TSX-V: SAO

Kelowna, British Columbia, April 20, 2021 – SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic” or the “Company”) is pleased to announce it has completed the Phase I exploration program at its Pedra Branca Project, located 280 kilometers (“km”) southwest of Fortaleza, Ceará State, Brazil. A consolidation of the entire historical and newly acquired data from the Phase I program includes a total of 122 RC (“reverse circulation”) and 90 Diamond Drill holes, representing 5,022 meters (“m”) of RC drilling and 8,914 m of Diamond Drilling. All drill holes to date have been shallow with a maximum depth of 250 m for diamond drill holes and 60 m for RC holes.

Despite the world-wide Covid-19 pandemic, the Company completed the Phase I exploration program on budget and on time.

Douglas Meirelles, CEO stated, “We are very pleased with the progress the Company has made in such a short amount of time. South Atlantic has informed Jaguar Mining Inc (“Jaguar”) of its completion of the Phase I Exploration Program. In parallel, we are working diligently on the delivery of a NI 43-101-compliant technical report that will contain our initial resource estimate at Pedra Branca. Once completed, South Atlantic  will satisfy the terms of the option agreement and the Company will have successfully earned 100% of the Project. Jaguar Mining Inc will have the option to earn back 25% of the project through the payment to South Atlantic of 2.5 times the earn-in expenditures.”

Highlights of Pedra Branca Phase 1 Exploration Program (see Annex Map 1):

  • A total of 12,286 m of trenches were excavated which led to 9,349 trench assay results.
  • 122 RC drill holes led to a total of 4,356 RC drill assay results.
  • All historical diamond drilling core with original assay results above 0.35 grams per tonne (“g/t”) were validated through re-assay. This validation has enabled the inclusion of these results into the National Instrument 43-101 (“NI 43-101”) technical report currently in progress.
  • Tenements under mining designation from Agencia Nacional de Mineração (“ANM”), the national mining agency in Brazil, include the Coelho-Queimadas, Mirador Norte and Mirador Sul targets. These three tenements had 2,600 m of trenching completed which resulted in 2,646 assay results and 81 RC drill holes that totaled 3,334 m of drilling and resulted in 2,474 assay results. These results include the Condado Target that is the southern extension of the Coelho-Queimadas Target area.
  • New Discoveries: The Igrejinha and Bombeiro Targets were identified as new mineralized areas that previously had little to no exploration. Combined, these two tenements received 1,950 m of trenching and 1,216 m of RC drilling from 30 drill  A total of 3,429 assays were received from both the trenching and drilling on these two tenements.
  • Legal tenure: All tenements remain in good legal standing. The company is in compliance with all current requirements set out by the ANM and continues to diligently monitor all required extensions.

Marcelo Antonio Batelochi, Senior Exploration Manager, stated, “The Phase 1 Exploration program was successful in several aspects. First, we gathered sufficient data to conduct a NI 43-101-compliant resource on the Pedra Branca property that is currently in progress. We were able to gain valuable geologic information on this very large project area and continuously extend the mineralized trend which remains open in depth, length and laterally. As we move toward a Phase 2 exploration program, which we plan to commence later in the year, we anticipate the ability to quickly add to our positive results with higher density drilling that will further improve our understanding of the vast potential that this project possesses.”

Upcoming Catalysts

South Atlantic is pleased to announce that it is has started working with Jaguar to deliver all requirements set out in the option agreement on the Pedra Branca Project, which  was news released July 30, 2020 and can be found by clicking here.

The Phase 2 Exploration Program details are outlined in the “Technical Report, Geology, Mineralization and Exploration of the Pedra Branca Gold Project, Ceará State, Northeastern Brazil” dated August 21, 2020. The details of the Phase 2 program include further RC drilling, higher density and deeper diamond drilling, updating geological and structural models, an additional updated resource estimation, and further community engagement.

QA/QC PROCEDURES

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.

Multi-element analysis utilized the same preparation procedure as the gold analysis, along with an array of analytical procedures as follows:

Elements Analytical Procedure SGS Code
Au(ppb); Pd(ppb); Pt(ppb) Determination by Fire Assay – ICP – 50g FAI515
Al2O3(%); Ba(ppm); CaO(%); Cr2O3(%); Fe2O3(%)K2O(%); MgO(%); MnO(%); Na2O(%); P2O5(%)SiO2(%); Sr(ppm); TiO2(%)Ce(ppm); Co(ppm); Cs(ppm); Cu(ppm); Dy(ppm)Er(ppm); Eu(ppm); Ga(ppm); Gd(ppm); Hf(ppm)Ho(ppm); La(ppm); Lu(ppm); Mo(ppm); Nb(ppm)Nd(ppm); Ni(ppm); Pr(ppm); Rb(ppm); Sm(ppm)Sn(ppm); Ta(ppm); Tb(ppm); Th(ppm); Tl(ppm)Tm(ppm); U(ppm); W(ppm); Y(ppm); Yb(ppm) Determination by Fusion with Lithium Metaborate – ICP OES ICP95A
Ce(ppm); Co(ppm); Cs(ppm); Cu(ppm); Dy(ppm)Er(ppm); Eu(ppm); Ga(ppm); Gd(ppm); Hf(ppm)Ho(ppm); La(ppm); Lu(ppm); Mo(ppm); Nb(ppm)Nd(ppm); Ni(ppm); Pr(ppm); Rb(ppm); Sm(ppm)Sn(ppm); Ta(ppm); Tb(ppm); Th(ppm); Tl(ppm)Tm(ppm); U(ppm); W(ppm); Y(ppm); Yb(ppm) Determination by Fusion with Lithium Metaborate – ICP MS IMS95A
Ag(ppm); Al(%); As(ppm); B(ppm); Ba(ppm); Be(ppm); Bi(ppm); Ca(%); Cd(ppm); Ce(ppm); Co(ppm); Cr(ppm); Cs(ppm); Cu(ppm); Fe(%); Ga(ppm); Ge(ppm); Hf(ppm); Hg(ppm); In(ppm); K(%); La(ppm); Li(ppm); Lu(ppm); Mg(%); Mn(ppm); Mo(ppm); Na(%); Nb(ppm); Ni(ppm); P(ppm); Pb(ppm); Rb(ppm); Re(ppm); S(%); Sb(ppm); Sc(ppm); Se(ppm); Sn(ppm); Sr(ppm); Ta(ppm); Tb(ppm); Te(ppm); Th(ppm); W(ppm); Y(ppm); Yb(ppm); Zn(ppm); Zr(ppm) Determination by Digestion with aqua regia – ICP OES / ICP MS ICM14B
F(ppm) Determination of Fluorine by Specific Ion ISE03A
LOI(%) Determination of Total Carbon and / or Sulfur by Infrared – LECO CSA17V
SiO2(%); Al2O3(%); Fe2O3(%); CaO(%); MgO(%); TiO2(%); P2O5(%); Na2O(%); K2O(%); MnO(%) Fusion with Lithium tetraborate – XRF XRF79C
S(%) Determination of Total Carbon and / or Sulfur by Infrared – LECO CSA17V

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
T: 250-762-5777
Email: ir@southatlanticgold.com

Qualified Person

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.

Annex

Map 1

(Click on Image to enlarge)

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