Description and Ownership

The Touquoy Gold Mine is located at the former village of Moose River Gold Mines about 70 minutes’ drive via 110 km of sealed roads north-east of Halifax. The Touquoy Property covers an area of approximately 1,760 ha. Atlantic has an effective ownership interest of 63.5% in the Touquoy Gold Project, is the project operator and manager, and would recover all operational overhead, financing and sunk costs prior to any partner distributions.

Touquoy Mine Site

Touquoy Mine Site

Mine Status

The official opening of the Moose River Consolidated Gold Mine (MRC) took place on October 11th, 2017. The company commemorated the opening with a ceremony and reported that first gold pour was also achieved at the MRC Gold Mine. Atlantic Gold Corporation declared commercial production on March, 5th2018.

The Company declared commercial production effective March 1st 2018 as a result of a successful ramp up of mine and milling facilities at its Moose River Consolidated Gold Mine (“MRC”). For accounting and reporting purposes March 1st is therefore the effective date for reporting commercial operations.

Summary of 2018 Quarterly and Annual Results:

Description Q1 2018 Q2 2018 Q3 2018 Q4 2018  2018
Gold Produced (oz.) 18,183 22,269 27,570 22,509 90,531
Gold Sold (oz.) 17,187 22,728 27,026 23,405 90,346
Cash Cost/oz. ($CAD) 549 569 541 574 558
AISC/oz. ($CAD) 751 743 695 749 731
Mine Operating Earnings ($CAD)* 5,889,743 15,483,426 18,331,412 16,181,347 55,885,927
Operating Cash Flow ($CAD)* 4,214,432 19,393,031 26,428,329 19,544,503 69,580,185
Total Cash Balance ($CAD)** 25,875,527 33,116,412 44,894,799 50,280,380 50,280,380
Net Debt ($CAD) 110,192,257 85,312,742 68,898,905 63,683,895 63,683,895

* Note: MRC commenced commercial production effective March 1, 2018.  As such, only financial operating results from this date are recognized in the Company’s Statement of Income (Loss) and Other Comprehensive Income (Loss) for the year ended December 31, 2018. Financial operating results prior to that were capitalized to mine development within property, plant and equipment.
** Note: Total Cash is composed of cash and cash equivalents and restricted cash. As at December 31, 2018, restricted cash was nil.

First Gold Bar, Opening Ceremony

All major environmental permitting is in place including Environmental Assessment and Industrial Approval and granted Mineral Lease.

Title is now held and possession secured of all 63 private properties required for the development of the Touquoy Gold Project, following lengthy legal proceedings.  Details relating to compensation in respect of 11 expropriated properties on the basis of independent valuations previously conducted remain under discussion with legal representatives of the estates of, or directly with, former landowners.

In relation to the seven parcels of Crown land required within the footprint of the Touquoy Gold Project, the Nova Scotia Department of Natural Resources has now received Cabinet approval to issue the lease and has prepared the requisite documentation.

Property Plan of the Touquoy Project

Property Plan of the Touquoy Project

On 24 May 2014, Atlantic announced that a Memorandum of Understanding (“MOU”) between DDV Gold, a wholly owned subsidiary of Atlantic, and the Assembly of Nova Scotia Mi'kmaq Chiefs had been concluded. The MOU establishes the mutual recognition and respect of each party's perspective in relation to the development of the Touquoy Gold Project and DDV Gold's other potential resource developments elsewhere within Nova Scotia including Cochrane Hill (discussed below). In particular the MOU contemplates the negotiation and conclusion of a Mutual Benefits Agreement between the parties to engage further and specifically in terms of employment, training, provision of services and other opportunities and undertakings to the benefit of both parties.  The Company is now in the process of negotiating a binding mutual benefits agreement.

Mineral Resource Estimate

    Measured Indicated
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Touquoy 0.30 3.4 1.14 124 7.9 1.27 321
  0.40 2.9 1.28 119 6.8 1.41 309
  0.50 2.5 1.41 113 6.0 1.55 297
    Measured+Indicated Inferred
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Touquoy 0.30 11.3 1.23 445 1.1 1.30 48
  0.40 9.7 1.37 428 1.0 1.46 46
  0.50 8.5 1.51 410 0.9 1.61 44

1. Mineral Resources have an effective date of February 15, 2019.  The Qualified Person for the estimates is Mr. Neil Schofield, MAIG, an employee of FSSI Consultants (Australia) Pty Ltd.
2. Mineral Resources are reported at a base case cut-off grade of 0.3 g/t Au.  The cut-off grade includes the following considerations: assumption of open pit mining methods; gold price of US $1,400/oz; and an exchange rate of 0.77 US$: CDN$.
3. Mineral Resources are reported inclusive of those Mineral Resources that have been converted to Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Estimates have been rounded and may result in summation differences.


The Touquoy Gold Deposit is a shale hosted, disseminated gold deposit, located in the Meguma Group, a sequence of Cambro-Ordovician sandstones and mudstones which underlies about half of the province of Nova Scotia. Since the mid-1800s about 60 underground gold deposits within the Meguma Group have been mined, for an aggregate documented production of about 1.4 million ounces. These deposits evidence the substantial gold potential of the Meguma Group. The Touquoy Gold Deposit however is different from most of these deposits in that the gold is disseminated throughout the host sediments and is essentially unrelated to quartz veining.

The very wide drill intersections of gold mineralisation at Touquoy, some in excess of 100 m, therefore set this deposit apart from the typical Meguma Group gold deposits as a substantial, open-pit, bulk mining proposition.