(TheNewswire)
Kelowna, BritishColumbia – TheNewswire - January 20, 2021 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO) (OTC:JLRRF) (“ South Atlantic” or the “ Company” ) is pleased toannounce results from its ongoing drilling and trenching campaigns andto provide a corporate update.
HIGHLIGHTS
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- 1,826 meters(“m”) of RC drilling have been completed as of10 January 2021, resulting in over 1,300 samples. Assay results havebeen reported for 293 samples to date . Thecompleted program is estimated to consist of 5,800 samples from 5,300m of drilling.
-More than 7,497 m of trenching hasbeen completed to date, generating more than 3,483 samples and 2,662assay results.
-Historical drilling validation hasbeen completed in the central area of the tenements at Queimadas andCoelhos targets. Laboratory assay results are pending .
- The Igrejinha target continues to be the main focusof the RC drilling program, with PB-RC-002 returning 1 m grading 5.9 grams per tonne(“g/t”) from 22 m depth, and PB-RC-003Aintercepting 3 m at 1.13 g/tAu from 5m depth . Trenches at Igrejinha,PB-TR-009 and PB-TR-006 returned 6 m grading 7.19 g/t Au , and 29 m grading 0.73g/t Au (Including 3m at3.22g/t Au) , respectively.
- Mapping and trenching at Bombeiro and Igrejinha has(as press released on 9 December 2020), located new discoveries ofmineralization.
2020 REVIEW
The year 2020 was successful on several fronts,highlights of which included:
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- The Company recruited new management and technicalteams and appointed Douglas Meirelles as CEO andPresident.
- The Company further revitalized its board ofdirectors with the appointment of BruceHigson-Smith (Chairman), Marc Leduc, and Antenor Silva.
- The completion of the Pedra Branca FundamentalAcquisition and joint venture with Jaguar Mining Inc. led to the re-branding of the company toSouth Atlantic Gold further highlighting theCompany’s focus on gold exploration in the Americas.
- The Company raised $2M for Earn-In Expenditures andWorking Capital.
- Early exploration resulted in the identification of new mineralized occurrences at Igrejinha and Bombeiro targets.
EARN-IN AGREEMENT UPDATE, PEDRABRANCA PARTNERSHIP WITH JAGUAR MINING INC.
South Atlantic Gold continues advancing the earn-inagreement with Jaguar Mining Inc. by continuing the explorationprogram at Pedra Branca. Once South Atlantic Gold completes theearn-in agreement, the Company will have the option to proceed witheither a joint-venture partnership with Jaguar Mining Inc. (in theevent Jaguar exercises its one-off back in rights) or to proceed todevelop the project on a 100% ownership basis.
PEDRA BRANCA EXPLORATION PROGRAMUPDATE
The company continues to work toward the completion ofthe Phase I Exploration program at Pedra Branca which includes newdrilling and validation of historical drilling as outlined bythe recommendations in the N.I. 43-101 technical report for the PedraBranca project dated August 21, 2020 (as filed on www.sedar.com ).
Exploration remains on budget at Pedra Branca. SouthAtlantic’s expectation is to use data collected from the current andprevious exploration programs to release an NI 43-101 compliantresource estimate. Assay results have beenslower than anticipated due to delays at the Brazilian assaylaboratories due to the Covid-19 pandemic.
The results of the exploration program to date confirmthe mineralization occurring along a highly deformed, folded, andsheared trend with N10E strike, 45SE dip, widths and thicknesses of 2to 20 meters from the mineralized horizons at Igrejinha, Bombeiro,Condado and Mir-Coelho targets. An orthophototopographical survey is currently underway.
IGREJINHA TARGET
The Igrejinha target has generated intersections of 27m at 0.73g/t including 3m at3.22g/t Au (Trench PBTR006) and 10m at 3.99g/t Au including 1.0m@31.0g/t Au(Trench PBTR009) (Figure 1).
Two main mineralized trends have been identifiedincluding 188m of strike, dipping 45 degrees to the East, and is openin all directions at the Igrejinha target.
(Figure 1)
Maiden RC drilling at Igrejinha intercepted 2m at 5.9 g/t gold in PB-RC-002 and 3m at 1.13 g/t Au inPBRC003A .
MIR-COELHO TARGET
Trenches at the Mir-Coelho target intercepted 13m of 4.45 g/t Au (including 1m at 55.84 g/t Au ). Thistarget was drilled in the past by Jaguar Mining Inc. Re-assays ofhistorical drilling are under laboratory analysis. Further RC drillingwill be scheduled once assay results are received.
Douglas Meirelles, CEO and Director, stated“ Our exploration team hasdone an outstanding job to put together a trenching and drillingprogram with limited budgets during a global pandemic and havedemonstrated continued mineralization trends and promising newmineralized areas. I expect these new results to add to the on-goingvalidation of historical data in our large project area of PedraBranca. As we have reported, the budget for the company’s earn-in ofPedra Branca is US$1 million. We remain on budget and the earlysuccess we have achieved can only be attributed to our explorationteam and the Pedra Branca project itself. ”
PEDRA BRANCA LICENSES & PERMITSUPDATE
Pedra Branca is at an advanced stage of the miningconcession process with the Brazilian Mining Agency (“AgenciaNacional de Mineração” or “ANM”).
Of the 24 tenements, the main targets includingCoelhos, Queimadas and Mirador are under mining concession process andare expected to go into an environmental impact study towards thelatter part of 2021. The licenses and permits are valid, and theCompany is in continuous communication with ANM to ensure that all ofthe licenses are properly maintained and updated in a timely manner.
QA/QC PROCEDURES
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 trench sample is recorded, dried for 8 to 12hours, crushed to 70% <2mm (-10 #) split to obtain approximately250g and the 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:
Douglas Meirelles, President and CEO
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 THECOMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATIONAT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITHAPPLICABLE 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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