Vancouver, British Columbia--(Newsfile Corp. - January 24, 2019) - Great Atlantic Resources (TSXV:GR) (FSE:PH01) has applied for diamond drill permit for its Golden Promise Gold Property, located in the central Newfoundland gold belt.
The property is located within the Exploits Subzone of the Newfoundland Dunnage Zone. Within the Exploits Subzone, the property lies along the north-northwestern fringe of the Victoria Lake Supergroup, a volcano-sedimentary terrane. The northwestern margin of the Golden Promise Property occurs proximal to, and, in part, contiguous with a major (Appalachian-scale) collisional boundary, and suture zone, known as the Red Indian Line, which forms the western boundary of the Exploits Subzone.
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The application is for up to 50 drill holes consisting of up to 6,500 meters in the northern half of the property at the Jaclyn Zone, specifically at the Jaclyn Main Zone and the Jaclyn North Zone. Pending approval of the permit and financing, the company plans to begin drilling during spring 2019.
The majority of 2019 planned diamond drill holes will be in-fill drill holes in the west section of the Jaclyn Main Zone in the conceptual pit-constrained area. Some drilling is planned for the central-east section of the Main Zone, including near-surface drilling to test continuation of gold mineralization to near-surface, and some deeper holes. Up to nine drill holes are planned testing continuation of the JNZ east along projected strike.
The drilling program will provide data for an up-dated mineral resource estimate, engineering studies and studies of mineralizing controls. In December, the company filed a NI 43-101 mineral resource estimate for the Jaclyn Main Zone, the only area within the property for which sufficient data exists to support a resource estimate. All resources were classified as inferred because of the relatively wide spacing of drill holes through most of the zone.
The zone was modelled as a single quartz vein that strikes east-west and dips steeply to the south. Modelled vein thickness was based on true thickness derived from quartz vein intercepts. The estimate is based on 220 assays from 107 drill holes between 2002 and 2010, most of which has been preserved at a Provincial Government storage facility in Buchans.
Based on the combined hypothetical mining and processing costs and the assumed price of gold, a pit-constrained cutoff grade of 0.6 grams per tonne was adopted, with a resource cutoff of 1.5 grams per tonne assumed for the underground portion. Using a weighted average cutoff of 1.1 grams per tonne resulted in inferred resource of 106,400 ounces capped and 119,900 ounces upcapped.
Because part of the vein is near surface the resource estimate was constrained by a conceptual open pit to demonstrate reasonable prospects of eventual economic extraction. Generic mining costs of US$2.50 a tonne and processing costs of US$25.00 a tonne were used together with a gold price of US$1,300 per ounce. For the capped mineral resource estimate, all assays that exceed 65 grams per tonne gold were capped at 65 grams per tonne gold.
Gold bearing quartz veins are reported in multiple areas including at least 5 gold bearing quartz vein systems reported in one zone referred to as the Jaclyn Zone located in the northern half of the property.
Much of the reported historical exploration at the property has been focused on the Jaclyn Zone with gold bearing vein systems reported at the Jaclyn Main, Jaclyn East, Jaclyn West, Jaclyn North and Jaclyn South Sub-zones. Significant historical work is also reported in the southwest region of the property at the Linda/Snow White vein, including grab samples reported to return 105 and 232 grams per tonne gold.
A reported channel sample returned 29.7 grams per tonne gold over half a meter, and a diamond drill hole intersected 19.5 grams per tonne gold over a 1.15 meter core length. Gold bearing veins and gold bearing float are reported in other regions of the property.
Recent significant gold discoveries in this region of the Exploits Subzone include those of Sokoman Iron Corp. (TSXV.SIC) and Marathon Gold Corp. (TSXV.MOZ). The property is located approximately 40 kilometers west-southwest of the Moosehead Project of Sokoman Iron Corp. Sokoman reported a drill intersection of 45 grams per tonne gold over an 11.9 meter core length including a 1.35 meter core length quartz vein intersection of 386 grams per tonne gold from a discovery made during their 2018 diamond drill program.
The Valentine Lake Gold Camp of Marathon Gold Corp. is located approximately 55 kilometers to the southwest. As reported on Marathon's website, the Valentine Lake Gold Camp currently hosts four near-surface, mainly pit-shell constrained, deposits with measured and indicated resources totalling 2.7 million ounces of gold at 1.85 grams per tonne and inferred resources totalling 1.5 million ounces of gold at 1.77 grams per tonne. Great Atlantic cautions that mineralization at the Moosehead Property and Valentine Lake Gold Camp is not necessarily indicative of mineralization on the Golden Promise Property.
For more information, please visit the company's website www.greatatlanticresources.com. Investor Relations is handled by Kaye Wynn Consulting Inc. They can be reached at either 604-558-2630 or 888-280-8128, or email [email protected]
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