(TheNewswire)
TheNewswire - Dec9 th , 2020 - SOUTH ATLANTIC GOLD INC.(TSXV:SAO) (“ South Atlantic” or the “ Company ) is pleased to announce preliminary results from its maidendrilling, trenching and geologic mapping program at the Company’sPedra Branca Project, located within the Troia Greenstone Belt inCeará, Northeast Brazil. The first 68 trench samples have beenreceived from the analytical laboratory.
HIGHLIGHTS
Exploration is currently on-going and is planned tocontinue through Q1 2021. Additional assays are pending and will becompiled along with the historical data for Pedra Branca into aconsolidated database.
The highlights of the first assays are as follows( Figure1 ):
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- Igrejinha Target (Trench ResultsPB-TR-006) : 23 meters (“m”) of 0.94 gramsper ton (“g/t”) gold (“Au”), including 4m of 3.22 Au g/t.Igrejinha is one of our main Targets alongside Coelhos and Queimadas,this entire area comprises part of the tenements under the miningconcession process in Brazil. A total of 646m of RC drilling has beencompleted in this area and these samples have been sent to thelaboratory for assay.
- Bombeiro Target (TrenchResults) : Bombeiro is in the northern area ofour tenement package. This area is newly identified with severalmineralized intercepts, located approximately 3.5km north of IgrejinhaTarget. It shows the potential magnitude of the extension ofmineralization. With gold grades higher than 0.3 g/t, this area willrequire follow-up in subsequent exploration programs at PedraBranca.
In an effort to validate the historical results andprovide better confidence in the sample assay QA/QC, the historicalcores are being re-assayed, with suitable duplicates and standardsamples sent to an independent geological assay laboratory.
Despite the Covid-19 restrictions, the Company’sexploration program remains on track. Exploration work at Pedra Brancahas included geological mapping, 6,000m of trenching and 900m of RCdrilling that in total will generate approximately 6,000 samples, ofwhich 3,500 samples have already been taken and sent to thelaboratory.
Douglas Meirelles, CEO and Director, stated,“ These initial results arevery positive for Pedra Branca. In a very short period of time ourexploration team has accomplished a significant amount of work that iscomplementary and builds upon the historical results received by theprevious operator, Jaguar Mining Inc. We are gaining momentum byachieving a more complete geological picture of the entire PedraBranca mineralization, and identifying new mineralized areaspreviously unknown, which has the potential to expand the entire trendof Pedra Branca. ”
Figure 1 – Pedra Branca Project Map of thepreliminary assay results.
The Company’s N.I. 43-101 technical report for thePedra Branca project dated August 21, 2020 (as filed on www.sedar.com under the Company’sprofile) recommended a Phase 1 program to advance the project.Presently, the South Atlantic exploration team is completing theprogram as outlined in the recommendations of the Pedra Brancatechnical report.
Additionally, the exploration team is concurrentlyconducting a topographical survey to provide an up-to-date survey ofthe Pedra Branca Project area which, in total, comprises 38,921.63hectares. Our team is also providing a drillhole collar verificationsurvey, soil and channel sampling in trenches, updating geologicalmapping and a re-interpretation of the historical geophysical surveys.
QA/QC Procedures
All samples were analyzed at SGS GEOSOL Laboratórios Ltda in MinasGerais, Brazil, and ALS Brasil Limitada in Minas Gerais, Brazil. Both contracted laboratories follow the same procedures tosample preparation and chemical analysis, described below. In thelaboratory, each ±2 kg trench sample is recorded, dried for 8 to 12hours, crushed to 70% <2mm (-10 #) split to obtain approximately250g and the 250g sub-samples are milled to P85 5 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:
Douglas Meirelles, President and CEO
Anne Hite, Vice President, Investor Relations
T: 250-762-5777
Email: ir@southatlanticgold.com
Qualified Person
The scientific and technical information that forms thebasis for parts of this press release was reviewed and approved byMarcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company’sExploration Manager who is a Qualified Person "(QP") asdefined by National Instrument 43-101.
Cautionary Note RegardingForward-Looking Information
This news release contains statements that constitute"forward-looking Information", as suchterm is used in applicable Canadian securities laws . Such forward-looking information involves known andunknown risks, uncertainties and other factors that may cause theCompany’s actual results, performance or achievements, ordevelopments in the industry to differ materially from the anticipatedresults, performance or achievements expressed or implied by suchforward-looking information. Forward-looking information includesstatements that are not historical facts and are generally, but notalways, 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 the forward-lookinginformation contained in this news release is reasonable based oninformation available on the date hereof, by its natureforward-looking information involves assumptions and known and unknownrisks, uncertainties and other factors which may cause our actualresults, level of activity, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking information. There can be noassurance that the Fundamental Acquisition will be completed asproposed or at all.
Examples of such assumptions, risks and uncertaintiesinclude, without limitation, assumptions, risks and uncertaintiesassociated with general economic conditions; the Covid-19 pandemic;adverse industry events; the receipt of required regulatory approvalsand the timing of such approvals; that the Company maintains goodrelationships with the communities in which it operates or proposes tooperate, future legislative and regulatory developments in the miningsector; the Company’s ability to access sufficient capital frominternal and external sources, and/or inability to access sufficientcapital on favorable terms; mining industry and markets in Canada andgenerally; the ability of the Company to implement its businessstrategies; competition; the risk that any ofthe assumptions prove not to be valid or reliable, which could resultin delays, 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 .
THE FORWARD-LOOKING INFORMATIONCONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THECOMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, ISSUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUEIMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPONTHIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO,IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULARTIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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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