ATAC Resources Ltd.

TSX VENTURE : ATC

May 09, 2012 18:11 ET

ATAC Resources Acquires 100% Interest in Connaught Silver Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2012) - ATAC Resources Ltd. (TSX VENTURE:ATC) (ATAC) is pleased to announce that it has completed an agreement with Klondike Silver Corp. ("Klondike") under which ATAC will acquire Klondike's 50% interest in the Connaught silver property bringing ATAC's total interest in Connaught to 100%. The Connaught property is located in the Dawson Mining District in west-central Yukon and lies immediately south of the Sixtymile placer gold camp, approximately 65 km west of Dawson City.

Under the terms of a 2009 joint venture agreement, ATAC and Klondike each hold a 50% interest in the property. Subject to TSX Venture Exchange acceptance, ATAC will issue 75,000 shares to Klondike for its 50% interest in the property. Klondike will not retain any working or royalty interest in the property.

The Connaught property hosts a number of silver-lead-gold veins within a 13 by 5 km area of anomalous soil geochemical response which approximately coincides with a pronounced magnetic high. Although the area has good road access, work to date has been limited to trenching and a few drill holes along lightly vegetated ridge tops. Where exposed, the veins are typically 0.3 to 2 m wide and grade 100 to 2,000 g/t silver with 0.3 to 2 g/t gold and 3 to 60% lead.

The technical information in this news release has been reviewed by Robert C. Carne, M.Sc., P.Geo., a qualified person for the purposes of National Instrument 43-101.

About ATAC

ATAC is a well-funded, Yukon-based exploration company focused on developing Canada's only Carlin-type gold discoveries at its 100% owned, Rackla Gold Project. For additional information concerning ATAC Resources Ltd., please visit our website at www.atacresources.com.

Graham Downs, CEO

ATAC Resources Ltd.

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

ATAC Resources Ltd.
Vanessa Pickering
Manager, Corporate Communications
604-687-2522 ext. 60
vpickering@nordacres.com
www.atacresources.com

Historical work began in the early 1960s and continued intermittently through the mid 1980s. During that time, exploration consisted of grid soil geochemical sampling, ground geophysical surveys, bulldozer trenching and limited diamond drilling. The older work identified numerous lead-in-soil geochemical anomalies and seven silver-lead-gold bearing veins (referred to as #1 through #7) within a 13 km by 5 km area that is now mostly covered by the CN property. The CN property has reported historical grades for galena dominant samples collected intermittently along a 275 m strike length range from 723 g/t to 5498 g/t Ag with lead values up to 84.65%.

Exploration in 2006 included an airborne property wide, time-domain electromagnetic system (VTEM) survey completed by Geotech Ltd. This survey delineated strong conductors that appear to be related to an extensive system of veins that extend across ridge tops into the adjacent heavily vegetated and overburden covered valleys. The 2007 exploration work consisted of prospecting, grid soil sampling, approximately 1100 m of excavator trenching and 566 m of diamond drilling. Most of this work was directed toward better establishing the tenor of mineralization at the known vein zones.

Four historical vein zones were sampled and one new vein, the Stirling vein, was discovered. Excavator trenching in the vicinity of the #1, #3, #4 and #7 veins located significant mineralization on the floor of an old trench at the #3 Vein and discovered two promising lenses in new trenches near the #7 Vein. All of these occurrences consist of massive anglesite/galena in lenses, which have been exposed for widths up to 1.25 m and along strikes for up to 16 m. Closely spaced sawn channel samples were collected along each of the vein exposures to establish grade control.

Part of the 2007 program consisted of a total of seven diamond drill holes testing at shallow depths beneath the #1, #3 and #4 veins. Mineralized vein material was encountered in all holes. All analyses for the 2007 program were performed at ALS Chemex laboratory in North Vancouver using industry-standard fire assay and ICP techniques. This laboratory carries ISO 9001:2000 registration and is accredited to ISO 17025 by Standards Council of Canada for a number of specific test procedures including fire assay Au by AA, ICP and gravimetric finish, and multi-element ICP and AA assays for Ag, Cu, Pb and Zn.

Excavator trenching was conducted to enhance exposure and access to high grade silver veins, in preparation for bulk sampling. The program was done by an exploration team led by Professional Geologist William Mann. Assay results have confirmed three new areas of mineralization discovered by prospecting during the program including:

• Sample collected 1.8km south of the No. 4 vein returned 4.13 g/t Au, 406 g/t Ag and 10.4% Pb.

• Two samples collected over 500m from the nearest trenches, northeast of the No. 7 vein returned 3.98 g/t Au, 201 g/t Ag & 30% Pb, and 1.71 g/t Au, 1705 g/t Ag, & 12.2% Pb.

• A sample collected approximately 700m south of the No. 8 vein returned 0.874 g/t Au, 312 g/t Ag, & 7.08% Pb.

#1 Vein

The #1 Vein is coincident with a linear, northeast trending lead-in-soil geochemical anomaly that extends for 1100 m along strike and contains peak values of 7400 ppm. Historical bulldozer trenching conducted along a 220 m portion of the anomaly exposed a vein dominantly composed of quartz and arsenic-antimony sulfosalts with intermittent lenses of massive galena.

Detail chip sampling was conducted along a 70 m portion of the vein zone in an open cut left from the bulk sampling performed in the late 1960s and 1970s. The 2007 samples returned peak grades of 2550 g/t silver and 74.62% lead. These peak values are from galena- rich lenses. Adjacent quartz vein selvage material with arsenic-antimony sulfosalt mineralization also contains significant silver (up to 763 g/t) and lead (up to 25.28%) accompanied by gold values up to 10.90 g/t. The two diamond drill holes tested beneath the vein on a section line that passes under the trench 49.5 m from its start. The holes encountered quartz dominant vein material at the anticipated piercement depths of 43 and 82 m. No significant mineralization was associated with either intersection.

#3 Vein

The #3 Vein is situated 3 km north of the #1 Vein and this site is marked by an old bulldozer pit, where the largest portion of the historical bulk sample was believed to have been collected. In 2007, the base of the pit was cleared of slough and debris exposing a 5 m long massive galena and anglesite lens that is up to 1.25 m wide. Channel samples were sawn across the lens at various points and yielded grades up to 2880 g/t silver, 54.89% lead and 3.54 g/t gold. The highest grades for silver and lead are associated with massive galena and anglesite.

Two diamond drill holes CN-07-05 and -07 tested the #3 Vein Zone with piercements at 25 m directly beneath the massive galena lens and 25 m along strike to the northeast. Both holes encountered massive galena and anglesite at the anticipated piercement points. A third hole CN-07-06 was drilled from the same site as CN-07-05. It was designed to test the vein at a target depth of 50 m but encountered a porphyry dyke that appears to have cut-off or displaced the vein.

#4 Vein

Vein mineralogy at the #4 Vein is similar to the veins exposed on the CN property and reported historical grades for galena-dominant samples collected intermittently along a 275 m strike length range from 723 g/t to 5498 g/t silver with lead values up to 84.65%.

#7 Vein

The #7 Vein was exposed by extending an old bulldozer trench where massive galena cobbles were found within the lower part of the soil profile. A vein zone that is likely the source of the galena cobbles was exposed in two excavator trenches situated approximately 120 m apart. The northern trench, TR-07-27, exposed a quartz vein with arsenic-antimony sulfosalt mineralization and massive galena lenses up to 55 cm wide, along a strike length of roughly 23 m. The northernmost of the galena lenses is open to the northeast where it projects beneath an access road. Approximately 2 tonnes of massive galena was recovered during the exploration of this lens.

TR-07-29, which is located 120 m to the southwest of TR-07-27, exposed a vein zone dominantly composed of quartz with arsenic-antimony sulfosalt mineralization. A chip sample across this exposure returned 479 g/t silver 8.81% lead and 1.51 g/t gold across 0.56 m.

Stirling Vein

The Stirling Vein is a new discovery made by deepening an old bulldozer trench, situated approximately 400 m northeast of the #7 Vein. It is characterized by a strong arsenic-antimony sulfosalt-bearing quartz vein, again with intermittent massive galena lenses up to 47 cm wide. The vein was exposed for a strike length of 22 m. The samples yielded grades up to 2083 g/t silver over 0.66 m, 51.50% lead over 0.66 m, and 5.81 g/t gold over 0.43 m.