Vancouver, British Columbia--(Newsfile Corp. - January 15, 2020) - Great Atlantic Resources (TSXV: GR) (FSE: PH02) has identified gold soil geochemical anomalies in the southern region of the Golden Promise Property. The Golden Promise Gold Property, located in the central Newfoundland gold belt, is just one of many projects in the company's portfolio of properties in the Atlantic provinces.
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The gold soil anomalies are located approximately 600 - 700 meters northeast of the northeast striking Linda/Snow White gold bearing quartz vein system.
Highlights from the soil samples collected during the 2019 program include:
• Two zones of anomalous gold values along a reconnaissance soil line.
• Eight of eleven soil samples within a 275-meter long section returned anomalous gold values in the 0.005 to 0.076 parts per million range.
• One anomalous zone is approximately along the projected strike of the Linda/Snow White vein system.
The 2019 B horizon soil samples were collected using hand-held augers, from locations established using hand-held GPS devices.
Great Atlantic also completed a diamond drilling program at the Golden Promise Property during late 2019 in the northern half of the property at the gold bearing Jaclyn Main Zone, located approximately 25 kilometers northeast of the Linda / Snow White vein system. Analytical results for drill core samples from the 2019 drilling program are still pending.
The company reported a NI 43-101 Gold Resource Estimate for the Jaclyn Main Zone in December 2018. Based on the combined hypothetical mining and processing costs and the assumed price of gold, a pit-constrained cutoff grade of 0.6 grams per tonne was adopted. For the underground portion of the resource a cutoff of 1.5 grams per tonne was assumed. The cutoff grade for the total resource is the weighted average of the pit-constrained and underground cutoff grades, resulting in a total Inferred Resource of 106,400 ounces capped and 119,900 ounces upcapped, using a weighted average cutoff of 1.1 grams per tonne.
Because part of the vein is near surface the resource estimate was constrained by a conceptual open pit to demonstrate reasonable prospects of eventual economic extraction. All resources were classified as inferred because of the relatively wide spacing of drill holes through most of the zone.
The Golden Promise Gold Property hosts multiple gold bearing quartz veins and is located within a region of recent significant gold discoveries. The property is located within the Exploits Subzone of the Newfoundland Dunnage Zone. Within the Exploits Subzone, the property lies along the north-northwestern fringe of the Victoria Lake Supergroup (VLSG), a volcano-sedimentary terrane.
The northwestern margin of the Golden Promise Property occurs proximal to, and, in part, contiguous with a major (Appalachian-scale) collisional boundary, and suture zone, known as the Red Indian Line. The Red Indian Line forms the western boundary of the Exploits Subzone.
Recent significant gold discoveries in this region of the Exploits Subzone include those of Sokoman Minerals Corp. (TSXV.SIC) at the Moosehead Gold Project 40 kilometers to the east, and Marathon Gold Corp. (TSXV.MOZ) at the Valentine Lake Gold Camp 55 kilometers to the southwest. Readers are warned that mineralization at the Moosehead Property and Valentine Lake Gold Camp is not necessarily indicative of mineralization on the Golden Promise Property.
The company announced a non-brokered private placement of 2 million units priced at $0.50 per unit. Each unit consists of one share and one warrant, with the warrant exercisable at $0.75 for 18 months, subject to an acceleration clause. Proceeds will be used for exploration expenses and general working capital.
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