Great Atlantic-Novamera sampling has cost overruns

Executive Summary

• Great Atlantic Resources Corp. reports significant delays and cost overruns in its bulk sample program at the Jaclyn Main zone, driven by technical challenges with Novamera Inc.'s surgical mining technology, specifically the directional drilling head.
• Drilling has progressed to approximately 29 meters at a rate of two meters per day, entering a high-grade zone previously identified in 2024 historic drilling.
• Novamera estimates an additional $1 million in financing may be required to complete the program, and the company is evaluating whether to proceed with the remaining targets given the unresolved technical issues and budget shortfalls.

Key Details

• Program Status: The bulk sample program, conducted in partnership with Novamera Inc., was originally scheduled to begin in early July with completion targeted for September but has experienced significant delays.
• Technical Challenges: Delays are attributed to parts availability and repeated issues with the directional drilling head, which Novamera cites as expected challenges with new, innovative technology.
• Drilling Progress:
  • Overburden removal and casing installation are complete.
  • Drilling has advanced to approximately 29 meters to date.
  • Current penetration rate is approximately two meters per day.
• Geological Context: The current hole is entering a zone defined by Great Atlantic's 2024 historic drilling (intercepts GP24-157, 158, 160, 161, 162, 163, and 164).
  • Historic core assays in this target area included 12.9 to 60.2 grams per tonne gold in eight vein intercepts.
  • Core lengths ranged from 0.44 metre to 1.67 metre.
• Financial Impact:
  • Novamera has reported cost overruns and extraordinary expenses exceeding the initial budget.
  • Preliminary estimates indicate a possible additional $1 million in financing may be needed to complete the balance of the planned program.
• Next Steps:
  • Novamera is evaluating if remaining target areas can be reached without the directional head if issues persist.
  • Discussions are ongoing regarding additional costs and potential financing.
  • Novamera confirmed it will make best efforts to complete the remaining portion of the first of three large-diameter bulk sample holes, though continuation is subject to resolving technical issues.
  • Great Atlantic will report a go-forward plan once it receives concrete technical updates and a final budget summary from Novamera.

Notable Quotes

• "These challenges in bringing a new, innovative technology into practical, real-world application have caused delays, and Novamera has made it clear that these issues have contributed to cost overruns and extraordinary expenses that have exceeded their initial budget."
• "Preliminary estimates from Novamera to Great Atlantic indicate a possible additional $1-million in financing above the programs original budget may be needed to complete the balance of the planned program."