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Technical Report of the
Beaver Dam Gold Project,
Halifax County, Nova Scotia
Prepared for Atlantic Gold Corporation
by
FSSI Consultants (Aust) Pty. Ltd.
Prepared by:
Neil Schofield
MS Applied Earth Sciences, MAIG, MAusIMM
March 2 , 2015
FSS International Consultants (Australia) Pty Ltd
Title Page
Technical Report of the
Beaver Dam Gold Project, Nova Scotia,
Mineral Resource Estimate
Prepared for Atlantic Gold Corporation
by
FSSI Consultants (Aust) Pty Ltd
Prepared by:
Neil Schofield
MS Applied Earth Sciences, MAIG, MAusIMM
Effective Date: March 2, 2015
Signing Date: March 2, 2015
FSSI Consultants (Aust.) Pty Ltd
ABN 69 003 643 801
9 Malton Road, Beecroft NSW 2119
Phone: 61 (0) 404 879 931
Fax: (612) 98753542
Email: [email protected]
FSS International Consultants (Australia) Pty Ltd
D ate and Signature Page
March 2, 2015
Neil Schofield
Consulting Geologist
FSS International Consultants (Australia) Pty Ltd
FSS International Consultants (Australia) Pty Ltd
Table of Contents
TITLE PAGE
I
DATE AND SIGNATURE PAGE
II
TABLE OF CONTENTS
II
1
7
SUMMARY
1.1 Property description and geological setting..........................................................7
1.2 Exploration history ...................................................................................................7
1.3 Current Mineral Resource Estimates ......................................................................8
1.4 Conclusions ..............................................................................................................10
1.5 Recommendations ...................................................................................................11
2
INTRODUCTION
12
3
RELIANCE ON OTHER EXPERTS
14
4
PROPERTY DESCRIPTION AND LOCATION
15
4.1 Property Location ....................................................................................................15
4.2 Nature of the Mineral Tenure................................................................................15
4.3 Tenure Conditions ..................................................................................................17
4.4 Environmental and Other Liabilities ....................................................................18
4.5 Impact of Previous Mining Activities ..................................................................18
4.6 Proximity of Mineralized Zone to Cameron Flowage .......................................19
4.7 Required Permits .....................................................................................................19
4.8 Factors and Risks for Ongoing Mineral Exploration .........................................19
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND
PHYSIOGRAPHY
20
5.1 Topography, elevation and vegetation ................................................................20
5.2 Accessibility .............................................................................................................20
5.3 Climate and operating season ...............................................................................20
5.4 Local resources and Infrastructure .......................................................................21
6
HISTORY
22
6.1 Prior Ownership of the Property ..........................................................................22
6.2 Results of Exploration and Development by Previous Owners .......................23
6.3 Previous Resource Estimates .................................................................................26
6.4 Production ................................................................................................................26
7
GEOLOGICAL SETTING
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27
Contents
iii
7.1 Regional Geological Setting ...................................................................................27
7.2 Local Geology ..........................................................................................................28
7.3 Property Geology ....................................................................................................29
7.4 Mineralization..........................................................................................................30
7.4.1 Main Zone Geometry, Grade Distribution and Geological Controls..31
7.4.2 Type and Character of Beaver Dam Mineralisation ..............................31
8
DEPOSIT TYPES
9
EXPLORATION
33
34
9.1 Procedures, Parameters and Results of Investigations ......................................34
9.2 Exploration management .......................................................................................34
10
DRILLING
36
10.1 General......................................................................................................................36
10.2 Resource Area Diamond Drilling Campaigns ....................................................36
10.3 Resource Area Diamond Drill Hole Distribution ...............................................38
10.4 Drilling beyond the Beaver Dam Gold deposit ..................................................40
10.5 List of Beaver Dam Drill holes ..............................................................................41
11
SAMPLE PREPARATION, ANALYSIS AND SECURITY
46
11.1 Mercator Drilling Program 2005-07 ......................................................................46
11.1.1 Introduction ................................................................................................46
11.1.2 Mercator Blanks – Sample Preparation ...................................................46
11.1.3 Mercator Blanks – Discussion and Results .............................................46
11.1.4 ALS Analytical Blanks – Sample Protocol ..............................................47
11.1.5 ALS Analytical Blanks – Results and Discussion ..................................48
11.1.6 ALS Standard Reference Materials – Sample Protocol .........................49
11.1.7 ALS Standard Reference Materials – Results and Discussion .............49
11.1.8 ALS Pulp Duplicates - Introduction ........................................................51
11.1.9 ALS Pulp Duplicates – Sample preparation ...........................................52
11.1.10 ALS Pulp Duplicates – Results and Discussion .....................................52
11.2 Acadian Mining Drilling Program 2009...............................................................53
11.2.1 Introduction ................................................................................................53
11.2.2 Acadian Blanks – Sampling Protocol.......................................................53
11.2.3 Acadian Blanks – Results and Discussion ..............................................53
11.2.4 Acadian Standard Reference Material – Sample Protocol ....................53
11.2.5 Acadian Standard Reference Material – Results and Discussion ........54
11.2.6 ALS Analytical Blanks – Sample Protocol ..............................................55
11.2.7 ALS Analytical Blanks – Results and Discussion ..................................55
11.2.8 ALS Standard Reference Materials – Sample Protocol .........................55
11.2.9 ALS Standard Reference Materials – Results and Discussion .............55
11.2.10 ALS Pulp Duplicates – Sample Protocol .................................................55
11.2.11 ALS Pulp Duplicates – Results and Discussion .....................................55
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Contents
iv
11.3 Atlantic Drilling Program 2014-15 ........................................................................57
11.3.1 Introduction ................................................................................................57
11.3.2 Atlantic Gold Blanks – Sampling Protocol .............................................57
11.3.3 Atlantic Gold Blanks – Results and Discussion .....................................57
11.3.4 Atlantic Gold Standard Reference Materials – Results and Discussion57
11.3.5 Atlantic Gold Fine Fraction Duplicates – Results and Discussion ......58
11.4 Discussion ................................................................................................................59
11.5 Sample security .......................................................................................................60
11.5.1 Mercator Geological Services....................................................................60
11.5.2 Acadian Mining Corporation ...................................................................61
11.5.3 Atlantic Gold Corporation ........................................................................61
12
DATA VERIFICATION
62
13
MINERAL PROCESSING AND METALLURGICAL TESTING
63
13.1 Introduction .............................................................................................................63
13.2 Metallurgical Test Work .........................................................................................63
13.3 Beaver Dam Process Performance Predictions ...................................................65
14
MINERAL RESOURCE ESTIMATES
66
14.1 Introduction .............................................................................................................66
14.2 Estimation Method..................................................................................................66
14.3 Resource Data ..........................................................................................................67
14.4 Spatial Continuity Analysis and Modelling ........................................................70
14.5 The Resource Model ...............................................................................................74
14.5.1 Bulk Density ................................................................................................75
14.5.2 Topography and Previous Underground Mining .................................75
14.5.3 The Resource Estimates, Model Plots and Validation...........................75
23
ADJACENT PROPERTIES
84
24
OTHER RELEVANT DATA AND INFORMATION
84
25
INTERPRETATION AND CONCLUSIONS
85
26
RECOMMENDATIONS
87
27
REFERENCES
88
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Contents
v
List of Figures
Figure 1: Atlantic Gold Corporation Corporate Structure.................................................. 13
Figure 2: Beaver Dam Property Regional Location Map .................................................... 16
Figure 3: Beaver Dam Property, County Location Map ..................................................... 16
Figure 4: Image showing the extent of mine workings and Cameron Flowage. .................. 17
Figure 5: Historic Surface Drill Hole Distribution ............................................................. 24
Figure 6: Regional Geology of Nova Scotia – Meguma Terrane (Sangster and Smith, 2007)28
Figure 7: Local Geology of Beaver Dam Gold Project (Interpretation by J. Utley) ............. 29
Figure 8: Geometry of the Main Zone gold mineralization relative to stratigraphy ........... 31
Figure 9: Acadian Mining and Atlantic Gold Corporation drill-hole locations.................. 36
Figure 10: Section and plan view of drill hole composite gold grades ................................. 39
Figure 11: Mercator analytical blanks vs Sample Number ................................................. 47
Figure 12: Mercator analytical blanks vs Previous Sample gold grade............................... 48
Figure 13: Detailed results for ALS Chemex SRM OXD43 ............................................... 50
Figure 14: Detailed results for ALS Chemex SRM OxF41 ................................................. 51
Figure 15: Detailed results for ALS Chemex SRM SP17 ................................................... 51
Figure 16: Minus fraction duplicate vs original, 2005-07 sampling program .................... 52
Figure 17: Minus fraction duplicate precision plot, 2005-07 sampling program ............... 53
Figure 18: Minus fraction duplicate vs original, 2009 drilling program ............................ 56
Figure 19: Minus fraction duplicate precision plot, 2009 drilling program ....................... 56
Figure 20: Results of assaying of five assay standards, 2014-15 program. ......................... 58
Figure 21: Minus fraction duplicate vs original, 2014-15 drilling program ...................... 59
Figure 22: Minus fraction duplicate precision plot, 2014-15 drilling program .................. 59
Figure 23: Cumulative histogram of 2m composite gold grades. ........................................ 67
Figure 24: Composite plan and section of Beaver Dam drill-hole gold grades. ................... 69
Figure 25: Directional indicator sample variograms, 60th percentile, Beaver Dam ............ 71
Figure 26: Directional variogram models, 60th percentile, Beaver Dam ............................. 71
Figure 27: Directional indicator sample variograms, 90th percentile, Beaver Dam ............ 72
Figure 28: Directional variogram models, 90th percentile, Beaver Dam ............................. 72
Figure 29: 3D plot of indicator variogram (60th percentile) model showing directional anisotropy 73
Figure 30: Extent of underground workings at Beaver Dam .............................................. 75
Figure 31: Sections with average panel grade, neighbouring drill-hole grades, panel classification. 80
Figure 32: Sections with average panel grade, neighbouring drill-hole grades, panel classification. 81
Figure 33: EW Section: Accumulated tonnes and accumulated metal, 0.54 gpt cut-off ..... 82
Figure 34: Cumulative histograms of declustered samples and estimated panel grades ..... 83
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Contents
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List of Tables
Table 1: Summary of Historic Drilling Programs – Beaver Dam Property ........................ 25
Table 2: Summary of Bulk Sampling – Beaver Dam Property (after O’Sullivan, 2003) .... 26
Table 3: Summary of Acadian and AGC Diamond Drilling Programs – Beaver Dam Property 37
Table 4: Acadian Diamond Drill Holes outside Resource Area .......................................... 40
Table 5: Acadian Reverse Circulation Drill Holes outside Resource Area .......................... 41
Table 6: Beaver Dam drill holes with sampled intervals ..................................................... 41
Table 7: Protocols for treatment of blanks ........................................................................... 48
Table 8: Statistics of ALS Chemex results of assaying 16 SRM’s ....................................... 49
Table 9: ALS results for Standard OxP50. .......................................................................... 50
Table 10: Assay Results for SRM’s 0xG70 and PM914 ..................................................... 54
Table 11: Assay Results for SRM’s PM403, PM405 and PM410 ...................................... 54
Table 12: Assay Results for SRM’s PM413 and PM427 .................................................... 55
Table 13: Summary of ALS standards inserted during 2009 .............................................. 55
Table 14: Beaver Dam Composites ...................................................................................... 63
Table 15: Beaver Dam Bond Ball Mill Index ....................................................................... 63
Table 16: Beaver Dam Gravity Separation Conditions / Results Overall Acadian Composite64
Table 17: Beaver Dam Gravity Tailing Cyanidation Results.............................................. 65
Table 18: Conditional statistics of 2m composites, Beaver Dam ......................................... 68
Table 19: Indicator variogram model parameters, Beaver Dam .......................................... 73
Table 20: Panel Model Parameters ...................................................................................... 74
Table 21: Variance adjustment ratios for change of support ............................................... 74
Table 22: Global Measured resource estimates, Beaver Dam (base case in bold font) ........ 76
Table 23: Global Indicated resource estimates, Beaver Dam (base case in bold font) ......... 76
Table 24: Global Measured+Indicated resource estimates, Beaver Dam (base case in bold font) 76
Table 25: Global Inferred resource estimates, Beaver Dam (base case in bold font) ........... 77
Table 26: Summary statistics of composite and panel grades .............................................. 83
FSS International Consultants (Australia) Pty Ltd
Introduction
1 Summary
1.1 Property description and geological setting
The Beaver Dam property, or the (Project), is located in Halifax County, central Nova
Scotia, approximately 85 km northeast of the provincial capital of Halifax. The property
covers the historical Beaver Dam gold district located on NTS map sheet 11E02/A with
central coordinates of 0521319 E/4990700 N (UTM NAD 83 Zone 20). The area is uninhabited with the closest residences situated 5 km away.
Gold mineralization at Beaver Dam occurs in the rocks of the Meguma Group. The Meguma Group sedimentary package is divided into two distinct formations: the Goldenville
Formation and the younger Halifax Formation, both of which have been subject to
greenschist to amphibolite grade regional metamorphism. The majority of the Meguma gold
deposits are found within the Goldenville Formation and are typically associated with regional anticlinal folds close to later northwest trending transcurrent faults.
Mineralisation at Beaver Dam occurs in the north-dipping southern limb of an overturned
anticline with gold hosted both within quartz veins and disseminated through the intervening inter-bedded argillite and greywacke. It is the quartz vein hosted gold mineralization
augmented by disseminated style mineralization in or near anticline hinges that forms the
basis of a geological model associated with the ongoing exploration and development of the
Beaver Dam gold deposit.
1.2 Exploration history
Gold was discovered at Beaver Dam in 1868 and there were intermittent attempts from
1871 up until 1949 to develop and mine in the area, initially focused on the Austen Shaft area
and later, also on the Mill Shaft area, 1.2km to the west of the Austen Shaft. There was early
acknowledgment of significant volumes of low grade material, including the excavation of
the small Papke pit approximately 400m west of the Austen Shaft in 1926, however, most of
the development focused on a belt of quartz veins in greywacke and slates that was approximately 23m wide where intersected from the Austen Shaft.
The next major period of work began in 1975 when MEX Explorations acquired claims in
the area and from 1978 until 1988 a number of different companies drilled a combined total
of 251 diamond holes for 47,944m as well as undertaking mapping and geophysical and geochemical surveys.
Between 1986 and 1989, Seabright explored from underground via a decline that reached
a maximum depth of 100m below surface. In that same period, Seabright drilled 34 holes
from underground for a total of 2290m and mined 135,000 tonnes of material of which 41,119
tonnes was milled at an average reconciled gold grade of 1.85 gpt. In 1987, Seabright also excavated a small open-pit in the Papke and Austen zones, removing 10,055 tonnes of which
8,822 tonnes was milled for a reconciled gold grade of 2.45 gpt.
FSS International Consultants (Australia) Pty Ltd
Summary
8
A total of 967 ounces of gold production is recorded for the Beaver Dam gold district between 1889 and 1941. A further 2445 ounces has been recovered from bulk samples taken between 1986 and 1989.
In 2002, Tempus Corporation, later Acadian Gold Corporation and now known as Acadian Mining Corporation (Acadian), acquired the Beaver Dam Property. Acadian utilised Mercator Geological Services (Mercator) to manage their exploration activities until 2008 and
since then, Acadian has managed all exploration activities within the Property.
Acadian initially used Mercator Geological Services to manage exploration activities and
one of the first activities undertaken by Mercator was an extensive compilation, review and
validation of the historic diamond drilling and associated sampling and assaying during
which, records for 238 surface and underground drill holes were examined.
Between 2005 and 2009, Mercator and then Acadian managed several diamond drill programs with a total of 153 holes drilled for 22010m. Of those holes, 146 were drilled in the
Main Zone and the remainder distributed between the Mill Shaft Zone and the Northeast
Zone. At the completion of the drilling, the Main Zone has been drilled by Acadian on a
nominal 25m x 25m pattern over a strike length of approximately 800m with mineralisation
still open to the west and at depth.
Acadian also undertook several other exploration programs within the Project; an aeromagnetic survey at 100m and 50m line spacings, a till survey and a follow-up shallow Reverse Circulation (geochemical) drilling program that led to recognition of a possible offset
to the Main Zone mineralisation on the northern side of the Mud Lake Fault.
1.3 Current Mineral Resource Estimates
From 2005 until 2009, Acadian Mining Corporation funded the drilling of 153 diamond
drill holes to evaluate the mineral resources of Beaver Dam during which some 22010 metres
of drilling were completed. Following a positive outcome of their PEA Study in 2014, Atlantic Gold drilled a further 7810 metres in 38 holes to replace the older Seabright drilling which
was selective sampled and for which no useful quality control data exists. The current mineral resource estimates are based on only the Mercator-Acadian-Atlantic Gold drilling results.
The method used to estimate the mineral resources of Beaver Dam is a standard implementation of multiple indicator kriging with block support correction for the estimation of
recoverable resources based on a specified approach to selective mining. The GS3M© software provides a full implementation of this approach. The resource has been classified using
the CIM standards for mineral resource classification (CIM, 2014). The estimates have been
generated from some 9432 two metre sample composites in one geologic domain.
The tables below present the current mineral resource estimates of FSSI Consultants
(Aust.) for the Beaver Dam gold deposit for a number of cut-off grades. The base case cut-off
grade of 0.5 gpt is shown in bold font. There are no known environmental, permitting, legal,
FSS International Consultants (Australia) Pty Ltd
Summary
9
title, taxation, socio-economic, marketing and political or other factors that could materially
affect the resource estimates.
Gold Cut-off
Measured Resource Estimates
Ounces
gpt
Million Tonnes
Gold gpt
0.3
5.34
1.27
218,200
0.4
4.65
1.41
210,600
0.5
4.07
1.55
202,200
0.6
3.65
1.66
194,800
0.7
3.30
1.77
187,500
0.8
2.97
1.88
179,600
Resources that are not reserves do not have demonstrated economic viability
Gold Cut-off
Indicated Resource Estimates
Ounces
gpt
Million Tonnes
Gold gpt
6.75
1.13
244,200
0.3
5.94
1.23
235,100
0.4
5.20
1.34
224,400
0.5
4.60
1.45
213,900
0.6
4.09
1.55
203,200
0.7
3.62
1.65
191,800
0.8
Resources that are not reserves do not have demonstrated economic viability
Gold Cut-off
Measured + Indicated Resource Estimates
Ounces
gpt
Million Tonnes
Gold gpt
0.3
12.09
1.19
462,421
0.4
10.59
1.31
445,742
0.5
9.27
1.43
426,788
0.6
8.25
1.54
408,642
0.7
7.39
1.65
390,647
0.8
6.59
1.75
371,398
Resources that are not reserves do not have demonstrated economic viability
Gold Cut-off
Inferred Resource Estimates
Ounces
gpt
Million Tonnes
Gold gpt
2.65
1.08
91,800
0.3
2.26
1.20
87,400
0.4
1.84
1.37
81,300
0.5
1.52
1.55
75,600
0.6
1.28
1.72
70,600
0.7
1.08
1.90
65,700
0.8
Resources that are not reserves do not have demonstrated economic viability
FSS International Consultants (Australia) Pty Ltd
Summary
10
1.4 Conclusions

The gold mineralization occurs in rocks of the Meguma Group which at Beaver Dam comprise a near vertically dipping suite of greywackes and argillites. The mineralization style
is similar to a number of other gold deposits in the Meguma Group of Nova Scotia including Touquoy and Cochrane Hill. At Beaver Dam, the structures carrying the gold mineralization dip more shallowly than the bedding at around 65 degrees to the north.

The diamond drilling undertaken by Mercator in 2005-07, Acadian Mining Corporation in
2009 and Atlantic Gold in 2014-15 together with documented quality control procedures
and QA/QC data provide a sound basis for mineral resource estimation and classification
at Beaver Dam. The assay results of standards and blanks inserted into the sample batches
do not indicate any significant bias in assaying across a wide range of gold grades. The results of minus fraction sample duplicates based on entire half core pulverizing and
screened fire assaying indicate a high level of sampling precision is being achieved.

The current resource estimates of Beaver Dam are based on the analysis of the gold grades
of some 9432, two metre sample composites generated from 192 drill-holes into the Main
Zone of the deposit.

The composite grades show large statistical variation similar to those of many other gold
deposits with high coefficients of variation, in the case of Beaver Dam around 9. The current drill hole sampling density is at a minimum of around 25 metres along strike and
down dip within the mineralization. A single mineralized domain of samples has been
used to represent the mineralization.

Spatial continuity (variogram) analysis of the composite grades is consistent with the geologic interpretation of the mineralization as a relatively thin body of mineralization extending east-west along strike and dipping steeply to the north. Continuities are strongest
along strike and to a much lesser extent, down dip.

The recoverable resources of Beaver Dam potentially available to open pit mining have
been estimated using the method of multiple indicator kriging with block support correction. The indicator kriging used fourteen indicator thresholds. It is assumed that ore selection will take place on five metre flitches with a minimum mining width of five metres.
Grade control sampling on a five metre by five metre pattern for ore selection is also assumed.

The resource estimates have been classified as Measured, Indicated and Inferred to reflect
the number and spatial pattern of drill-hole composites informing the estimation of each
panel in the model. The pattern of spatial continuity shown in the variograms and general
experience with gold deposits with the characteristics of Beaver Dam suggest that a drill
hole spacing of around 20 to 25 metres is appropriate to establish Measured resource estimates in this deposit.
FSS International Consultants (Australia) Pty Ltd
Summary

11
For the 0.5 gpt cut-off, the additional drilling undertaken by Atlantic Gold has increased
the Measured resource tonnage by 1.2 million tonnes and the Indicated resource tonnage
by 2.3 million tonnes while the Inferred resource tonnage has decreased by 0.8 million
tonnes. For the Measured and Indicated resource estimates, the Atlantic drilling has
brought about an increase of 49 percent in contained ounces of gold.
1.5 Recommendations
1. No further resource drilling is recommended for the Beaver Dam resource at the present
time.
2. The Beaver Dam resource model should be incorporated as part of the feasibility study being undertaken to establish the viability of mining the Beaver Dam deposits.
FSS International Consultants (Australia) Pty Ltd
Introdcution
12
2 Introduction
This Technical Report has been prepared for Atlantic Gold Corporation to describe the
preparation of Mineral Resource estimates for the Beaver Dam Gold Project, Halifax County,
Nova Scotia, Canada.
Prior to its name change to Atlantic Gold Corporation, the Company's predecessor entity,
Spur Ventures Inc. ("Spur"), had been involved in the phosphate fertilizer business in China.
Following the sale of its interests in the phosphate business in 2012, Spur began focusing on
the acquisition of advanced mineral projects in mining-friendly jurisdictions. In August
2014, Spur changed its name to Atlantic Gold Corporation and in August and September of
2014, Spur completed the following two transactions with two corporate entities which held,
among others, the Touquoy, Beaver Dam and Cochrane Hill Projects:


All share merger with Atlantic Gold NL ("Atlantic Gold NL" or "Atlantic Gold")
which held the Touquoy Project and Cochrane Hill Project; and
Acquisition of Acadian Mining Corporation ("Acadian" or "Acadian Mining"),
which held the Beaver Dam Project
The merger with Atlantic Gold NL was implemented in August, 2014 via a scheme of arrangement under Part 5.1 of the Australian Corporations Act 2001 under which Atlantic
Gold Corporation acquired all the fully paid and partly paid ordinary shares on issue in Atlantic Gold NL.
The acquisition of Acadian was completed in September 2014. The Company acquired
100% of Acadian from LionGold Mining Canada Inc., a subsidiary of LionGold Corp Ltd, a
diversified mining company listed on the Singapore Stock Exchange, in exchange for the issuance of cash and AGB shares.
Further information in respect of the two above noted transactions is available on the
Company's website (www.atlanticgoldcorporation.com) and SEDAR (www.sedar.com). A
summary corporate structure of the Company as at the date of this report is also set out in
the Figure below:
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Introdcution
13
Figure 1: Atlantic Gold Corporation Corporate Structure
The work of resource estimation reported herein was undertaken by Neil Schofield,
MAIG who is full-time employee of FSSI Consultants (Aust.) Pty Ltd and has more than five
years of experience in the field of Mineral Exploration and more than 20 years of experience
in mineral resource estimation in a wide range of base and precious metal deposits. He is a
Qualified Person in terms of NI43-101 standards for Exploration Results and of Mineral Resource estimation in general.
The Mineral Resource estimates are based on a drill-hole database prepared and supplied
by Acadian Mining Corporation.
Neil Schofield visited the project in July 2014 in company with John Morgan of Atlantic
Gold Corporation and Rick Horne formerly of Acadian Mining Corporation. Drill core of the
mineralization was reviewed, previous resource estimates were reviewed and the details of
further drilling for resource evaluation were discussed.
FSS International Consultants (Australia) Pty Ltd
Reliance on Experts
14
3 Reliance on Other Experts
With respect to legal title to the Beaver Dam mineral claims, which comprise the Beaver
Dam property and is referred to in section 4, Property Description and Location, Neil
Schofield has relied on the opinion of Mathew Newell of Stewart McKelvey Lawyers Avocats. In letters of 7 October 2014 Mr. Newell warrants that Acadian holds the mineral claims
comprising the Property. As described in section 2 of this report Atlantic Gold Corporation
acquired Acadian in a transaction that was completed in September of 2014.
In addition the claims are shown as being in good standing and held by Annapolis Properties Corp. (a wholly-owned subsidiary of Acadian Mining Corp.) on the Nova Scotia’s Registry of Claims (NovaROC) website (https://novaroc.novascotia.ca/novaroc/page/home.jsf).
FSS International Consultants (Australia) Pty Ltd
Property Description and Location
15
4 Property Description and Location
4.1 Property Location
The Beaver Dam property is located in Halifax County, central Nova Scotia, approximately 85 km northeast of the provincial capital of Halifax (
Figure 2)
The property covers the historical Beaver Dam gold district located on NTS map sheet
11E02/A with central coordinates of 0521319 E/4990700 N (UTM NAD 83 Zone 20). The
area is uninhabited with the closest residences situated 5 km away.
4.2 Nature of the Mineral Tenure
The property is held under a single mineral exploration licence EL50421, currently
held by Annapolis Properties Corporation, a wholly owned subsidiary of Acadian Mining
which in turn is a wholly owned subsidiary of Atlantic Gold. Licence 50421 is comprised of
76 contiguous claims which cover an area of approximately 569 hectares. Licence 50421 is an
amalgamation of EL05920 and EL06175 which was reissued as EL50421 in August 2014. Licence 05920 represented the amalgamation of three pre-existing exploration licences; 00047,
04790 and 04516 which were acquired in 2002 by Tempus Corporation; Tempus subsequently became Acadian Gold and later Acadian Mining. The licences were regrouped in 2003 as
EL05920 and reissued by the Nova Scotia Department of Natural Resources (NSDNR) in
2005. Acadian owns 100% interest in licence 50421 however portions of the licence are subject
to differing agreements made prior to its acquisition by Tempus.
Asset name/ Country
Beaver Dam, Canada,
EL50421
Issuer’s
interest
(%)
100%
Type of minerDevelopment Licence expiry
Licence Area al, oil or gas
Status
date
deposit
569.4
Exploration May 13, 2015
Gold
hectares
Previous licence 00047 was acquired from Westminer Canada and is subject to a Variable
Return Net Smelter Royalty (NSR) payable to Acadia Mineral Ventures Limited. Royalty
amounts are based on the average grade of mined material and range from 0.6% at average
grade of 4.7 gpt Au or less, up to 3% at an average grade of 10.9 gpt Au or more. Some
C$300,000 is available as credit against future royalties at a maximum of 50% per royalty
payment, payable twice a year.
Tempus acquired licence 04516 from Henry Schenkels. This licence is subject to a Sliding
Scale Net Smelter Royalty based on the price of gold. Royalties range from 0% at a gold price
of US$265.01 ozs Au or less, up to 2% at gold prices of US$320 ozs Au or greater. Additional
royalties exist for any other commodities produced on this licence including silver, copper,
lead and zinc, although future recoveries of these metals is highly unlikely.
FSS International Consultants (Australia) Pty Ltd
Property Description and Location
Figure 2: Beaver Dam Property Regional Location Map
Figure 3: Beaver Dam Property, County Location Map
FSS International Consultants (Australia) Pty Ltd
16
Property Description and Location
Figure 4: Image showing the extent of mine workings and Cameron Flowage.
4.3 Tenure Conditions
Mineral exploration licences are issued by the Nova Scotia Department of Natural Resources (NSDNR) under the Mineral Resources Act of 1990. Staking of claims is based on an
NTS based map staking system and the claims have not been legally surveyed. Licence 50421
shown in
Figure 3 represents the two successive amalgamations of pre-existing licences, three of
which were combined into a single licence in 2002 and then combined with a fourth licence
in 2014. When multiple licences are combined, the staking date for the oldest licence is used
as the official ‘staking date’ for the newly formed licence. In the case of 50421, the staking
date is May 13, 1975.
Yearly assessment expenditures and renewal fees are required in order to maintain the
claims in good standing. Required yearly expenditures increase over the lifespan of the licence to a maximum of C$800 per claim after 25 years. Since licence 050421 is in its 40th year
of issue, yearly work commitments are C$60,800 per year. Expenditures in excess of this
amount can be carried forward and used to renew a licence in subsequent years however; assessment credits submitted for any particular year have a maximum lifespan of 10 years.
Acadian has confirmed via the online Nova Scotia Registry of Claims (NOVAROC) that as
of April 7th, 2015 licence 50421 is in good standing and is issued in the name of Annapolis
Properties Corp. As of the most recent anniversary date (May 13, 2014) the registry indicates
that sufficient work credits exist to renew this licence for the next five years.
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17
Property Description and Location
4.4 Environmental and Other Liabilities
The property is located within an area of active forestry and historic mining activity. No
restrictions with regards to mineral exploration and mining apply to the property, however,
as with any area, proper environmental consideration and historic cultural screening is required.
Several environmental considerations were outlined by Jacques, Whitford and Associates
Limited (Jacques, Whitford and P. Lane, 1986) prior to underground exploration carried out
by Seabright Resources in the late 1980s. Many of the same issues would need to be addressed should a mine be constructed on the property in the future in order to prevent negative environmental impact. The main issues outlined were:
 Mine water control
 Erosion and drainage control
 Integrity of waste rock storage areas
 Refuse and garbage disposal
 Sewage disposal
 Storage and handling of hazardous fluids
 Impacts on the freshwater ecosystem
 Impacts on wildlife
The report suggests that all of the outlined issues could be controlled by careful engineering practices during mine development and planning. Also, the report identified a low-lying
area west of Cameron Flowage that provides an excellent area for water containment and
primary sedimentation. Seabright followed the recommendations outlined in the Environmental Assessment and retained Jacques Whitford to carry out ongoing environmental sampling and monitoring. Furthermore, Seabright utilized the suggested water containment area
as a settling pond by constructing a dam along its eastern margin in order to control outflow.
The pond still functions to settle sediment before runoff enters Cameron Flowage and could
be utilized during future exploration activities.
4.5 Impact of Previous Mining Activities
During the underground exploration programme, ore was stored at surface for a short
time until it was trucked to the Gay’s River mine site for processing. All of the tailings associated with processing of rock from Beaver Dam were deposited at Gay’s River. Because the
processing and tailings deposition occurred off-site, there was little chance for the local environment to be contaminated. In 1989, underground exploration at Beaver Dam was ceased
and the site was reclaimed, which included backfilling the underground portal and the open
cut, backfilling of ore and waste storage pads, drainage ditches and settling ponds, and removal of all of the buildings on the property (
Figure 4). Today there is little evidence that any mining activities occurred on the property, which is now well vegetated with a variety of softwood and hardwood.
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Property Description and Location
4.6 Proximity of Mineralized Zone to Cameron Flowage
Cameron Flowage transects the eastern portion of the property from northwest to southeast (
Figure 4). Although this waterway does not impede exploration, consideration will need
to be given prior to construction of an open pit. Because of its size, diverting the river would
likely be too costly to undertake; this could be avoided by limiting the maximum depth of
the eastern portion of the open pit such that its footprint does not encroach on the waterway.
At this point however, further studies including a topographic (LiDAR) survey are required
to determine the potential impact and potential solutions.
4.7 Required Permits
No permits or approvals are required to conduct non-intrusive exploration and drilling
activities on the property. Drilling notification is required with NSDNR prior to commencement of any drilling activity and details of the drilling must be provided after drilling is
completed. Permits are required prior to conducting trenching, bulk sampling or mining on
the property. Mine development would require several permits, including, but not limited
to, an Environmental Assessment, Industrial Approval and a Mine Lease.
4.8 Factors and Risks for Ongoing Mineral Exploration
Obtaining access to conduct exploration on the property from Northern Pulp has not been
an issue in the past; however no agreements concerning future exploration and/or mining
have been established. Prior to any mine development, many of the environmental liabilities
outlined above will require special consideration, however all issues are considered manageable.
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Accessibility, Climate etc
5 Accessibility, Climate, Local Resources, Infrastructure, and
Physiography
5.1 Topography, elevation and vegetation
Beaver Dam is an area of low topographic relief with most of the area being around 140m
elevation with scattered drumlins reaching 160m elevation. Drainage is to the south-east
along a number of poorly drained streams and shallow lakes. There are a number of boggy
areas within the property. Vegetation consists of spruce, fir and some hardwood. Logging
has been widely carried out more recently including clear cutting in the immediate area of
the deposit.
5.2 Accessibility
The Beaver Dam project is easily accessed by the Beaver Dam Mines Road, an unpaved
secondary road branching north-eastward from provincial highway #224. Beaver Dam mines
road is a well maintained and frequently travelled road used by forestry companies actively
operating in the area. During the winter snow removal on unpaved roads is infrequent
and heavy snowfall may result in the property becoming inaccessible by vehicle for days
at a time unless they are ploughed.
Acadian does not hold any of the surface titles for the land on which the Beaver Dam
property occurs. The primary landholder in the area is Northern Pulp Nova Scotia Corporation, who owns several parcels of land comprising a large portion of the Beaver Dam property. Although no current land access agreement exists with Northern Pulp, in the past
they have provided access for Acadian to carry out exploration. Furthermore, Acadian
is currently in discussions with Northern Pulp to establish long term access on the
property which would include first right of refusal for purchase or a purchase agreement.
The remaining parcels of land which make up the Beaver Dam property are owned by the
Crown. To date, Acadian has successfully gained access to crown lands to conduct exploration at Beaver Dam and several other properties. The province of Nova Scotia is generally
supportive of the mining industry and there is no reason to think that an access agreement
for mining cannot be arranged with the Crown if economic deposits are defined on crown
land.
5.3 Climate and operating season
Eastern Nova Scotia is characterised by northern temperate zone climatic conditions moderated by proximity to the Atlantic Ocean. Seasonal variations occur, with winter conditions
of freezing and/or substantial snowfall expected from late November through late March.
Spring and fall seasons are cool, with frequent periods of rain. Summer conditions can be expected to prevail from late June through early September with modest rainfall and daily
mean temperatures in the 15°C to 20°C range. Maximum daily summer temperatures to
30°C occur, with winter minimums in the -25°C to -30°C range. Mineral exploration programmes can efficiently be undertaken during the period of May through late November,
while winter programmes can be accommodated with appropriate allowance for weather delays.
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Accessibility, Climate etc
5.4 Local resources and Infrastructure
Acadian Mining retained the Cultural Resources Management Group Limited (CRMG) to
conduct a preliminary archaeological screening and reconnaissance programme on the Beaver Dam property in order to identify any potential cultural resources. Two areas were
identified as having high potential for pre- European contact (aboriginal) cultural significance which consisted of flat, well drained areas along the margins of Cameron Flowage
which may have been visited by early travellers of the waterway (Stewart and Beanlands,
2009). The study also outlined a number of sites which contained features of significance
such as remains of buildings and other structures. These structures were likely related to historical mining activities on the property but warrant further investigation. CRMG made several recommendations related to the property including a more thorough investigation into
the area once mine development plans are finalised. Also, areas identified as having potential cultural significance should be avoided during mine development. If these areas cannot be avoided, a focused investigation should be conducted prior to their alteration (Stewart
and Beanlands, 2009).
In 2009, Conestoga-Rovers & Associates on behalf of Acadian retained the Environmental
Services division of the Confederacy of Mainland Mi’kmaq to conduct an ecological
knowledge study for the Beaver Dam area (CMM Environmental Services, 2009). The report
acknowledged that Mi’kmaq lived in areas south of Beaver Dam (e.g. Sheet harbour, Spry
bay and Ship harbour) and would have likely used the local waterways during hunting and
fishing expeditions but no specific evidence of Mi’kmaq landing on the Beaver Dam property
were mentioned. The report also outlined potential impacts that the Beaver Dam project may
impose on Mi’kmaq land and resource use. The two issues outlined were: the destruction of
any potential native archaeological sites on the property and the loss of several plant species
within the area. If any Mi’kmaq archaeological deposits are encountered during construction or operation of the project, work should be halted and the appropriate authorities (Nova
Scotia Museum and The Confederacy of Mainland Mi’kmaq) should be notified. The significant plant species which were identified within the proposed Beaver Dam area are also
found in the surrounding area so the impact of the project is limited to only the specimens
within the project area.
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21
History
6 History
6.1 Prior Ownership of the Property
Gold was discovered at Beaver Dam in 1868. The first production is recorded in 1871. An
English company, under the direction of D.J. Thomas examined the property a short time later but there was very little work until 1886 when William Yeadon constructed a 4-stamp test
mill and did some exploratory mining. In 1891, Yeadon sold his property to the Beaver Dam
Mining Company who erected a 10-stamp mill. In 1895, Beaver Dam Mining leased the
property to G.M. Christie and W.M. Tupper and the following year, the property was transferred to J.H. Austen who constructed a 10-stamp mill and sank the Austen Shaft.
W.H. Redding set up a 5-stamp battery and sank a shallow shaft on a series of quartz
veins 1.2km to the west of the Austen Shaft in 1904 and activities in that area continued in
1911 when the Gladwin Mining Company deepened Redding’s Shaft.
In 1921 and 1922, the Gladwin Mining Company tested the area around the Austen Shaft.
W. Papke excavated a small pit 400m west of the Austen Shaft in 1926 and together with a
Mr Goudry, dewatered the Austen Shaft and extended the workings in 1928. At that same
time, the Redding’ Shaft, by then known as the Mill Shaft was extended and bulk sample
testing undertaken.
In 1935, the Austen Shaft was worked by B.F. Belmore and a Mr Inglehart and in 1936, the
area encompassing the Austen Shaft was held by the Beaver Dam Gold Mining Syndicate
who set up a test mill and processed a bulk sample from workings off the Austen Shaft. The
shaft was allowed to flood and then dewatered again in 1937 and further development undertaken.
The Beaver Dam Gold Mining Syndicate dewatered the Mill Shaft in 1939 and completed
further underground development and mining until a fire destroyed the surface plant and
equipment.
No further work is recorded until 1954 through to 1957 when Lawrence Construction
Company Ltd completed some trenching within 200m of the Austen Shaft.
In 1975, M.E.X. Explorations acquired claims in the area and in 1978, reached an agreement with Agassiz Resources and later with Comiesa Corporation, a company which was
largely controlled by Agassiz, for those companies to undertake exploration.
Acadia Mineral Ventures funded further work by M.E.X Explorations in 1983 that included
mapping, geophysical and geochemical surveys and diamond drilling.
In 1985, Seabright Resources Inc. optioned claims in the Austen Shaft area from Acadia
Mineral Ventures and between 1985 and 1987 conducted a number of exploration programs.
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History
23
In the same year, Coxheath Gold Holdings acquired claims to the immediate west and
north of the Seabright claims, including the Mill Shaft area. Coxheath completed some exploration in its own right before optioning the property to Seabright.
Seabright held the property up until February 1988 when Westminer Canada Ltd took
over Seabright. The takeover resulted in a legal dispute and after losing the case in 1993,
Westminer withdrew from its Canadian properties.
The Beaver Dam property was acquired by Tempus Corporation in 2002. Tempus subsequently changed its name to Acadian Gold Corporation, and changed it again in 2007 to
Acadian Mining Corporation.
Acadian is current holder of the property. As shown in Figure 1, in 2014, Atlantic Gold
NL merged with Spur Ventures Inc and became Atlantic Gold Corporation. In that same
year, Atlantic Gold Corporation acquired Acadian Mining and as a consequence, now controls all of the claims over the historic gold district.
6.2 Results of Exploration and Development by Previous Owners
Gold was discovered at Beaver Dam in 1868. A 15-stamp battery was erected in 1871 and
there were intermittent attempts up until 1949 to develop and mine in the area, initially focused on the Austen Shaft area and later, also on the Mill Shaft area, 1.2km to the west of the
Austen Shaft. There was early acknowledgment of significant volumes of low grade material,
including the excavation of the small Papke pit approximately 400m west of the Austen Shaft
in 1926, however, most of the development focused on a belt of quartz veins in greywacke
and slates that was approximately 23m wide where intersected from the Austen Shaft.
From that period, until 1975, the only work recorded for the area is a program of trenching and sampling undertaken between 1954 and 1957 and dewatering and channel sampling
in the Austen Shaft in 1965.
In 1975, MEX Explorations acquired claims in the area and in 1978, reached an agreement
with Agassiz Resources in which the latter drilled nine diamond holes for a total of 644m
and excavated several trenches to expose mineralised zones between the Austen Shaft and
the Papke Pit. The drilling was continued by Comiesa Corporation, a company which was
largely controlled by Agassiz, extending drill coverage to the Mill Shaft area with a further
nine holes for 1003m. In the same year, MEX drilled two diamond holes in the vicinity of the
Mill Shaft for 213m and stripped a portion of the Papke Belt in order to take a bulk sample.
Both Agassiz and Comiesa decided that there was insufficient continuity in the mineralised
veins to continue with the project.
Acadia Mineral Ventures funded further work by M.E.X Explorations in 1983 that included
mapping, geophysical and geochemical surveys and diamond drilling. Eleven holes were
drilled for a total of 758m.
In 1985, Seabright Resources Inc optioned claims in the Austen Shaft area from Acadia
Mineral Ventures and in that same year, optioned claims held by Coxheath Gold Holdings to
the immediate west and north of the Seabright claims, including the Mill Shaft area.
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History
24
Coxheath completed a VLF survey and a geochemical sampling program before optioning
the property to Seabright.
Between 1985 and 1987 Seabright, with supervision mostly provided by MPH Consulting
Ltd, conducted a number of exploration programs comprising geological mapping and prospecting, soil geochemical surveys, magnetic, VLF-EM, horizontal loop EM and IP and Resistivity geophysical surveys together with drilling of 304 shallow Reverse Circulation (RC)
holes for a total of 1219m and 186 diamond holes for a total of 43,027m. The programs allowed Seabright to delineate an auriferous zone of between 20m and 30m width over 700m
in strike length and to as much as 600m depth. Figure 5 shows the distribution of historic
holes drilled from surface.
Figure 5: Historic Surface Drill Hole Distribution
The diamond drilling comprised four diamond drill programs from surface and another
from underground, and led to four separate resource and reserve estimates and to a mine
feasibility study by Kilborn Engineering in 1987. These estimates are available as open file
assessment reports from the Nova Scotia Department of Natural Resources.
Between 1986 and 1988, Seabright explored from underground via a decline that reached
a maximum depth of 100m below surface. In that period, 135,000 tonnes of material was
mined of which 41,119 tonnes was milled at an average reconciled gold grade of 1.85 gpt. As
part of that exploration, Seabright completed several diamond drill programs from under-
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History
25
ground, drilling 34 holes for a total of 2290m between 1987 and 1988. In 1987, Seabright also
excavated a small open-pit in the Papke and Austen zones, removing 10,055 tonnes of which
8,822 tonnes was milled at the Gays River plant for a reconciled gold grade of 2.45 gpt. Table
2 summarizes the history of bulk sampling at the Beaver Dam property.
In February of 1988, Westminer Canada Ltd took over Seabright. Westminer undertook
resource and reserve estimates for Beaver Dam but obtained quite different results to those
produced by MPH on Seabright’s behalf which led to Westminer filing an unsuccessful civil
action against the directors of Seabright.
Acadian Gold Corporation (now Acadian Mining Corporation) as Tempus Corporation
acquired the project in 2002 and completed several diamond drill programs from surface between 2004 and 2007. These programs are discussed in Item 10 - Drilling. Consultants, Mercator providing supervision during most of that time and calculated two separate NI 43-101
compliant resource estimates as progressively more diamond drill data became available.
Acadian have completed an aeromagnetic survey, a till sample survey and follow-up shallow RC drilling over the property which is described in Item 9 – Exploration. Table 1 summarizes the historic drilling programs on the Beaver Dam property.
Table 1: Summary of Historic Drilling Programs – Beaver Dam Property
Year
1978
1980
1980
1983
1985
1986
1986
1987
1987
1988
TOTALS
Hole IDs
BDS-1 to 2, BD-3 to 9
BD-80-001 to 009
BD80-010 to 011
BD-83-001 to 011
BD85-001 to 092*
BD86-001 to 068*
CX86-001 to 023A
BD87-001, BD87-1012.5B, etc
BD-110-01 to 05, BD-R1 to
BD-R16
BD-88-1U to BD-88-15U
No. of
Holes
9
9
2
11
74
66
26
20
644
1,003
213
758
11,931
23,853
4,156
3,087
Surface
Surface
Surface
Surface
Surface
Surface
Surface
Surface
20
1,501
Underground Seabright
14
251
789
47,944
Underground Seabright
Metres
Drilled From:
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Company
Agassiz
Comiesa Corp
MEX Explorations
MEX Explorations
Seabright
Seabright
Coxheath
Seabright
History
26
Table 2: Summary of Bulk Sampling – Beaver Dam Property (after O’Sullivan, 2003)
Test No.
Date
1,828
Contained
Gold
(g)
2,236
1.3
5,795
-
-
Austen Open Pit
2.5
8,732
-
-
1100, 1080, 1065,
1050, 1040
1.4
2,634
-
-
1.9
17,162
25,399
1.5
1.1
15,738
26,754
1.7
1.2
2,795
4,695
1.7
1.48
37,522
59,084
1.6
8.0
1.5
732
2,865
8,151
6,075
11.1
2.1
1.6
41,119
73,309
1.8
Location
1
Dec-86
1100
2
Nov - Dec
1987
1100, 1090, 1080,
1065, 1050, 1040,
1025
3
3a
Dec 1987 Jan 1988
Jan - Feb
1988
Subtotal
2,3,3a
4
May - June
1988
5
Aug - Sept
1988
Subtotal
1-5
6
7
Subtotal
1-7
Mill
Clean up
Total
Oct-88
Mar-89
1100, 1065,
1050, 1040, 1025,
Austen Open
Pit
1100, 1065, 1050,
1040
1100, 1080
1100, 1065, 1040
Rod Mill Discharge Grade
(gpt Au)
1.2
Tonnes
Milled
Grade Milled
(gpt Au)
1.2
2,733
41,119
76,043
1.8
6.3 Previous Resource Estimates
Resource estimates prepared for Seabright and for Westminer are available as open file
assessment reports from the Nova Scotia Department of Natural Resources.
Mercator estimated resources at Beaver Dam for Acadian Gold Corp in 2004 and with
more drilling data available, in 2007. The resource estimates were defined for two scenarios,
one with uncut gold grades and the other with gold grades cut to 10 gpt.
Neil Schofield has prepared a NI 43-101 compliant Mineral Resource estimate for Beaver
Dam in September 2014.
6.4 Production
A total of 967 ounces of gold production is recorded for the Beaver Dam gold district between 1889 and 1941. A further 2445 ounces has been recovered from bulk samples taken between 1986 and 1989.
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Geological Setting
7 Geological Setting
7.1 Regional Geological Setting
Nova Scotia can be divided into two distinct metallogenic terranes; the Avalon Terrane to
the north and the Meguma Terrane to the south; see Figure 6 after Sangster and Smith, 2007.
These two terranes developed independently until they were juxtaposed along the
Cobequid-Chedabucto Fault Zone (CCFZ) during the mid-Devonian Acadian Orogeny (ca.
410-380 Ma).
A series of shallow basins developed on both sides of the CCFZ following collision of the
two terranes with deposition of fluvial and lacustrine rocks of the Early Carboniferous Horton Group, evaporitic, calcareous and siliciclastic rocks of the Early Carboniferous Windsor
Group and Late Carboniferous coal measures. These sediments have in turn been overlain by
Early Mesozoic rift sediments and by Early Cretaceous deposits of kaolinitic clay and silica
sand (Donohoe, 1996).
In Nova Scotia, the rocks of the Avalon Terrane record a complex geological and metallogenic Precambrian and early Palaeozoic history. They represent multiple successions of sedimentation and volcanism, together with felsic to mafic igneous intrusion along what was the
continental margin of North America.
A number of metalliferous deposits have been recognised in the Avalon Terrane, mostly
within Precambrian rocks, including carbonate hosted zinc skarn deposits, stratabound massive sulphide deposits, quartz-vein hosted high-grade gold mineralization in gneiss and diorite, VMS Cu-Pb-Zn-Au in volcanic rocks and Cu-Mo-Au porphyry style mineralization
(Donohoe, 1996).
The oldest known rocks of the Meguma Terrane are the greywackes and argillites of the
Cambrian to Ordovician aged Meguma Group. These rocks were deposited as deep marine
turbidites near the continental margin of what is now northern Africa and are uncomfortably
overlain by a sequence of Late Ordovician to Early Devonian marine sedimentary and volcaniclastic rocks together with bimodal volcanic rocks.
The Meguma Group is divided into two stratigraphic units, the basal greywacke dominated Goldenville Formation and the overlying, finer grained, argillite dominated Halifax
Formation. The basal contact of the Goldenville Formation is not known but the Goldenville
Formation is at least 5600m thick while the overlying Halifax Formation averages approximately 4400m. These sediments were uplifted and deformed into a series of tightly folded
subparallel northeast trending anticlines and synclines during the Acadian Orogeny. The
Meguma Group rocks are metamorphosed to greenschist to amphibolite (staurolite) facies
and were intruded by granites and minor mafic intrusions by ca. 370 Ma (Smith and Kontak,
1996)
The Meguma Group, and predominantly the Goldenville Formation, has hosted most of
the gold mineralization exploited historically (from 1860 onward) in Nova Scotia with approximately 1.2 million ozs produced (Bierlein and Smith, 2003).
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Geological Setting
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Figure 6: Regional Geology of Nova Scotia – Meguma Terrane (Sangster and Smith, 2007)
7.2 Local Geology
The geology in eastern Nova Scotia, including the Beaver Dam Property, is dominated by
greywackes and argillites of the Cambrio-Ordovician Meguma Group, together with granite
intrusives of Devonian age. The different stratigraphic members of the Goldenville and Halifax Formations are exposed by a series of northeast trending tightly folded anticlines and
synclines.
According to the subdivision proposed by Horne and Pelley (2006), the Moose River
Member is the lowermost unit in the Goldenville formation in eastern Nova Scotia and is
overlain by the Tangier Member and then by the Taylors Head Member which in turn is
overlain by the basal unit of the Halifax Formation. The Goldenville Formation is characterised by a decreasing proportion of finer grained material in successively younger units such
that the Moose River and Tangier Members include a significant black claystone and grey or
green grey siltstone component while the Taylors Head Member contains only very minor
siltstone and virtually no claystone.
The Beaver Dam Property lies within the argillite-dominated Moose River Member of the
Goldenville Formation which also hosts the Touquoy deposit 19 km to the southwest and the
Fifteen Mile Stream gold deposit 17km to the northeast. The Beaver Dam deposit is hosted in
the southern limb of a north-dipping overturned. The Moose River Member is at its widest in
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Geological Setting
29
the vicinity of the Beaver Dam deposit with three sub-parallel anticlines evident and the
Beaver Dam deposit associated with the central anticline. The deposit is hosted in the southern limb of that anticline which is overturned with both limbs dipping to the north (
Figure 7). The anticline is commonly referred to as the Moose River-Beaver Dam Anticline
although the correlation with the anticline hosting the Touquoy gold deposit at Moose River
is uncertain.
Lithologies at Beaver Dam have been metamorphosed to amphibolite facies (biotite grade)
increasing to higher (staurolite) grade with proximity to the River Lake Pluton, the edge of
which is within 2km of the Beaver Dam deposit. In comparison, the lithologies that host the
Touquoy deposit have been metamorphosed to greenschist facies (chlorite grade).
Figure 7: Local Geology of Beaver Dam Gold Project (Interpretation by J. Utley)
7.3 Property Geology
The Property is centred on the Moose River-Beaver Dam Anticline which is sinistrally offset into segments by two northwest trending faults; the Mud Lake Fault and the Cameron
Flowage Fault.
Gold mineralisation occurs within the overturned southern limb of the anticline which
dips north at between 75° and 90°. The Mud Lake Fault forms the eastern boundary to the
Main Zone mineralisation. Duncan (1987) described the Mud Lake fault underground and in
drill core as 2m to 3m of gouge within a brecciated interval 10m to 20m wide.
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Geological Setting
30
The mineralisation has been largely defined in the Main Zone within a stratigraphic package comprising alternating argillite and greywacke units. As a result of the folding, a welldeveloped axial planar cleavage is present in both argillites and greywackes.
Acadian have utilised a local stratigraphic sequence defined by Seabright in the 1980s to
log drill core and thereby model the stratigraphy relative to gold mineralisation. The sequence they have mapped in detail is from youngest to oldest:
Austen Argillite: dark grey to black meta-mudstone with minor interbeds of light grey
meta-sandstone. On average the Austen unit is 50m thick but ranges from 45m to 70m.
Quartz veins in the Main Zone are abundant within this unit. The Austen unit is underlain
by (but stratigraphically older than) another meta-mudstone unit characterised by the presence of alternating bands of grey and green argillite.
Millet Seed Greywacke: a medium grained meta-sandstone unit with minor (~20%) intervals of dark-coloured meta-mudstone and clearly distinguished by the presence of abundant
0.5mm to 1mm diameter quartz grains, resembling millet seeds. The unit ranges from 8m to
25m thickness and averages 16m.
Papke Argillite: black, very graphitic slate with only a few, thin meta-sandstone interbeds.
Euhedral arsenopyrite porphyroblasts are common within the Main Zone as is pyrrhotite,
aligned along cleavage and auriferous bedding-parallel quartz veins. The unit ranges from
15m to 30m in thickness and averages 21m.
Hanging Wall Greywacke: Light grey, fine grained meta-sandstone interbedded with up
to 40% dark grey meta-mudstone and ranging from 10m to 25m thickness, averaging 15m. It
can be difficult to distinguish from the Crouse Argillite.
The Crouse Argillite: dark grey meta-mudstone interbedded with meta-sandstone which
can comprise up to 40% of the unit. On average the Crouse unit is 13m thick but it can range
from 7m to 22m. Auriferous quartz veins and sulphide (arsenopyrite, pyrrhotite or pyrite)
porphyroblasts have been frequently described within this unit.
7.4 Mineralization
Gold mineralisation at Beaver Dam has been recognised over a strike length of approximately 1.4km, extending from the Main Zone northwest to the Mill Shaft Zone. Historic drilling has shown that mineralisation weakens between the Main Zone and Mill Shaft Zone and
detailed drilling by Acadian is limited to a section approximately 800m in length in the Main
Zone. The eastern end of the main zone is controlled by the Mud Lake Fault and possible offsets to the mineralisation have been identified between the Mud Lake and Cameron Flowage
faults and in the Northeast Zone, immediately east of the Cameron Flowage Fault.
.
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Geological Setting
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7.4.1 Main Zone Geometry, Grade Distribution and Geological Controls
Recent modelling by Acadian has defined gold mineralisation within a gently curved tabular
zone of approximately 100m width that dips at 60° to 65° to the north, cross cutting the
steeper 80° to 90°dipping stratigraphy in the overturned southern limb of the anticline. This
is illustrated in
Figure 8 which was provided by Acadian and shows the gold mineralised zone in red and
stratigraphic units in greens and yellow.
Figure 8: Geometry of the Main Zone gold mineralization relative to stratigraphy
(Interpretation by R. Horne and D. Pelley)
The mineralised zone is of the order of 100m in width with better gold grade (eg, >0.5 gpt)
material typically confined to a 5-40m width or widths within that zone and has been identified in historic drill holes at vertical depths of more than 600m below surface (e.g., BD80-059)
and remains open below that depth.
Mineralised zones are characterised by background grades in the range of 0.1 to 1.2 gpt
gold, occasional barren intervals and sparse, higher grade intervals containing one metre intervals ranging up to 514 gpt gold. The geological controls on mineralisation are not known.
7.4.2
Type and Character of Beaver Dam Mineralisation
The gold mineralisation at Beaver Dam occurs both within quartz veins and within the
argillite and greywacke host rocks. The quartz veins that host gold mineralisation are more
commonly bedding parallel but also include cross-cutting veins. Quartz veins are generally
in the range of 0.5cm to 20cm thickness and frequently include sulphides, particularly pyrrhotite, pyrite and/or arsenopyrite with lesser chalcopyrite, galena or sphalerite. Gold commonly occurs within quartz veins as coarse (>1mm) grains and clusters of finer (<1mm), but
still visible grains. Coarse gold grains are more likely to be found at vein-wall rock contacts
and are often spatially associated with sulphides.
Anomalous gold grades in the 0.1 gpt to 4 gpt range have been returned for intervals with
no quartz veins or visible gold. This argillite and greywacke hosted (or disseminated) gold
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Geological Setting
32
mineralisation is often associated with sulphides including pyrrhotite, pyrite, arsenopyrite
and chalcopyrite.
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Deposit Types
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8 Deposit Types
There are a large number of historic underground mines in Nova Scotia with individually
modest production for a combined total of 1.2 million oz. The largest single historic gold
mine is at Goldenville, 56km to the east of Beaver Dam, where 212,000 oz of gold were produced between 1862 and 1942.
Individual mining operations, including mining at Beaver Dam, have focussed on quartzvein hosted gold deposits within the Goldenville Formation, typically associated with the
limbs and hinges of anticlines. This setting is often referred to as ‘Meguma style’ gold mineralization and a number of workers have drawn parallels with a similar style of gold mineralization in the Victorian Goldfields of eastern Australia (e.g. Christie et al, 1999) .
In recent years, the existence of disseminated gold mineralisation and potential to develop
large tonnage, open-pitable resources in Nova Scotia has been recognised, particularly since
1986-87 when drilling around old workings at Moose River Gold Mines, 19km to the south
west of Beaver Dam, intersected wide intervals of relatively low grade gold mineralization in
what is now known as the Touquoy gold deposit. Since then, disseminated gold mineralisation has been identified at a number of locations, spatially associated with anticlinal fold
hinges. Most of that mineralization is associated with argillites or mixed greywacke-argillite
units within the Goldenville Formation, including Touquoy, Beaver Dam and Lower Seal
Harbour, however, disseminated gold has also been recognised in greywacke host rocks
within the Goldenville Group at North Brookfield and several other sites.
At Beaver Dam, the highest gold grades are typically associated with bedding-parallel
tabular quartz veins. However, the host rock material between quartz veins also carries significant gold grades. It is the quartz vein hosted gold mineralization augmented by disseminated style mineralization that forms the basis of a geological model associated with the ongoing exploration and development of the Beaver Dam gold deposit.
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Exploration
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9 Exploration
In 2002, Tempus Corporation, later Acadian Gold Corporation and now known as Acadian Mining Corporation,, acquired the Beaver Dam Property. Acadian utilised Mercator to
manage their exploration activities until 2008 and since then, Acadian has managed all exploration activities within the Property.
This section of the report describes exploration within the Property since 2002 other than
drilling details.
9.1 Procedures, Parameters and Results of Investigations
In 2004, Mercator undertook an extensive compilation and review of available geoscientific information relating to the Beaver Dam property. As part of that review, sample records,
lithological logs , drill collar surveys and down-hole survey data for 238 surface and underground drill holes at Beaver Dam were reviewed, compiled and each drill hole location and
sample record was cross-checked.
In 2010, Acadian contracted CMG Airborne of Ottawa, Ontario to fly an aeromagnetic
survey at 100m and 50m line spacings over a number of areas including the Beaver Dam
property.
Acadian completed a till sample survey over the northeast zone and extending northeast
of the Beaver Dam property in 2011, taking 68 samples for gold grain analyses from within
the Property. Anomalous till results between the northeast zone and Beaver Dam deposit
were followed up in 2013 with shallow RC drilling which intersected mudstone intervals
with arsenopyrite mineralisation and quartz veins that appear similar to the Beaver Dam
mineralisation. Acadian has recommended follow-up diamond drilling in that area.
9.2 Exploration management
In conducting its exploration activities the only parties engaged under contract to Acadian
were Mercator Geological Services of Halifax for exploration supervision, CMG Airborne for
an aeromagnetic survey, drilling companies – Logan Drilling (Stewiacke, NS) for diamond
drilling contracts, Archibald Drill and Blast (Truro, NS) for RC drilling contracts.
Sample preparation and assaying of drill samples was managed by ALS Laboratory
Group at facilities in Timmins, Ontario and Val d’Or, Quebec. Since 2005 when drill core assaying was first undertaken, these facilities have been accredited to ISO 9001:2000 or ISO
9001:2008 by QMI Quality Registrars. Till sample gold grain analyses were undertaken by
Overburden Drilling Management of Nepean, Ontario. Sample preparation and assaying of
drill samples from the 2014-15 resource definition drill program conducted by Atlantic Gold
was managed by ALS Laboratory Group at facilities in Sudbury, Ontario and North Vancouver, British Columbia. ALS Laboratory Group is independent of Atlantic Gold and its subsidiaries.
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Exploration
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All supervision, logging, sampling and interpretation (apart from resource estimation)
functions, together with surveying were undertaken by either Mercator or Acadian personnel.
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Drilling
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10 Drilling
10.1 General
This section of the report describes exploration diamond drilling undertaken by or commissioned by Acadian Mining Corporation and more recently, by Atlantic Gold Corporation
since 2002. Both diamond and shallow RC holes have been drilled within the Project and
several bulk samples have been taken, however, only the results from diamond holes drilled
by Acadian and by Atlantic Gold have been utilised in the resource modelling.
Figure 9 shows the distribution of all holes drilled by Acadian and more recently Atlantic
Gold within the Project.
Figure 9: Acadian Mining and Atlantic Gold Corporation drill-hole locations.
10.2 Resource Area Diamond Drilling Campaigns
In July of 2005, Mercator initiated a drill program at Beaver Dam on behalf of Acadian.
Drilling continued through until 2007 with 133 holes drilled in the Main zone for a total of
18,721m. All of those holes were drilled in NQ diameter and during 2006 three additional
holes were drilled in PQ diameter for metallurgical testing.
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Drilling
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In 2009, Acadian supervised a further drill program with 13 holes completed in NQ diameter for 2,101m. Summary information on the diamond drilling that was used to estimate resources is presented in Table 3 below.
Between October 2014 and January 2015, Atlantic Gold undertook a drill program comprising 41 holes for 8091m of which 38 holes were sampled and assayed. Within that same
period, Atlantic Gold also completed 8 geotechnical diamond holes in NQ diameter for
900m. These latter holes were drilled to help define parameters for pit wall design and have
not been sampled for assay.
Table 3: Summary of Acadian and Atlantic Gold Diamond Drilling Programs – Beaver Dam
Property
Year
2005
2006
2007
2009
2014
2015
TOTALS
No. of
Holes
Hole IDs
BD05-001 to 046
BD06-047 to 066, 068, 070,
072, 074, 076, 078 to 133
BD07-134 to 139
BD09-140 to 152
BD14-154 to 189
BD14-190 to 191A
Metres
Company
46
4,907
Acadian Mining
81
12,041
Acadian Mining
6
13
36
2
184
1,773
2,101
7,560
250
28,632
Acadian Mining
Acadian Mining
Atlantic Gold
Atlantic Gold
Down-hole surveys in the drill holes were taken at intervals typically ranging from 30m to
60m, but extending out to 270m, and commonly included a survey taken just below the base
of overburden. Drill holes are consistently quite straight, rarely varying by more than 5° in
either dip or azimuth over the length of a drill hole.
Core recoveries in each year were generally good, even when drilling through the Mud
Lake Fault and are estimated at over 90% with lesser recoveries associated with some faulting and with proximity to underground voids (historic workings).
Between 2005 and 2007, drill-hole collars were surveyed into the mine grid system using
traditional methods. In 2009, the drill-hole collars were surveyed using a Trimble differential
GPS system. In 2014, licenced surveyors from WSP Canada Inc. resurveyed in the three control points established by Acadian together with a number of the Acadian and earlier drill
collars. The control points were found to incorrectly located with respect to the NAD83 coordinate system but the relationship between the control points and the drill collars was correct such that relative positions in the local grid were maintained – resource estimation is
unaffected by the changes.
All core drilled by both Acadian and Atlantic Gold was half-core sampled at a nominal
sample interval of 1m. Shallow holes were completely sampled from the base of overburden
to the end of hole. For deeper drill holes which intersected long intervals of the hanging-wall
to mineralisation, the un-mineralised upper sections of core were not sampled.
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Drilling
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During 2005 and 2006 (BD05-001 to BD06-133), drill core was split using a mechanical core
splitter. Half of the material was collected and bagged and the other half placed back in the
core boxes. The splitting process worked well for sandstone dominated intervals but in mudstone dominated intervals, the core tended to break along cleavage planes which are oblique,
or parallel, and not perpendicular to bedding. In 2007, a core saw was utilised to cut the core
in half, perpendicular to bedding and predominant-cleavage with one half collected for assay
and the other half retained in the core tray. In 2009, drill core was aligned in core boxes and
the core sawn perpendicular to the planes of both bedding and predominant-cleavage with
the same half of the core removed for assay to ensure unbiased sample selection. A very similar process was used in 2014-15 by Atlantic Gold with core aligned in the trays and then
sawn using a diamond-tipped core saw, perpendicular to bedding and cleavage. In this latest
program, a random number generator was used to determine which side of the core was
submitted for assay in order to prevent any selection bias.
In the Acadian sampling programs, a sample-numbered tag showing corresponding sample interval information was placed in the sampled core boxes and a matching samplenumbered tag without sample interval information was placed in the sample bag with the
drill core. A third tag with sample interval information has been archived. Each sample bag
was sealed with a wire tie then placed in buckets which were in turn sealed with one-use,
gasket lids. The buckets were then shipped by a commercial trucking company to the ALS
lab in Val d’Or, Quebec. In the Atlantic Gold sampling program, a bar-coded and numbered
sample tag was placed in each sample bag with the sample. This tag contained no information that would directly identify the corresponding drill hole or sample interval. The hole
numbers and sample intervals were recorded on corresponding sample tags that are retained
at site. Each sample was bagged with up to 10 other samples in a woven polypropylene bag
which was then sealed with a cable tie before being shipped by a commercial trucking company, Midland Transport to the ALS sample preparation lab in Sudbury, Ontario.
10.3 Resource Area Diamond Drill Hole Distribution
Drilling was on a nominal 25m x 25m grid spacing and holes were inclined to grid south
at dips of between 32° and 71°, to down-hole depths ranging from 47m to 373m. The Acadian
drill holes have tested the auriferous zone over approximately 800m with mineralisation
open at depth and to the west.
Figure 10 shows a plan and cross section view of the diamond drill-hole composite locations and gold grades in the Beaver Dam gold deposit.
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Drilling
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Figure 10: Section and plan view of drill hole composite gold grades
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Drilling
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10.4 Drilling beyond the Beaver Dam Gold deposit
Three diamond holes were drilled into the Northeast Zone in 2006 and three also drilled
into the Mill Shaft Zone in that year. A single diamond hole was drilled in the Mill Shaft
Zone in 2009. Drill-hole details are shown in Table 4. Best results were returned from the Mill
Shaft Zone, including 6m at 5.8 g/t gold from 175m in BD-09-153 and 5m at 4.88 g/t gold from
68m in BD06-071, the latter including 1m at 18.45 gpt. Assays above 0.5 g/t gold are sparsely
distributed in the three holes drilled in the Northeast Zone with the best result from that area
4m at 1.97 g/t gold from 121m in BD06-077.
The orientation of mineralisation in both the Mill Shaft Zone and the Northeast Zone is
uncertain at this stage and therefore the relationship between sample lengths and the true
thickness of mineralisation is not known.
Table 4: Acadian Diamond Drill Holes outside Resource Area
Hole
BD06-067
BD06-069
BD06-071
BD06-073
BD06-075
BD06-077
BD09-153
Northing
1009.67
1034.76
1030.98
1691
1680
1677
1112.16
Easting
-90.79
-75.59
-38.15
1055
1030
1009
175.14
Zone
Mill Shaft
Mill Shaft
Mill Shaft
Northeast
Northeast
Northeast
Mill Shaft
Dip
-45
-43
-45
-48
-47
-47
-45
Azimuth
181
183
180
160
160
160
180
Depth
(m)
151
150
131
150
148.3
161.3
260
Sampled
From (m)
To (m)
6
151
4.7
150
4.6
131
8.9
150
10
148.3
6.5
161.3
8.8
260
A single traverse of vertical, shallow RC drill holes was completed along an existing road
in 2014 with 18 holes drilled for 427m. Drill-hole details are shown in Table 5. The holes were
drilled across a zone of anomalous gold grain counts in till samples. Gold anomalism was intersected in 11 adjacent holes, coincident with argillite dominated lithologies and with significant arsenopyrite and quartz vein contents which appear analogous to the Beaver Dam mineralisation. Whilst generally weak, one sample representing a 1m interval returned 1.57 gpt
gold. The RC holes are essentially geochemical holes, penetrating at most 19m below the
base of overburden (tills). They are vertical holes and will therefore test only narrow basement widths if mineralisation in that area is steeply dipping as is the main Beaver Dam mineralisation. However, the holes were drilled in an area that had been tested with diamond
drill holes in the 1980s and there appears to be limited resource potential in this area.
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Drilling
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Table 5: Acadian Reverse Circulation Drill Holes outside Resource Area
Hole
101
102
103
104
105
106
107
108
109
110
110B
11
112
113
113B
114
115
116
Northing
Easting
1333.97
1365.47
1391.24
1417.37
1436.17
1458.45
1480.91
1500.16
1521.46
1552.60
1562.54
1570.24
1591.72
1608.72
1607.92
1613.20
1624.30
1628.42
Dip
769.49
763.78
737.75
702.50
671.64
643.19
615.73
581.74
542.29
512.23
494.16
469.38
442.10
412.58
402.56
392.45
375.18
353.08
Depth
(m)
Azimuth
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
360
7.79
7.73
8.78
10.81
21.8
16.83
21.89
21.86
21.84
30.84
41.7
32.87
27.82
22.83
29.73
36.77
36.83
27.75
Sampled
From (m)
To (m)
3.79
7.79
3.73
7.73
4.78
8.78
6.81
10.81
9.8
21.8
12.83
16.83
13.81
21.81
16.86
21.86
16.84
21.84
20.84
30.84
22.7
41.7
21.87
32.87
21.82
27.82
21.83
22.83
21.73
29.73
21.77
36.77
21.83
36.83
22.75
27.75
10.5 List of Beaver Dam Drill holes
Table 6 presents a list of the 146 holes drilled by Mercator and Acadian from 2005 to 2009
and used in the estimation of the mineral resources of Beaver Dam together with the 38 holes
drilled and sampled by Atlantic Gold and used in the estimation of the mineral resources of
Beaver Dam.
Table 6: Beaver Dam drill holes with sampled intervals
Hole ID
BD05-001
BD05-002
BD05-003
BD05-004
BD05-005
BD05-006
BD05-007
BD05-008
BD05-009
BD05-010
BD05-011
BD05-012
BD05-013
Collar
Easting
775.15
850.27
873.72
899.94
949.74
1047.89
1101.68
1101.79
1078.73
1101.97
1152.59
1251.56
749.84
Collar
Northing
1081.42
1082.56
1057.83
1041.31
1083.34
1019.52
1007.96
1006.93
1007.36
1078.73
1068.34
1040.25
1066.03
Collar
RL
1133.47
1133.67
1133.15
1133.18
1131.46
1131.18
1130.94
1130.92
1130.83
1132.34
1134.43
1131.71
1132.79
Collar
Azimuth
190.7
182.3
181.3
176.5
182.3
177.5
177.8
180.0
179.4
177.3
180.7
176.6
175.7
Collar
Dip
-41.9
-53.5
-44.1
-43.1
-37.7
-58.2
-64.9
-41.7
-40.0
-39.0
-40.6
-38.7
-34.8
Total
Depth
82.0
107.0
73.2
61.0
101.0
110.2
80.0
83.0
80.0
113.0
140.0
135.3
121.0
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Sample Interval
From
To
3.0
82.0
5.0
107.0
9.0
73.0
7.0
61.0
8.0
100.0
5.0
110.0
10.0
80.0
10.0
83.0
11.0
80.0
10.0
113.0
12.0
140.0
13.0
135.0
6.0
121.0
Drilling
BD05-014
BD05-015
BD05-016
BD05-017
BD05-018
BD05-019
BD05-020
BD05-021
BD05-022
BD05-023
BD05-024
BD05-025
BD05-026
BD05-027
BD05-028
BD05-029
BD05-030
BD05-031
BD05-032
BD05-033
BD05-034
BD05-035
BD05-036
BD05-037
BD05-038
BD05-039
BD05-040
BD05-041
BD05-042
BD05-043
BD05-044
BD05-045
BD05-046
BD06-047
BD06-048
BD06-049
BD06-050
BD06-051
BD06-052
BD06-053
BD06-054
BD06-055
BD06-056
BD06-057
BD06-058
BD06-059
42
649.85
974.45
1024.96
697.90
724.14
675.66
875.13
880.86
898.12
748.95
800.19
824.95
924.97
925.29
948.18
949.96
997.78
1175.24
976.22
900.96
849.81
824.95
800.21
725.53
699.97
674.86
650.49
542.74
781.13
803.60
1000.16
998.21
1025.93
999.47
975.28
948.73
900.01
1149.79
1249.66
1275.04
1300.54
1299.99
1274.74
1199.33
1524.56
879.65
1095.44
1050.18
1074.38
1083.45
1096.40
1098.04
1032.82
1097.40
1082.18
1094.83
1070.24
1075.61
1050.46
1075.46
1039.01
1110.49
1055.08
1064.42
1070.29
1116.76
1057.04
1105.27
1101.21
1074.62
1067.11
1068.80
1066.84
1046.11
1152.35
1122.12
1083.68
1116.12
1101.13
1145.77
1126.43
1137.84
1147.26
1101.22
1070.86
1070.78
1069.94
1040.14
1040.27
1061.67
999.26
1110.60
1131.82
1131.44
1131.38
1133.42
1133.85
1132.74
1132.88
1133.75
1132.67
1133.75
1134.20
1133.30
1132.67
1132.06
1132.36
1131.05
1130.88
1134.52
1131.36
1132.40
1133.62
1135.27
1134.29
1133.84
1133.63
1134.88
1134.54
1139.70
1135.84
1136.39
1131.38
1131.10
1131.31
1131.69
1131.26
1131.35
1132.28
1134.94
1133.46
1132.84
1131.35
1131.76
1132.42
1133.85
1129.08
1134.03
179.5
184.8
176.6
180.0
180.0
180.0
178.0
175.7
183.0
178.2
184.2
180.5
177.9
180.0
181.2
180.0
185.9
183.7
180.0
182.7
184.9
184.3
185.5
182.4
184.8
176.7
180.9
186.7
183.7
181.3
180.0
177.2
182.3
183.2
180.8
185.0
177.8
181.2
180.5
176.8
186.2
182.0
183.3
177.8
178.0
179.5
-36.2
-34.5
-38.2
-45.0
-45.0
-45.0
-44.6
-42.0
-41.8
-44.7
-42.1
-41.7
-41.9
-45.0
-41.2
-37.5
-43.5
-42.2
-46.0
-39.2
-42.9
-43.1
-39.9
-41.2
-41.8
-40.9
-40.9
-41.4
-39.9
-43.4
-44.7
-42.5
-45.1
-37.7
-37.5
-47.0
-42.9
-56.0
-42.6
-38.8
-43.6
-42.1
-44.3
-41.8
-42.4
-49.6
112.0
130.0
124.0
120.0
129.0
98.0
80.0
130.0
110.0
110.0
100.0
100.0
100.0
80.0
80.0
140.0
98.0
120.5
97.0
150.2
80.0
120.0
120.0
80.0
92.0
72.5
83.0
101.0
150.2
91.3
125.2
150.0
150.0
200.0
200.0
200.0
180.1
181.0
170.0
170.0
170.0
143.0
134.0
172.0
214.2
152.0
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5.0
4.5
11.0
7.0
4.6
6.7
6.7
6.0
4.5
4.8
7.3
4.4
5.5
11.0
6.8
7.7
7.2
7.8
9.8
6.8
13.5
8.0
6.5
7.0
6.0
7.0
4.0
8.0
15.0
6.7
12.0
9.0
9.0
6.5
8.0
7.5
10.0
4.0
7.6
6.2
5.0
4.5
5.0
13.0
9.5
4.0
112.0
130.0
124.0
120.0
129.0
98.0
80.0
130.0
110.0
110.0
100.0
100.0
100.0
80.0
79.9
140.0
98.0
120.5
93.8
150.2
80.0
120.0
120.0
80.0
92.0
72.5
83.0
101.0
150.2
91.3
125.2
148.0
149.9
200.0
200.0
200.0
180.0
181.0
170.0
170.0
170.0
143.0
133.4
172.0
214.2
152.0
Drilling
BD06-060
BD06-061
BD06-062
BD06-063
BD06-064
BD06-065
BD06-066
BD06-068
BD06-070
BD06-072
BD06-074
BD06-076
BD06-078
BD06-079
BD06-080
BD06-081
BD06-082
BD06-083
BD06-084
BD06-085
BD06-086
BD06-087
BD06-088
BD06-089
BD06-090
BD06-091
BD06-092
BD06-093
BD06-094
BD06-095
BD06-096
BD06-097
BD06-098
BD06-099
BD06-100
BD06-101
BD06-102
BD06-103
BD06-104
BD06-105
BD06-106
BD06-107
BD06-108
BD06-109
BD06-110
BD06-111
43
1224.24
1324.39
1348.65
1370.75
1398.92
1424.27
1200.60
1175.13
1124.67
1226.13
1025.28
974.97
1036.88
1125.10
1022.66
774.21
993.44
974.88
724.08
951.37
675.20
724.16
699.76
602.10
699.89
621.19
623.94
600.61
675.47
627.76
1225.00
1074.26
1076.58
1122.38
1147.44
1122.82
1150.27
1178.28
1299.34
1198.20
1271.89
1176.46
1024.81
1190.30
1060.64
1116.35
1054.28
1056.60
1056.27
1072.35
1071.05
1062.10
1090.16
1091.00
1093.57
1092.18
1149.32
1149.50
1001.32
1125.38
1037.93
1100.69
1021.19
1017.98
1119.82
1018.54
1118.67
1120.44
1120.71
1068.95
1102.26
1061.96
1097.62
1098.82
1133.30
1154.46
1037.00
1033.53
1070.40
1035.45
1008.23
1052.00
1040.11
1039.05
1010.88
1033.60
1008.44
998.43
1001.26
993.45
1008.90
997.55
1133.52
1131.58
1131.71
1132.63
1131.88
1131.69
1134.74
1134.67
1134.80
1134.32
1131.69
1131.26
1134.20
1134.33
1131.34
1134.28
1132.30
1132.23
1133.62
1132.53
1130.82
1133.54
1132.62
1139.19
1133.08
1138.26
1134.51
1135.63
1130.82
1130.81
1133.50
1130.11
1130.61
1130.04
1129.99
1130.19
1130.43
1130.68
1130.36
1130.41
1130.04
1129.73
1134.13
1129.63
1130.49
1130.51
179.9
177.0
173.1
173.4
181.0
180.0
180.0
182.2
180.0
189.6
180.5
186.7
182.4
180.0
181.8
186.1
182.5
180.0
184.8
186.0
180.0
182.8
188.8
180.0
181.0
180.0
180.0
182.8
176.6
190.6
177.0
178.5
183.3
187.5
181.3
177.0
181.3
180.0
179.5
185.0
180.0
186.4
185.7
180.0
180.0
191.5
-42.7
-46.2
-43.3
-50.7
-46.4
-45.0
-45.0
-38.1
-45.0
-45.6
-43.3
-43.8
-69.3
-44.0
-43.7
-36.6
-44.8
-45.0
-39.6
-44.7
-41.6
-56.6
-49.7
-45.0
-45.0
-43.2
-45.0
-37.6
-41.0
-38.0
-36.3
-39.9
-37.1
-45.4
-40.0
-37.9
-31.5
-45.0
-42.5
-41.1
-45.0
-45.2
-43.1
-45.0
-45.0
-44.2
151.0
161.0
170.0
175.0
175.0
180.0
179.0
180.0
170.0
197.0
200.0
209.0
73.0
209.0
100.0
170.0
116.0
113.8
161.0
102.0
153.0
179.0
170.0
112.0
140.0
99.0
137.0
140.0
186.0
197.0
136.0
101.0
129.0
101.0
89.0
122.0
120.0
124.0
110.0
123.5
110.0
96.0
86.0
68.0
80.0
80.0
FSS International Consultants (Australia) Pty Ltd
6.0
10.0
10.8
8.0
5.0
10.7
6.5
4.6
6.5
5.0
11.4
7.4
6.0
6.0
7.1
6.6
7.0
7.0
3.8
11.9
8.5
3.6
6.0
8.5
4.0
8.6
5.0
5.0
8.5
7.0
36.0
15.0
17.6
19.0
17.0
22.1
27.6
35.0
9.2
38.4
34.0
18.0
6.5
18.0
6.1
10.0
151.0
161.0
170.0
175.0
175.0
180.0
179.0
165.7
169.9
197.0
200.0
209.0
73.0
209.0
100.0
170.0
116.0
110.8
161.0
102.0
153.0
179.0
170.0
112.0
140.0
99.0
137.0
140.0
186.0
197.0
136.0
101.0
129.0
101.0
89.0
120.3
113.0
124.0
110.0
123.5
110.0
95.7
86.0
68.0
80.0
80.0
Drilling
BD06-112
BD06-113
BD06-114
BD06-115
BD06-116
BD06-117
BD06-118
BD06-119
BD06-121
BD06-122
BD06-123
BD06-124
BD06-125
BD06-126
BD06-127
BD06-128
BD06-129
BD06-130
BD06-131
BD06-132
BD06-133
BD06-120
BD07-134
BD07-135
BD07-136
BD07-137
BD07-138
BD07-139
BD09-140
BD09-141
BD09-142
BD09-143
BD09-144
BD09-145
BD09-146
BD09-147
BD09-148
BD09-149
BD09-150
BD09-151
BD09-152
BD14-154
BD14-155
BD14-156
BD14-157
BD14-158
44
1078.44
1100.33
1124.05
1174.82
1200.23
1223.44
1251.81
1240.82
1301.50
1326.16
1350.21
1375.05
1274.71
1299.70
1225.65
1352.03
1324.95
1051.41
925.67
829.68
701.02
1276.37
1075.07
1123.32
1073.29
864.05
1175.35
1018.28
711.24
737.34
860.90
887.60
1137.54
1075.00
650.02
700.03
824.93
874.92
1200.04
599.09
1062.34
700.32
749.69
749.69
749.80
849.78
1110.39
1124.59
1150.43
1121.75
1115.50
1006.75
1009.51
1131.42
1100.27
1085.36
1085.47
1094.53
993.79
984.78
989.05
1027.01
1034.65
1084.24
1099.75
1173.48
1044.85
1102.30
1146.47
1176.56
1223.15
1201.34
1148.74
1202.12
1074.16
1080.74
1046.53
1064.97
1055.00
1179.96
1190.12
1180.08
1209.74
1149.82
1150.02
1157.82
1079.55
1132.94
1095.38
1120.33
1145.04
1100.16
1134.55
1135.26
1133.10
1134.56
1134.41
1129.99
1129.55
1132.70
1131.34
1133.08
1133.61
1132.81
1130.18
1130.40
1130.25
1130.65
1130.51
1131.37
1131.83
1135.48
1135.62
1132.46
1132.47
1133.16
1133.47
1132.12
1133.99
1131.65
1133.32
1133.36
1133.15
1131.41
1133.04
1131.43
1130.04
1131.81
1135.99
1133.35
1134.76
1130.03
1131.40
1132.02
1133.85
1134.42
1134.66
1134.44
181.5
180.0
176.0
180.0
178.1
181.0
183.0
180.0
187.1
186.4
180.0
184.0
180.0
180.0
180.0
180.0
180.0
180.0
180.0
180.0
180.0
180.0
184.2
180.3
187.4
183.1
180.0
180.0
182.4
185.8
180.0
183.2
178.9
180.0
183.6
181.6
183.9
182.7
171.2
173.8
181.6
180
180
180
180
180
-60.3
-59.2
-53.5
-45.0
-46.6
-41.6
-42.5
-45.0
-39.3
-43.9
-44.2
-40.8
-45.0
-45.0
-45.0
-45.0
-45.0
-45.0
-45.0
-45.0
-45.0
-50.0
-52.9
-64.6
-60.2
-60.7
-65.0
-60.0
-40.9
-41.1
-45.0
-42.5
-41.6
-60.0
-47.5
-62.5
-43.4
-67.9
-61.1
-60.5
-40.1
-60
-60
-60
-60
-60
200.0
224.0
230.0
230.0
227.0
90.0
81.0
233.0
200.0
189.3
191.5
190.0
92.0
72.5
70.0
102.5
110.0
134.0
122.0
167.0
65.0
197.0
250.0
310.0
372.5
275.0
275.0
290.0
105.0
95.0
47.0
83.0
110.0
270.0
190.5
200.0
215.0
215.0
260.0
170.0
130.5
161
173
158
170
140
FSS International Consultants (Australia) Pty Ltd
71.0
53.0
36.0
101.0
24.0
25.0
33.0
9.5
8.0
116.0
28.0
9.5
28.0
31.3
28.6
8.4
6.5
6.0
6.0
20.0
14.5
22.0
101.0
165.0
191.0
73.0
158.0
136.0
48.0
6.5
7.0
12.5
29.0
138.0
70.3
39.3
65.0
17.0
170.0
115.0
10.0
9
35
88
16
21
200.0
224.0
230.0
189.0
227.0
90.0
81.0
233.0
200.0
189.3
192.0
190.0
92.0
72.5
68.0
102.5
110.0
127.0
114.2
167.0
65.0
197.0
230.0
301.0
343.0
238.0
263.0
272.0
105.0
95.0
47.0
83.0
110.0
270.0
190.0
200.0
215.0
200.0
260.0
170.0
130.0
161
161
158
155
120
Drilling
BD14-159A
BD14-160
BD14-161
BD14-162
BD14-163
BD14-164
BD14-165
BD14-166
BD14-167
BD14-168
BD14-169
BD14-170
BD14-171
BD14-172
BD14-173
BD14-174
BD14-175
BD14-176
BD14-177
BD14-178
BD14-179
BD14-180
BD14-181
BD14-182
BD14-183
BD14-184
BD14-185
BD14-186
BD14-187A
BD14-188
BD14-189
BD15-190
BD15-191A
45
799.89
850.14
849.97
799.70
899.90
1000.33
949.85
999.94
949.74
1000.01
1049.23
1045.04
1049.89
700.12
1049.90
1097.79
799.51
1099.80
899.35
1099.70
950.82
1100.01
1149.88
1095.38
1149.76
1053.96
1149.80
1199.09
1200.23
1149.70
1199.82
650.00
650.00
1104.29
1124.35
1149.12
1150.21
1160.31
1166.34
1114.76
1140.61
1144.55
1115.05
1149.86
1087.67
1104.84
1165.17
1125.21
1076.88
1124.77
1149.58
1134.82
1174.20
1185.73
1199.68
1100.37
1104.75
1150.16
1185.12
1175.24
1106.09
1174.33
1125.14
1134.48
1100.00
1116.00
1134.30
1134.86
1134.79
1135.81
1132.39
1131.54
1131.40
1131.44
1131.49
1131.16
1131.43
1131.43
1131.75
1131.30
1131.81
1132.18
1135.62
1133.54
1132.60
1132.41
1131.57
1132.38
1134.95
1134.67
1133.47
1131.28
1134.23
1134.57
1135.14
1134.09
1134.91
1130.00
1130.00
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
180
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-45
-60
-60
-60
-60
-60
-60
-60
-60
-60
-65
122
170
194
182
221
251
185
221
212
218
269
173
212
180
254
149
149
266
190
281
248
290
163
191
251
285
284
215
278
212
242
110
140
FSS International Consultants (Australia) Pty Ltd
50
6
12
12.4
13
78
6.7
77
22
39
88
46
77
7.5
89
35
30
153
58
149
6.3
173
78
58
5
120
193
116
176
135
153
3.25
62
122
170
142
182
206
251
185
221
212
180
269
173
212
180
254
149
149
266
190
281
248
290
163
191
251
285
284
215
278
212
242
110
140
Sample Preparation, Analysis and Security
11 Sample Preparation, Analysis and Security
The discussion in this section of the report draws mainly on the work of Banks 2014
which discusses the sample preparation, analysis and interpretation undertaken by Mercator Geological Services and Acadian Mining Corporation to quality assurance and
quality control for the 2005 through 2009 drilling programs at Beaver Dam.
11.1 Mercator Drilling Program 2005-07
11.1.1 Introduction
On behalf of Acadian, Mercator supervised the drilling of 139 holes at the Beaver
Dam property, between 2005 and 2007. During this program, 16,045 assays were completed. These samples constitute the largest component of the assay database used in
the Mineral Resource Estimate. Drill core samples were prepared by Mercator staff in a
secure facility using 1 metre intervals.
Samples were halved and one half was sent to ALS Chemex for analysis while one
half remained in the core box for reference. Core samples were tracked using a three tag
system with one tag remaining in the sample book, one tag accompanying the sample to
the lab and one tag remaining in the core box. Each half core sample was recorded and
shipped in sealed plastic buckets to ALS.
Samples were prepared and analysed using a Full Metallic Screen where the entire
core sample is crushed and processed. Along with regular samples Mercator staff included unmarked blank material as part of their QA/QC protocol.
Field duplicates and certified reference materials were not introduced. Instead a
heavy reliance was placed on ALS Chemex’ internal QA/QC program. Results for both
unmarked blanks inserted by Mercator and ALS internal QA/QC results were regularly
reviewed by Mercator staff.
11.1.2 Mercator Blanks – Sample Preparation
Blank, half core material was inserted at every 20th sample by Mercator staff. Blanks
were unmarked and consisted of rock similar to regular stream samples. It is unclear
from Mercator reports where the blank material was sourced or how the suitability of
this material was determined.
11.1.3 Mercator Blanks – Discussion and Results
During the 2005-2007 drilling program, Mercator inserted 838 blind blank samples into the sample stream.
Figure 11 illustrates the results for blank samples and shows that the majority (89%)
are below the detection limit. Of the remaining blank samples, 31 returned results
greater than or equal to 0.1 gpt Au, and are considered anomalous. Additionally, three
blank samples returned assay results of greater than 0.4 gpt Au. Anomalous results are
distributed throughout the entire period of blank assaying indicating no temporal relationship related to the lab.
FSS International Consultants (Australia) Pty Ltd
46
Sample Preparation, Analysis and Security
47
Of the 31 anomalous samples, 11 are preceded by samples with gold values higher
than the blank sample and 20 of the anomalous blank samples are preceded by samples
with gold values lower than the blank. Although lab procedures include cleaning of
crushing and pulverizing equipment between samples, some cross-contamination may
occur where coarse gold is present such as that found at Beaver Dam. The scatterplot of
Blank Grade versus Previous Sample Grade shown in
Figure 12 indicates no significant statistical relationship between these data pairs and
clearly shows that the bulk of the paired data lying along the X and Y axes are essentially independent.
Some the anomalous blank samples may reflect contamination during the crushing or
pulverizing stages. The suitability of the samples as blank material has not been documented so it is possible that the gold content was introduced at the sampling stage.
However, the results for the blanks do not show evidence of significant contamination
during crushing or pulverizing that would negate the suitability of the assay data for use
in a Mineral Resource Estimate.
2005-07 Time Sequence of Blank Grades
1.1
1.0
0.9
Bln_Au_ppm
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0
100
200
300
400
500
600
700
800
900
SeqNo
Figure 11: Mercator analytical blanks vs Sample Number
11.1.4 ALS Analytical Blanks – Sample Protocol
ALS Chemex is an ISO registered lab that follows established QA/QC protocols.
Blanks, standard reference material and duplicates are regularly included in each batch
of samples. Results for these QA/QC samples are routinely reviewed by a qualified ALS
employee as well as provided to the client. ALS inserts quality control samples on each
analytical run, based on the rack sizes associated with that method. The rack size is the
number of samples, including QC samples, included in a batch. Blanks are inserted at
the beginning, standards are inserted at random intervals and duplicates are analysed at
FSS International Consultants (Australia) Pty Ltd
Sample Preparation, Analysis and Security
48
the end of the batch. Quality control samples are inserted based on the following rack
sizes specific to the method as indicated in Table 7.
1.1
Blank grade vs Previous Sample grade
Data Statistics
1.0
Variable: Prev_Au_ppm Bln_Au_ppm
0.9
Bln_Au_ppm
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.01
0.10
1.00
10.00
Weight by: -Mean: 0.314
Variance: 4.121
CV: 6.462
Minimum: 0.010
Q1: 0.010
Median: 0.010
Q3: 0.080
Maximum: 48.800
IQR: 0.070
Covariance:
Pearson:
Spearman:
No. of Data:
100.00
Prev_Au_ppm
-0.021
0.003
2.706
0.010
0.010
0.010
0.010
0.990
0.000
0.002
0.017
0.330
820
(Data set at full limits)
Figure 12: Mercator analytical blanks vs Previous Sample gold grade
All data gathered for quality control samples, blanks, duplicates and reference materials are automatically captured, sorted and retained by the ALS QC Database. Blank
material contains no sample material, and consists of only flux and in the case of gold
assays, silver. This is recognized as a method or analytical blank and is accepted industry practice for fire assay procedure.
Table 7: Protocols for treatment of blanks
Rack
Size
20
28
39
40
84
Methods
Specialty methods including specific gravity,
bulk density and acid insolubility
Specialty fire assay, assay-grade, umpire and
concentrate methods
XRF methods
Regular AAS, ICP-AES and ICP-MS methods
Regular fire assay methods
Quality Control Sample Allocation
2 standards, 1 duplicate, 1 blank
1 standard, 1 duplicate aka triplicate, 1
blank
2 standards, 1 duplicate, 1 blank
2 standards, 1 duplicate, 1 blank
2 standards, 3 duplicates, 1 blank
11.1.5 ALS Analytical Blanks – Results and Discussion
ALS analysed a total of 1071 analytical blanks during the 2005-2007 drill programs.
The purpose of running these blanks is to test the accuracy of the analytical method.
These blanks do not undergo all steps of the assay process (crushing, pulverizing,
screening and assaying). For this reason analytical blanks are not directly comparable
with blind blanks inserted by Mercator. ALS used a total of 1071 analytical blanks which
returned results within expected parameters of 0.01-0.02 gpt.
FSS International Consultants (Australia) Pty Ltd
Sample Preparation, Analysis and Security
49
11.1.6 ALS Standard Reference Materials – Sample Protocol
As shown in Table 7, standard reference materials (SRM’s) were randomly inserted
by ALS into batches based on the method and rack size. All samples during this period
were analysed using Screen Fire Assay (SFA) and would have been run with a rack size
of 28 samples. For each 28 samples, one SRM was randomly inserted.
11.1.7 ALS Standard Reference Materials – Results and Discussion
Between 2005 and 2007, ALS Chemex analysed a total of 2124 samples from a pool of
16 unique standard reference materials. Of those materials, 14 were obtained from
Rocklabs of New Zealand and are Certified Reference Materials. ST327 and ST259 are
Reference Materials from Gannet Holding Pty Ltd, also of Australia.
These standard reference materials (SRM’s) range in value from 0.4-18.13 gpt Au and
provide an evaluation of lab accuracy. Table 8 provides a summary of results and basic
statistics for each of the 16 SRM’s used by ALS. Mean results for each SRM were consistently below the expected grade by 0.2%-2.9% suggesting an overall low bias of results.
Figure 13 through
Figure 15 and Table 9 show the detailed results for four standards. Eight of the 16
standards returned results which fell within 2 standard deviations (SD) of the expected
result. Ten of the 16 SRM’s had a small proportion of results which fell outside of 2SD
from the expect value. Overall, those samples outside of the 2SD do not appear to indicate any temporal or systematic accuracy issues.
Table 8: Statistics of ALS Chemex results of assaying 16 SRM’s
Reference
Material
Count
Mean
Au gpt
OXD43
OxE21
OxE42
OxF41
OxF53
OxG46
OXK35
OXL34
OXL40
OXP32
OxP50
SI15
SK11
SP17
ST-259
ST-327
143
322
41
299
34
158
23
18
60
179
8
161
49
208
64
357
0.399
0.636
0.596
0.795
0.792
1.016
3.387
5.740
1.832
14.720
14.862
1.792
4.814
17.998
2.421
6.814
Expected
Grade
Au gpt
0.401
0.651
0.61
0.815
0.81
1.037
3.489
5.758
1.857
14.99
14.89
1.805
4.823
18.13
2.48
6.83
% Difference
from Expected
Au gpt
-0.09%
-0.75%
-0.68%
-1.01%
-0.88%
-1.06%
-5.08%
-0.87%
-1.26%
-13.50%
-1.37%
-0.66%
-0.46%
-6.61%
-2.92%
-0.80%
Standard
Deviation
0.009
0.028
0.011
0.015
0.014
0.018
0.096
0.128
0.033
0.414
0.267
0.037
0.077
0.380
0.061
0.148
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Lower
Limit
Au gpt
0.359
0.5990
0.554
0.767
0.752
0.955
3.194
5.412
1.769
14.11
14.56
1.671
4.603
17.262
2.24
6.33
Upper
Limit
Au gpt
0.443
0.7030
0.666
0.863
0.868
1.119
3.58
6.104
1.945
15.87
15.22
1.939
5.043
18.998
2.72
7.33
Sample Preparation, Analysis and Security
50
Table 9: ALS results for Standard OxP50.
Standard
ID
St10
St16
St17
St08
St09
St08
St14
St16
Batch Number
VO07068075
VO07080596
VO07080596
VO07085880
VO07085880
VO07088481
VO07092793
VO07099108
Expected Result 14.89 Au gpt, n=8
Figure 13: Detailed results for ALS Chemex SRM OXD43
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Results
Au gpt
14.95
14.35
14.85
14.9
14.75
15.0
15.3
14.8
Sample Preparation, Analysis and Security
Figure 14: Detailed results for ALS Chemex SRM OxF41
Figure 15: Detailed results for ALS Chemex SRM SP17
11.1.8 ALS Pulp Duplicates - Introduction
All core samples generated between 2005 and 2007 were analysed by Screened Fire
Assay (SFA) at ALS Chemex. Standard procedure at ALS is to analyse two homogenous
samples of the minus fraction for each sample. Duplicate results are available for each of
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the 16028 regular samples submitted during this time. Along with the duplicate pairs
of minus fraction material ALS also analyses an additional lab duplicate with every
batch. SFA batches are processed in racks of 28 and contain 1 duplicate in each. For the
purpose of distinguishing the minus fraction duplicates which are run for every sample
from the duplicates run once per batch of 28, the latter are referred to as triplicate samples.
11.1.9 ALS Pulp Duplicates – Sample preparation
As part of ALS standardized procedures for SFA, samples are crushed and pulverised
into a prepared pulp which is then screened into a plus and minus fraction using a Tyler
150 mesh (105 microns) sieve. The screened material is homogenized and two subsamples are analysed and denoted Au-AA25 and Au-AA25D. The duplicate minus fractions
are analysed by fire assay with AAS finish and are reported as part of the SFA results.
Comparison of these samples allows for an evaluation of assaying precision.
11.1.10 ALS Pulp Duplicates – Results and Discussion
A total of 16028 pulp duplicate pairs were assayed between 2005 and 2007.
Figure 16 presents the scatterplot of the duplicate gold grades for samples along with
the summary univariate and bivariate statistics for pulp duplicates with grades greater
than or equal to 0.1 gpt and less than 30 gpt. This subset represents around 20% of all
pairs.
Figure 17 shows the corresponding precision plot of pair absolute difference versus
pair average.
The plots show that the grades of the minus fraction pulps above 0.1 gpt are highly
correlated and readily reproducible with a precision of around +/-7%. Gold grades in the
minus fraction pulps range from zero up to around 100 gpt in this data set suggesting
that even in the fine fraction, relatively coarse gold remains.
Scatter plot of 2005-07 Pulp Duplicates
AuAA25D_ppm
30
Data Statistics
20
10
0
0
10
20
30
40
Variable: AuAA25_ppm AuAA25D_ppm
Weight by: --Mean: 0.807
0.809
Variance: 3.056
2.980
CV: 2.167
2.133
Minimum: 0.100
0.100
Q1: 0.200
0.200
Median: 0.370
0.370
Q3: 0.750
0.760
Maximum: 28.300
27.800
IQR: 0.550
0.560
Covariance: 2.999
Pearson: 0.994
Spearman: 0.936
No. of Data: 3175 / 16022
AuAA25_ppm
(Data are sub-setted)
Figure 16: Minus fraction duplicate vs original, 2005-07 sampling program
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Paired Data Precision plot - 2005-07 pulp duplicates
4
Pair Absolute Difference
53
Data Statistics
3
2
1
0
0
10
20
30
Pair Average
40
Variable: AuAA25_ppm AuAA25D_ppm
Weight by: --Mean: 0.807
0.809
Variance: 3.056
2.980
CV: 2.167
2.133
Minimum: 0.100
0.100
Q1: 0.200
0.200
Median: 0.370
0.370
Q3: 0.750
0.760
Maximum: 28.300
27.800
IQR: 0.550
0.560
Covariance: 2.999
Pearson: 0.994
Spearman: 0.936
Precision: +/-7% @ 26%CI
No. of Data: 3175 / 16022
(Data are sub-setted)
Figure 17: Minus fraction duplicate precision plot, 2005-07 sampling program
11.2 Acadian Mining Drilling Program 2009
11.2.1 Introduction
The 2009 drilling program was supervised by Acadian Mining and QA/QC procedures were instituted and carried out by Acadian Mining staff. Analytical QA/QC procedures included the insertion of blind blanks and standard reference materials (SRM’s)
into the sample stream. In addition, the ALS internal QA/QC program was monitored.
The ALS program consists of blanks, standards, pulp duplicates and triplicates. The
methodologies used by ALS in 2009 are the same as those used between 2005 and 2007.
11.2.2 Acadian Blanks – Sampling Protocol
In general, blanks were inserted at regular intervals throughout sampling such that
one blank sample was introduced for each 50 samples. Blank material consisted of massive anhydrite drill core from the Windsor Group.
11.2.3 Acadian Blanks – Results and Discussion
A total of 27 blank samples were submitted during the 2009 drill program. All 27
samples returned values below detection level (<0.05 Au gpt) indicating no obvious
cross contamination.
11.2.4 Acadian Standard Reference Material – Sample Protocol
In 2009, Acadian Mining inserted seven unique standard reference materials (SRM’s)
sourced from Rocklabs of New Zealand and WCM minerals of Burnaby, B.C. The SRM’s
covered a wide range of certified values (0.29 gpt Au to 10.40 gpt Au) that were appropriate for use at the Beaver Dam project. SRM’s were parcelled plastic bags containing
>30g of material selected by Acadian staff. Although the samples were visibly distinct
from the core samples, the expected grade and reference material number were never
provided to the lab. SRM samples were randomly inserted into the sample stream so
that for every 50 samples 1 SRM would be present.
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11.2.5 Acadian Standard Reference Material – Results and Discussion
The results for SRM samples are provided in
Table 11: Assay Results for SRM’s PM403, PM405 and PM410
, Table 11 and
below. Overall, results for the SRM’s are considered within acceptable limits. Sample
8750 from drill hole BD09-153 was labelled as PM427 but returned a result of 0.73 gpt
Au. This result is consistent with SRM PM410. It’s likely that this sample was mislabelled when sampling occurred. Both Acadian and ALS inserted analytical blanks and
standards from this batch returned expected results, supporting this interpretation.
Table 10: Assay Results for SRM’s 0xG70 and PM914
Standard OxG70
Expected Result: 1.01 gpt
2SD = 0.94 gpt - 1.08 gpt
Hole ID
Sample No
BD09-141
27550
BD09-144
10550
BD09-145
10858
BD09-147
29450
BD09-147
29475
BD09-148
29500
BD09-141
27550
Au gpt
1.01
0.99
1.06
1.03
1.02
1.02
1.01
Standard PM914
Expected Result: 10.4 gpt
2SD = 10.11 gpt - 10.69 gpt
Hole ID
Sample No
Au gpt
BD09-140
27750
10.40
BD09-142
10750
10.35
BD09-143
27700
10.25
BD09-145
11000
10.50
BD09-145
10950
10.65
BD09-146
10800
10.35
BD09-140
27750
10.40
Table 11: Assay Results for SRM’s PM403, PM405 and PM410
Standard PM403
Expected Result: 0.17 gpt
Hole ID
BD09-146
Sample No
10897
Au gpt
0.20
Standard PM410
Expected Result: 0.73 gpt
2SD = 0.69 gpt - 0.77 gpt
Hole ID
Sample No
Au gpt
BD09-152
8850
0.74
BD09-153
8800
0.72
Standard PM405
Expected Result: 0.29 gpt
2SD = 0.27 gpt - 0.31 gpt
Hole ID
Sample No
BD09-147
25950
BD09-148
29350
BD09-149
29214
BD09-150
25551
BD09-153
9050
Au gpt
0.29
0.30
0.29
0.31
0.29
Table 12: Assay Results for SRM’s PM413 and PM427
Standard PM413
Expected Result: 2.05 gpt
2SD = 1.94 gpt - 2.16 gpt
Hole ID
Sample No
BD09-140
27800
BD09-141
27593
BD09-144
10600
Au gpt
2.03
2.09
2.02
Standard PM427
Expected Result: 3.57 gpt
2SD = 3.24 gpt - 3.90 gpt
Hole ID
Sample No
BD09-149
29055
BD09-149
29400
BD09-152
8700
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Au gpt
3.47
3.49
3.40
Sample Preparation, Analysis and Security
55
BD09-153
8750
0.73
11.2.6 ALS Analytical Blanks – Sample Protocol
ALS internal QA/QC protocols are consistent with those previously outlined for the
Mercator supervised 2005-2007 drill programs: one analytical blank is inserted at the beginning of each batch of 28 samples.
11.2.7 ALS Analytical Blanks – Results and Discussion
In total, 54 analytical blank samples were run by ALS during 2009. All 54 results returned assays at or below detection (<0.05 Au gpt).
11.2.8 ALS Standard Reference Materials – Sample Protocol
ALS routinely inserted one standard reference material (SRM) for every 28 samples in
a run. As with blanks and duplicates, SRM results are gathered, sorted and retained in
ALS’s QC database.
11.2.9 ALS Standard Reference Materials – Results and Discussion
During 2009, ALS used 4 separate standard reference materials (SRM’s) covering a
range of grades. Table 13 provides a summary of those standards and the results. Overall, two of the 168 SRM’s returned values outside of 2 standard deviations (SD). Both
outlier samples are from the same certificate, VO09123576. The SF30 outlier returned a
result of 0.77 gpt Au which is slightly lower than the expected 0.832 gpt Au. The outlier
found in OxD73 results returned a slightly greater than expected result of 0.45 gpt Au,
compared to the expected 0.42 gpt Au. These outliers represent 1.2% of the standard reference material results and do not indicate a significant issue with precision for the 2009
results.
Table 13: Summary of ALS standards inserted during 2009
Reference
Material
OxD73
OxN62
OxP50
SF30
Count
Mean
(Au gpt)
14
15
69
70
0.42
7.69
14.86
0.83
Expected
Result
(Au gpt)
0.42
7.71
14.89
0.83
% Diff from
Expected
(Au gpt)
0%
-1%
-1.5%
0%
Standard
Deviation
(Au gpt)
0.01
0.11
0.28
0.02
Lower
Limit (Au
gpt)
0.39
7.47
13.90
0.79
Upper
Limit (Au
gpt)
0.44
7.94
15.88
0.87
11.2.10 ALS Pulp Duplicates – Sample Protocol
As previously discussed for the 2005-2007 Mercator supervised drill programs,
standard procedure for ALS is to analyse a pair of prepared pulps for each sample.
These duplicates are subsamples of minus fraction material which has been homogenized and analysed by fire assay with AAS finish (Au AA25 and Au AA25D).
11.2.11 ALS Pulp Duplicates – Results and Discussion
A total of 1316 fine fraction pulp duplicates were run by ALS during the 2009 Acadian supervised drill program.
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56
Figure 18 shows the scatterplot of the duplicate gold grades together with the summary statistics for those samples with duplicate grades greater than or equal to 0.1 gpt
(approximately 25% of the total data).
Figure 19 shows the corresponding precision plot. While the range of sample grades
exhibited in these data is much less than that shown in the 2005-07 duplicate data, the
correlation and precision are very similar and indicate a consistent and high quality has
been maintained in the sample processing and assaying.
Scatter plot of 2009 Pulp Duplicates
8
Data Statistics
7
Variable: AuAA25_ppm AuAA25D_ppm
AuAA25D_ppm
6
5
4
3
2
1
0
0
1
2
3
4
5
6
7
8
Weight by: -Mean: 0.666
Variance: 0.710
CV: 1.265
Minimum: 0.100
Q1: 0.210
Median: 0.390
Q3: 0.760
Maximum: 6.880
IQR: 0.550
Covariance:
Pearson:
Spearman:
No. of Data:
AuAA25_ppm
-0.676
0.732
1.266
0.100
0.220
0.390
0.780
7.330
0.560
0.708
0.983
0.933
365 / 1313
(Data are sub-setted)
Figure 18: Minus fraction duplicate vs original, 2009 drilling program
Paired Data Precision plot - 2009 Pulp Duplicates
0.9
Data Statistics
0.8
Pair Absolute Difference
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0
1
2
3
4
Pair Average
5
6
7
8
Variable: AuAA25_ppm AuAA25D_ppm
Weight by: --Mean: 0.666
0.676
Variance: 0.710
0.732
CV: 1.265
1.266
Minimum: 0.100
0.100
Q1: 0.210
0.220
Median: 0.390
0.390
Q3: 0.760
0.780
Maximum: 6.880
7.330
IQR: 0.550
0.560
Covariance: 0.708
Pearson: 0.983
Spearman: 0.933
Precision: +/-10% @ 32%CI
No. of Data: 365 / 1313
(Data are sub-setted)
Figure 19: Minus fraction duplicate precision plot, 2009 drilling program
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11.3 Atlantic Drilling Program 2014-15
11.3.1 Introduction
The 2014-15 drilling program was supervised by Atlantic Gold and QA/QC procedures were instituted and carried out by Atlantic Gold staff. Analytical QA/QC procedures included the insertion of blind blanks and standard reference materials (SRM’s)
into the sample stream. In addition, the ALS internal QA/QC program was monitored.
The ALS program consists of blanks, standards, pulp duplicates. The procedures and
methods used by ALS in 2014-15 referred to as Au-SCR-24 are similar those used in the
previous programs of 2007 and 2009.
11.3.2 Atlantic Gold Blanks – Sampling Protocol
In general, blanks were inserted at regular intervals throughout sampling such that
one blank sample was introduced for each 28 samples. In some instances, a blank was
inserted immediately following a sample with visible gold. The Blank material was chosen from long sections of the Touquoy half-core for which assays of the other half returned results of below detection for gold.
11.3.3 Atlantic Gold Blanks – Results and Discussion
A total of 174 blank samples were submitted by Atlantic Gold during the 2014-15
drilling program. Of these some 161 return a results of below detection (<0.01 gpt). Of
the remaining 13, eight returned grades of less than 0.1 gpt. The remaining five samples
returned gold grades ranging from 0.1 to 2.23 gpt. A further 224 assay blanks submitted
by ALS return grades less than detection.
The small number of abnormal results from the Atlantic blanks and the lack of anomalous results for the ALS blanks suggest that some of the Touquoy material selected by
Atlantic Gold was not completely devoid of gold.
11.3.4 Atlantic Gold Standard Reference Materials – Results and Discussion
During the 2014-15 drilling program, standards were inserted in the sample stream at
approximately every 28th sample. A total of 122 standard samples from seven standards
were submitted for screened fire assay. The results are shown graphically in
Figure 20. The one standard deviation bounds are shown for four of the standards.
The results for two of the standards used are not plotted because less than five outcomes
were generated.
The results suggest good overall performance across the range of grades from 0.4 to
around 2.7 g/t. There are anomalous outcomes for 6Pc and SJ53 which represent around
three percent of the total assay population.
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SFA Assay Standards, 2014-15 Drilling
3
2.5
Gold g/t
2
6Pc
OXD87
1.5
OXJ80
1
SG56
SJ53
0.5
0
0
20
40
60
80
100
120
140
Sample Number
Figure 20: Results of assaying of five assay standards, 2014-15 program.
11.3.5 Atlantic Gold Fine Fraction Duplicates – Results and Discussion
As with the previous drilling programs of Mercator and Acadian, duplicate assays of
the fine fraction of the screened material were done for most samples. A high proportion
of these samples returned below detection for both the original and duplicate. A scatterplot and a precision plot of the original and duplicate assay data are shown in Figure 21
and
Figure 22.
Scatter plot of Fire Assay Duplicaates, 2014-15 Program
7
Data Statistics
Variable: FA1_g/t
6
FA2_g/t
Weight by: --
FA2_g/t
5
4
3
2
0.160
Variance: 0.198
CV: 2.842
0.207
2.849
Minimum: 0.000
0.000
Q1: 0.000
0.000
Median: 0.010
0.010
Q3: 0.090
0.090
Maximum: 5.840
5.900
IQR: 0.090
0.090
Covariance: 0.197
1
0
--
Mean: 0.157
Pearson: 0.971
0
1
2
3
4
5
6
7
Spearman: 0.832
No. of Data: 4758 / 4767
FA1_g/t
(Data are sub-setted)
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Figure 21: Minus fraction duplicate vs original, 2014-15 drilling program
Paired Data Precision plot, FA Duplicates, 2014-15
4
Data Statistics
Variable: FA1_g/t
Pair Absolute Difference
3
2
1
0
0
1
2
3
4
Pair Average
5
6
7
Weight by: -Mean: 0.157
Variance: 0.198
CV: 2.842
Minimum: 0.000
Q1: 0.000
Median: 0.010
Q3: 0.090
Maximum: 5.840
IQR: 0.090
Covariance:
Pearson:
Spearman:
Precision:
No. of Data:
FA2_g/t
-0.160
0.207
2.849
0.000
0.000
0.010
0.090
5.900
0.090
0.197
0.971
0.832
+/-16% @ 24%CI
4758 / 4767
(Data are sub-setted)
Figure 22: Minus fraction duplicate precision plot, 2014-15 drilling program
The plots indicate fine fraction assay reproducibility similar to that achieved in the
2009 program and somewhat lower in quality compared to the 2005-7 program. There
are three clearly anomalous results on the precision plot which, if removed, would improve the outcome significantly. As with the previous results, there is no indication of
global bias in the duplicate data that would suggest serious problems in the sampling
and splitting process.
11.4 Discussion
Between 2005 and 2007, Mercator staff inserted 838 unmarked blanks into the regular sample stream. Neither the suitability nor the source of the blank material is discussed in Mercator reports. Of these blanks, 3.6% contained detectable gold (>0.1 gpt
Au). These anomalous samples were randomly distributed suggesting there was no systematic contamination of samples.
A total of 27 blanks were submitted as part of Acadian’s limited drill program in
2009. Blank samples were inserted by Acadian staff at regular intervals and consisted of
massive anhydrite drill core from the Windsor group. All blanks returned assay results
below detection levels which suggests no cross contamination. During both the Mercator
(2005-2007) and Acadian (2009) drill programs ALS analysed analytical blanks at the beginning of each batch of 28 samples. These analytical blanks contain no sample material
and are an industry accepted method for testing analytical accuracy. Results for ALS
blanks consistently returned results within expected parameters indicating good accuracy of assay results.
A variety of standard reference materials (SRM’s) were “blindly” inserted by Acadian
during the 2009 drill program and internal SRM’s were regularly analysed by ALS
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throughout all drill programs (2005-2009). SRM’s used by both Acadian and ALS covered low, medium and high grade ranges appropriate for the Beaver Dam property.
The most significant population of SRM results (ALS 2005-2007) suggests there may be a
low bias in ALS screen fire assay results. Overall, results for both ALS and Acadian
SRM’s indicate good accuracy for assay results.
As part of ALSs QA/QC internal protocol, duplicate pulps of the minus fraction were
analysed for each sample. The duplicate results from 2005-2007 and 2009 drill programs
had similar mean grades, good correlation between population pairs and sampling precisions of less than 10% which is a very good result for assay duplicates. No significant
bias between the populations is indicated in the data.
The outcomes of 174 blanks, 122 standard references samples from five main standards and 4758 fine fraction duplicates generated by Atlantic Gold during the 2014-15
drilling program are both consistent with the results of the earlier programs and provide
solid evidence of strongly reproducible results with no indications of global bias in the
sampling protocol.
Overall, the sampling QA/QC results presented indicate a high level of sample and
assay quality appropriate for use in a Mineral Resource Estimate.
11.5 Sample security
11.5.1 Mercator Geological Services
Mercator implemented a quality control, sample handling and assay procedure for
the
2005-07 diamond drill program at Beaver Dam. Mercator provided exploration management including planning, drill core logging and sampling, sample preparation, sample security and monitoring of analytical results. Detailed records were kept of the procedures followed and the results are obtained in paper and digital form, which were
stored and backed up in a standard format in hardcopy and CD or DVD disks. A program of data verification was undertaken to confirm the validity of exploration data entered into the database. All records were regularly reviewed by QPs from Mercator.
Drill core was received from the drill rig and transported to a secure logging facility
where it was logged by Mercator geologists. A hard copy and digital copy of lithological
logs were prepared for each drill hole. Following the logging, core boxes were taken to
the secure core cutting facility for further processing. One metre core sample intervals
were laid out by geologists and sample intervals recorded on the drill logs. All sample
intervals were recorded on pre-numbered three tag sample books. Two tags were placed
in the core box at the up-hole end of respective sample intervals and the third retained in
the sample book as a permanent record. Samples were marked and cut under the supervision of a geologist using a diamond saw and one half of each interval was placed in a
plastic sample bag along with one of the sample tags previously included with the core
interval. The sample bags were labelled with this tag number, sealed with a metal tie,
and prepared for shipment by courier to the analytical laboratory. The remaining sample
tag was left in the core box to mark the sample interval removed.
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11.5.2 Acadian Mining Corporation
During the 2009 Drill programme, all drill core was transported from the drill site to
the Scotia Mine in Gay’s River by Acadian Staff. The core was kept in a secure area with
limited access and was photographed, logged, cut and sampled by Acadian personnel.
Samples always consisted of the top half of the drill core and were collected and
placed in plastic bags where they were numbered using a three tag book and sealed with
wire ties. When sampling for a hole was completed the samples were placed in buckets
with self-sealing one use lids and transported by Acadian staff to the shipping facility
(Armour Trucking) for transport to ALS laboratories.
11.5.3 Atlantic Gold Corporation
Half core samples defined by Atlantic Gold were assigned with alphanumeric sample
numbers and the corresponding drill-hole numbers and sample intervals recorded in a
sample tag book and on sample sheets that are only accessible to a small number of Atlantic Gold personnel.
Drill core samples were placed in cloth bags with the sample number written in
marker pen on the outside and with a corresponding sample number tag inside the bag.
Each of these, approximately 2.4kg bags was then placed in a large woven polypropylene bag with up to 9 other samples which was then sealed with a plastic cable tie. The
polypropylene bags were secured in a locked shipping container until transferred to a
Midland Transport yard in Halifax where they were loaded into trucks for delivery to
the ALS facility in Sudbury.
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Data Verification
62
12 Data Verification
No independent data verifications checks have been undertaken by the Qualified Person
for the drilling and sampling undertaken by Hudgtec or Acadian Mining. Given the detailed
analysis and checks undertaken and discussed in Item 11, completely independent verification checks have not been considered a priority.
Data management by both Acadian and Atlantic Gold utilised the Datashed database
software provided by Maxwell Geoservices which includes merging of all assays directly
from laboratory supplied digital files, with sample intervals in the database. The package also provides a number of data verification checks such as for overlapping sample intervals.
The data made available for this study is considered of sufficient quality to meet the goals
of the study and this Technical Report.
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Mineral processing and Metallurgical Testing
13 Mineral processing and metallurgical testing
13.1 Introduction
Samples from the Beaver Dam deposit have been tested for a range of process methods
which has clearly shown that the same flow sheet arrived at for Atlantic Gold Corporation’s
Touquoy deposit will give good recovery results.
13.2 Metallurgical Test Work
A fairly extensive series of tests were carried out in 2006 by SGS Minerals Services. A series of drill cores were received from each of three mineralized zones, known as Papke, Austin and Crouse, amounting to approximately 1,400 kg of material. After preparing and sampling all drill holes, an overall composite was prepared and used for test work.
The composite was split into 3 fractions and assayed in duplicate (Table 14) and it can be
seen that the grades were low and variable.
Table 14: Beaver Dam Composites
Au
Au duplicate
Ag
S (total)
g/t
g/t
g/t
%
-1/2
Inch
0.75
0.92
< 0.5
0.58
SO4
%
< 0.4
< 0.4
< 0.4
S (sulphide)
%
0.34
0.28
0.3
Element
Units
-1/4
Inch
0.08
0.43
< 0.5
0.56
-1/8
Inch
0.32
0.37
< 0.5
0.49
Grinding Test Work
The mineralized material was subjected to a standard Bond ball mill index test and the results are shown in Table 15.
Table 15: Beaver Dam Bond Ball Mill Index
Sample Name
Feed
F80
µm
Product
P 80
µm
Overall Acadian Ore Composite
2445
101
Closing
Screen
Size
µm
150
Work
Work
Index
Index
(kWh/ t) (kWh/t)
(Imperial) (Metric)
12.1
13.4
The result are somewhat higher than those obtained for Touquoy material, but still the
Beaver Dam mineralized material can be stated to be relatively soft.
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Gravity Concentration
Five gravity concentration tests we carried out using a Knelson MD-3 concentrator. Each
test used 120 kg of mineralized material, ground to approximately 80% passing 150 microns.
This grind is essentially the same as that determined as optimum for Touquoy mineralization, and is the same as that used for most of the Touquoy test work.
Table 16: Beaver Dam Gravity Separation Conditions / Results Overall Acadian Composite
Conc .As say
Test
No.
Tails
k80
(miron)
Conc.
wt. (% )
GV-Batch 1
GV-Batch 2
GV-Batch 3
GV-Batch 4
GV-Batch 5
GV-O'all
156
160
163
182
158
164
0.024
0.017
0.013
0.010
0.010
0.015
Au
(g/t )
Recovery
Tailings Ass ay
Ag
(g/t)
Au
(%)
Ag Au * (g/ Ag
(% )
t)
(g/t)
3,811 406
9,213 884
8,653 802
14,350 1,421
6,407 666
7699
759
81.9
83.2
82.9
84.9
71.7
81.9
16.1
23.0
17.7
22.2
11.8
18.4
0.20
0.32
0.24
0.26
0.26
0.25
< 0.5
< 0.5
< 0.5
< 0.5
< 0.5
< 0.5
Head
Grade
Au Calc
(g/t)
1.10
1.87
1.40
1.69
0.90
1.39
* average of duplicate assays
It can be seen from Table 16 that gravity recoveries were high, averaging 72%, very similar to those obtained in the Touquoy test work.
Gravity Tailing Cyanidation
Due to the relatively high gold recoveries observed in the batch gravity tests, a series of
cyanidation leaches was performed on the gravity tailings. Duplicate cyanide leach tests
were conducted on each batch gravity test tailing sample.
In all of the tests performed on the Overall Acadian Ore Composite gravity tailings, gold
extraction by cyanidation ranged from 83% to 93%, and averaged about 88%. The leach residue assayed 0.04 g/t Au on average. Although the recovery appears somewhat lower than
Touquoy, this is due to the low initial head grade, the final residue assays being as low as or
lower than those obtained in the testing of Touquoy mineralized materials. A recovery equal
to that of Touquoy, i.e. 94% should be used for the Beaver Dam resource.
The NaCN and CaO consumptions were in the ranges of 0.07 kg/t to 0.13 kg/t and 0.47
kg/t to 0.57 kg/t respectively. The cyanide leach conditions for the gravity tailing tests were
done at 40% solids for 48 hours with a pH of 10.5 to 11.0 and a NaCN concentration of 0.5
g/L. The results are shown in Table 17.
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Table 17: Beaver Dam Gravity Tailing Cyanidation Results
Test
No
CN 18
CN 19
CN 20
CN 21
CN 22
CN 23
CN 24
CN 25
CN 26
CN 27
48 h
CN
Extr.
Residue k80
Au
(micron)
(%)
156
92.5
156
90.1
160
82.8
160
90.0
163
87.6
163
85.4
182
86.2
182
89.8
158
83.5
158
88.4
Assays
Residue
Au
(g/t)
< 0.03
0.04
0.05
0.03
0.03
0.03
0.04
0.03
0.04
0.03
Calc.
Head
Au
(g/ t)
< 0.33
0.35
0.26
0.30
0.20
0.20
0.25
0.29
0.21
0.26
Reagent
Addition
Consumption
NaCN
CaO NaCN CaO
(kg/t) (kg/t) (kg/t ) (kg/t)
0.88
0.58
0.07
0.57
0.83
0.54
0.07
0.53
0.88
0.57
0.09
0.56
0.84
0.56
0.09
0.54
0.87
0.51
0.13
0.51
0.83
0.49
0.08
0.49
0.76
0.48
0.13
0.48
0.79
0.47
0.11
0.47
0.94
0.57
0.11
0.57
0.92
0.52
0.12
0.52
It should be noted that the consumption of sodium cyanide and lime were significantly
lower than those recorded for leaching Touquoy gravity tailings.
13.3 Beaver Dam Process Performance Predictions
Based on the results of the test work described above an overall recovery of 94% of the
gold to Dore will be used in the PEA economic analysis.
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14 Mineral Resource Estimates
14.1 Introduction
A number of resource estimates for the Beaver Dam gold deposit have been made public
since 2005 including an estimate by Mercator in 2007 and an estimate compiled by Snowden
(Australia) released by Lion International, Singapore in 2014. All of these estimates were
based on the drilling hole data acquired by Seabright in the 1980’s, Mercator (on behalf of
Acadian) and Acadian between 2005 and 2009.
The Seabright drill core was selectively sampled primarily based on observations of
quartz veining. A large proportion of the more pervasive style of gold mineralization in the
core was left unsampled. Further, no useful quality control information of any kind exists for
the Seabright core sampling and none of the core is any longer available for logging or resampling. For these reasons, in October 2014 Atlantic Gold released a revised estimate of the
Beaver Dam resource based only the results of the Mercator and Acadian drilling following
their takeover of Acadian Mining. In the following months, Atlantic drilled 38 holes for some
7810 metres to replace the older Seabright drill holes.
The current resource estimate is based on the drilling completed by Mercator and Acadian
from 2005 to 2009 as well as the most recent program of Atlantic Gold in 2014-15. Combined,
these drilling programs comprise some 191 drill holes for a total of 28,632 metres of drilling.
The core from all holes is available and in good order. Both of these organizations have undertaken thorough quality control monitoring of the sampling and assaying. These procedures support classification of the resource estimates as Measured, Indicated and Inferred
where supported by drill hole spacing, geological and grade continuity.
The drill-hole database used for the current resource estimation was provided by Atlantic
Gold Corporation.
14.2 Estimation Method
The estimation method used by FSSI Consultants (Aust.) for the estimation of mineral resource of Beaver Dam is a standard implementation of multiple indicator kriging with block
support correction for the estimation of recoverable resources based on a specified approach
to selective mining. The details of the method are explained in Deutsch and Journel, 1992.
The GS3M© software provides a full implementation of this approach. The approach provides two important advantages over Ordinary Kriging and other linear estimation methods
such as the Inverse Distance method;

It deals properly with the high coefficient of variation (CV) and the continuity of very
high grades in the sample data of these deposits which exhibit a CV of around 9 to 10.

It provides a more reasonable approach to the estimation of resources to be recovered
using highly selective mining practices than can be achieved with the other methods.
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FSSI has developed and used this approach over the past twenty years in the estimation of
resources in many gold deposits exhibiting varying and complex styles of mineralization.
The application is both robust with respect to the problems presented by very high grade
samples and has been found to provide estimates of resources that are reasonably consistent
with production over periods of time as short as one to three months where appropriate ore
control methods are used.
14.3 Resource Data
The main body of gold mineralisation at Beaver Dam has been explored over a strike
length of some 1200m and up to approximately 600m vertically with drilling. A total of 146
Acadian drill holes and 38 Atlantic drill holes are present in the drill-hole data set. The bulk
of the available sample information is located on roughly 25 to 30 metre spaced sections between 600 and 1400mE. These drill holes combined provide some 20470 metres of sampling
of the Beaver Dam mineralization.
Figure 23 shows the cumulative histogram of the mineralized two metre composite gold
grades using a log scaling on the X axis. The histogram of gold grades is strongly positively
skewed with coefficient of variation of 9.4 indicating a high proportion of very low grade
samples and a small tail of high composite grades greater than 100 gpt. The maximum composite grade of 257 gpt is some 490 times the average composite grade for the data set. The
341 composites not represented in the plot occur in the overburden of glacial till.
1.1
Cumulative Histogram of Au_gpt
Univariate Statistics
Cumulative Proportion of Samples
1.0
Variable:
Weighted by:
Mean:
Variance:
CV:
Minimum:
Q1:
Median:
Q3:
Maximum:
IQR:
No. Data:
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
Au_gpt
no weight
0.514
23.349
9.393
0.000
0.000
0.000
0.195
257.460
0.195
9432 / 9773
0.1
0
0.1
1.0
10.0
100.0
1000.0
Au_gpt grade
(Data is sub-setted)
Figure 23: Cumulative histogram of 2m composite gold grades.
Table 18 presents the conditional statistics of the two meter composites used to construct
the resource model of the mineralization. These statistics provide a detailed description of
the histogram of gold grades for the MIK modelling procedure. The 95 highest grade composites account for approximately 48 percent of the total gold content of the composites.
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Figure 24 shows both plan and cross section plots of the drill holes on all drill sections
with the samples coloured according to gold grade. The plan shows that the strike of the
mineralization is around 6 degrees north of west. The cross section shows a broad scatter of
gold grade which plunges at around 65 degrees to the north.
Table 18: Conditional statistics of 2m composites, Beaver Dam
Au Grade Class
Threshold (ppm)
0.000094
0.000188
0.000283
0.000377
0.000472
0.035008
0.120001
0.195003
0.315000
0.495000
0.795001
1.670000
2.745000
7.130000
257.4600
Cumulative
Proportion
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.75
0.80
0.85
0.90
0.95
0.97
0.99
1.00
Au Grade Class
Mean (ppm)
0.000
0.000
0.000
0.000
0.000
0.013
0.071
0.157
0.252
0.398
0.629
1.167
2.135
4.293
24.566
Number of Data
per Class
943
943
943
943
944
943
943
472
471
472
471
472
189
188
95
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Figure 24: Composite plan and section of Beaver Dam drill-hole gold grades.
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14.4 Spatial Continuity Analysis and Modelling
Spatial continuity analysis and modelling were undertaken on the composite data.
Figure 25 and
Figure 27 present the sets of directional sample indicator variograms for the 60th and the
90th percentile grade thresholds for the mineralized data set.
The plots show the directional sample variograms for eight directions in which reasonable
spatial statistics can be generated. For the 60th percentile, the directional anisotropy is pronounced with directions normal (azimuth ~90) to the strike of the mineralization showing the
shortest ranges and those sub-parallel to the strike (azimuth 155-165) showing the longest
ranges. For the 90th percentile, the directional anisotropy is still present but much reduced.
Figure 26 and
Figure 28 show the directional plots of the variogram models fitted to their respective
sample variograms in
Figure 25 and
Figure 27.
Table 19 provides the detailed parameters of the indicator variogram models and the
variogram model of gold grade used in the modelling of Beaver Dam resources. In this table,
“sph” refers to the standard spherical variogram structure
fers to the exponential structure of the form

  3h  
1.0  exp 
 
 a 

3
 h

1.5  0.5 h  h  a 
 a

a


and “exp” re-
(Isaaks and Srivastava, 1989).
The three dimensional rotations are always in the order Z->Y’->X’’. The models plotted in
Figure 26 and
Figure 28 are shown in bold font.
Figure 29 shows a 3D plot of the orientation of the anisotropy in the model for the 60th
percentile threshold. This figure helps to emphasize the difference between the greater continuity along strike and the lesser continuity in the cross dip and down dip directions.
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Sample Indicator Variograms, 60th percentile
1.4
1.2
azm90pln45
ɣ(h)
1
azm5pln5
0.8
azm90pln-9
0.6
azm165pln-0
azm25pln25
0.4
azm25pln-30
0.2
azm155pln20
azm155pln-20
0
0
20
40
60
80
100
120
140
Lag h (m)
Figure 25: Directional indicator sample variograms, 60th percentile, Beaver Dam
Indicator Variogram Model, 60th percentile
1.2
1
azm90pln45
ɣ(h)
0.8
azm90pln0
azm90pln19
0.6
azm30pln0
azm15pln-20
0.4
azm21pln20
0.2
azm155pln20
azm160pln-25
0
0
20
40
60
80
100
120
140
Lag h (m)
Figure 26: Directional variogram models, 60th percentile, Beaver Dam
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Sample Indicator Variograms, 90th percentile
1.2
1
azm90pln45
ɣ(h)
0.8
azm5pln5
azm165pln-0
0.6
azm25pln25
0.4
azm25pln-30
azm155pln20
0.2
azm155pln-20
0
0
20
40
60
80
100
120
140
Lag h (m)
Figure 27: Directional indicator sample variograms, 90th percentile, Beaver Dam
Indicator Variogram Model, 90th percentile
1.2
1
azm90pln45
ɣ(h)
0.8
azm90pln0
azm90pln19
0.6
azm30pln0
azm15pln-20
0.4
azm21pln20
0.2
azm155pln20
azm160pln-25
0
0
20
40
60
80
100
120
140
Lag h (m)
Figure 28: Directional variogram models, 90th percentile, Beaver Dam
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Table 19: Indicator variogram model parameters, Beaver Dam
Cum
Proportion
Structure 1
T'hold
C0
Type
C1
Ax
(m)
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.75
0.80
0.85
0.90
0.95
0.97
0.99
Gold
0.48
0.52
0.55
0.44
0.27
0.34
0.37
0.43
0.49
0.60
0.72
0.70
0.87
0.93
0.75
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
0.09
0.09
0.17
0.20
0.11
0.06
0.01
0.01
0.14
0.10
0.02
0.23
0.09
0.04
0.08
35
89.5
74.5
35.5
13
8.5
13
10
67
75
9
83
82.5
19
25.5
Structure 2
Ay
(m)
Az
(m)
Type
3
26.5
18
3
3
31
103.5
29
24
25
102.5
5.5
12.5
42.5
7.0
7.5
6
24.5
46
3
77
24
75.5
19
8.5
23.5
19.5
23.5
3.0
4.5
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
exp
Structure 3
C2
Ax
(m)
Ay
(m)
Az
(m)
Type
0.35
0.38
0.01
0.01
0.18
0.06
0.12
0.08
0.01
0.01
0.07
0.02
0.02
0.01
0.04
122
235
91
36
35
31
25
14
68
161
11
84
84
60
47
104
27
374
23
61
34
231
30
30
26
146
34
32
59
13
8
111
25
308
25
348
29
192
446
373
25
512
86
4
31
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
sph
3D Rotations
C3
Ax
(m)
Ay
(m)
Az
(m)
Z
axis
Y'
Axis
X''
Axis
0.07
0.02
0.27
0.34
0.44
0.53
0.5
0.48
0.35
0.29
0.2
0.05
0.02
0.02
0.13
665
255
97
37
557
541
498
469
211
163
391
108
272
91
151
105
39
512
279
62
36
238
31
32
29
148
35
33
93
257
954
135
34
553
37
377
34
219
483
404
26
523
115
6
32
1
14
-18
81
-10
-19
-18
-13
14
31
-11
20
10
59
23
-3
-36
68
-21
-27
-32
-30
-22
39
58
-18
36
19
36
43
43
-38
80
-15
81
24
-66
21
29
41
-68
31
29
-3
-51
Figure 29: 3D plot of indicator variogram (60th percentile) model
showing directional anisotropy
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14.5 The Resource Model
Recoverable resource type models constructed with multiple indicator kriging typically
use a basic unit of estimation called a panel. The horizontal dimensions of the panel are usually of the order of the drill hole spacing used to estimate the resource. Table 20 provides details of the panel dimensions and basic search sizes and orientations used for the resource estimation.
Table 20: Panel Model Parameters
Beaver Dam Panel Model Extents
East
North
Elevation
Model origin (centroid)
562.5
905.0
602.5
Panel Dimensions
25
10
5
Panel Discretization
5
2
2
GC SMU size
5
5
5
Kriging Parameters
Criteria
Measured Indicated
Inferred
Min no. of data
16
16
8
Max no. of data per octant
4
4
2
Min no. of octants with data
4
4
2
X (east) search radius (metres)
25.0
37.5
37.5
Y (north) search radius (metres)
8.0
12.0
12.0
Z (rl) search radius (metres)
25.0
37.5
37.5
Search rotations
Number of Rotations
Rotation axis
Rotation Angle
Anti-clockwise +ve
1
X
25
2
Z
-6
In addition to the details in Table 20, the conditional statistics shown in Table 18 and the
variogram models in Table 19 are important parameters to the modelling process.
Recoverable resource estimation also require a “change of support model (COS)” to be
applied to the MIK estimates of grade distributions within each panel to estimate the tonnes
and grade based on a particular selection unit size. The Beaver Dam resource model assumes ore can be selected down to a minimum mining width of 5 metres on 5 meter benches.
After variance adjustment, the resultant block histograms are assumed to be log-normal in
shape. The variance ratios for each domain, which includes an adjustment for the information effect introduced by grade control sampling, are given in Table 21. A grade control
drill-hole pattern of 5 metres by 5 metres is assumed with a down-hole sampling interval of
2.5 metres.
Table 21: Variance adjustment ratios for change of support
Domain Variance Adjustment Ratio
1
0.071
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14.5.1 Bulk Density
The bulk density used to convert modelled volumes to tonnes, for the resource study set
at 2.73 tonnes per cubic metre globally. This estimate of bulk density is based on the rock
density data provided by Acadian Mining Corporation (Banks, 2014).
14.5.2 Topography and Previous Underground Mining
The topographic surface used to generate the resource estimates takes into account the excavations of previous surface mining to the extent possible from surveys of the drill-hole collars.
The details of previous underground development were made available by Acadian Mining Corporation as a DXF file. This was used to deplete the resource estimate where those
underground workings intersected blocks for which a resource had been estimated.
Figure 30: Extent of underground workings at Beaver Dam
14.5.3 The Resource Estimates, Model Plots and Validation
Table 22,
Table 23 and
Table 25 present the global Measured, Indicated and Inferred resource estimates for Beaver Dam for increasing cut-off grades from 0.3 gpt to 0.8 gpt. The resource has been classified
using the CIM standards for mineral resource classification (CIM, 2014). The base case at a
gold cutoff of 0.5 gpt is highlighted in bold. Resource estimates cannot be quoted for cut-off
grades in excess of 0.8 gpt.
There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing and political or other factors that could materially affect the resource estimates.
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Table 22: Global Measured resource estimates, Beaver Dam
(base case in bold font)
Gold Cut-off
gpt
0.3
0.4
0.5
0.6
0.7
0.8
Measured Resource Estimates
Million Tonnes
Gold gpt
5.34
1.27
4.65
1.41
4.07
1.55
3.65
1.66
3.30
1.77
2.97
1.88
Ounces
218,200
210,600
202,200
194,800
187,500
179,600
Resources that are not reserves do not have demonstrated economic viability
Table 23: Global Indicated resource estimates, Beaver Dam (base case in bold font)
Gold Cut-off
gpt
0.3
0.4
0.5
0.6
0.7
0.8
Million Tonnes
6.75
5.94
5.20
4.60
4.09
3.62
Indicated Resource Estimates
Gold gpt
1.13
1.23
1.34
1.45
1.55
1.65
Ounces
244,200
235,100
224,400
213,900
203,200
191,800
Resources that are not reserves do not have demonstrated economic viability
Table 24: Global Measured+Indicated resource estimates, Beaver Dam
(base case in bold font)
Gold Cut-off
gpt
0.3
0.4
0.5
0.6
0.7
0.8
Measured + Indicated Resource Estimates
Million Tonnes
Gold gpt
Ounces
12.09
10.59
9.27
8.25
7.39
6.59
1.19
1.31
1.43
1.54
1.65
1.75
462,400
445,700
426,600
408,700
390,700
371,400
Resources that are not reserves do not have demonstrated economic viability
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Table 25: Global Inferred resource estimates, Beaver Dam
(base case in bold font)
Gold Cut-off
gpt
0.3
0.4
0.5
0.6
0.7
0.8
Million Tonnes
2.65
2.26
1.84
1.52
1.28
1.08
Inferred Resource Estimates
Gold gpt
1.08
1.20
1.37
1.55
1.72
1.90
Ounces
91,800
87,400
81,300
75,600
70,600
65,700
Resources that are not reserves do not have demonstrated economic viability
Figure 31 and Figure 32 show plots of the estimated average panel gold grade on four
cross sections along with the drill hole composite grades on the left. The same sections displaying the panel classification: 1= Measured, 2= Indicated and 3=Inferred are shown on the
right. Overall, there is a close correspondence between the occurrence of significant gold
grades in the drill holes and higher average grades in the panels. The panels coded as Measured and Indicated are closely matched to the pattern of more closely spaced holes on each
section. The locations of the four sections are shown in light brown on
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Figure 24.
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Figure 33 shows the accumulated tonnage and metal content (grams) in long section and
provides views of the distribution of these features along the strike extent of the deposit. The
contours of tonnage and metal suggest there are higher grade zones to the east and west with
a lower grade central zone. The infill drilling by Atlantic to replace the older Seabright holes
has expanded the resource in depth and converted a significant amount of the previous Inferred resource estimates to Indicated and Measured.
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Figure 31: Sections with average panel grade, neighbouring drill-hole grades, panel classification.
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Figure 32: Sections with average panel grade, neighbouring drill-hole grades, panel classification.
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Mineral Resource Estimates
Figure 33: EW Section: Accumulated tonnes and accumulated metal, 0.5 gpt cut-off
Figure 34 presents comparisons of the cumulative histograms of the declustered composite grades and the estimated panel grades derived from those composites. Table 26 presents
the summary statistics of the composite and panel grades. The combined statistical data confirms that the panel estimates have a mean grade that is very close to the declustered mean
grade of the samples. The histogram of the panel estimates is much less variable (a much
smaller proportion of very low grades and very high grades) and more symmetric than the
histogram of the composite grades as expected.
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Mineral Resource Estimates
83
Cumulative Histograms of Gold Grade
1.1
Cumulative Proportion of Samples
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
2m Composites
25x20m Panels
0
0.01
0.10
1.00
10.00
100.00
Au_gpt grade
Figure 34: Cumulative histograms of declustered samples and estimated panel grades
Table 26: Summary statistics of composite and panel grades
Statistic
No. Data
Mean
Variance
CV
Minimum
Q1
Median
Q3
Maximum
Composites
9773
0.438
14.24
8.619
0
0
0
0.21
257.46
Panels
12677
0.436
0.5
1.6
0
0.006
0.087
0.543
6.33
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Mineral Resource Estimates
23 Adjacent Properties
For the purposes of this report, Atlantic Gold Corporation makes no statement concerning
Adjacent Properties.
24 Other Relevant Data and Information
For the purposes of this report, Atlantic Gold Corporation makes no statement concerning
other relevant data and information.
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25 Interpretation and Conclusions

The gold mineralization occurs in rocks of the Meguma Group which at Beaver Dam comprise a near vertically dipping suite of greywackes and argillites. The mineralization style
is similar to a number of other gold deposits in the Meguma Group of Nova Scotia including Touquoy and Cochrane Hill. At Beaver Dam, the structures carrying the gold mineralization dip more shallowly than the bedding at around 65 degrees to the north.

The diamond drilling undertaken by Mercator in 2005-07, Acadian Mining Corporation in
2009 and Atlantic Gold in 2014-15 together with documented quality control procedures
and QA/QC data provide a sound basis for mineral resource estimation and classification
at Beaver Dam. The assay results of standards and blanks inserted into the sample batches
do not indicate any significant bias in assaying across a wide range of gold grades. The results of minus fraction sample duplicates based on entire half core pulverizing and
screened fire assaying indicate a high level of sampling precision is being achieved.

The current resource estimates of Beaver Dam are based on the analysis of the gold grades
of some 9432, two metre sample composites generated from 192 drill-holes into the Main
Zone of the deposit.

The composite grades show large statistical variation similar to those of many other gold
deposits with high coefficients of variation, in the case of Beaver Dam around 9. The current drill hole sampling density is at a minimum of around 25 metres along strike and
down dip within the mineralization. A single mineralized domain of samples has been
used to represent the mineralization.

Spatial continuity (variogram) analysis of the composite grades is consistent with the geologic interpretation of the mineralization as a relatively thin body of mineralization extending east-west along strike and dipping steeply to the north. Continuities are strongest
along strike and to a much lesser extent, down dip.

The recoverable resources of Beaver Dam potentially available to open pit mining have
been estimated using the method of multiple indicator kriging with block support correction. The indicator kriging used fourteen indicator thresholds. It is assumed that ore selection will take place on five metre flitches with a minimum mining width of five metres.
Grade control sampling on a five metre by five metre pattern for ore selection is also assumed.

The resource estimates have been classified as Measured, Indicated and Inferred to reflect
the number and spatial pattern of drill-hole composites informing the estimation of each
panel in the model. The pattern of spatial continuity shown in the variograms and general
experience with gold deposits with the characteristics of Beaver Dam suggest that a drill
hole spacing of around 20 to 25 metres is appropriate to establish Measured resource estimates in this deposit.
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
For the 0.5 gpt cut-off, the additional drilling undertaken by Atlantic Gold has increased
the Measured resource tonnage by 1.2 million tonnes and the Indicated resource tonnage
by 2.3 million tonnes while the Inferred resource tonnage has decreased by 0.8 million
tonnes. For the Measured and Indicated resource estimates, the Atlantic drilling has
brought about an increase of 49 percent in contained ounces of gold.
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26 Recommendations
1. No further resource drilling is recommended for the Beaver Dam resource at the present
time.
2. The Beaver Dam resource model should be incorporated as part of the feasibility study being undertaken to establish the viability of the mining the Beaver Dam deposit.
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27 References
Banks C. 2014: Analytical Quality Assurance and Quality Control Report: Beaver Dam Property, Halifax County, Nova Scotia, Canada. Unpublished report of Acadian mining Corporation.
CIM 2014: CIM DEFINITION STANDARDS – For Mineral Resources and Mineral Reserves
Christie A.B., Bierlein F.P., Arne D.C., Ramsay W.R.H., Ryan R.J. and Smith P.K. 1999: Comparison of lode gold deposits of the Buller Terrane, western South Island to similar deposits
in Victoria, Australia and Nova Scotia, Canada. New Zealand Mining 26, 43-55.
Bierlein F. P. and Smith P. K. 2003: The Touquoy Zone Deposit: an example of “unusual”
orogenic gold mineralisation in the Meguma Terrane, Nova Scotia, Canada. Canadian Journal of Earth Sciences, 40 (3), p447-466.
Deutsch C. and Journel A.G. 1998: GSLIB: Geostatistical Software Library User’s Guide. Oxford University Press.
Donohoe Jr. H. V. 1996: Geology and Mineral Deposits of Nova Scotia. Department of Natural Resources, Minerals and Energy Branch, Information Circular 52.
CMM Environmental Services, 2009. Mi’Kmaq Ecological Knowledge Study, Beaver Dam
Gold Project. Prepared for Conestoga-Rovers & Associates. Unpublished Report dated June
2009.
E.H. Isaaks and R.M. Srivastava 1989: An Introduction to Applied Geostatistics. Oxford University Press.
Horne R.J. and Pelley D.E., 2006: Stratigraphy, Aero magnetics, Structure and Gold Deposits:
A Cross-section of the Meguma Terrane from Centre Musquodoboit to Tangier. In NS Mineral Resources Branch, Report ME 2006-2. 8 pages.
Jacques, Whitford and Associates Limited and P. Lane and Associates Limited. 1986. Report
to Nova Scotia Department of Mines and Energy and Nova Scotia Department of Environment on Environmental Assessment of Gold Mine Development, Beaver Dam, Nova Scotia.
Morelli R. M., Creaser R., A., Selby D., Kontak D. J. and Horne R. J. 2006: Rhenium-Osmium
Geochronology of Arsenopyrite in Meguma Group Gold Deposits, Meguma Terrane, Nova
Scotia, Canada: Evidence for Multiple Gold-Mineralising Events. Economic Geology, 100 (6),
p1229-1242.
NovaROC.
Nova
Scotia
Mineral
Rights
https://novaroc.novascotia.ca/novaroc/page/home.jsf
Online
Registry
Nova Scotia Mineral Resources Act. 1990, c. 18, s. 1.
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System.
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Nova Scotia Mineral Resources Regulations, made under Section 174 of the Nova Scotia
Mineral Resources Act (op. cit.)
Nova Scotia Property Online. http://www.novascotia.ca/snsmr/access/land/property
O’Sullivan J. 2003. A Review of the Beaver Dam Gold Project with Recommendations for
Further Exploration and Development. Nova Scotia Department of Natural Resources
Assessment Report AR ME 2003-012.
Sangster A.L. and Smith P.K. 2007: Metallogenic summary of the Meguma gold deposits,
Nova Scotia, in Goodfellow, W.D., Ed. Mineral Deposits of Canada: A Synthesis of Major
Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration
Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication
No. 5, p. 723-732.
Smith P. K. and Kontak D. J. 1996: Gold Deposits in the Meguma Group of Nova Scotia.
Department of Natural Resources, Minerals and Energy Branch, Information Circular 51.
Thornton R.C. 1975: Gold, Cochrane Hill, Guysborough County, Nova Scotia. Report on
Trenching and Drilling. NS DNR Assessment Report ME 11E01d 21-G-05(09).
Stewart, B.W. and Beanlands, S. 2009. Beaver Dam Development Archaeological Screening
& Reconnaissance, Halifax Regional Municipality, Nova Scotia. Prepared for Acadian
Mining Corporation and the Special Places Programme – Heritage Division by Cultural
Resource Management Group Limited.
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CERTIFICATE OF QUALIFIED PERSON
As the author of this Technical Report on the Beaver Dam Project for Atlantic Gold Corporation,
I, Neil Schofield, do hereby certify that:
1)
I am employed as a Consulting Geologist by, and have carried out this assignment for, FSS
International Consultants (Australia) Pty. Ltd., ABN 69 003 643 801, 9 Malton Road,
Beecroft New South Wales, Australia, 2119;
2)
This certificate pertains to the Technical Report dated March 2, 2015 and titled "Technical
Report of the Beaver Dam Gold Project, Halifax County, Nova Scotia";
3)
I graduated from the University of Queensland in1972 with a Bachelor of Science majoring
in Geology and from Stanford University USA in 1988 with and Masters of Science in Applied Earth Sciences;
4)
I am a member in good standing of the Australasian Institute of Mining and Metallurgy
and the Australian Institute of Geoscientists;
5)
I have worked as an exploration geologist for 14 years and as a mineral resource estimator
for some 28 years. I have theoretical knowledge of resource estimation methods and experience in their application in a wide range of gold and base metal deposits in Australia,
Asia, Africa and North America;
6)
I am familiar with Canadian National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") and, by reason of education, experience and professional registration, I fulfil the requirements of a Qualified Person as defined in NI 43-101;
7)
I have been involved with the Beaver Dam Gold Project since December 2008 as a Consulting Geologist on behalf of my current and former employers, FSS International Consultants (Australia) Pty. Ltd. and Hellman & Schofield Pty. Ltd. I visited the Beaver Dam Project site for one day on July 16, 2014 and inspected mineralized core from the project at the
Moose River Project office;
8)
I am independent of Atlantic Gold Corporation and its subsidiaries;
9)
I am responsible for the preparation of each section of this Technical Report;
10)
As at the effective date of the Technical Report, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make this Technical Report not misleading; and
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11)
I have read NI 43-101 and this Technical Report has been prepared in compliance with the
Instrument.
Dated this 2nd day of March, 2015
“Neil Schofield”
Neil Schofield
MS Applied Earth Sciences, MAIG, MAusIMM
FSS International Consultants (Australia) Pty Ltd