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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	ATV
Latest Price:	0.03 (7.14% )
52-week High:	0.05
52-week Low:	0.03
Market Cap:	16.65M

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Atlantic Gold

Atlantic Gold (ASX: ATV) is focused on gold projects in Canada, and is currently exploring in the Nova Scotia goldfields.

Atlantic's main project is the Touquoy project, with the company holding in total an exploration land package of around 1340 square kilometres.

Atlantic Gold updates Touquoy definitive feasibility study, Canadian gold project still attractive

Thursday, February 23, 2012 by Bevis Yeo

Atlantic Gold (ASX:ATV) has updated its definitive feasibility study for its Touquoy Gold Project in Nova Scotia, Canada that it said reaffirmed the strong viability of the project.

While the update increased pre-production capital costs up from C$123 million to C$140 million, including C$10 million of working capital and $10 million reclamation bond, it also estimated an increase in net cash surplus over 5 years from over C$300 million to C$337 million.

Project payback for the 2 million tonne per annum plant producing 84,000 ounces of gold is expected 18 months after first pour.

Pre-tax net present value is estimated at C$206 million with a 52.5% internal rate of return.

Other aspects remain unchanged, including the total resource of 9.59 million tonnes at 1.49 grams per tonne (g/t) gold and total production of 422,000 ounces of gold.

The strategy for project implementation contemplates development under an engineering, procurement and construction management contract with practical completion expected 21 months after the contract is awarded.

Critical path for the project is delivery of the grinding mill which is presently about 15 months from placement of order.

The project has potential to grow bigger as Atlantic has envisioned Touquoy as the first stage of a 10-year production plan of 900,000 ounces for the combined Touquoy and Cochrane Hill Gold Projects.

This would require the re-location of the Touquoy processing plant 80 km to the east to Cochrane Hill upon completion of the Touquoy operation.

The combined project would have average gold production of 93,000 ounces per annum from a total resource of 19 million tonnes at 1.5g/t gold.

Total production over the 9.7 year mine life would be 900,000 ounces with net cash surplus of C$721 million.

Pre-tax net present value is estimated at C$371 million with a 53% internal rate of return.

Torquay is located about 70 minutes drive from Nova Scotia provincial capital Halifax, a modern city with a population of about 350,000.

Halifax is also a major port that supports major engineering and service infrastructure.

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