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October 14, 2008 Toronto Stock Exchange "ATG" |
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES ATLANTA GOLD INC. COMPLETES FIRST PHASE OF TRENCHING PROGRAM AT ITS ATLANTA GOLD PROPERTY IN IDAHO Toronto, Ontario – Atlanta Gold Inc. (TSX: ATG) announces that the first phase of its trenching program identified significant gold bearing mineralization in nine trenches at its Atlanta gold property in Idaho. Sampling of the walls and bedrock floor of the nine trenches indicated values ranging from 0.001 ounces per ton gold up to 1.476 opt gold. Approximately 81 samples were taken from the nine trenches, which are generally perpendicular to the Shear and spaced 50 to 350 feet apart within a distance of about 1,200 feet. Trenching commenced approximately 500 feet easterly and up slope from the historic Monarch shaft. Most of the samples were decomposed bedrock. The material partially overlying the Shear is an overburden consisting chiefly of altered and decomposed rock that makes up the Atlanta Shear Zone. In the three trenches where the overburden was sampled, gold values in the overburden ranged up to 0.240 and 0.396 opt gold and the average grade was 0.1028 opt gold. Values at the bedrock interface in these same three trenches ranged up to 0.584 and 1.476 opt gold and averaged 0.2486 opt gold. These results dictate the need for completion of the trenching program and a more thorough evaluation of the overburden material. The overburden is estimated to be 15 feet deep by 100 feet wide. Trenches will be excavated at approximately 100-foot intervals down to bedrock along the 100-foot wide Atlanta Shear Zone. The second phase of the trenching program will cover a distance of 2,500 feet and is expected to be completed in late 2008, weather permitting, or in mid-2009. The program is being conducted to determine grade and processing characteristics for shallow open pit mining. Trench samples are being taken as continuous chip samples of the overburden and exposed bedrock. The Atlanta Shear Zone currently has a strike length of 8,000 feet and remains open at depth. The results of the first phase of this sampling program, together with the results of the 2008 surface drilling program continue to support the hypothesis that the Atlanta Shear Zone and surrounding region has significant potential to host additional gold-silver deposits which the Company expects to identify using modern and systematic exploration techniques. To date, the Company has covered less than 16 % of the mineralized structure with the current trenching program. The Company has all of the permits and licenses required to conduct its 2008 exploration programs. As previously announced, the Company changed the strategic focus of its Atlanta Gold project from bulk mining, cyanide heap leaching, to a combined shallow open-pit and an underground operation with an on-site milling facility with no cyanide circuit, producing both a gravity concentrate and a precious metal rich sulphide concentrate to be custom smelted. This will reduce the environmental footprint by 95% and increase expected metal recovery rates from 63% to 90%.
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About the Company The Company is focused on advancing its core asset, Atlanta, towards mine development and production and on acquiring, exploring and developing other attractive gold projects.
Forward-Looking Information This news release contains forward-looking information and 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”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward looking information and statements. 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. Forward looking information and 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 information and 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 speculative nature of mineral exploration, development and mining (including with respect to size, grade and recoverability of mineral reserves and resources); operational and technical difficulties; risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards; government action or delays in the receipt of governmental approvals, permits and licenses; changes in resource prices and fluctuations in currency exchange rates; the Company’s limited financial resources and the availability of financing alternatives; contests to the title of Company property and changes in general economic conditions or conditions in the financial markets; as well as other risks and uncertainties which are more fully described in the Company’s annual information form on Form 20-F, 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. Readers are cautioned that the foregoing lists of risks, uncertainties 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 information or statements contained herein or in any other documents filed with Canadian and U.S. securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
For further information contact: Atlanta Gold Inc.
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