(TheNewswire)
Kelowna, British Columbia – TheNewswire- February 3, 2022 -SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (“ South Atlantic” or the “ Company” ) is pleased to announcethe commencement of a Phase II exploration program over its flagship100% owned exploration project located in Cear á State, northeast Brazil. The Phase II program has been developedutilizing field observations from recent site visits by management anda comprehensive review of Phase I exploration results by the newlyformed Technical Committee.
Technical CommitteeObservations
As previously announced (news release dated January 5,2022 ), the South Atlantic GoldTechnical Committee consists of Rick Brown (Chair), Mitch Wasel and Jon Hill.
The Phase I exploration program completed in 2021clearly identified the potential for structurally-controlledorogenic-style mineralization along the strike-continuous 40 kmprimary crustal scale-structural trend that traverses the Company’sextensive tenement package of more than 45,000 hectares. Notably, South Atlantic now holds a dominant, contiguousland position over this emerging TroiaGreenstone Belt in Ceará State. (Highlighted in Figure 1 )
The consolidated results of the Phase I program,focused on a 2 km segment of the main structure, enabled the Companyto define a National Instrument (“NI”) 43-101 technical reportsurficial Inferred mineral resource (Highlighted in Figure 2 ) (click here to view NI 43-101technical report dated April 25, 2021 with effective date March 16,2021). Importantly, this initial exploration phase also identified, todate, the presence of five secondary zones parallel to or as splaystructures emanating from the primary structure that are considered toalso be prospective for gold mineralization. Initial surface geochemical assays havedetected anomalous zones of gold mineralization in all five secondaryzones.
Environmental Social Governance(“ESG”)
The Company will continue to prioritize localresources, by utilizing and training local field personnel to assistin the Phase II geological program. It has been the intent from thebeginning of South Atlantic’s presence in the district to engage andhire locally as part of its commitment to ESG best practices.
Phase II Exploration ProgramStrategy
Building on the success of the Phase I explorationprogram, Phase II will focus on continued systematic evaluation of thegeology and structure along the untested or under-tested remaining 38km of prospective structure (and additional parallel and splaystructures) with the concomitant generation and prioritization offuture drill targets for testing by future exploration programs.
Phase II Detail
The Phase II exploration program will consist of thefollowing:
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Extensive geologic mapping concentrating on alterationzones and the identification of structures and kinematic indicatorswhich help to identify areas of potential mineralization.
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Stream sediment sampling program to cover gaps in thetenement areas that were not covered in the Phase I explorationprogram. The results of the sampling program will be used to identifyand evaluate areas potentially associated with additional mineralizedstructures that were not tested in Phase I.
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Trenching program similar to the trenching that wasconducted in the Phase I exploration program. South Atlantic usestrenching as a relatively inexpensive alternative to drilling and thistechnique was successful in the Phase I program.
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Multi-element geochemistry can be used to determinemobility of certain elements and help to determine which elements areassociated with gold and thereby will often assist vectoring intoprioritizing the targeted mineralized trend. Multi-elementgeochemistry will be augmented by spectral orientation and nichesampling that enable lithology characterization. The more geologicalknowledge that can be acquired at Pedra Branca, the better the abilityto identify and target mineralization across the tenement area and,where appropriate, to add tenements to the land package area.
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Review and analysis of existing core to determine whichgeophysical techniques will be will be most effective in complementinggeological mapping and geochemical data collection including InducedPolarization, Electromagnetic Induction, and/or ElectricalResistivity.
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High resolution drone magnetic orientation survey overthe areas with known gold mineralization detected from earliercampaigns. Pending positive results from the initial survey, theprogram will be expanded over other prospective targets on theextensive land holdings of the Company’s existing tenements.
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Reverse Circulation drilling will be used selectivelyto test mineralized structures below surface gold anomalies, to ashallow depth.
Douglas Meirelles , CEO stated, “So far, Phase II will be one ofthe most exciting times for the Pedra Branca asset. The currenttrenching and soil sampling program has already shown the Troiagreenstone belt has anomalous gold mineralization over at least 40 kmof strike length, making Pedra Branca project a district-scaleexploration target. Our Phase II exploration will now focus ondetermining where these mineralized structures are more likely to openup at depth and thereby aid in prioritizing drill hole placement forfurther drill programs.”
Figure 1 – Thegreenstone belt delineated with the tenement package of South AtlanticGold
Figure2 – Pedra Branca currentdefined trend of 2km with 180k ounces at average 40m depth andhighlight the potential extension to 40+km
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.
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 our 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 instable and mining-friendly jurisdictions. South Atlantic Gold is basedin Kelowna, British Columbia, and is listed on the TSX-V under thesymbol “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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