Atlantic Gold Corporation ("Atlantic" or the "Company") is pleased to provide a construction progress update for its Moose River Consolidated Project ("MRC Project"), one of Canada's few construction stage, permitted, financed, open pit gold projects. A feasibility study released in early July of 2015 demonstrated that the MRC project will produce 87,000 oz. gold / year on average for a minimum of 8.5 years at an all-in sustaining costs of C$690/oz. with post-tax NPV5 C$168 million, and IRR 30% (@US$1,200 Au and $0.80 CAD/USD) please see news release dated July 2, 2015.
As announced on June 3, 2016, the Company engaged in clearing and mulching activities in April and May 2016 at the MRC Project site in order to facilitate earthmoving activities, to prepare the site for commencement of construction of the Touquoy plant and related infrastructure. This site preparation was completed on schedule.
Touquoy Project Construction Update
A link to construction photos can be viewed by clicking the following link:
The majority of the Company's mining fleet has been delivered and includes CAT 775 trucks, dozers, wheel dozers and excavators, all of which are now in operation.
Special groundwater monitoring equipment is in place and allows for the ongoing development of a borrow pit within the planned ultimate open pit. The borrow pit is required for production of run of mine waste rock and crushed rock required for road building and sheeting the plant site. The first blast took place on July 29th and to date approximately 135,000 tonnes of rock has been broken with 35,000 tonnes crushed to provide construction material. Some 6,000 tonnes were used to sheet the plant site. All supervisory staff have been hired in addition to a number of operators sufficient for operating on two 12 hour shifts per day 7 days per week.
As noted above, plant site preparation including clearing and earthworks was completed using a local contractor. First concrete has been poured for the ball mill and leach tank foundations. Access roads are 85% completed with the exception of road crossings.
Tailings Management Facility
Clearing of the periphery of the Tailings Management Facility has been completed. The excavation of the grouting trenches have been completed with approximately 500m pressure washed and ready for grouting.
The haul road from the pit to the TMF is being constructed using run of mine waste rock from the borrow pit thus making it now possible for Atlantic's haul trucks to transport rock from the borrow pit and clay from the east end of the production pit to the TMF.
Environmental and Permitting
The majority of the plant site drainage system is complete and some 4.5 hectares of stockpiles and slopes have been hydro-seeded. Inspections of sediment and erosion control measures occur weekly by the Manager of Environment and Community Relations, and more frequently by site staff.
Receipt of wetland and watercourse alteration approvals were received from NSE on July 28th. There are three approvals: Watercourse alterations as per March 2016 application, wetland alterations as per March 2016 application and wetland alterations associated with the western diversion road. These approvals include specific conditions which are standard and agreed by the Company, including the adherence to the Wetland Compensation Plan as defined in the July 2015 Feasibility Study.
The Community Liaison Committee (CLC) last met on June 23. An increase in membership to include members from other communities and First Nations groups was agreed upon. Invitations to apply have been sent out. The Terms of Reference for the CLC is being revised and full review will be completed by the expanded membership at the next CLC meeting scheduled for September 8, 2016.
Engagement of the Mi'kmaq of NS is ongoing via the KMKNO who represents the Assembly of Mi'kmaq Chiefs on Nova Scotia and the two nearest Mi'kmaq communities of Sipekne'katik and Millbrook.
John Thomas, P.Eng., VP Projects to the Company and a Qualified Person as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the contents of this news release.
Further updates will be provided in due course.
On behalf of the Board of Directors,
Steven Dean, Chairman and Chief Executive Officer