UPDATE ON Q1 2018 GUIDANCE
VANCOUVER, March 5, 2018 /CNW/ - Atlantic Gold
Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is
pleased to declare commercial production at the Moose River
Consolidated (MRC) gold mine, Nova
Scotia, Canada. The effective date of commercial production
is March 1, 2018.
The Company has been ramping up production since late 2017 and
has been working through the normal bottle necks in the processing
facility since commissioning. In January, the Company experienced 3
days of power outage due to Atlantic storms which resulted in 5
days of production losses. In addition, January had the equivalent
of a +100 year event in terms of precipitation which resulted in
challenges in the materials handling part of the circuit with daily
extreme variations in temperatures. We are working with our EPC
contractor to make repairs and adjustments to the crushing circuit
to better accommodate the conditions.
Notwithstanding this, the Company continues to target its full
year guidance as stated on January 19,
2018; however Q1 2018 production is expected to be at, or
below pro-rata the annualized production rate, as commercial
production is only commencing from March
1st 2018.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold development
group with a long term strategy to build a mid-tier gold production
company focused on manageable, executable projects in
mining-friendly jurisdictions.
Atlantic owns Canada's
newest open pit gold mine Moose River Consolidated in Nova Scotia with first gold pour and initial
production achieved in October
2017. Phase 1 Life of Mine production guidance for 2018 is
between 82,000-90,000 oz. gold at All-In-Sustaining-Costs (AISC)
between $CAD675/oz.-$735/oz.
(US$540-588/oz.) as stated in the
Company's news release (January 19,
2018).
The Phase 2 Life of Mine Expansion will have gold production
ramping up to + 200,000 ounces per annum while maintaining the
company's industry lowest quartile cash costs at all-in sustaining
cash cost (AISC) of CAD$692/oz. Au
(USD$555/oz. Au) as stated in the
Company's news release (January 29,
2018).
The company's planned future development of the region will
be based on a central processing facility concept with staged
integration of satellite deposits into the production schedule and
staged capital expenditures for expansion opportunities managed
with cashflow from operations at Touquoy and additional debt
capacity as a long term low cost gold producer.
A Phase 3 expansion is expected to come from success of its
expected extensions of mineralization and definition drilling
program at its FMS and CH deposits, and a regional program
commencing in March 2018
systematically drilling 80kms of prospective structure targeting
the Atlantic model for disseminated style gold deposits amenable to
open pit mining.
Atlantic is committed to the highest standards of
environmental and social responsibility and continually invests in
people and technology to manage risks, maximize outcomes and
returns to all stakeholders.
Forward-Looking Statements:
This release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans"
or similar terminology. Forward-looking statements and information
are not historical facts, are made as of the date of this press
release, and include, but are not limited to, statements regarding
discussions of future plans, guidance, projections, objectives,
estimates and forecasts and statements as to management's
expectations with respect to, among other things, the activities
contemplated in this news release and the timing and receipt of
requisite regulatory, and shareholder approvals in respect thereof.
Forward-looking statements in this news release include, without
limitation, statements related to proposed exploration and
development programs, grade and tonnage of material and resource
estimates. These forward looking statements involve numerous risks
and uncertainties and actual results may vary. Important factors
that may cause actual results to vary include without limitation,
the timing and receipt of certain approvals, changes in commodity
and power prices, changes in interest and currency exchange rates,
risks inherent in exploration estimates and results, timing and
success, inaccurate geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of
mineral reserves and resources), changes in development or mining
plans due to changes in logistical, technical or other factors,
unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with
specifications, cost escalation, unavailability of materials,
equipment and third party contractors, delays in the receipt of
government approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and
environmental matters), political risk, social unrest, and changes
in general economic conditions or conditions in the financial
markets. In making the forward-looking statements in this press
release, the Company has applied several material assumptions,
including without limitation, the assumptions that: (1) market
fundamentals will result in sustained gold demand and prices; (2)
the receipt of any necessary approvals and consents in connection
with the development of any properties; (3) the availability of
financing on suitable terms for the development, construction and
continued operation of any mineral properties; and (4) sustained
commodity prices such that any properties put into operation remain
economically viable. Information concerning mineral reserve and
mineral resource estimates also may be considered forward-looking
statements, as such information constitutes a prediction of what
mineralization might be found to be present if and when a project
is actually developed. Certain of the risks and assumptions are
described in more detail in the Company's audited financial
statements and MD&A for the year ended December 31, 2016 and for the quarter ended
September 30, 2017 on the SEDAR
website at www.sedar.com. The actual results or performance by the
Company could differ materially from those expressed in, or implied
by, any forward-looking statements relating to those matters.
Accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the
results of operations or financial condition of the Company. Except
as required by law, the Company is under no obligation, and
expressly disclaim any obligation, to update, alter or otherwise
revise any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
SOURCE Atlantic Gold Corporation
