Maiden Resource For The Pedra Branca Project

KELOWNA - South Atlantic Gold Inc. reported that Pedra Branca’s Maiden Resource has been completed and is presented under National Instrument (NI) 43-101 technical report standards.  The resource was completed by the consolidation of historical drilling and Phase 1 Reverse Circulation (RC) drilling results with an average depth of 41.2 meters (m). Highlights: Completed 100% earn-in of the Pedra Branca Project from Jaguar Mining Inc.  through the delivery of the NI 43-101-compliant technical report; and Maiden mineral resource: A total of 10,523 samples were included in the resource calculation before the cut-off date of February 19th, 2021. As such, all remaining 8,188 (43% additional samples) were not included in the resource and are considered only as exploration results.  Inferred mineral resource includes: Oxide: 900,000 tonnes (t) grading 1.35 grams per tonne (g/t) gold (Au) for 39,000 oz Au; Fresh: 3,142,000 t grading 1.40 g/t Au for 141,000 oz Au; and Total: 4,042,000 t grading 1.38 g/t Au for 180,000 oz Au; - Over 39 mineralized N20E/40SE zones were individualized, along a 12km strike length with an average thickness of 4 m, over the 3 main targets: Igrejinha, Coelhos-Queimadas and Mirador. The Phase I RC drilling was completed to an average depth of 41.2 m. From the historical drilling, higher grades have been reported from deeper intercepts with a total of 93 historical Diamond Drilling (“DD”) holes also included in the maiden resource calculation.

Douglas Meirelles, CEO, said, “The primary objective of this technical report was to provide a NI 43-101-compliant report to Jaguar Mining Inc. in order to complete our additional 25% earn-in to attain full  ownership of the Pedra Branca Project. As such, our focus was to deliver a maiden resource report as quickly as possible during our Phase I exploration program. A cut-off date for the resource calculation was set at February 28th, 2021 in order to enable sufficient time to complete the report and have Jaguar review prior to mid-2021. Our team was very successful, and with a USD 1 million exploration program, defining a total of 39 mineralized zones along the entire 12 km mineralized trend. Going forward, the Phase II program will be designed to further delineate and possibly bridge the gaps between the mineralized areas and transition the current resource to an advanced stage asset as set by the mining concession issued by the National Mining Agency of Brazil.”

The company will work with Jaguar to complete the required government processes to transfer the Pedra Branca asset to South Atlantic Gold’s subsidiary in Brazil. Also an additional tenement located in the center of the Project was recently acquired. This new tenement increases the Pedra Branca land area to 39,906 hectares. The location and acquisition of this new tenement was deemed essential to consolidate the Company’s ownership along the entire mineralized trend. The data from the Phase I exploration program was obtained from a mineralized trend of approximately 12 km. Some of the exploration work was required to maintain the tenements in good legal standing with the Brazilian mining and exploration agencies. Because the assay results and drill holes were widely spread, the parameters for the for the resource estimate are conservative. They included: Three block models over 39 mineralized bodies were prepared based on the targets of Coelhos-Queimadas, Mirador and Igrejinha; A capping of 12 g/t Au was used to reduce the influence of outlier sample data; and A cut-off grade of 0.4 g/t Au.