With the gold price going ballistic and Atlantic Gold making solid progress things are looking decidely promising for Atlantic Gold, the projects economics have improved tremendously with a new ore processing option available which is attracting the attention of financiers. The share price is absurdly cheap at these levels.
QUARTERLY REPORT FOR PERIOD ENDING 31 DECEMBER 2008 HIGHLIGHTS • Detailed financial analysis, engineering evaluations and site visits under the terms of a Memorandum of Understanding with Acadian Mining Corporation have determined that Touquoy ore could be transported and treated at its Scotia Mine plant with a low capital investment of C$32m plus C$7m working capital and cash operating cost of C$620 per ounce. Gold is currently C$1,100 per ounce. • Preliminary engineering and financial analyses have determined that an alternative approach to Touquoy using Gekko gravity-float-intensive leach processing provides an attractive option with upfront capital of C$53m plus C$7m working capital, and operating costs reduced to C$455 per ounce. • The company’s investigations into project finance have determined that a debt provider is particularly attracted to the low operating cost indicated by the Gekko studies, the Nova Scotia government is very attracted to the potential jobs provided by the Touquoy development and the Canadian Budget stimulus package announced this week contains financial incentives which will benefit Touquoy. • Under the terms of a Memorandum of Understanding discussions are in progress with Acadian Mining to consolidate both companies’ gold properties in Nova Scotia which together comprise almost 3.0 million ounces of gold resources and more than 1000km2 of highly prospective exploration lands. • The company is engaged in ongoing discussions with various funding parties in order to access additional working capital.
