Toronto, Ontario, Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that the Company is shifting its primary focus from building the resource at Atlanta, Idaho to environmental permitting, economic analysis, engineering and development, and developing the organizational depth required to take the Atlanta gold project through this next phase. The project is at a stage where advanced planning is required to move towards production. The Company’s focus is to establish an exploration and processing program over the next two years which will serve as a model for a longer-term profitable and environmentally sustainable operation at Atlanta.
The 2012 work program consists of the following:
- The Company will initiate an engineering program to identify, test and determine the critical path to early pilot-scale gold processing. In July 2012, a bulk sample of approximately 150 tons of material will be excavated from trenches along the surface of the Atlanta Shear Zone for processing off site in Q3 of 2012. The decision to take the bulk sample is based on encouraging results obtained from sampling programs completed in 2009 and 2010. The bulk sample will test structure and grade continuity, establish representative gold grade, and develop knowledge of the mining and processing characteristics of the deposit. The surface disturbance / environmental impact from the bulk sampling program will be minimal;
- Following favorable results, subsequent bulk samples will be taken from exploration trenches and will be processed on site in 2013. Bulk sampling will assist in determining the final design of the processing plant and related costs; and
- The Company will commence implementation of the Supplemental Plan of Operations (“SPOO”) which was submitted in May 2012 to the U.S. Forest Service (“USFS”) with respect to reclamation and closure of the historic adit at the 900 level adjacent to Atlanta and improvement of the existing pilot water treatment facility (“PWTF”). Implementation of the SPOO will improve both the current and long-term water quality issues related to the 900-level adit and provide a water supply for future operations.
Completion of this 2012 work program will be subject to the Company obtaining additional financing.
In the first quarter of 2012 the Company reported an updated NI 43-101 resource estimate by P&E Mining Consultants Inc. which comprised an Indicated mineral resource of 752,000 gold ounces within 7.77 million tons at an average grade of 0.097 ounces per ton (“opt”) (3.32 grams per tonne) (“gpt”) Au and an Inferred mineral resource of 385,900 ounces contained within 2.72 million tons at an average grade of 0.142 opt (4.87 gpt) Au. Using a gold to silver price ratio of 50.35:1, the updated Indicated mineral resource is 785,000 gold equivalent (“AuEq”) ounces within 7.77 million tons at an average grade of 0.101 opt (3.46 gpt) AuEq and the Inferred mineral resource is 397,300 AuEq ounces within 2.72 million tons at an average grade of 0.146 opt (5.01 gpt) AuEq.
About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometers) located 90 air kilometers east of Boise, in Elmore County, Idaho. A long history of mining makes Atlanta very suitable for development of new mining projects. The Company is focused on advancing its core asset, Atlanta, towards mine development and production.
This news release contains forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as “may”, “intend”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward-looking statements, including with respect to the interpretation of the exploration results received to date; the completion of one or more bulk samples and the timing thereof; the completion of a preliminary economic assessment, pre-feasibility and feasibility studies and an environmental impact statement; the implementation of the Supplemental Plan of Operations and the effectiveness thereof; and the establishment of positive cash flow from the Project and the timing thereof. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. These assumptions include those concerning the accuracy of historical records, the accuracy of the Company’s resource estimates and of the geological, metallurgical and price assumptions on which the estimates are based, the successful and timely completion of additional financings by the Company, the ability to achieve capital and operating cost estimates, the level and volatility of the price of gold, an outcome favorable to the Company’s subsidiary in certain environmental litigation and general business and economic conditions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to, the Company’s limited financial resources and its ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary to achieve its business objectives and continue as a going concern; the speculative nature of mineral exploration, development and mining (including uncertainties with respect to the interpretation of geology, continuity, size and grade estimates and recoverability of mineral reserves and resources); operational and technical difficulties which could increase operating and/or capital costs; risks and hazards associated with the business of mineral exploration, development and mining, including environmental, health and safety hazards, changes in laws or regulations and the risk of obtaining necessary consents, licenses and permits; fluctuations in resource prices and in currency exchange rates; changes in general economic conditions and in the financial markets; as well as other risks and uncertainties which are more fully described in the Company’s annual and quarterly Management’s Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements.Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein or in any other documents filed with securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
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