Kelowna, British Columbia, May 26, 2021 – SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic” or the “Company”) is pleased to announce it has received additional positive assay results from its Phase I exploration program at the Mirador Target, within its Pedra Branca Project area, located 280 kilometers (“km”) southwest of Fortaleza, Ceará State, Brazil.
Douglas Meirelles, CEO stated, “We are pleased with the results being reported today. Our Phase 1 program focused primarily on the core targets, but towards the end of the program, we also explored the extensions of the trends, towards southeast (“SE”) of Pedra Branca and other tenements that had little to no historical work, as part of the schedule required to maintain the permits and licenses. The results that we are currently receiving were surprising and suggest that mineralization is extended and continuous within the Mirador Target.”
The new assay results from the Mirador Target confirm the lateral extension of mineralization at NW Mirador and confirm the continuity of ore at SE Mirador. (Click HERE to see map).
Highlights include (see Annex 1 for full table of results):
- Reverse Circulation (“RC”) drill hole PBRC099 intersected 3 meters (“m”) grading 1.91 grams per tonne (“g/t”) gold (“Au”), including 1 m grading 4.72 g/t Au, from 7 m depth
- RC drill hole PBRC106 intersected 4 m grading 1.69 g/t Au, including 2 m grading 2.65 g/t Au, from 20 m depth
- RC drill hole PBRC106 intersected 8 m grading 0.89 g/t Au, including 3 m grading 1.84 g/t Au, from 37 m depth
- RC drill hole PBRC108 intersected 2 m grading 6.17 g/t Au, including 1 m grading 5.94 g/t Au, from 17 m depth
- PBRC108 also intersected 6 m grading 52 g/t Au, including 1 m grading 3.03 g/t Au, from 25 m depth
The results that continue to arrive from the laboratory are being inserted into the geological section of the technical report, and are being used to gain greater understanding of the controls on mineralization at the Pedra Branca Project. As the company continues into Phase 2 of the exploration program, the new consolidated database continues to be updated and is assisting in the formulation of the subsequent exploration and development activities. It is important to note that all the assay results are the result of a US$1 million Phase 1 exploration program with RC drilling that averaged at most 60 m in depth. Historically, the higher-grade mineralization is found at deeper intersects.
South Atlantic is working, in conjunction with Jaguar Mining Inc., on the review of geological data and the financial audit as required by our contractual obligations for the Company’s earn-in rights to the Pedra Branca Project. The release of the maiden resource and National Instrument (“NI”) 43-101 technical report for Pedra Branca is anticipated for the second quarter of 2021.
The assays follow Quality Assurance/Quality Control (QA/QC) procedures that included the insertion of standards, blanks and duplicate samples, sent to the lab along with the samples.
All samples were analyzed at either SGS GEOSOL Laboratórios Ltda in Minas Gerais, Brazil, or ALS Brasil Limitada in Minas Gerais, Brazil. Both contracted laboratories follow the same procedures for sample preparation and chemical analysis, described below. In the laboratory, each ±2 kg sample is recorded, dried for 8 to 12 hours, crushed to 70% <2mm (-10 #) split to obtain approximately 250g and the 250g sub-samples are pulverized to P85 74 microns (-200 #).
Gold analysis is carried out using fire assay comprising three stages: Fusion, Cupellation and Analysis.
Samples with a gold fire assay equal to or higher than 10.0 g/t Au are re-analyzed by a screen-metallic method. Base metal assays are first determined by ICP-OES (Inductive Coupled Plasma-Optical Emission Spectroscopy). Analyses of ore elements that exceed the method’s upper limits are re-analyzed by appropriate ore-grade methods.
About South Atlantic Gold
South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. The Company’s principal BC asset is the wholly-owned 4,056-hectare Big Kidd property, located near Aspen Grove, BC. Our Brazilian flagship asset is our option to acquire the Pedra Branca project, located 280 km southwest of Fortaleza, Ceara State, Brazil. South Atlantic Gold is focused on creating value for its shareholders by engaging in the development and acquisition of high-quality mineral assets located in stable and mining friendly jurisdictions. South Atlantic Gold’s is based in Kelowna, British Columbia, and is listed on the TSX-V under the symbol “SAO.
ON BEHALF OF THE BOARD
Douglas Meirelles, President and CEO
For more information regarding this news release, please contact:
Anne Hite, Vice President, Investor Relations
The scientific and technical information that forms the basis for parts of this press release was reviewed 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 Note Regarding Forward-Looking Information
This news release contains statements that constitute “forward-looking Information”, as such term is used in applicable Canadian securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes 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 or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. There can be no assurance that the Fundamental Acquisition will be completed as proposed or at all.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
New Results Table.
|Hole Id||From||To||Au g/t||X Coord||Y Coord||Z Coord||Target|