Kelowna, British Columbia, June 18, 2021 – SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic” or the “Company”) announces that it has conducted a review of the historical data from its 100 percent (“%”) owned Big Kidd Project, a copper-gold porphyry, located 25 kilometres (“km”) south of Merritt, British Columbia, Canada. The initial review was conducted to perform a re-analysis of the drilling data with consideration to increased copper prices. Analysis of the historical Induced Polarization (“IP”) and Diamond Drill (“DD”) data has revealed an area of geologic interest at the Big Kidd Project area.
Douglas Meirelles, CEO stated, “Using existing drill and IP data, and re-examining the geologic results with “new eyes,” there appears to be a high probability to expand the mineralization at the Big Kidd Project. The drill, soil geochemistry and geophysical historical results show the potential to increase the identified mineralization along strike and at depth. Additionally, because there are a number of drill holes that were terminated in mineralization, the geology is indicating that more work needs to be conducted at Big Kidd to determine its potential.”
- Big Kidd consists of three targets, Big Sioux, Big Brother and Breccia with a total of 49 DD holes and 12,249.2 metres (“m”) completed.
- The Big Sioux Zone hosts a 1918 shaft that extracted 44 tons of 12.0% Cu, 68 g/t Ag and 57 g/t Au. Significant historical intersect 119 m of 0.12% Cu and 0.15 g/t Au (Hole 92-6)
- 2019 drilling BK-19-009 intersected a second mineralized breccia body from 420 m to 644.3 m (EOH) with stronger and still increasing alteration with strong potential for mineralization at depth.
- To the north of Big Sioux, there is a 3 km low cross cutting linear magnetic high, which is similar to the discovery zone at MPD Gold Copper Porphyry Project, from Kodiak Copper, 23 km southeast from the Property.
The Big Kidd Project consists of 4,056 hectares (“ha”) accessed by paved highway (Highway 5A) from Merritt, BC and 250 km northeast of Vancouver, BC. The property is crosscut by logging roads, a powerline runs adjacent to the BK Breccia deposit and there is a custom mill at the historic Craigmont Mine (30 km to the north). In total, the infrastructure at Big Kidd is excellent. While the project is 100% owned by the Company, there is a 2.5% net smelter return (“NSR”) royalty with full buy-back rights.
The 2019 drill program drilled 9 diamond drill holes with a total of 4,191.5 m drilled. The drilling program successfully expanded the boundaries of the mineralization to the North, South, West at depth and all holes drilled into the Big Kidd Breccia Zone intersected appreciably widths of gold-copper porphyry style mineralization and alteration. All the holes drilled into the Big Kidd Breccia Zone encountered mineralization. The deepest hole, BK-19-009, was designed to test for a deeper-seated source of mineralization, indicated by increasing alteration and chalcopyrite to pyrite ratios at depth. This hole intersected a second mineralized breccia body from 420 to 644.3 m of depth which was the end of that hole.
2019 Drill Highlights from BK-19-007 and BK-19-009 (click here to See press release dated May 23, 2019).
Big Sioux Zone
Annex Figure 1 (click here to view) – The highlight in red found on Figure 1 hosts a 1918 shaft that extracted 44 tons of 12% Cu, 68 g/t Ag and 0.57 g/t Au in average. A recent geophysical study demonstrated a 3 km low cross cutting a linear magnetic high.
Big Brother (“BB”) & Breccia Target Zones
Annex Figure 2 (click here to view) and Figure 3 (click here to view)– These figures demonstrate the Breccia drilling and a cross section through the chargeability anomaly at the Big Kidd Project that is termed the Big Brother Zone, respectively. A particularly interesting hole in the Big Kidd Breccia is DD hole number BK-19-009. This hole had two interesting intercepts including a 7 m intercept grading 0.65 g/t AuEq at 77 m depth and the second of 170.5 m grading 0.44 g/t AuEq at 198 m depth. As illustrated in Figure 2, DD hole BK-19-009 shows a second mineralized zone commencing approximately 520 m depth and continuing approximately 124 m to the end of the hole which graded 0.18 g/t AuEq. This second mineralized zone is geologically interesting and merits additional drilling.
Originally, DD hole BK-19-007 was drilled to test a geophysical chargeability anomaly identified from the ground IP survey completed in late 2018 (click here to see press release dated January 21, 2019). The most significant intersection from this hole was a 2 m interval grading 0.55 g/t AuEq. High concentrations of pyrite were encountered in the volcanic rocks, indicative of the halo around a porphyry system. While only one significant intercept was encountered in this hole, the potassic alteration at the end of the hole is encouraging and potentially indicative of a second mineralized breccia body.
The BB chargeability zone lies approximately 100 m to the south of DD hole BK-19-007. This drill hole was drilled down from the chimney-shaped anomaly that was most likely influenced by the nearby cell tower. The top of this zone is approximately 300 m below surface (Figure 2). A similar chargeability high can be found some 100 m north of BK-19-007 so this re-analysis of the historical data yields approximately 200 to 250 m of geologically interesting chargeability anomaly that has not yet been tested.
For the 2019 drill program, all drill core was logged, photographed, cut and sampled by Jiulian Resources Inc. (“Jiulian”), predecessor company to South Atlantic, personnel. Prior to shipment to ALS Global’s sample preparation facility in Kamloops, BC, certified reference material standards, blanks, and pulp duplicates were inserted at a ratio of approximately 1 in every 20 drill core samples. Samples were prepared in Kamloops by crushing the entire sample to 70% passing -2mm, riffle splitting off 1 kilogram (“kg”) and pulverizing the split to better than 85% passing 75 microns. After preparation in Kamloops, the prepared pulps were shipped to ALS Global’s analytical laboratory in North Vancouver, BC. The gold assays are determined by Au-AA26 fire assay method which reports results in parts per million (“ppm”)(equivalent to grams per tonne (“g/t”)).
Base metal assays are first determined using the ME-MS61 method (four acid digestion with ICP-MS finish), which reports results as ppm. All analyses that reach the over limits of ME-MS61 are re-analyzed with an Ore Grade method. The analytical results are verified with the application of industry standard Quality Control and Quality Assurance (“QA-QC”) procedures.
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.
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Figure 1: Highlight of the Big Sioux Zone-2018
Figure 2 – 2019 Drilling into the Big Kidd Breccia area showing mineralization potential at depth in hole BK-19-009
Figure 3 – Cross section of high chargeability Big Brother Zone – approximately 500m East of the Big Kidd Breccia Zone