South Atlantic Gold Announces Further Results from Phase II Exploration at Pedra Branca Project
TSX-V: SAO
South Atlantic Gold Announces Further Results
from Phase II Exploration at Pedra Branca Project
Kelowna, British Columbia, August 31, 2022 - SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South
Atlantic” or the “ Company”) is pleased to announce further exploration results from its previously
announced Phase II program (see release dated February 3, 2022 here). Results include recently received
assays from reconnaissance RC drilling which, when combined with geophysical, geochemical sampling of
soils and trenches and geological mapping data has, for the first time, informed a comprehensive target
generation exercise across the full extent of the Company´s strategic tenement package.
Highlights
• As previously presented, the Phase II Exploration Program incorporated both the requirements of
the Brazilian mining agency “Agencia Nacional de Minera çao or (ANM)”, to ensure
exploration work was sufficient to maintain the tenements in good standing , as well as to cost
effectively complete first pass reconnaissance exploration across the southern section of the
entire tenement package.
• Exploration results highlight the presence of the favorable structural, geological, and geochemical
trends already identified by prior work extending along the full 60 km strike length influenced by
the primary regional structure into areas with no previous work. MAP 1 provides a global view of
the currently defined 13 targets (9 new + 4 existing) areas supported by geological interpretation.
See ANNEX MAP 1 (Click here to view high resolution map).
• The Phase II exploration program has successfully expanded the priority target portfolio from 4
(including 3 areas with NI 43-101 defined mineral resources) to a new total of 13 areas.
• 15 final exploration reports were filed in May 2022 with the ANM and have been successfully
reported as received by ANM.
Douglas Meirelles, President and CEO stated, “ It is truly exciting to have such a dominant strategic
tenement package at Pedra Branca with this potential mineral endowment. When we started Phase II, we
had 4 main targets, including 3 with initial defined mineral resources and now this Exploration Program
has produced positive results which have allowed the Company to expand its pipeline of priority targets to
a new total of 13 targets. With limited funding, our team has efficiently delivered the new targets in areas
that were never explored before while fulfilling our legal obligations with respect to keeping our tenement
package in good standing. With no more near-term obligations attached to the tenement portfolio , the
Company is well placed to focus on progressing the priority targets through the next important exploration
phases toward further discoveries.
Structured Exploration Approach
As previously announced in the news release of February 3, 2022 (click here to view release), the Company
completed the Phase II exploration program which focused beyond the 4 previously identified targets
which included 3 main targets with defined mineral resource s (Queimadas, Mirador and Igrejinha)
announced June 28, 2021 (click here to view release).
TSX-V: SAO
Phase II Exploration focused on extending the southern limits of the main structural trend (N20E). In
parallel, work was completed within some 15 tenements that were reaching their ANM expiry date. From
this combined work, 9 new high priority targets were successfully identified. These targets were selected
and prioritized in terms of a series of selection criteria based on soil sampling and trench rock chip
sampling geochemistry and comparative geophysical (magnetics) signature s obtained over known
mineralization. A total of 6 of these targets are positioned within the basal volcani c-sedimentary
greenstone sequence namely (Mir-Coelho, Barra Nova, Mundo Novo, Cruzeta, Cachoeirinha and
Dedezinho) and a further 3 targets occur within the upper greenstone sequence (Várzea Formosa,
Moquém Norte and Moquém Sul).
Reconnaissance Trenching
• During Phase 2, a total of 48 trenches were excavated for a total of 9,966 m which provided 5,038
trench rock chip channel sample assays as press released on March 9, 2022 (click here to view
release).
• To date a total of 22,290 meters of trenches have been excavated and sampled with 17,208 assays
consolidated in the database.
• The trenching program has successfully confirmed bedrock sources to surface soil anomalism
along the targeted structural trend.
• The consolidated results can be seen on our website (click here to view).
Drone Survey
As released June 13, 2022 (click here to view release), the high resolution drone survey at 50-meter line
spacing was successful in the identification of magnetic signatures over the current resource area
(Igrejinha, Queimadas and Mirador) . This information along with the results from Phase I, Phase 2, the
geophysical study, and the magnetic survey from Companhia de Pesquisa de Recursos Minerais (“CPRM”
or “Geological Survey of Brazil”) at a resolution of 500-meter line spacing, formed the base data for target
prioritization and selection of initial reconnaissance drilling.
The total area of Pedra Branca is considerab ly large with more than 46,000 hectares that remain
unexplored with few limited soil lines. When considering further exploration in these areas, the Company
will continue to make use of cost-effective exploration methods such as unmanned aerial vehicle (“UAV”
or “drone”) magnetic survey to cover large sections of this unexplored ground. New anomalies are
highlighted on ANNEX MAP 2 (click here to view).
Reconnaissance RC Drilling
Within the Phase II prioritized area comprising of 9 tenements and 8 main targets, the Company
conducted additional reconnaissance work and drilled a total of 43 shallow RC drill holes up to a maximum
60 meters depth. A total of 1,657 m was drilled collectively with 719 samples assayed with approximately
25% (414m) of total meterage drilled returned anomalous gold assays 20 ppb Au or greater. The table of
results is extensive and is available on the following link under (click here to view and scroll down).
TSX-V: SAO
The drilling program has in many instances confirmed continuity to depth of the anomalism identified
from prior trenching and soil sampling bedrock sources to surface soil anomalism along the targeted
structural trend.
Analysis of results demonstrates the similarity and continuity of the geological signatures extending
beyond the original 3 targets with defined resources. Interpretation of Phase II data clearly confirms the
presence of the geology and structural framework that the Company believes is favorable for the orogenic
mineralization styles being targeted along the full extent of the 60km strike length. The Company
continues to refine and improve its targeting criteria as further data becomes available and this will drive
exploration efforts aimed at the continued identification of additional areas of interest.
Qualified Person’s Statement
The scientific and technical information that forms the basis for parts of this news release was reviewed
and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company’s Exploration
Manager who is a Qualified Person as defined by NI 43-101.
TSX-V: SAO
ANNEX MAP 1 (60km)
Overview of anomalous geochemistry and geophysics overlay.
TSX-V: SAO
ANNEX MAP 2
UAV MAG SURVEY COMPARISON (50 meters line spacing and 500 meters line spacing)
TSX-V: SAO
About South Atlantic Gold
South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties
located in the Americas. Our flagship asset is the 100%-owned Pedra Branca project, located 280 km
southwest of Fortaleza, Cear á State, Brazil. South Atlantic Gold is focused on crea ting value for its
shareholders by engaging in the development and acquisition of high -quality mineral assets located in
stable and mining-friendly jurisdictions. South Atlantic Gold is based in Kelowna, British Columbia, and is
listed on the TSX-V under the symbol “SAO”.
ON BEHALF OF THE BOARD
Douglas Meirelles, President and CEO
For more information regarding this news release, please contact:
Anne Hite, Vice President, Investor Relations
T: 250-762-5777
Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
This news release contains statements that constitute "forward -looking Information", as such term is used in
applicable Canadian securities laws . Such forward -looking information involves known and unknown risks,
uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or
developments in the industry to differ materially from the anticipated results, performance or achievements
expressed or implied by such forward-looking information. Forward-looking information includes statements that are
not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will,"
"would," "may," "could" or "should" occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based
on information available on the date hereof, by its nature forward-looking information involves assumptions and
known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity,
performance or achievements, or other future events, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking information. There can be no assurance that the
Fundamental Acquisition will be completed as proposed or at all.
Examples of such assumptions, ri sks and uncertainties include, without limitation, assumptions, risks and
uncertainties associated with general economic conditions; the Covid -19 pandemic; adverse industry events; the
receipt of required regulatory approvals and the timing of such approva ls; that the Company maintains good
relationships with the communities in which it operates or proposes to operate, future legislative and regulatory
developments in the mining sector; the Company ’s ability to access sufficient capital from internal and ex ternal
sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and
generally; the ability of the Company to implement its business strategies; competition; the risk that any of the
assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks
associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that
results will not be consistent with the C ompany’s expectations, as well as other assumptions risks and uncertainties
applicable to mineral exploration and development activities and to the Company, including as set forth in the
Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
TSX-V: SAO
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF
THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD
NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE
WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .