Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Investor Relations How You Know If A Company Really Cares About Its Investors And What Makes Atlantic Gold (SPVEF) Different

|Includes: Atlantic Gold Corporation (SPVEF)

A company's investor relations approach & having a quality website to communicate the story to the market is a good indication of how much a company cares about the fortunes of its investors. Atlantic Gold (TSX:AGB) (OTCPK:SPVEF) have a relatively recently appointed investor relations guy doing a good job and they update their website regularly and are much more focused than they used to be about promoting the AGB story so if you want the latest visit the website regularly, the latest Investor Relations Corporate Presentation pdf is for the month of February and also gives some detailed info about the current drilling program and gives indications of the potential for significant reserve increases based on where they are and will be drilling in the coming months including 2 areas shown on pages 15 & 16 where there has been no previous drilling adjacent to existing resources and they are putting lots of holes into these 2 areas so if there is continuity in the mineralisation which I suspect is highly likely you will get good indications from the coming drill results which are expected every 2-3 weeks especially as they drill in the 2 previously undrilled areas at Cochrane hill and Fifteen Mile Stream, if you follow this closely you will get a heads up if they encounter significant gold intercepts in these 2 areas of the deposits.

There are numerous reasons why Atlantic Gold warrants a look from serious gold investors and its investor relations approach shows they are serious about building wealth for management as well as for investors and for those who do their homework there is a mountain of useful information in an easily understandable format just sitting there on the website that will help you make a decision on whether to invest or not.

Major Shareholders • Insiders & associates ~ 35% • Sprott Group of Companies ~ 12% • Other Institutional ~ 25%

Atlantic Golds approach to risk management is what sets them apart and is a big part of the reason they secured funding to build the mine in construction and scheduled for completion in the 3rd quarter this year.

The reason Atlantic Gold managed to secure funding was because they were able to convince the financiers that their modelling was 1st class and their risk management approach unique to the Canadian market and got the deal over the line. Gwen Preston from Resource Maven has written an excellent plain english report about Atlantic Gold that I recommend anyone with an interest in this company get hold of as it answers so many questions related to risk mitigation etc. gwen's email is and what follows is her description re risk management processes being used by AGB that put the financiers minds at rest and helped allow the deal to happen. Costs are what stand out on paper. On site and spending time with Dean, Belanger, and the team, what also really stands out is the focus on managing risk. Mining is a risky endeavor. In general we drill holes into a deposit on 25-metre centres and use that information to estimate what an entire body of mineralization looks like and contains. That means a lot of assumptions - and a lot of room for error. The answer is not necessarily to drill more, especially for structurally straightforward deposits like the ones at Moose River. What Atlantic is doing to address the resource risk is to go against the Canadian grain and use a resource estimation methodology not common in this country - but well used elsewhere. Most resource estimates in Canada use linear estimates and capped high grades. In very basic terms, the idea is to chunk out the deposit into blocks and to use drill data from within each block to estimate its average grade. The Atlantic team sees two problems with this approach: the blocks are influenced by the intercepts, which creates a self-fulfilling prophecy in that the deposit appears more consistent than it perhaps is, and anomalous high grades are capped in a pretty arbitrary manner, which is necessary to limit their influence on the overall grade but which renders the model less accurate. Atlantic's answer is to use a different modeling process called multiple indicator kriging (NASDAQ:MIK). I will not go into how it works here, but in short it addresses the issues inherent in linear estimates by processing the data statistically, rather than physically. It is in fact rather odd that MIK is not used much in Canada. It's not because of science; it's simply a cultural thing. In Australia MIK is widely used and there are a heck of a lot more open pit gold mines in Aus than in Canada. I am a novice when it comes to resource estimation methodology, but I thought Atlantic's approach worth noting. We spent over an hour during the visit in a technical presentation about the decision to use MIK and I came away certain that, in the very least, Atlantic is putting a lot of thought into how to best process data. That is significant in a world where resource estimate failures have created major disappointments of late. The follow-on of that presentation had Belanger tell us about Atlantic's approach to grade control, which is easier to understand and very cool. 6 In most open pit mines, miners decide what rock to send to the mill and what to send to the waste pile by assaying samples from the blast holes. In other words: the holes that are drilled so that the explosives can be inserted into the face create a pile of chips, called cuttings, and samples are taken from that pile to decide whether a particular blast load is ore or waste. There are two key problems with that. First, the samples are often not representative; sample collection is poor and prone to contamination. Second, blast holes are drilled a few days or sometimes only a few hours before face is blasted. Mine assay labs are under intense pressure to test the material and return results very quickly. Sometimes the turnaround just can't happen in time, so in the absence of data a geologist makes the ore-waste decision based on what he or she sees in the rock. That is nearly impossible. A mine grading 1.5 g/t gold has 1.5 parts per million gold. Yes, sometimes alteration makes it clear what rock types carry the gold and sometimes ore-bearing structures are visually obvious, but a lot of the time it is impossible to visually distinguish rock carrying 1.5 parts per million gold from that which does not. Atlantic does not want to end up in that situation. So it is taking a completely different approach. The company has a drill dedicated to pummeling its reserves with holes on a 5- by 10-metre grid. The process gathers enough data to create a mine plan and better define n ore-waste boundaries months in advance of mining. The first set of grade control holes go deep enough to plan the first four benches of the open pit, which is something like six months of mining. I saw the cross sections, one for each 5-metre section across the parts of Touquay that are completed, and the level of detail is just great. Atlantic will use that data to determine exactly how to mine. The mine plan, including GPS-defined dig lines for the excavators, will be uploaded into digital tracking systems in all of the mining equipment so that all miners know exactly what to do with each bit of rock. As an added bonus, the process allows Atlantic to check its resource model on a panel-by-panel basis. At the moment results are reconciling within about 5%, which is great; if the reconciliation was not good Atlantic would know now, rather than in a year when it's trying to commission its operation and things aren't working. All of that - the resource model process and the grade control approach - it's a lot of technical information. I wanted to include it because Atlantic's decision to put time and money into these decisions and processes really struck me. This is a team that is using its extensive collective experience to create a mine plan with the best possible odds of success. Risk - it's part of mining, but it can be mitigated.

AU Report have released a report on Atlantic Gold dated February 21st 2017.

One of the best developers around $AGB /pub/na/atlantic-gold-constructing-mrc-is-just-the-start-of-this-growth-story , the article is a very informative assessment of the company and its near term prospects. the assessment that the company would potentially be rerated 150% in price if the current drilling at Fifteen Mile Stream and Cochrane Hill proves up the resources from inferred to measured and indicated is just scratching the surface of the potential in this story. Based on drilling results released to date it is looking extremely likely that the resource will be upgraded to measured and indicated and by the end of the 2nd quarter the company is expected to provide the resource update so there is a nice window for investors to get positioned.

Disclosure: I am/we are long SPVEF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it . I have no business relationship with any company whose stock is mentioned in this article.

Supporting Documents

  1. TRR_AtlanticGold_2-21-17.pdf

Disclosure: I am/we are long SPVEF.

Additional disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.