Kelowna, British Columbia – TheNewswire - May 26, 2021 - SOUTH ATLANTIC GOLD INC. (TSXV:SAO)  (OTC:JLRRF) (“South Atlantic” or the “Company”) is pleased to announce it has received additional positive assay results from its Phase I exploration program at the Mirador Target, within its Pedra Branca Project area, located 280 kilometers (“km”) southwest of Fortaleza, Ceará State, Brazil.

Douglas Meirelles, CEO stated, “We are pleased with the results being reported today. Our Phase 1 program focused primarily on the core targets, but towards the end of the program, we also explored the extensions of the trends, towards southeast (“SE”) of Pedra Branca and other tenements that had little to no historical work, as part of the schedule required to maintain the permits and licenses. The results that we are currently receiving were surprising and suggest that mineralization is extended and continuous within the Mirador Target.”

The new assay results from the Mirador Target confirm the lateral extension of mineralization at NW Mirador and confirm the continuity of ore at SE Mirador. (Click HERE to see map).

 Highlights include (see Annex 1 for full table of results):

• - Reverse Circulation (“RC”) drill hole PBRC099 intersected 3 meters (“m”) grading 1.91 grams per tonne (“g/t”) gold (“Au”), including 1 m grading 4.72 g/t Au, from 7 m depth

  - RC drill hole PBRC106 intersected 4 m grading 1.69 g/t Au, including 2 m grading 2.65 g/t Au, from 20 m depth

  - RC drill hole PBRC106 intersected 8 m grading 0.89 g/t Au, including 3 m grading 1.84 g/t Au, from 37 m depth

  - RC drill hole PBRC108 intersected 2 m grading 6.17 g/t Au, including 1 m grading 5.94 g/t Au, from 17 m depth

  - PBRC108 also intersected 6 m grading1.52 g/t Au, including 1 m grading 3.03 g/t Au, from 25 m depth

The results that continue to arrive from the laboratory are being inserted into the geological section of the technical report, and are being used to gain greater understanding of the controls on mineralization at the Pedra Branca Project. As the company continues into Phase 2 of the exploration program, the new consolidated database continues to be updated and is assisting in the formulation of the subsequent exploration and development activities. It is important to note that all the assay results are the result of a US$1 million Phase 1 exploration program with RC drilling that averaged at most 60 m in depth. Historically, the higher-grade mineralization is found at deeper intersects.  

South Atlantic is working, in conjunction with Jaguar Mining Inc., on the review of geological data and the financial audit as required by our contractual obligations for the Company’s earn-in rights to the Pedra Branca Project. The release of the maiden resource and National Instrument (“NI”) 43-101 technical report for Pedra Branca is anticipated for the second quarter of 2021.

  

QA/QC PROCEDURES

The assays follow Quality Assurance/Quality Control (QA/QC) procedures that included the insertion of standards, blanks and duplicate samples, sent to the lab along with the samples.

All samples were analyzed at either SGS GEOSOL Laboratórios Ltda in Minas Gerais, Brazil, or ALS Brasil Limitada in Minas Gerais, Brazil. Both contracted laboratories follow the same procedures for sample preparation and chemical analysis, described below. In the laboratory, each ±2 kg sample is recorded, dried for 8 to 12 hours, crushed to 70% <2mm (-10 #) split to obtain approximately 250g and the 250g sub-samples are pulverized to P85 74 microns (-200 #).

Gold analysis is carried out using fire assay comprising three stages: Fusion, Cupellation and Analysis.  

Samples with a gold fire assay equal to or higher than 10.0 g/t Au are re-analyzed by a screen-metallic method. Base metal assays are first determined by ICP-OES (Inductive Coupled Plasma-Optical Emission Spectroscopy). Analyses of ore elements that exceed the method's upper limits are re-analyzed by appropriate ore-grade methods.

About South Atlantic Gold

South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. The Company’s principal BC asset is the wholly-owned 4,056-hectare Big Kidd property, located near Aspen Grove, BC. Our Brazilian flagship asset is our option to acquire the Pedra Branca project, located 280 km southwest of Fortaleza, Ceara State, Brazil. South Atlantic Gold is focused on creating 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’s 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: ir@southatlanticgold.com

Qualified Person

The scientific and technical information that forms the basis for parts of this press release was reviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company’s Exploration Manager who is a Qualified Person "(QP") as defined by National Instrument 43-101.

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, risks 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 approvals; 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 external 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 Company’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.

 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.

 

Annex 1

New Results Table.

Hole Id	From	To	Au g/t	X Coord	Y Coord	Z Coord	Target
PBRC093	31	32	0.562	379,843.273	9,393,169.887	589.509	Mirador
PBRC093	32	33	0.538	379,842.734	9,393,170.083	590.328	Mirador
PBRC094	25	26	0.656	379,821.525	9,393,171.895	584.383	Mirador
PBRC094	26	27	0.446	379,820.986	9,393,172.092	585.203	Mirador
PBRC095	29	30	0.582	379,841.358	9,393,119.851	587.388	Mirador
PBRC095	30	31	0.097	379,840.819	9,393,120.047	588.207	Mirador
PBRC095	31	32	0.043	379,840.280	9,393,120.244	589.026	Mirador
PBRC095	32	33	1.191	379,839.741	9,393,120.440	589.845	Mirador
PBRC096	5	6	4.3	379,819.627	9,393,120.627	567.791	Mirador
PBRC096	11	12	0.525	379,816.393	9,393,121.804	572.706	Mirador
PBRC096	12	13	0.683	379,815.854	9,393,122.000	573.525	Mirador
PBRC096	13	14	0.753	379,815.315	9,393,122.196	574.345	Mirador
PBRC096	14	15	0.503	379,814.776	9,393,122.393	575.164	Mirador
PBRC096	15	16	0.567	379,814.237	9,393,122.589	575.983	Mirador
PBRC096	16	17	0.625	379,813.698	9,393,122.785	576.802	Mirador
PBRC099	7	8	4.721	379,759.473	9,392,972.092	560.298	Mirador
PBRC099	8	9	0.754	379,758.934	9,392,972.288	561.117	Mirador
PBRC099	9	10	0.244	379,758.395	9,392,972.485	561.936	Mirador
PBRC100	1	2	0.413	379,807.612	9,393,027.793	559.123	Mirador
PBRC100	2	3	0.677	379,807.073	9,393,027.989	559.942	Mirador
PBRC100	7	8	0.31	379,804.378	9,393,028.970	564.038	Mirador
PBRC100	8	9	0.842	379,803.839	9,393,029.166	564.857	Mirador
PBRC100	9	10	0.26	379,803.300	9,393,029.363	565.676	Mirador
PBRC100	10	11	1.007	379,802.761	9,393,029.559	566.495	Mirador
PBRC100	11	12	0.374	379,802.222	9,393,029.755	567.314	Mirador
PBRC106	20	21	3.876	378,870.376	9,392,767.198	557.629	Mirador
PBRC106	21	22	1.421	378,869.936	9,392,767.567	558.448	Mirador
PBRC106	22	23	0.748	378,869.497	9,392,767.935	559.267	Mirador
PBRC106	23	24	0.73	378,869.057	9,392,768.304	560.086	Mirador
PBRC106	37	38	0.501	378,862.906	9,392,773.466	571.554	Mirador
PBRC106	38	39	0.114	378,862.467	9,392,773.834	572.373	Mirador
PBRC106	39	40	0.145	378,862.027	9,392,774.203	573.193	Mirador
PBRC106	40	41	3.047	378,861.588	9,392,774.572	574.012	Mirador
PBRC106	41	42	0.749	378,861.149	9,392,774.941	574.831	Mirador
PBRC106	42	43	1.728	378,860.709	9,392,775.309	575.650	Mirador
PBRC106	43	44	0.147	378,860.270	9,392,775.678	576.469	Mirador
PBRC106	44	45	0.646	378,859.830	9,392,776.047	577.288	Mirador
PBRC107	25	26	0.41	378,827.253	9,392,739.248	562.564	Mirador
PBRC107	26	27	0.592	378,826.813	9,392,739.616	563.384	Mirador
PBRC107	43	44	0.893	378,819.344	9,392,745.884	577.309	Mirador
PBRC107	44	45	0.078	378,818.904	9,392,746.253	578.128	Mirador
PBRC107	45	46	0.728	378,818.465	9,392,746.621	578.947	Mirador
PBRC108	17	18	3.347	378,761.596	9,392,729.794	559.419	Mirador
PBRC108	18	19	8.983	378,761.156	9,392,730.163	560.238	Mirador
PBRC108	25	26	5.939	378,758.081	9,392,732.744	565.972	Mirador
PBRC108	26	27	0.013	378,757.641	9,392,733.112	566.792	Mirador
PBRC108	27	28	0.141	378,757.202	9,392,733.481	567.611	Mirador
PBRC108	28	29	0.005	378,756.763	9,392,733.850	568.430	Mirador
PBRC108	29	30	0.005	378,756.323	9,392,734.218	569.249	Mirador
PBRC108	30	31	3.033	378,755.884	9,392,734.587	570.068	Mirador
PBRC114	7	8	0.844	379,086.185	9,392,986.143	557.102	Mirador
PBRC114	8	9	0.883	379,085.745	9,392,986.512	557.921	Mirador