Transatlantic Mining Corp. NI 43-101 Geology and Mineralisation Report on the US Grant Mine
TCO NEWS RELEASE-VANCOUVER, B.C., August 4, 2017 – Transatlantic Mining Corp. (the “Company”) (TCO:TSX.V). As a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify disclosure for the US Grant Mine within the Alder Mountain Project.
In December of 2016, the Company filed a technical report on SEDAR for its US Grant Mine property entitled “The Mineral Resource and Preliminary Economic Assessment at the US Grant Mine Property, Virginia City, Madison County, Montana, USA”, (the “Original Report”). The Original Report was selected for review by the British Columbia Securities Commission (the “BCSC”). As a result of that review the Company, in a news release dated April 20, 2017, advised investors that the Original Report should not be relied upon until a compliant report was filed. The Company commissioned a new report filed on SEDAR August 4, 2017, entitled, “The Geology and Mineralization of the U.S. Grant Mine Property Virginia City, Madison County Montana U.S.A” (the “New Report’). The New Report does not contain a current mineral resource estimate, and therefore no economic analysis, for the US Grant Mine property. The New Report also updates the drilling data contained in the Original Report to include the results of additional drilling and assays around historic hole USG 88-2, obtained in the intervening period.
The New Report also provides an historic resource estimate for the US Grant Mine as reported in 1990 (McLeod, 1990), as follows:
| Tons | Au grade opt | Ag grade opt | Category | Information Source |
|---|---|---|---|---|
| 23,000 | 0.53 | 16.5 | Proven | McLeod, 1990 |
| 200,000 | 0.53 | 16.5 | Probable | McLeod, 1990 |
| 158,400 | 0.3 | 5 | Possible | McLeod, 1990 |
The Company’s Qualified Person has not done sufficient work to classify the historical estimate as current mineral resource or mineral reserve. Based on a review of all the historic data, the QP concurs that the methods used to estimate the historic resource met industry standards at that time and are reliable. The resource categories included in the 1990 estimate (Proven, Probable, and Possible) are similar to the NI 43-101 resource categories (Measured, Indicated, and Inferred). There has been little mining completed since the latest historic estimate and the estimates are supported by recent TCO exploration drilling data and recent TCO exploratory mine drifting data. The QP therefore believes that the 1990 historic resource estimate is a reliable estimate and still relevant. The QP recommends that the historic resource estimate be upgraded to a NI 43-101 compliant mineral resource estimate using the applicable historic data, recent TCO exploration drilling data, and recent TCO exploratory mine drifting data.
The US Grant Mine property has had only a limited amount of exploration drilling during its history. An exploration target in the range of 1.7- 2.6 million tons, with grade range of 0.19-0.28 opt equivalent gold (approximate range of 350,000 to 750,000 equivalent gold ounces based on gold/silver at US$1200 and US$15.80, respectively) is estimated based on vein data, average widths, down dip projections, US Grant literature and regional vein grades. Note: the potential quantity and grade above is conceptual in nature as there has been insufficient exploration to date to define a mineral resource, and it is uncertain whether further exploration will result in the target being delineated as a mineral resource.
The assays obtained from the recent drill program around the historic hole 88-2, are as follows:
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| Hole # | from (ft) | to (ft) | true width (ft) | Au opt | Ag opt | Au Eq opt | Au g/t | Ag g/t | Au Eq g/t | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SURDH#1 | 159 | 167.7 | 5.9 | 0.286 | 5.3 | 0.357 | 9.8 | 181.5 | 12.24 | ||||||||||
| Includes | 4.4 | 14.2 | |||||||||||||||||
| SURDH#3 | 122 | 128 | 3.5 | 0.093 | 1.8 | 0.116 | 3.19 | 60.0 | 3.99 | ||||||||||
| SURDH#4 | 198 | 205 | 6.7 | 0.083 | 3.1 | 0.124 | 2.86 | 105.0 | 4.24 | ||||||||||
| SURDH#5 | 201 | 207.6 | 6.4 | 0.172 | 2.3 | 0.203 | 5.9 | 78.9 | 7.33 | ||||||||||
| Includes | 2.1 | 16.9 | |||||||||||||||||
| SURDH#6 | 177.4 | 186.7 | 8.9 | 0.522 | 3.1 | 0.564 | 17.91 | 106.4 | 19.35 | ||||||||||
| Includes | 2.8 | 36.8 | |||||||||||||||||
| SURDH#8 | 191.5 | 195 | 3.3 | 0.195 | 3.1 | 0.237 | 6.68 | 107.3 | 8.09 | ||||||||||
| SURDH#9 | 178.5 | 187.5 | 6.8 | 0.068 | 2.2 | 0.097 | 2.33 | 76.0 | 3.33 | ||||||||||
| SURDH#10 | 268 | 276.5 | 6.1 | 0.133 | 1.4 | 0.152 | 4.55 | 48.7 | 5.19 | ||||||||||
| Includes | 2.0 | 10.2 | |||||||||||||||||
| SURDH#12 | 682 | 683 | 1.0 | 0.087 | 3.35 | 0.131 | 2.98 | 114.9 476.6 | 4.50 | ||||||||||
| 690 | 691 | 1.0 | 0.368 | 13.90 | 0.551 | 12.62 | 18.89 | ||||||||||||
| SURDH#13 | 215 | 221 | 4.3 | 0.100 | 2.35 | 0.131 | 3.43 | 80.57 | 4.49 | ||||||||||
| SURDH#14 | 159.7 | 166.5 | 6.7 | 0.152 | 3.88 | 0.203 | 5.21 | 132.92 | 6.96 | ||||||||||
| Includes | 1.5 | 21.1 |
Gold equivalent is based on a contained Au price of $1200/oz and $15.80/ounce for Ag
The New Report was authored by Chris Pfahl, PE, PLS, who is a Qualified Person under NI 43-101 and has reviewed and approved the disclosure of a scientific or technical nature herein.
About Transatlantic Mining Corp.
Transatlantic Mining (TSX-V: TCO) is an emerging precious and base metal explorer, developer and producer. The Company has a focus on high-grade mining, in stable mining jurisdictions. The Company is engaged in controlling and owning mineral properties interests, such as an 80% earn-in option on the Monitor Copper-Gold project in Idaho (USA).
In January 2016, the Company entered a lease/purchase option agreement on 100% of the US Grant Gold-Silver Mine & Mill complex in Montana (USA) which has developed a concentrate within 12 months. The Company also holds an exclusive lease with option to purchase on the Kearsage claim group comprising approximately 700 acres, located approximately four miles from the US Grant Mine. A proven management team, led by Chief Executive Officer Bernie Sostak seek to enhance shareholder value through expert exploration/development and expansion of its existing assets, together with selective and future earning accretive acquisitions. For further information please contact: Bernie Sostak +61 (0) 439 904 044.
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