(TheNewswire)
Kelowna, British Columbia – TheNewswire- June 13, 2022 - SOUTHATLANTIC GOLD INC. (TSXV:SAO) (OTC: JLRRF ) (“ SouthAtlantic” or the “ Company” ) announces another milestone for the Phase IIexploration program which included a high-resolution Unmanned AirborneVehicle (“UAV” or “drone”) magnetic survey at its 100 percent(“%”) owned Pedra Branca project, located in Cear á state, northeastern Brazil. The initial results ofthe UAV survey define a distinct signature over areas of knownmineralization that, when combined with other datasets demonstratesthe potential for gold mineralization to extend well beyond the limitsof the current resource ( click here for technical reportand here for UAV program newsrelease dated April 8, 2022 ).
Highlights
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Licensing and Permitting: TheCompany filed exploration reports required by Agencia Nacional deMineração (“ANM”), the Brazilian mining agency, on-time andsecured legal status for 15 tenements.
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Phase I and II ExplorationConsolidation: Click here for a table of total exploration work forboth Phase I and Phase II. Pedra Branca consolidated exploration nowhas a total of 165 Reverse Circulation and 90 Diamond Drill(historical) holes with a total of 15,592 meters (“m”) drilled and9,353 samples assayed. The RC hole depth averaged 38.5 m. Consolidatedresults can be seen here with previouslypublished data available on our website.
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Magnetic Signature: Thehigh-resolution drone survey has identified geological structures thatare coincident with previously defined gold mineralization. Thesegeological structures have been delineated farther than the extents ofthe known gold mineralization and provide numerous targets that willneed to be tested with further exploration.
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Phase II was completed on time and on budget.
Douglas Meirelles , CEO stated, “The Phase II exploration programenabled the Company to successfully deliver 15 detailed explorationreports to ANM which required very specific exploration work and, inaddition to meeting these requirements, we also successfully completedthe drone magnetic survey. The initial results of the drone surveyadded another dimension to the collective Phase I and II explorationprogram results, with several new targets identified.
“The continued consolidation ofexploration data and new magnetics results confirm the previousgeological model—including the lengthening of previously identifiedmineralized trends—along with the discovery of structures requiringfurther geological work. With several new compelling targets, the pathforward for Pedra Branca is clear and further drilling will helpdefine the boundaries of this district-scale asset.”
Consolidated Exploration
The completion of the drone magnetic survey provided significantresults that will help guide and focus the next steps of theexploration program. In the National Instrument 43-101 technicalreport, click here to view (NI 43-101report standards dated April 25, 2021 and entitled “ Mineral Resource Estimation for the PedraBranca Gold Project Cear á State –Brazil ” authored by Rodrigo Mello, FAusIMM, of RBMConsultoria Mineral Belo Horizonte, Brazil filed under the Company’sprofile on the SEDAR website at www.sedar.com ), the largesttarget, Queimadas, has an Inferred Resource of 3.2 million tonnesgrading 1.24 grams per tonne gold for 128,000 ounces Au at an average40 meters depth. The magnetic signature at this target leaves thepossibility to expand the current Inferred resource with additionaldrilling. Click here to see the resourcestatement qualification statements.
As seen on the map below, the section of Queimadas is contrasted withthe consolidated exploration programs completed at surface (average 40m depth) in conjunction with the magnetic survey, demonstrating thenew potential of this entire target area.
The drone survey also highlighted the area between Mirador andQueimadas as seen on the map below, which greatly aided theinterpretation of the structures that connects these two main targetsfor a total length of 60 km. The Company has also completed themagnetic survey between these two areas and is expecting to receivethe data in the next few weeks.
Total Exploration from Phases I andII
In the 1.5 years that South Atlantic has been exploringthe Pedra Branca property, a significant amount of current andhistorical work has been completed within a limited budget. Thisgeological work provides a basis for the initial understanding of themineralization at Pedra Branca.
Exploration Results for Phase I and II Combined
Activity | Unit | Phase I | Phase II | Total |
Stream Sediment Sample | Samples | 0 | 231 | 231 |
Soil Sample | Samples | 0 | 1,239 | 1,239 |
Trenching | # | 92 | 48 | 140 |
Meters | 12,324 | 9,966 | 22,290 | |
Samples | 12,170 | 5,038 | 17,208 | |
RC Drilling | # | 122 | 43 | 165 |
Meters | 5,022 | 1,657 | 6,679 | |
Samples | 5,022 | 729 | 5,751 | |
DD Drilling (Historical – performed in 2007/2008 by JaguarMining) | # | 90 | ||
Meters | 8,913 | |||
Samples | 3,602 |
Geophysics
One of the important take-aways from the geophysical program is thatthe ore intercepts are seen to be concentrated at the flexures betweenmagnetic highs (red and pink colors) and magnetic lows (blue color) atQueimadas, Mir-Quelho and Mirador Norte target areas. An interestinggap located to the south, southeast and northeast of the Inferredresource area of Queimadas has been interpreted as areas of interestfrom the geophysical data (see map below).
The density of the geophysical grid allows the trendlines in the gapsbetween Queimadas and Mirador and similar geophysical structures inthe southern portion of Pedra Branca. These trendlines are clear inthe mafic domain where most of the ore/mineralization is accompaniedby magnetic minerals (pyrrhotite).
The geophysics results have identified dozens of potentialmineralized-like anomalies that have not yet been investigated in thePhase I and II exploration programs. A host of prospective explorationtargets have been identified from the magnetic results. Theseprospective targets require investigation as they may provideimportant geological information to resolve questions on structuralissues.
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.
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 March 16, 2021 and a correspondingtechnical report disclosing the mineral resource estimate inaccordance with NI 43-101 was prepared by RBM Consultoria Mineral forthe Company endorsed by Mr. Rodrigo Mello, FAusImm. Mr. Mello is alsoa QP as defined under NI 43-101. South Atlantic filed the technicalreport on SEDAR at www.sedar.com .
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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