Orion Project
(Carlin-type gold)

Highlights

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  • 780 km² Orion Project area is subject to an earn-in agreement with Barrick Gold Corporation
  • Hosts the 18 km² Anubis Cluster with the drill-confirmed Orion and Anubis Carlin-type gold zones
  • Anubis Cluster located 10 km west of the Osiris Cluster zones along regional scale northwest-trending extensional faults
  • 18 km² geochemical footprint of the Anubis area along with peripheral occurrences of high-grade silver-lead-zinc and gold mineralization suggests a very large Carlin-type mineralizing event with a long-lived hydrothermal plumbing system
  • Anubis Zone discovery hole intersected 8.51 m of 19.85 g/t gold
  • Trenching and geochemical sampling has outlined a cumulative 8 km strike length of anomalous and potentially mineralized fault structure with well-developed, gold-bearing Carlin-type hydrothermal alteration in adjacent rocks
  • Nine priority exploration targets identified for future drilling at the Anubis, Ana, Hydra, Draco, Dorado, Orion, Zodiac, Columba and Corona showings
  • 2016 diamond drilling at Orion intersected 61.29 m of 2.75 g/t gold
  • The Pyramid target is located 5 km to the west of the Anubis Cluster and is defined by an extensive glacially dispersed orpiment/realgar cobble field measuring 150 x 150 m and lies within a larger 500 x 200 m arsenic/thallium soil anomaly

Orion Project Barrick Earn-in Agreement and Financing Highlights

  • The transactions consist of a potential total investment by Barrick of approximately $ 63.3 million, which includes a private placement of $8.3 and a two staged, $55 million exploration earn-in option to acquire 70% of the Orion Project
  • Stage one of the earn-in requires Barrick to spent $35 million in exploration over five years to acquire 60% of the Orion Project
  • Stage one guaranteed expenditures of $10 million over the first three years
  • Stage two of the earn-in requires Barrick to spend an additional $20 million in exploration to acquire an additional 10% interest in the Orion Project (aggregate of 70%)
  • One or more senior members of Barrick’s exploration team to be seconded to the Orion Project
  • Barrick will participate in a flow-through private placement and ATAC will receive total proceeds of approximately $8.3 million. Post flow-through financing, Barrick’s shareholding in ATAC will increase from approximately 9.2% to 19.99% and Barrick will have the right to maintain its interest in ATAC

Net Smelter Return Royalties

If either party’s joint venture interest is reduced to 10% or less, that party’s interest in the Orion Project will convert to a sliding-scale Net Smelter Return Royalty (“NSR”) on gold, adjusted for changes in gold price and cumulative gold production. The NSR will range from 1% to 3% with no buyout provision.

Each stand-alone gold deposit within the Orion Project area will be subject to the same sliding scale NSR, but the cumulative gold production amount will be reset to zero for each new deposit. Silver will be subject to a 2% fixed net smelter return royalty and all other commodities will be subject to a 1% fixed net smelter return royalty. Neither of the fixed royalties will have a buyout.

Anubis Highlight Drill Results

HOLE

FROM
 (m)

TO
 (m)

INTERVAL
 (m)*

GRADE
 (g/t)

AN-12-001

63.09

71.60

8.51

19.85

AN-12-003

69.19

85.95

16.76

9.08

AN-16-010**

18.00

79.29

61.29

2.75

*True widths for Anubis drill results are estimated to be 60% - 100% of intersected widths

**Based on the character of the mineralization and the limited drilling, it is not possible to determine the true width of AN-16-010

Geology & Mineralization

Geology

The 18 km² Anubis Cluster is underlain by favourable mid-Paleozoic limestone, silty limestone, shales and calcareous siltstones that are cut by a network of regional scale faults. Two of these regional faults – the Anubis and Northern faults – are extensional features that are believed to be mineralizing fluid conduits. Smaller scale cross-cutting faults show strong evidence for hydrothermal alteration and are also potential areas for mineralizing fluid focus.

Mineralization and Alteration

Mineralization in the Anubis Cluster shows characteristics are consistent with Carlin-type gold mineralization, as do other targets along the Nadaleen Trend. The Anubis discovery outcrop consists of highly fractured, strongly folded, jasperoid altered and decarbonatized siltstone and shale. Extensive soil geochemical anomalies in the Anubis Cluster occur with well-developed hydrothermal clay alteration developed in proximity to the feeder fault systems. The large-scale pathfinder element geochemical footprint suggests a very large Carlin-type environment with a long-lived plumbing system.

Exploration Potential

The Anubis area is covered by a thin layer of overburden making trenching challenging. However, despite the poor bedrock exposure, the pathfinder element + gold geochemical footprint in the Anubis area is stronger and larger than that of the much better defined Carlin-type gold mineralization in the Osiris Cluster, 10 km to the east.

ATAC completed a six week RAB drilling program at the Anubis Cluster in 2015 which was successful in identifying bedrock sources of gold that are likely responsible for the adjacent surface geochemical anomalies. Numerous targets remain untested within the Anubis Cluster. The most significant results from the RAB program resulted in the discovery of a new target of mineralization, 300 m west of the original Anubis discovery. This new target named Orion, intersected 47.24 m of 3.79 g/t gold and was the only hole from the program that was oriented to the north into a pyritic siltstone assemblage. Orion and the pyritic siltstone unit will be a focus of future exploration programs within the Anubis Cluster.

This discovery of high-grade silver-lead-zinc mineralization in four widely spaced areas is another very exciting development in the Anubis area. Grab samples from test pits at the Zodiac and Corona targets returned 1.03 g/t gold, 460 g/t (13.42 oz/ton) silver, 11.75% lead and 10.90% zinc and 1.62 g/t gold, 1,490 g/t (43.46 oz/ton) silver and 31.08% lead, respectively. Like the Carlin-type gold mineralization, these base metal targets are associated with fault zones cutting Paleozoic sedimentary rocks. Due to the amount of overburden cover and the early stage of exploration in the area, the relationship between the two styles of mineralization is not clear; however, at the Zodiac showing, Carlin indicator minerals realgar (arsenic) and cinnabar (mercury) clearly overprint silver mineralization. This suggests that the Anubis Fault system is a long lived structure responsible for multiple mineralizing events.

Sampling Highlights

  • Four surface outcrop grab samples at the Anubis discovery returned assays of 139, 125, 122 and 84 g/t gold
  • Sampling at the Dorado target returned assays of 4.64, 3.98, 3.54, 2.63 and 2.62 g/t gold from hand pit grab samples
  • Hand pit grab samples from the Ana target returned 5.59, 3.54, 2.45 and 2.01 g/t gold
  • Silver values from the Zodiac and Corona showings include 900 g/t (26.25 oz/ton) silver and 2,910 g/t (84.88 oz/ton) silver, respectively
  • Grab samples taken from test pits at the Zodiac, Corona and Draco gold targets returned assay results greater than 1 g/t gold

Drill Results

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