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SilverUSD 15.36

Fifteen Mile Stream

Summary:

 

Fifteen Mile Stream is a gold project located 57km northeast of Atlantic Gold’s central milling facility at Touquoy and is readily accessible by highway. The project lies along the same geological trend as other related deposits – Touquoy, Beaver Dam and Cochrane Hill – and all are hosted within the same critical stratigraphy and structure, over a strike length of 80 km. The FMS Project is 100% owned by Atlantic Gold and is being developed as part of their multi-phase mine plan that was outlined in a pre-feasibility report disclosed on January 24, 2018 (see technical report titled “Moose River Consolidated Project, Nova Scotia, Canada NI 43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion” dated January 24, 2018 and filed on Atlantic Gold’s SEDAR profile, referred to herein as the “Technical Report”). The plan stipulates that following the commissioning of the Touquoy mine and mill, the FMS Project is to be put into production in 2021 for a total cost of C$123 million. The FMS Project will produce a concentrate that will be trucked and processed at the central milling facility at Touquoy. After the Technical Report was filed, Atlantic Gold declared commercial production at Touquoy effective on March 1, 2018 as a result of a successful ramp-up of mine and milling facilities at Touquoy on time and within budget.

Interest: 1% NSR Royalty

Location: Nova Scotia, Canada

Project Status: Development

Counterparty: Atlantic Gold Corporation (TSXV:AGB)

According to Atlantic Gold, the FMS Project is expected to produce approximately 80,000 ounces of gold in 2021 in its first year of production. Highlights of the life of mine plan at the FMS Project are for a 5-year mine life which will recover a total of 391,000 ounces of gold at a cash cost of C$561/Oz and generate a 60.9% pre-tax IRR (see the link to Atlantic Golds’ press release dated January 29th, 2018) 1.

The Technical Report discloses the following mineral reserve and resource estimate on the FMS Project :

Reserves Tonnes Au grade Gold
(kt) (g/t) (koz)
Proven 2,890 1.25 116
Probable 7,910 1.24 316
Proven & Probable 10,800 1.24 432

 

Resources Tonnes Au grade Gold
(kt) (g/t) (koz)
Measured 2,710 1.33 116
Indicated 7,880 1.33 336
Measured & Indicated 10,590 1.33 452
Inferred 6,640 1.12 240

 

Mineral Resources have an effective date of July 20, 2017, and Mineral Reserves have an effective date of January 24, 2018. Atlantic Gold discloses Mineral Resources that are reported inclusive of those Mineral Resources that have been converted to Mineral Reserves. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

 

Since Atlantic Gold completed the resource and reserve estimate, they have drilled an additional 290 holes spanning over 35,000 meters at the FMS Project which will be included in an updated resource estimate expected to be released in the first half of 2019.

Royalty Claim Map

fifteen mile claim royalty

fifteen mile claim royalty