(TheNewswire)
Kelowna, BritishColumbia – TheNewswire - June 28, 2021 - SOUTH ATLANTIC GOLD INC.(TSXV:SAO) (“ South Atlantic” or the “ Company” ) is pleased to reportthat Pedra Branca’s Maiden Resource has been completed and ispresented under National Instrument (“NI”) 43-101 technical reportstandards. The resource was completed by the consolidation ofhistorical drilling and Phase 1 Reverse Circulation (“RC”)drilling results with an average depth of 41.2 meters (“m”).
Highlights
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- Completed 100% earn-in of the Pedra Branca Project(“Pedra Branca” or the “Project”) from Jaguar Mining Inc.(“Jaguar”) through the delivery of the NI 43-101-complianttechnical report.
- Maiden mineral resource:
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- A total of 10,523 samples were included in theresource calculation before the cut-off date of February 19 th ,2021 . As such, all remaining 8,188 (43% additionalsamples) were not included in the resource andare considered only as exploration results.
- Inferred mineral resource includes (click here for complete inferredresource tables):
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- Oxide: 900,000 tonnes (“t”) grading 1.35 grams per tonne (“g/t”) gold(“Au”) for 39,000 oz Au
- Fresh: 3,142,000 t grading 1.40 g/t Au for 141,000 oz Au
- Total: 4,042,000 t grading 1.38 g/t Au for 180,000 ozAu
- Over 39mineralized N20E/40SE zones were individualized, along a 12km strikelength with an average thickness of 4 m, overthe 3 main targets: Igrejinha, Coelhos-Queimadas and Mirador (click here fortable of ore grades at these Targets).
- The Phase I RC drilling was completed to an average depth of 41.2 m . From the historical drilling, higher grades have beenreported from deeper intercepts with a total of 93 historical DiamondDrilling (“DD”) holes also included in the maiden resourcecalculation.
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Douglas Meirelles , CEO stated, “Theprimary objective of this technical report was to provide a NI43-101-compliant report to Jaguar Mining Inc. (“Jaguar”) in orderto complete our additional 25% earn-in to attain full ownership ofthe Pedra Branca Project. As such, our focus was to deliver a maidenresource report as quickly as possible during our Phase I explorationprogram. A cut-off date for the resource calculation was set atFebruary 28 th , 2021in order to enable sufficient time to complete the report and haveJaguar review prior to mid-2021.
Our team was very successful, andwith a USD 1 million exploration program, defining a total of 39mineralized zones along the entire 12 km mineralized trend. Goingforward, the Phase II program will be designed to further delineateand possibly bridge the gaps between the mineralized areas andtransition the current resource to an advanced stage asset as set bythe mining concession issued by the National Mining Agency ofBrazil.”
The company will work with Jaguar to complete therequired government processes to transfer the Pedra Branca asset toSouth Atlantic Gold’s subsidiary in Brazil.
The Company is also pleased to report that anadditional tenement located in the center of the Project was recentlyacquired. This new tenement increases the Pedra Branca land area to39,906 hectares. The location and acquisition of this new tenement wasdeemed essential to consolidate the Company’s ownership along theentire mineralized trend.
The data from the Phase I exploration program wasobtained from a mineralizedtrend of approximately 12 km . Some of theexploration work was required to maintain the tenements in good legal standing with the Brazilian mining andexploration agencies. Because the assay results and drill holes werewidely spread, the parameters for the for the resource estimate areconservative. Nevertheless, they included:
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- Three block models over 39 mineralized bodies wereprepared based on the targets of Coelhos-Queimadas, Mirador andIgrejinha
- A capping of12 g/t Au was used to reduce the influence ofoutlier sample data
- A cut-off grade of 0.4 g/t Au
Resource Estimate
The mineral resource estimate is that material withinthe block models using a cut-off grade of 0.4 g/t Au. The effectivedate for the mineral resource is 16 th of March, 2021and a corresponding technical report disclosing the mineral resourceestimate in accordance with NI 43-101 has been prepared by RBMConsultoria Mineral for the Company endorsed by Mr. Rodrigo Mello,FAusImm. Mr. Mello is also a QP as defined under NI 43-101. SouthAtlantic will file the technical report on SEDAR at www.sedar.com within 45 daysof this news release.
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Figures have been rounded to the appropriate level ofprecision for the reporting of mineral resources.
-All figures are in metric tonnes.
-Mineral Resources that are not Mineral Resources donot have demonstrated economic viability.
-The estimate of mineral resources may be materiallyaffected by geology, environment, permitting, legal title, taxation,sociopolitical, marketing or other issues.
-Inferred Mineral Resources have been estimated inaccordance with the definitions adopted by the Canadian Institute ofMining, Metallurgy and Petroleum (“CIM”) and incorporated in NI43-101, “Standards of Disclosure for Mineral Projects” by Canadiansecurities regulatory authorities.
-An Inferred Mineral Resource is that part of a MineralResource for which quantity and grade or quality can be estimated onthe basis of geological evidence and limited sampling and reasonablyassumed, but not verified, geological grade and continuity.
Phase II Exploration Program
A Phase II Exploration program is proposed for the 3main targets that lie along the 12 km mineralized trend. The primarygoal of Phase II is to focus on an in-fill drilling program,commencing with the 39 mineralized bodies that have been identified inthe Phase I program. Figure 1 in the Annex illustrates the three main targets in the 12km mineralizedextension including Igrejinha, Coelhos-Queimadas and Mirador and showsthat some outlines of mineralized bodies are starting to take shape. Additionally, there are areas which due to limited time and budgetin Phase I, have no exploration results. Phase II is designed to bothexplore those areas not covered in Phase I and to provide somealong-strike extensions to these targets. Most of this work can beaccomplished with trenching and RC drilling as was done in Phase I.Additionally, core drilling will be conducted to test potentialmineralization at depths.
The Phase II exploration program will also enable theCompany to maintain all tenements in good legal standing throughcompletion of exploration work and filing of required reports to theBrazilian authorities. Over 23 targets and areas of interest at PedraBranca have not been drilled or previously explored. These areasrequire some geochemical sampling and trenching to determine theircontinuing value over the 40 km mineralized trend of the TroiaGreenstone Belt.
A technical 3-D video will soon be up on our website( www.southatlanticgold.com ) to complement written descriptions of the Pedra Branca Project inpress releases and on the website. This video not only puts intoperspective the significant size of the Project, but also illustratesthe infrastructure (power, good roads, commerce centers, andmanpower), primary exploration targets (Coelho-Queimadas, Igrejinhaand Mirador) and the potential upside and increase in mineralresources expected with the Phase II program combined with theremaining 43% of samples resulting from the Phase I program that wasnot included in this mineral resource estimate due to timeconstraints.
Other highlights of the Phase II program include:
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- RC in-filldrilling will be focused on further delineationof the geology and mineralization of the gaps between the targets. RCdrilling will also be conducted on the potential targets identifiedalong the 30 km southernextension of the mineralized trend that did notreceive any drilling during the Phase I exploration program.
- Diamond core drilling will be conducted to provideinsight into lithology,structural geology, controls on mineralization, grades and gradevariability at depth . Oriented core will be usedto help in the understanding of the structural geology and controls ofmineralization.
- Detailed 3D geologic and structural modeling.
- Mineral resource estimate to be updated to includethe 8,188 additional assayresults from the Phase I and additional samplesfrom the Phase II exploration program .
- Trenching has been demonstrated to be a very efficient and cost-effectivemethod to identify the sub-outcroppedmineralized orebodies and will be the exploration technique to precededrilling in areas that were not explored in the Phase Iprogram.
- Continuation of the community engagement program .
Quality Assurance / QualityControl
The Quality Assurance and Quality Control (QA/QC)protocol adopted by South Atlantic was comprised of a series ofindustry standard procedures designed to monitor the precision andrepeatability of the reported assay results and identify potentialproblems at the laboratory. No drill hole from the project was sampledwithout a concomitant QA/QC program assuring the quality of theresults. The QA/QC program developed by SAG has been inserted 4% offield Blanks, 4% field duplicates and 4% standards from Rocklabs andITAK with range of 0.8 g/t to 8.0 g/t Au.
Qualified Person’s Statement
The Mineral Resource estimate was carried out by Mr.Rodrigo Mello, FAusIMM (number 209332), RBM Principal Geologists,serving as Independent Qualified Person, as defined in the CIMDefinition Standards for mineral resources and Mineral Reserves inaccordance with NI 43-101. Mr. Rodrigo is a geologist with 35 years’experience in exploration and mineral project development, withrelevant exposure to gold deposits in terrains like those found at thePedra Branca Project. His working experience includes 15 years as anexploration geologist and project manager, working in Archean,Proterozoic and Tertiary environments, 20 years as a mineral resourceanalyst working in the evaluation of gold, copper, zinc, nickel andsilver deposits in nine different countries, authoring or co-authoring19 Technical Reports published on the Sedar database. Mr. Mello hasreviewed and approved the scientific and technical information in thisnews release.
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
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 .
Figure 1
Main Targets and Mineralized Trendsat Pedra Branca
Figure 2
Number of Samples and Mean Grade ofthe Modeled Ore Bodies
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