GOLD: Atlantic Gold releases PEA for Touquoy and Cochrane

NOVA SCOTIA – Vancouver's Atlantic Gold Corp. has released a preliminary economic assessment for two of its projects – Touquoy northeast of Halifax and Cochrane Hill 80 km from Touquoy.

Two potential open pit scenarios were examined.

The base case assumes initial production for the Touquoy mine that is fully permitted. The recently acquired Beaver Dam project 37 km away would come into production in year five. In this case, 702,000 oz of gold would be produced over an eight-year mine life.

The base plus Cochrane case includes the addition of production from the Cochrane Hill project beginning in year three of production. That would boosts life-of-mine production to 1.13 million oz of gold.

The pre-production capital requirement is the same for either case, $131 million, but base plus Cochrane adds $108 million to the total for development of an additional pit. The second possibility also has higher cash operating costs and all-in sustaining costs.

Here is how the economics compare between the two cases using a gold price of US$1,300 per ounce:

For the base case, measured and indicated resources are 15.94 million tonnes averaging 1.49 g/t Au plus 4.20 million tonnes at 1.46 g/t for the inferred resource.

In the base plus Cochrane case, measured and indicated resources at 20.40 million tonnes grading 1.57 g/t Au plus 9.85 million tonnes at 1.56 g/t for the inferred portion.

Atlantic Gold (AtlanticGoldCorporation.com) is pressing forward with definition drilling at Beaver Dam and Cochrane Hill, environmental impact assessment and permitting, a mutual benefits agreement with the Nova Scotia Mi'kmaq community, and securing project financing. The feasibility study is due in Q2 2015.