Atlantic Gold boosts resource, exceeds 2018 production guidance

Atlantic Gold has added measured and indicated ounces at its Touquoy, FMS and Cochrane Hill gold projects with results from its 2018 drill campaign.

The company added 88,000 oz. gold at Touquoy which, net of mine depleting, represents a 17% increase. The deposit now contains 11.3 million measured and indicated tonnes grading 1.23 grams gold for 445,000 oz. gold.

It boosted its FMS project 47% to 676,000 oz. gold across three deposits: Egerton-MacLean contains 14.6 million measured and indicated tonnes at 1.16 grams gold for 544,000 oz. gold, Hudson contains 1.8 measured and indicated tonnes at 0.78 gram gold for 45,000 oz. gold and Plenty contains 2.7 measured and indicated tonnes at 1.03 grams gold for 88,000 oz. gold.

It also improved Cochrane Hill 50% to 17.4 million measured and indicated tonnes at 1.08 grams gold for 607,000 oz. gold. The company drilled more than 5,000 metres at Touquoy, more than 35,000 metres at FMS and more than 23,000 metres at Cochrane Hill in 2018

The company drilled more than 5,000 metres at Touquoy, more than 35,000 metres at FMS and more than 23,000 metres at Cochrane Hill in 2018. It plans to continue infill drilling inferred resources in 2019 and test for extensions of known deposits. It will also complete a “Corridor Regional Program” that will include drilling at its 149 gold deposit, among other targets along the 45 km corridor.

Earlier in the month, the company announced it had slightly exceeded its 2018 production guidance and met production costs.

The company produced 90,531 oz. gold in 2018, beating the upper end of its 82,000-90,000 oz. gold guidance. The company had an annual all-in sustaining cost of $731 per oz. gold, close to the upper end of its $675-$735 guidance.

The company has $50.3 million in cash and $63.7 million in net debt. It has $44.3 million in working capital and a $35.6 million undrawn debt facility.

This article first appeared in The Northern Miner.

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