Rau Trend

Geology
Exploration conducted by ATAC between 2006 - 2010 focused along a 15 km long ridge system underlain by Paleozoic carbonate rocks, bounded by the Beaver and Rackla Rivers. Carbonate strata at the southeast end of the ridge system is intruded by a small early Tertiary (62.9+0.5 Ma) granite stock. Work along the 15 km trend comprised widely spaced soil geochemical surveys, airborne VTEM, ZTEM and magnetic surveys plus geological mapping and prospecting. More than a dozen gold and/or silver, copper exploration targets have been defined. Detailed work at the southeastern end of this trend focused on the Tiger Zone and included grid soil geochemical surveys and diamond drilling of 132 holes.

The Tiger Zone is a stratabound, structurally-controlled gold deposit that trends northwest, dips moderately northeast and is characterized by replacement of host karst dolomite by iron carbonate minerals. It is 800 m long, 100 to 200 m wide, and up to 96 m thick. Mineralization is contained within a 40 m to 150 m wide zone of small-scale folding and shearing, which is itself developed in and adjacent to a regionally extensive corridor of highly strained rocks that may reflect a deep seated fault zone. The mineralized system is defined by a series of stacked and folded limestone horizons intercalated with locally extensive mafic flows and volcaniclastic units. Most of the exploration has been directed toward the Discovery Horizon, although there is evidence for at least two additional stratabound intervals of gold mineralization.

Mineralization
Gold occurs in both sulphide and oxide material. Sulphide mineralization is accompanied by, and developed within, dolomitized limestone, which is replaced by ferruginous dolomite and iron carbonate minerals. Sulphide species consist of disseminated to banded pyrite, with subordinate arsenopyrite and pyrrhotite, and minor bismuthinite and sphalerite. Small amounts of disseminated scheelite are also present. The main sulphide minerals exhibit at least three stages of mineralization. The best intersection from sulphide-bearing mineralization averaged 4.04 g/t gold over 96.01 m from hole Rau-09-66.

Oxide mineralization is completely devoid of sulphide minerals and ranges from very competent, weakly porous limonitic mud to rubbly porous limonitic grit. The oxide appears texturally amorphous in most intersections but occasionally exhibits residual color banding that may represent relict sulphide textures. Complete oxidation extends up to 250 m from surface. The best oxide grades (e.g., hole Rau-09-19, which assayed 24.07 g/t gold across 28.04 m) and deepest oxidation occur where north-striking extensional faults intersect the regional northwest-striking structure.

Preliminary metallurgical test results on gold-bearing oxide material are very encouraging and demonstrate that the oxide mineralization is potentially amenable to conventional cyanide extraction processes. Additional tests are underway to assess the metallurgy of sulphide material.

In addition to the work done at the Tiger Zone, ATAC has also identified six nearby surface gold zones by following up high values from grid and widely spaced reconnaissance soil sampling. The best zones are in a 500 m wide belt, which lies 2 to 5 km along strike to the northwest of the Tiger Zone, in and adjacent to the northwest-striking structural corridor. Surface rock samples collected from talus or recessively weathered areas assayed between 1.0 and 18.5 g/t gold.Anomalous soil geochemical values stretch intermittently for about 22 km to the northwest along the projected trace of the structural corridor, which is marked by electromagnetic conductors.

NI 43-101 Mineral Resources

Tiger Deposit oxide plus sulphide resources
  Cut-off grade
(g/t)(Au)
Tonnes Grade
(g/t)
Ounces
(Au)
Indicated 0.30 7,150,000 2.21 508,000
Inferred 0.30 8,280,000 1.09 290,200


Tiger Deposit oxide resources
  Cut-off grade
(g/t)(Au)
Tonnes Grade
(g/t)
Ounces
(Au)
Indicated 1.60 2,470,000 4.25 337,500
Inferred 1.60 180,000 3.00 17,400


The Tiger Gold Deposit mineral resource estimation was completed by Gary Giroux, P.Eng., MASc. (Giroux Consultants Ltd.) who is a qualified person and independent of ATAC, based on the criteria defined by National Instrument 43-101. Quality control data generated during the various drill programs conducted at the Tiger Gold Deposit were independently reviewed by Giroux Consultants Ltd. as part of the resource study. The full report dated effective November 15, 2011 and titled "Preparation of the Tiger Zone Mineral Resource Estimate" was filed on SEDAR (http://www.sedar.com/) December 1, 2011.

2006-2010 Exploration
  • Extensive grid soil sampling and reconnaissance scale silt sampling
  • VTEM, ZTEM and magnetic airborne geophysical surveys
  • 25,900 metres in 132 diamond drill holes
2011 Exploration
  • 5,900 metres of drilling in 29 diamond drill holes
  • Completion of an initial NI 43-101 Mineral Resource Estimate at the Tiger Gold Deposit
  • Discovery of the Ocelot silver-lead-zinc Zone - OC-11-10 intersected 63.44 m of 73.81 g/t Ag, 2.44% Pb and 8.18% Zn
2012 Exploration Plans
  • Geophysical surveys over the entire Ocelot area
  • Discovery of the Bengal gold showing located 3.2 km south of the Tiger Deposit within a newly defined 5.6 km intermittent gold-in-soil contour anomaly