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Atlantic Gold increases Moose River gold resources

Atlantic Gold has reported a significant increase in Moose River Consolidated measured and indicated gold resources, now estimated to contain more than 2.1 million ounces.
Atlantic Gold increases Moose River gold resources Atlantic Gold increases Moose River gold resources Atlantic Gold increases Moose River gold resources Atlantic Gold increases Moose River gold resources Atlantic Gold increases Moose River gold resources

Atlantic Gold's Moose River gold project in Nova Scotia, Canada

Staff Reporter

At Touquoy, about 88,000oz were added in the M&I categories from the 2018 drill programme, an increase of 17% net of mining depletion. At the FMS deposits, M&I in-pit mineral resources increased 47% to 676,000oz. At Cochrane Hill, M&I in-pit mineral resources increased 50% to 607,000oz.

"At Cochrane Hill, our recent exploration drilling provides a better understanding of the geological framework and improving grades with depth, which should improve overall mineral resource grade in future updates," said president and COO Maryse Bélanger in a statement.

Further resource extension drilling is planned for 2019 at the mine in Nova Scotia, Canada.

Atlantic Gold produced 90,531 ounces in 2018 from its Touquoy deposit and achieved four quarters of steady-state production in the first year of mining, at an all-in sustaining cost of C$731 per ounce.

The company is working towards an expansion to integrate satellite deposits at Fifteen Mile Stream and Cochrane Hill into production from 2021 that will increase annual output to around 200,000oz from 2022 onwards.

Atlantic expects to release an updated life of mine plan for the Phase 2 expansion later this year as well as complete and submit the Fifteen Mile Stream and Cochrane Hill environmental impact statements.             

The company's share price (TSXV: AGB) has increased 16% so far this year to C$2.30, valuing the company at $543 million.