targets, the Company conducted additional reconnaissance work anddrilled a total of 43 shallow RC drill holes up to a maximum 60 metersdepth. A total of 1,657 m was drilled collectively with 719 samplesassayed with approximately 25% (414m) of total meterage drilledreturned anomalous gold assays 20 ppb Au or greater. The table ofresults is extensive and is available on the following link under(click here to view and scrolldown).
The drilling program has in many instances confirmed continuity todepth of the anomalism identified from prior trenching and soilsampling bedrock sources to surface soil anomalism along the targetedstructural trend.
Analysis of results demonstrates the similarity and continuity of thegeological signatures extending beyond the original 3 targets withdefined resources. Interpretation of Phase II data clearly confirmsthe presence of the geology and structural framework that the Companybelieves is favorable for the orogenic mineralization styles beingtargeted along the full extent of the 60km strike length. The Companycontinues to refine and improve its targeting criteria as further databecomes available and this will drive exploration efforts aimed at thecontinued identification of additional areas of interest.
Qualified Person’s Statement
The scientific and technical information that forms thebasis for parts of this news release was reviewed and approved byMarcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company’sExploration Manager who is a Qualified Person as defined by NI43-101.
ANNEX MAP 1 (60km)
Overview of anomalous geochemistry and geophysics overlay.
UAV MAG SURVEY COMPARISON (50 metersline spacing and 500 meters line spacing)
About South Atlantic Gold
South Atlantic Gold is an exploration company engagedin acquiring and advancing mineral properties located in the Americas.Our flagship asset is the 100%-owned Pedra Branca project, located 280km southwest of Fortaleza, Ceará State, Brazil. South Atlantic Goldis focused on creating value for its shareholders by engaging in thedevelopment and acquisition of high-quality mineral assets located in stable and mining-friendly jurisdictions. SouthAtlantic Gold is based in Kelowna, British Columbia, and is listed onthe 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
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 .
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