ATLANTIC GOLD NL - ASX: ATV

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Description

Atlantic Gold NL is an Australian-listed gold exploration company (ASX code ATV). Atlantic Gold’s objective is to discover highly profitable gold reserves with near-term development potential through the acquisition and exploration of prospective acreage with workable mining tenure. Following this strategy the Company is now focused on the exploration and development of the Touquoy Gold Project and the Cochrane Hill Gold Deposit in Nova Scotia, Canada.

Touquoy Gold Project

The Touquoy Definitive Feasibility Study ('DFS') has been completed as Stage 1 of the Touquoy-Cochrane Hill Gold Project in Nova Scotia, Canada. The DFS will provide Atlantic Gold with the basis to further advance discussions with potential financiers for Project funding.

The Touquoy DFS was compiled in association with Merit Engineers Pty Ltd and Ausenco Limited. It has considered all aspects related to development of Touquoy including ore reserve definition, mining, metallurgical, processing and engineering, economics and environmental.

Based on Proved and Probable Reserves of 9.59 million tonnes at 1.49 g/t (454,000 contained ounces of gold) and a gold price of US$1100 per ounce, the ungeared pre-tax project NPV is A$88 million.

The Touquoy Gold Project represents the first stage of the conceptual 10-year production plan for the combined Touquoy-Cochrane Hill Gold Project of 900,000 ounces with net surplus cash of A$350 million (at US$1100 per ounce gold price).

Cochrane Hill Gold Project

Atlantic Gold, through its wholly-owned Canadian subsidiary DDV Gold Limited, entered into an Option Agreement on the Cochrane Hill advanced exploration property with TSX-listed Scorpio Mining Corporation (Scorpio) in May 2007. As an augmentation to Touquoy throughput our preliminary financial assessment of Cochrane Hill, with a current resource inventory of 547,000 ounces gold, indicates that a very attractive profitable return can be realised. As a result, we now have a resource development drilling program underway at Cochrane Hill to determine the most profitable approach to accessing this resource.

The total Indicated and Inferred Resource were upgraded in September 2009 to 10.1 million tonnes at an average grade of 1.7 g/t, for 549,000 contained ounces of gold.

Excellent results have been received from the first stage of a 5000 m resource development diamond drilling program with shallow open pittable mineralisation intersected over substantial widths, up to 31 m at 2.43 g/t from 19 m depth.

Nova Scotia Regional Exploration

In addition to developing the Touquoy Gold Project in Nova Scotia Atlantic Gold is progressively exploring regional and near-mine land positions to build its resource base. Beyond the Touquoy property itself ATV believes the surrounding region within the so-called Meguma Terrane is highly prospective for additional Touquoy style deposits.

Considerable potential is evident along adjacent parallel gold-mineralised belts defined by the regionally extensive east-west anticlines mapped over a century ago by pioneer government geologist ER Faribault. Typically the region is 90% covered by a masking blanket of glacial till – extensively transported sand, gravel and boulders deposited beneath the continental ice sheet during the last Ice Age. A strong land position comprising pegged claims and farmed-in properties continues to be secured and explored, initially by reconnaissance drilling. A customised reconnaissance drilling technique has been employed by ATV to effectively penetrate the cover and explore this terrain and to date over 10,000m have been drilled to test regional targets.

Mine For

gold

Location of operation(s)

Canada

Address

Suite 506 815 Pacific Highway
CHATSWOOD, NSW, AUSTRALIA

Phone

+61 2 9410 0993

Email

Website

http://www.atlanticgold.com.au

Last Updated

14/09/2011