VANCOUVER, Jan. 17, 2019 /CNW/ – Atlantic Gold Corporation (TSX-V: AGB) (“Atlantic” or the “Company”) is pleased to announce that Atlantic has entered into an agreement (the “Agreement“) to invest $9,000,000 by way of a non-brokered private placement financing (the “Financing“) as a strategic investment in Velocity Minerals Ltd. (TSX-V: VLC) (“Velocity”).
With this investment Atlantic will hold 39.2% on a partially diluted basis in Velocity and looks forward to working closely with Velocity management to further advance Velocity’s Rozino project through feasibility study and ultimately, construction and commissioning.
Atlantic recognizes many of the key characteristics of its Moose River Consolidated Mine in Velocity’s properties (as derived from Velocity’s Preliminary Economic Assessment (“PEA“) on the Rozino Project completed on September 17, 2018), namely the potential for:
- AISC in the range of ~USD$550-650/oz, in the lower decile of industry costs
- Low initial capex
- Low strip ratio deposits with a 1.51 g/t Life of Mine (“LOM“) gold grade
- Resource extension potential at existing deposits
- Simple metallurgy and conventional processing methods
- Potential for multiple open pits which could be treated through a central milling facility
- An under-explored gold belt, with little, if any modern gold exploration
Bulgaria is a country with a long mining history and has been proven in recent years to be a jurisdiction where Canadian mining companies can successfully operate and develop gold mining operations. Velocity also brings a significant additional advantage through its local partner, with which it has agreement to process mineralized material through its currently operating CIL process facility located near the Rozino deposit.
The above AISC and gold grades are based off disclosure in Velocity’s PEA on the Rozino Project (see Velocity’s news release dated September 17, 2018).
The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
The PEA was prepared by CSA Global, an international mining consultancy with experience in Bulgaria, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Updated Mineral Resource Estimate – Rozino
An updated mineral resource estimate using all of the relevant drill hole information to date was reported for a range of cut-off grades returning an Inferred mineral resource of 13Mt @ 1.37g/t gold at a 0.6 g/t gold cut-off grade, for total contained gold of 573,000 ounces. The estimates are based on 2m down-hole composited gold assay grades from angled diamond drilling.
SOURCE: ATLANTIC GOLD CORPORATION
DATED JANUARY 17, 2019