ATAC Resources Ltd. Farms Out Mac Gold Project
February 27, 2007
February 27, 2007 - ATAC Resources Ltd. (TSX-V: ATC) is pleased to announce that it has entered into an option agreement with SEDEX Mining Corp., which grants SEDEX the right to acquire a 100% interest in the Mac Gold project in southwestern NWT.
The Mac Gold project is a large, lightly explored area that is highly prospective for placer and hard rock gold.
Under terms of the agreement SEDEX can earn its interest by issuing ATAC 200,000 of its shares, paying ATAC $500,000 and completing $4.8 million in exploration expenditures, all within 48 months of receiving regulatory approval. After SEDEX earns its interest, the property will be subject to two, 2% net shelter return royalty interests, one concerning future placer production and the other, hard rock production. Both royalties can be brought down to 1% at SEDEX’s election. If a positive bankable feasibility study is produced for a hard rock mining operation, SEDEX must also pay ATAC $2 million or issue it 500,000 shares, at ATAC’s election.
The Mac Gold project consists of three prospecting permits totalling 48,614 hectares. The project is located in the southern portion of the Tintina Gold Belt, which hosts a number of major deposits including Donlin Creek, Pogo, Fort Knox and Keno Hill.
Although placer gold has long been rumoured to occur in the Mac Gold area, the first documented discovery on the property was made on Selena Creek in 1984. The prospector who made the discovery excavated 11 test pits from which he recovered 4.1 to 17.4 g of gold per metre of gravel panned. These results prompted a bulk sampling program that was conducted in 1988 and 1989 by Sirus Resources Corporation and Verstone Gold Corporation. This program involved 54 shallow test pits dug with a small backhoe over a 3 km length of Selena Creek. Gravel from the pits yielded 0.935 to 25.49 g of gold per cubic metre. Owing to a mantle of coarse boulders, the depth of the gravels and the limitations of the small equipment, none of the pits reached bedrock where higher grade pay could be expected. Tests of the sluice box tailings showed that only 5 to 40% of the total gold was recovered. The unrecovered gold is likely extremely fine grained or it has not been liberated from attached lighter minerals. The recovered gold was relatively coarse and angular with a high Corey factor (sphericity) and a variety of smoothness, indicating that there are probably multiple, nearby sources. Fineness averages about 900. Magnetite, nodular hematite, pyrite and abundant scheelite were recovered along with the gold. In 2006, ATAC discovered a new area of placer gold in Chuck Creek which joins Selena Creek downstream of the earlier placer workings.
No source for the placer gold has yet been found. Although elevated gold values have been identified in stream sediment and heavy mineral concentrate samples from a number of drainages on the property, significant hardrock exploration has only been done near Chuck Creek.
Exploration in the Chuck Creek area included mapping, contour and grid soil sampling and prospecting in 1981, 1982 and 1986 by Serem Ltd. and prospecting, geochemical sampling and a magnetometer survey by M. Vulimiri under an option agreement with Serem in 1989. Conventional silt samples returned highly anomalous gold values (up to 6600 ppb) along the length of Chuck Creek while values up to 15,500 ppb gold were returned from pan concentrate samples. Anomalous arsenic values coincide with the gold response. Grid soil sampling failed to outline gold or arsenic anomalies on hillsides adjacent to the creek. The only mineralization found was scattered pyrite, pyrrhotite, bornite, malachite, chalcopyrite and magnetite in volcanic rocks. These minerals occur as fine disseminations and fracture fillings in silicified and sericitized andesite, or as fine stringers and amygdule fillings of chalcopyrite in basalt. Random outcrop sampling of altered volcanic rocks returned moderately anomalous gold values up to 1500 ppb but the relatively weak mineralization did not explain the highly anomalous stream sediment values. The area has less than 1% bedrock exposure and no trenching or drilling has been done.
ATAC is a well funded junior mining company focussed on gold. Its business model entails acquiring quality gold prospects, advancing them to drill stage and then attracting strong partners to move them toward production. At present ATAC has 12 of 16 properties under option and 7 of which are scheduled to have drill programs. The Company continues to research and acquire additional properties and currently has three properties available for option.
For information concerning ATAC or its properties please visit www.atacresources.com or contact Graham Downs at 604-688-2568 or 1-800-598-4155.
ATAC RESOURCES LTD.
Per: Robert C. Carne, President
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