ATAC Identifies Silver-Lead-Gold Mineralization at the Connaught Property

VANCOUVER, Jan. 16, 2020 - ATAC Resources Ltd. (TSX-V:ATC) ("ATAC") is pleased to announce exploration results at its wholly owned 115.5 km² Connaught property. The Connaught property is road accessible and located at the head of the Sixty Mile placer camp near Dawson City, Yukon. The property hosts over 20 distinct silver-lead-gold veins that grade between 100 and 4,050 g/t silver, 3.00 to 79.41% lead, and background to 10.90 g/t gold.

2019 Exploration Highlights

• Prospecting on a 1.8 km² silver-lead soil anomaly on the southern side of the property returned grab samples grading up to 1,485 g/t silver, 43.96% lead and 7.90 g/t gold; and
  
  
• Geochemical sampling on the northern portion of the property expanded an existing silver-lead-gold soil anomaly an additional 700 m along strike.

"The Connaught property contains extensive high-grade silver-lead-gold veins that have been identified at surface throughout a 3 km x 5 km area, and over 400 m of elevation. The 2019 program successfully discovered new high-grade veins and extended two geochemical anomalies near exisiting roads," stated President and CEO Graham Downs. "This season's work further demonstrated the high potential for additional silver-lead discoveries and the existence of an expanding high-grade gold signature that has seen very little previous work or attention."

Follow up work on a 1.8 km² coincident silver-lead soil anomaly in the southern side of the property returned numerous galena-quartz veins from hand pits. Multiple samples returned anomalous silver, lead and gold with a highlight sample of 1,485 g/t silver, 43.96% lead and 7.90 g/t gold. Geochemical sampling and prospecting in the northeast corner of the property expanded an existing silver-lead-gold soil anomaly, with a highlight grab sample returning 3.17 g/t gold.

The Connaught property lies within the complex, northeast-trending Sixty Mile-Pika fault system. This regional-scale structure is thought to have focused Late Cretaceous high-grade vein, porphyry and skarn style mineralization at many locations along its 150 km length. To date, 20 major silver-rich veins, 0.3 to 2.0 m wide, have been identified at surface and over a 400 m vertical extent of topography.

Individual veins have been traced for lengths in excess of 260 m and most remain open in both directions along strike. Soil geochemical anomalies outline additional much longer mineralized structures that have not yet been explored by trenching or drilling. Typical veins consist of multiphase quartz variably mineralized with blebby-to-massive arsenopyrite ± galena ± chalcopyrite ± covellite ± stibnite ± sulphosalts. Massive galena lenses are intermittently exposed in the core of some veins. Bleached phyllic- and argillic-altered halos extend up to six metres into adjacent wallrocks.

The mineralogy of the veins is characteristic of mesothermal vein systems, such as those at the Keno Hill, Yukon and Coeur d'Alene, Idaho mining camps. This type of vein mineralization can often extend continuously to much greater depths than more commonly mined epithermal vein systems.

2020 Plans

The Connaught property has seen intermittent historical work by a number of operators, dating back to 1967. This work has included bulk sampling, mechanized trenching, shallow diamond drilling and geophysical surveys. ATAC is currently working on compiling and integrating all historical data into a modern exploration database.

The 2019 exploration results are very encouraging and the potential for further discoveries at Connaught remains high, however ATAC's focus remains on its Rackla Gold Project. ATAC is actively seeking a partner to option the Connaught property to conduct focused exploration work. If no partner is identified prior to the 2020 exploration season, ATAC intends to conduct a modest propecting, geochemical and mechanized trenching program to continue to advance the property.

QA/QC

Analytical work for the project was completed by ALS Minerals, with sample preparation in Whitehorse, Yukon and geochemical analyses in North Vancouver, British Columbia. Soil samples were analyzed for gold by the Au-ICP21 procedure which involves fire assay fusion and an inductively coupled plasma atomic emission spectrometry finish. Rock samples were analyzed for gold by the Au-AA24 procedure which involes fire assay preparation using a 50 gram charge with an atomic absorption spectroscopy finish. Initial multi element data for 51 elements was determined for all samples by the ME-MS41 procedure, which involves an aqua regia digestion followed by inductively coupled plasma atomic emission spectroscopy and inductively coupled plasma mass spectrometry. Over limit values for silver, lead and zinc were determined by the Ag/Pb/Zn-OG46 method which utilizes an aqua regia digestion followed by an inductively coupled plasma atomic emission spectroscopy finish. Over limit values for silver determined by the Ag-OG46 method were re-analyzed using the Ag-GRA21 method which involves fire assay preparation using a 30 gram charge and a gravimetric finish. Over limit values for lead determined by the Pb-OG46 method were re-analyzed using the Pb-VOL70 method which involves a four acid digestion followed by titration.

All prospecting grab samples reported in this release represent significant results only. Low or below detection values for silver, lead and gold were encountered in grab samples from the 2019 program.

The technical information in this news release has been approved by Adam Coulter, M.Sc., P.Geo., Project Geologist for ATAC and a qualified person for the purposes of National Instrument 43-101.

About ATAC

ATAC is a Yukon-based exploration company focused on advancing Yukon's premier precious & base metal district. Work on its ~1,700 km² Rackla Gold Property has resulted in the Osiris Project Inferred Mineral Resource of 1,685,000 oz of gold at an average grade of 4.23 g/t (in 12.4 Mt), a positive Preliminary Economic Assessment for the Tiger Gold Deposit, and numerous early-stage gold and base metal discoveries. ATAC is well-financed with approximately $10 million in working capital.

On behalf of Management and the Board of Directors of ATAC Resources Ltd.

Graham Downs, President and CEO

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SOURCE ATAC Resources Ltd.