ATAC Resources reports RAB drill gold discovery and extends Osiris Zone with 8.63 metres of 11.72 g/t gold

November 19th, 2018
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November 19, 2018 – Vancouver, BC – ATAC Resources Ltd. (TSX-V:ATC) (“ATAC”) is pleased to announce a rotary air blast (“RAB”) drilling gold discovery and the final seven diamond drill hole results from the Osiris, Conrad and Sunrise deposit expansion program within its 100%-owned Osiris Project, located at its Rackla Gold Property, Yukon.

Highlights

  • RAB drilling identified an at-surface, high-grade gold discovery located approximately 1,000 m southwest of the Conrad Zone and 800 m east of Ibis Zone;
  • Step-out drilling at Osiris returned 8.63 m of 11.72 g/t gold in hole OS-18-275, representing one of the highest grade mineralized intersection encountered to date at the Osiris Zone; and,
  • Step-out drilling 60 m along the 650-850 fault corridor at Conrad returned 7.29 m of 8.90 g/t gold at the faulted contact of limestone and siliciclastic units in hole OS-18-278.

“This drill season demonstrated the resource expansion potential that highlights the Osiris Project as one of Canada’s modern district-scale gold discoveries,” commented President and CEO Graham Downs. “We have systematically stepped out on our high-grade maiden resource estimate and discovered additional mineralization near surface and down dip at the Conrad, Sunrise, and Osiris deposits. All of these zones remain open in multiple directions and offer exciting opportunities for drill targeting next year. In addition, our scout drilling has once again identified new gold mineralization regionally, which reaffirms our belief that additional discoveries will be made across the Rackla Gold Property.”

Osiris Zone

A total of four step-out holes (1,638 m) were drilled at the Osiris Zone in 2018 targeting mineralization at depth. Results are presented in the table below.

Drill Hole

From
(m)

To
(m)

Interval*
(m)

Gold
(g/t)

OS-18-275 244.10 252.73 8.63 11.72
incl. 244.10 245.97 1.87 31.90
and 366.30 368.43 2.13 7.27
OS-18-279 185.92 202.08 16.16 6.46
incl. 188.93 192.94 4.01 20.04
OS-18-280 334.43 350.52 16.09 2.64
incl. 334.43 337.38 2.95 7.30

* The reported intersections are drilled thicknesses and are believed to represent approximately 80%-100% true width.

Please refer to the following link for an Osiris/Sunrise Drill Plan Map: http://www.atacresources.com/assets/img/Osiris-SunriseGeology_2018.pdf

Mineralization at the Osiris Deposit is primarily hosted: (i) in steeply dipping reactive beds within the Osiris limestone unit; and (ii) at stratigraphic contacts between units where mineralizing fluid-flow were focused. Drilling at Osiris involved stepping out along known reactive mineralized corridors within the host Osiris stratigraphy and testing the targets at depth.

Hole OS-18-275 returned 8.63 m of 11.72 g/t gold at the stratigraphic contact between limestone and dolostone units. Additionally, OS-18-275 intersected 2.13 m of 7.27 g/t gold at the stratigraphic contact between a carbonate debrite unit and an overlying crystalline limestone. While mineralization has been encountered in the carbonate debrite unit before, this is the first time mineralization has been encountered at the contact with the crystalline limestone.

Please refer to the following link for a hole OS-18-275 cross section: http://www.atacresources.com/assets/img/OS-18-275CrossSection.pdf

The significance of lithological contacts in the development of gold mineralization was also demonstrated where an undercut of OS-17-244 intersected 16.16 m of 6.46 g/t gold, including 4.01 m of 20.04 g/t gold, in hole OS-18-279.

Stratigraphic horizons within the Osiris limestone unit also control fluid flow and the development of gold mineralization. This was demonstrated in hole OS-18-280, which intersected 16.09 m of 2.64 g/t gold, including 2.95 m of 7.30 g/t gold. This interval was at the same stratigraphic position as 16.46 m of 5.29 g/t gold, encountered 130 m above, in hole OS-17-258.

Hole OS-18-277 intersected five zones of anomalous gold mineralization and associated pathfinder elements. These intercepts demonstrate that the gold bearing fluids are still present and can be used to trace the flow of mineralizing fluids throughout the system.

2018 RAB Discovery

Two RAB holes were completed late in the exploration season to target an untested gold anomaly located approximately 1 km southwest of Conrad where prospecting grab samples in 2010 contained 2.51 g/t gold and 2.34 g/t gold.

The two holes were fanned off a single drill pad and targeted the Osiris limestone unit. OSR-18-01 intersected 1.53 m of 3.05 g/t gold and OSR-18-002 returned 6.10 m of 3.38 g/t gold. Mineralization was intersected from bedrock surface and highlights the potential for additional discoveries of Carlin-style gold mineralization on the Osiris Project. Further exploration of this target will be undertaken as part of the 2019 field program.

Please refer to the following link for a geology map of the RAB gold discovery at the Osiris Cluster: http://www.atacresources.com/assets/img/OsirisCluster_RAB.PDF

Conrad Zone

A total of eleven diamond drill holes (4,388 m) were completed in 2018 at the Conrad Zone with the objective being the expansion of near-surface gold mineralization developed within and adjacent to the 650-850 fault corridor.

Hole OS-18-278, the final Conrad intercept to be reported, targeted the intersection of the 650-850 fault corridor with the Nadaleen Fault. This hole returned several mineralized intervals approximately 60 m along trend of OS-18-266, which encountered 52.91 m of 2.83 g/t gold. Results from OS-18-278 are presented in the table below.

Drill Hole From
(m)
To
(m)
Interval*
(m)
Gold
(g/t)
OS-18-278 156.97 160.02 3.05 6.79
and 172.21 184.40 12.19 2.40
and 210.79 219.56 8.77 3.37
and 312.12 339.55 27.43 3.21
incl. 312.12 319.41 7.29 8.90

* The reported intersections are drilled thicknesses and are believed to represent approximately 70%-100% true width.

Please refer to the following link for a Conrad Drill Plan Map: http://www.atacresources.com/assets/img/ConradGeology2018.pdf

The 2018 Conrad program successfully identified new high-grade gold mineralization within, and adjacent to the pit constrained mineralization outlined in ATAC’s 2018 initial Osiris Resource Estimate. Drilling has extended near-surface mineralization along the 650-850 fault corridor 150 m to the east and 80 m to the north.

Step-out hole OS-18-262 also extended the Conrad Middle Zone mineralization 90 m to the east with an intersection of 23.59 m of 9.50 g/t gold. This demonstrates the high-grade expansion potential at the siliciclastic-limestone contact. Additional follow-up work is required to trace the mineralization at depth, as the Conrad Middle Zone has received limited drilling to date. Mineralization is open in multiple directions and remains a priority target for 2019.

For previously announced Conrad drill results see ATAC news releases dated July 17, 2018, and September 13, 2018.

Sunrise Zone

Five diamond drill holes (1,753 m) were completed to expand on mineralization defined at the Sunrise Zone. Gold mineralization at Sunrise occurs as a structurally-controlled fracture network paralleling the Sunrise Fault. The final two Sunrise holes, OS-18-274 and OS-18-276, were westerly step outs from hole OS-18-273, which returned 26.70 m of 12.95 g/t gold.

Hole OS-18-274 intersected a narrow zone of mineralization associated with the fracture network returning 1.88 m* of 5.67 g/t gold. Hole OS-18-276, a 140 m undercut of the mineralization in hole OS-18-274 returned a zone of anomalous gold associated with strong pathfinder geochemical response.

*The reported intersection is drilled thicknesses and is believed to represent approximately 70%-100% true width.

See ATAC’s website (www.atacresources.com) for updated Osiris, Sunrise and Conrad figures.

Orion Project Update

The Orion Project comprises the central third of the Rackla Gold Property and is currently under option to Barrick Gold Corporation (“Barrick”). The 2018 exploration program at the Orion Project included 16 diamond drill holes (7,410 m) over a 15 km2 area. An announcement of the 2018 Orion Project results will be issued following the conclusion of a joint technical committee meeting scheduled for December.

The technical information in this news release has been approved by Julia Lane, P.Geo., Vice President of Exploration for ATAC and a Qualified Person for the purposes of National Instrument 43-101.

QA/QC

Diamond drill samples were forwarded to ALS Minerals in Whitehorse, Y.T., where they were fine crushed before a 250 gram split was pulverized to better than 85% passing 75 microns. Pulps were then analyzed at ALS Minerals in North Vancouver, B.C. where gold determinations were carried out. Splits of the pulverized fraction were dissolved using a four acid digestion and analyzed for 49 elements using inductively coupled plasma (ICP) together with mass spectrometry (MS) and atomic emission spectroscopy (AES). Gold analyses were by the Au-AA25 procedure that involves fire assay preparation using a 30 gram charge with an atomic absorption spectroscopy (AAS) finish. Mercury analyses were digested with aqua regia and analyzed by inductively coupled plasma mass spectrometry (ICP-MS).

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream of diamond drill samples to ensure integrity of the assay process. All diamond drill samples included in this news release have passed the QA/QC procedures as described above.

RAB drilling is a very effective exploration tool, but does not provide the detailed level of geological and structural information as does diamond drilling. Accordingly, RAB drilling is primarily used as an early to intermediate stage exploration tool and the results cannot be used for the purposes of NI 43-101 mineral resource estimates.

About ATAC

ATAC is a Yukon-based exploration company focused on developing Canada’s only Carlin-type gold district at the Rackla Gold Property. Work on the ~1,700 km2 property has resulted in an Osiris Project Inferred Mineral Resource of 1,685,000 oz of gold at an average grade of 4.23 g/t (in 12.4 Mt) and a positive Preliminary Economic Assessment for the Tiger Gold Deposit. ATAC and Barrick have partnered to explore the Rackla Gold Property’s Orion Project, with Barrick having the option to earn up to 70% of Orion by spending $55 million in exploration. ATAC is well-financed with approximately $10 million in treasury.

On behalf of Management and the Board of Directors
of ATAC Resources Ltd.

Graham Downs, President and CEO

For further information, please contact:
Matthew Keevil, VP, Corporate Affairs
ATAC Resources Ltd.
T: 604-687-2522 ext. 260
mkeevil@atacresources.com

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