(TheNewswire)
Kelowna, BritishColumbia – TheNewswire - February 16 th ,2021 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (OTC:JLRRF) (“ South Atlantic” or the “ Company” ) is pleased toannounce that all drill hole core sample results have been receivedfor the historic drilling validation program. The validation ofhistoric drilling results represents a very important milestone forthe Company as these results can now be incorporated into the NI43-101 document currently being prepared as part of the earn-in withJaguar Mining Inc. (“ JaguarMining ”).
Highlights:
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- All historic drill intercepts, representing over784.25 meters (“m”) of drill core, collected by previous operatorshave successfully been validated.
- Several high-impact historic results from theCoelhos-Queimadas Target validated as part of this programinclude 12.8 meters (“m”)of 7.38 grams per tonne (“g/t”) gold (“Au”) at (FCC002),12.85m of 5.23 g/t Au (FCC016) and 0.95m of 5.35 g/t Au at(FCW006) , all of which are being incorporated ina geological model (click to see map at SouthAtlanticGold.com ).
- Additional drill results from the Coelhos-QueimadasTarget, including several step-out drill holes, were completed duringthis phase of work with assays pending.
Douglas Meirelles , CEO and Director stated “ We are very pleased with the completion ofthis milestone with results that have exceeded our expectations. Wehave now accomplished yet another step in our on-going exploration atPedra Branca. Our team is systematically checking the boxes asoutlined in the Phase I Exploration Program. We look forward to thecompletion of the next catalyst at the Pedra Branca project: thecompletion of the expenditures required by the earn-in agreement withJaguar Mining. ”
Marcelo Batelochi , Senior Exploration Manager stated “ The validation of the historical drillingwas a challenging but necessary process. With the validationcompleted, we can now focus on our geologic and resource modeling. Weremain on track to complete the Phase I Exploration program on-timeand on-budget, with the goal remaining to ultimately define amineral resource at the Pedra Branca Project. ”
HISTORIC DRILLING OVERVIEW
Historical exploration at Pedra Branca first commencedin 1986 by Unamgen (formerly Gencor) and consisted of airbornegeophysics, regional geochemistry (stream sediment sampling),geological mapping, trenching and channel sampling which led to the identification of three exploration targets: Coelho, Queimadas andMirador. Noranda/Falconbridge/Xstrata sporadically explored PedraBranca until Jaguar Mining acquired the tenements in 2007 andconducted further exploration until 2011 (ref. Figure 1 ). SouthAtlantic acquired the tenements from Jaguar Mining in 2020 andcommenced its Phase 1 Exploration Program in November 2020.
One element of the Phase 1 Exploration Programconsisted of database validation and consolidation to ensure thatresults from the historic exploration work programs (specificallydrill results from Jaguar Mining) were validated through the re-assayprocess, which was successfully completed.
EXPLORATION PROGRAM UPDATE
The current exploration program at Pedra Branca hasbeen completed in line with the recommendations in the Phase 1Exploration Program outlined in the “Technical Report, Geology,Mineralization and Exploration of the Pedra Branca Gold Project,Ceará State, Northeastern Brazil” dated August 21 st , 2020 andfiled on www.sedar under the Company’sprofile.
The main milestones for the Company’s work program atPedra Branca are outlined below:
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1- Established Brazil Operations& Mobilized Team ( Completed )
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2- Drill Program Commenced( Completed )
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3- Initial Trench Results( Completed )
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4- Initial RC Drilling Results( Completed )
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5- Historical Diamond DrillingHoles Validation. ( Completed )
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6- Complete Exploration Programand Earn-In ( On-Going )
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7- Resource Modeling (On-Going)
The Company remains on-time and on-budget to completethe entire Phase I Exploration Program. Exploration expenditures areprogressing toward the earn-in agreement with Jaguar Mining. Allexploration results are being consolidated into its geologicaldatabase.
The three main targets that are under the miningconcession process with The Brazilian Mining Agency (“AgenciaNacional de Mineração” or “ANM”) include Igrejinha, Coelhos-Queimadas and Mirador North/South. Thusfar, the new and historical results consolidated from Igrejinha andCoelhos-Queimadas are highlighted as follows:
Igrejinha Target
Two new trenching discoveries were made at theIgrejinha Target which include a 29 m intersection grading 0.73 g/t Auwhich includes a 4 m intersection grading 3.22 g/t Au, and a secondintersection of 10 m grading 3.99 g/t Au (including 1 m grading 31.0g/t Au). In addition, two mainmineralized trends have been identified to date( click here to see Igrejinha map ).
Exploration Phase 1 work at Igrejinha is on-going and is expected toconclude by Q1 2021. Results will integrate the geological model andare inclusive of:
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- PB-RC-001A: 1.00m @ 5.56 g/t Au (From 24m)
- PB-RC-002: 1.00m @ 5.90 g/t Au (From 22m)
- PB-RC-003A: 1.00m @ 2.59 g/t Au (From 7m)
- PB-TR-006: 4.00m @ 3.22 g/t Au (Trench sample atsurface)
- PB-TR-009: 6.00m @ 7.19 g/t Au (Trench sample atsurface)
- PB-RC-007: 1.00m @ 2.37 g/t Au (From 3m)
Coelhos-Queimadas Target
The Coelhos-Queimadas Target is well defined by historic drill holeintercepts and surface trenches. This target is characterized by twoparallel zones of mineralization, each approximately 500 m in lengthand approximately 6 m wide located along a northeasterly trend. Goldmineralization has currently been intersected by historic drilling toa depth of 80 m and currently remains open both at depth and alongstrike.
Six select intersections from Historical DiamondDrilling at the Coelhos-Queimadas Target ( click here to see Coelhos-Queimadas map ) included:
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- FCC002: 12.80m @ 7.38 g/t Au (From 46.3m)
- FCC003: 5.90m@ 3.56 g/t Au (From 49.1m)
- FCC016: 12.85m @ 5.23 g/t Au (From 90.2m)
- FCC020: 2.00m@ 3.43 g/t Au (From 153.8m)
- FCQ001: 2.05m@ 3.56 g/t Au (From 49.45m)
- FCW006: 0.95m@ 5.35 g/t Au (From 9.9m)
These intersections are located along the mainmineralized trend (except for drill hole FCW006 which is located tothe west and occur along subparallel intra?foliatedmillimetric/centimetric strings of sulfides in amphibolite schistswith variable magnetite, pyrite and pyrrhotite.
The Company expects to receive further assay results from theIgrejinha, Coelhos-Queimadas and Mirador targets and will incorporatethese into its geological model. Further exploration work in theremaining tenements continue and will allow the Company to maintainour permits in compliance with the ANM.
PEDRA BRANCA LICENSES & PERMITSUPDATE
On January 26 th , 2021, ANM published its Ordinance n.55/2021 in the Official Gazette. This new rule amended Ordinances 28and 46/2020, which dealt with the extension of the term for mineraltitles as well as the suspension of all procedural and materialdeadline requirements. The suspension period is now extended to June30th, 2021. Therefore, the extension went up from 288 days to 467days. ( click here to see tenement map ).
QA/QC PROCEDURES
The results of the historical drilling re-assays followQuality Assurance/Quality Control (QA/QC) procedures that included theinsertion of standards, blanks and duplicate samples, sent to the labalong with the quarter (1/4) core samples. A total of 811 coreintervals (entire mineralized diamond drilling cores) were resampledwith the inclusion of 34 duplicate samples (4%), 36 blank samples (4%)and 33 standard samples (4%) for a total of 914 samples.
All samples, aside from the ¼ core samples above, are cataloged andorganized in the core shed at the Pedra Branca Project, in which 1control sample has been sent out for every 10 samples sent to thelaboratory (3.3% Standards; 3.3% Duplicates; 3.3% Blanks).
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.
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 .
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