Canadian Mining Journal

News

GOLD: Atlantic hedges 100,000 oz



VANCOUVER – Atlantic Gold Corp. has entered into gold price hedging contracts covering 100,000 oz of production from the company’s Moose River Consolidated (Touquoy and Beaver Dam) gold project. The contracts were written on a spot basis of C$1,619 per oz of gold and will be delivered over the term of the company’s loan facility.

Atlantic Gold completed a positive feasibility study for the co-development of the Touquoy and Beaver Dam deposits. Major environment permits are in place. The company has arranged an equipment loan from Cat Financial and received the fixed price proposal for the engineering, management and procurement contact. Total proven and probable reserves at 16.45 million tonnes averaging 1.44 g/t Au and containing 760,000 oz of gold. A nine-year mine life is planned.

Last month Atlantic Gold secured an option to buy out is partner Moose River Resources’ Touquoy interest. Atlantic can exercise its option after 18 months of commercial production at Touquoy and the processing of 3 million tonnes of ore.

Key features from the feasibility study are available by clicking http://AtlanticGoldCorporation.com/projects/moose_river/.