Overview of Nova Scotia gold projects

A unified production plan for the Touquoy and Cochrane Hill Gold Projects based on conceptual study level modelling has been developed. Total potential output is expected to exceed 900,000 ounces at current gold pricing.

The production plan involves re-location of the planned Touquoy 2 Mtpa gravity/CIL treatment plant to Cochrane Hill following completion of the Touquoy operation and presents a potential 90,000 ounces per annum over a minimum 10 year mine life.

These conceptual production projects are underpinned by a mineral resource inventory of over one million ounces of gold:

 
Tonnes
(millions)
Grade
(g/t gold)
Contained gold
(ounces)
Touquoy
Measured Resources
2.8
1.5
130,000
Indicated Resources
7.3
1.5
350,000
Inferred Resources
1.6
1.5
77,000
Total Touquoy
11.7
1.5
557,000
Touquoy West
Indicated Resources
0.9
1.9
54,000
Inferred Resources
0.6
2.2
45,000
Total Touquoy West
1.5
2.0
99,000
Total Touquoy Project
13.2
1.5
656,000
Cochrane Hill
Indicated Resources
4.5
1.8
251,000
Inferred Resources
5.6
1.6
298,000
Total Cochrane Hill Project
10.1
1.7
549,000
 
TOTAL NOVA SCOTIA
23.3
1.6
1,205,000
Touquoy NEW

In June 2012 the Nova Scotia Minister of Natural Resources has issued vesting orders under the provisions of the Mineral Resources Act for the final 14 surface land titles required to complete the land acquisition project for the Touquoy Gold Project. This is one of the last major requirements prior to commencing development programs to take the project into production.

Update in February 2012 of the Definitive Feasibility Study confirms the robust viability of the Touquoy Gold Project with cash costs, including royalties, of US$597/oz, pre-tax NPV (8%) of $149 million, IRR of 42% and payback in 24 months at a gold price of US$1500/oz.

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Cochrane Hill

Atlantic Gold is to conclude the purchase of the Cochrane Hill Gold Project from Scorpio Gold (Canada) Corporation, following dismissal by the Supreme Court of Nova Scotia of a claim by Steeple Holdings Limited. The Cochrane Hill property is located 80 km east of Atlantic Gold's Touquoy Gold Project and secures 5 km of highly prospective terrain. The Cochrane Hill resource comprises 10.1 million tonnes @ 1.7 g/t for 549,000 contained ounces of gold.

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Nova Scotia Regional

Reconnaissance exploration over broad tracts of highly prospective, under-explored, wholly-owned tenements and more detailed exploration targeting well mineralised positions on optioned properties.

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LAST UPDATED: 18 June 2012
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