Nova Scotia Regional Exploration

In addition to developing the Touquoy and Cochrane Hill Gold Projects in Nova Scotia Atlantic Gold is progressively exploring regional and near-mine land positions to build its resource base. Beyond the Touquoy property itself Atlantic Gold believes the surrounding region within the so-called Meguma Terrane is highly prospective for additional Touquoy style deposits.

Considerable potential is evident along adjacent parallel gold-mineralised belts defined by the regionally extensive east-west anticlines mapped over a century ago by pioneer government geologist ER Faribault. Typically the region is 90% covered by a masking blanket of glacial till – extensively transported sand, gravel and boulders deposited beneath the continental ice sheet during the last Ice Age. A strong land position comprising pegged claims and farmed-in properties continues to be secured and explored, initially by reconnaissance drilling. A customised reconnaissance drilling technique has been employed by Atlantic Gold to effectively penetrate the cover and explore this terrain and to date over 95,000 m have been drilled to test regional targets.

The current program targets four main zones:

Encouraging results have been received from the West Caledonia property where a discrete zone of gold anomalism at least 4 km long and 1 km across has been identified by more than a dozen drill holes which returned anomalous gold (to 74 ppb) and arsenic in bedroom samples. Favourable indicators are the association of anomalous arsenic with the gold, and the absence of quartz veining the the most gold-anomalous shale samples, which at this stage suggest "Touquoy type" mineralisation.

A new gold zone was identified at Caduesky Lake, also in the western part of the Province, where anomalous gold (to 27 ppb) with strong arsenic support is evident on two first-pass traverses over one square kilometre.

On the Moses Lake property, several gold anomalous sites have been identified in sulphidic shales with associated quartz veining and anomalous arsenic. Infill drilling has confirmed the anomaly although the strike extent remains to be established.

The most recent gold anomaly was identified at East Rawdon, 65 km west of Touquoy. Three 50 m spaced, 100 m deep angled diamond core holes have been drilled and confirm encouraging gold mineralisation intersected in shallow interface reverse circulation drill holes.

The mineralised zone is open at depth and along strike. Atlantic Gold holds 19 km of prospective trend along strike from this single, isolated area of drilling and further drilling is planned.

Atlantic Gold continues to progressively explore, by reconnaissance drilling, those 100%-owned lands acquired from time to time by pegging (map staking) on the basis of regional geological, geophysical and geochemical interpretation. Properties held by third parties over historic gold workings are acquired by option or other farm-in agreements and explored by means appropriate to the geological conditions.

Atlantic Gold currently holds in its own right around 1000 square kilometres of exploration property in Nova Scotia, as well as a number of options over property held by third parties.