Kelowna, British Columbia, February 3, 2022 – SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic” or the “Company”) is pleased to announce the commencement of a Phase II exploration program over its flagship 100% owned exploration project located in Ceará State, northeast Brazil. The Phase II program has been developed utilizing field observations from recent site visits by management and a comprehensive review of Phase I exploration results by the newly formed Technical Committee.
Technical Committee Observations
As previously announced (news release dated January 5, 2022), the South Atlantic Gold Technical Committee consists of Rick Brown (Chair), Mitch Wasel and Jon Hill.
The Phase I exploration program completed in 2021 clearly identified the potential for structurally-controlled orogenic-style mineralization along the strike-continuous 40 km primary crustal scale-structural trend that traverses the Company’s extensive tenement package of more than 45,000 hectares. Notably, South Atlantic now holds a dominant, contiguous land position over this emerging Troia Greenstone Belt in Ceará State. (Highlighted in Figure 1)
The consolidated results of the Phase I program, focused on a 2 km segment of the main structure, enabled the Company to define a National Instrument (“NI”) 43-101 technical report surficial Inferred mineral resource (Highlighted in Figure 2) (click here to view NI 43-101 technical report dated April 25, 2021 with effective date March 16, 2021). Importantly, this initial exploration phase also identified, to date, the presence of five secondary zones parallel to or as splay structures emanating from the primary structure that are considered to also be prospective for gold mineralization. Initial surface geochemical assays have detected anomalous zones of gold mineralization in all five secondary zones.
Environmental Social Governance (“ESG”)
The Company will continue to prioritize local resources, by utilizing and training local field personnel to assist in the Phase II geological program. It has been the intent from the beginning of South Atlantic’s presence in the district to engage and hire locally as part of its commitment to ESG best practices.
Phase II Exploration Program Strategy
Building on the success of the Phase I exploration program, Phase II will focus on continued systematic evaluation of the geology and structure along the untested or under-tested remaining 38 km of prospective structure (and additional parallel and splay structures) with the concomitant generation and prioritization of future drill targets for testing by future exploration programs.
Phase II Detail
The Phase II exploration program will consist of the following:
- Extensive geologic mapping concentrating on alteration zones and the identification of structures and kinematic indicators which help to identify areas of potential mineralization.
- Stream sediment sampling program to cover gaps in the tenement areas that were not covered in the Phase I exploration program. The results of the sampling program will be used to identify and evaluate areas potentially associated with additional mineralized structures that were not tested in Phase I.
- Trenching program similar to the trenching that was conducted in the Phase I exploration program. South Atlantic uses trenching as a relatively inexpensive alternative to drilling and this technique was successful in the Phase I program.
- Multi-element geochemistry can be used to determine mobility of certain elements and help to determine which elements are associated with gold and thereby will often assist vectoring into prioritizing the targeted mineralized trend. Multi-element geochemistry will be augmented by spectral orientation and niche sampling that enable lithology characterization. The more geological knowledge that can be acquired at Pedra Branca, the better the ability to identify and target mineralization across the tenement area and, where appropriate, to add tenements to the land package area.
- Review and analysis of existing core to determine which geophysical techniques will be will be most effective in complementing geological mapping and geochemical data collection including Induced Polarization, Electromagnetic Induction, and/or Electrical Resistivity.
- High resolution drone magnetic orientation survey over the areas with known gold mineralization detected from earlier campaigns. Pending positive results from the initial survey, the program will be expanded over other prospective targets on the extensive land holdings of the Company’s existing tenements.
- Reverse Circulation drilling will be used selectively to test mineralized structures below surface gold anomalies, to a shallow depth.
Douglas Meirelles, CEO stated, “So far, Phase II will be one of the most exciting times for the Pedra Branca asset. The current trenching and soil sampling program has already shown the Troia greenstone belt has anomalous gold mineralization over at least 40 km of strike length, making Pedra Branca project a district-scale exploration target. Our Phase II exploration will now focus on determining where these mineralized structures are more likely to open up at depth and thereby aid in prioritizing drill hole placement for further drill programs.”
Figure 1 – The greenstone belt delineated with the tenement package of South Atlantic Gold
Figure 2 – Pedra Branca current defined trend of 2km with 180k ounces at average 40m depth and highlight the potential extension to 40+km
Qualified Person’s Statement
The scientific and technical information that forms the basis for parts of this news release was reviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company’s Exploration Manager who is a Qualified Person as defined by NI 43-101.
About South Atlantic Gold
South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. Our flagship asset is our 100% owned Pedra Branca project, located 280 km southwest of Fortaleza, Ceará 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 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
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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