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NEWS RELEASE NOT FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES Atlanta Gold Completes NI 43-101 Technical Report and
Resource Estimate at its Atlanta Gold Project Toronto, Ontario – Atlanta
Gold Inc. (TSX: ATG) has completed a Canadian Securities Administrators
National Instrument 43-101 compliant Technical Report and Resource
Estimate (the “Technical Report”) on the Company’s Atlanta Gold project
(“Atlanta”) in Idaho. The Technical Report estimates the total Measured and
Indicated resource for Atlanta to be 3.0 million tons above cut-off grades
of 0.05 ounces per ton (opt) gold for the mini-pit resource and 0.100 opt
gold for the underground resource with an average grade of 0.154 opt gold
and 0.357 opt silver, that contain 460,300 ounces of gold and 1,069,900
ounces of silver, respectively, or 474,900 equivalent ounces of gold
(including silver resources as a gold equivalent) using an average
expected recovery rate of 90 % for gold and silver. Atlanta has been an intermittent gold and silver
producer from the 1800s to 1957. Historically, 340,000 equivalent ounces
has been extracted from high grade sections at gold prices of US$20-$35
per ounce using cut-off grades of 0.5 ounces opt up to and including 1935
and 0.4 opt thereafter. The purpose of the Technical Report was to review the
geology and existing data from exploration of the Atlanta gold deposit and
estimate the resource with a view to mining by a combination of shallow
open pit and underground methods, in compliance with disclosure and
reporting requirements set forth in National Instrument 43-101. The
Technical Report focuses on mineral Resources, and not Reserves. The Company previously completed other NI 43-101
compliant technical reports and resource estimates as well as a 2005
feasibility study proposing to develop Atlanta as a bulk mining open pit
and cyanide heap leach operation. In 2008 the Company changed its strategy
to instead proceed with a small, shallow open pit and underground mining
operation with an on-site milling facility. The new strategy, which
involves no cyanide circuit, will reduce the environmental impact by 95%
over previously proposed methods and will contain mining and processing
facilities and waste impoundment on private lands. This more selective
method of ore extraction positively addresses environmental concerns
identified during previous permitting efforts. It also increases expected
metal recovery rates from 63% to 90%. Since the Company started exploration activities in
1985, a total of 165,824 feet of reverse circulation drilling and 62,291
feet of diamond core drilling have been completed. In the 2007 and 2008
drill seasons, drilling was largely in the East Extension area. These
total footages do not include any holes drilled for geotechnical or
condemnation purposes. The mineral resource estimates presented in the
Technical Report are based on drill information available as of March 30,
2009. The scope of the Technical Report is to provide
estimates of the gold and silver resources within the 11,400-foot Atlanta
Shear Zone at the following cut-off grades: • Measured and Indicated Resource - 0.05 opt for the
mini-pit
resource and 0.10 opt for the underground resource (see Table 1
below) • Overall Resource - 0.025, 0.050, 0.100, 0.150 opt
(see Table 2 below) The economic viability of these resources has not
been demonstrated at this time. TABLE 1 - SUMMARY OF
MEASURED
1) Based on a compilation of
the same input data used for the independent NI 43-101 compliant Technical
Report prepared by Vector Engineering, Inc. in June 2007 (2) Price Factor, using closing prices
as of the close of business on November 3, 2008 on New York Globex is
73.70 (US$722.00 per ounce of gold / US$9.79 per ounce of
silver). (3) Average grade of gold per
ton = 0.154ounces per ton (460,300 ounces / 2,997,900 tons). (4) Estimated ratio of silver
to gold ounces. (5) The resource for
the East Extension is a total resource. It has not been decided with certainty
whether the East Extension area can be mined by open pit methods or
underground or both. (6) The average grade of gold
equivalent (including silver resources as a gold equivalent) per ton =
0.158 ounces per ton (474,900 ounces / 2,997,900 tons). TABLE 2 -
SUMMARY OF OVERALL RESOURCE ESTIMATES USING A RANGE OF CUT-OFF GRADES
Exploration at Atlanta is ongoing and continues to
outline additional resources that will be incorporated in the mine plan at
the appropriate time. Therefore, the Technical Report should
not be used as a definitive measure of the ultimate economic potential of
Atlanta. Copies of the Technical Report and the 2007 Technical report are
available on SEDAR at www.sedar.com. Qualified Person The author of the Technical Report is William (Bill)
L. Josey (Arizona Registered Geologist #10839), who is not independent of
the Company since he is the Chief Geologist and a full-time employee of
the Company. Mr. Josey meets the requirements of a Qualified Person as
specified by NI 43-101, and is a registered professional geologist in the
State of Arizona. Mr. Josey has planned and managed the drilling at the
Atlanta Gold project for the 2007 and 2008 drill seasons, maintains the
drill database, and is responsible for geological modeling. Mr. Josey has
reviewed and approved this news release. About the Company Atlanta Gold Inc. (TSX: ATG) holds through its 100%
owned subsidiary, Atlanta Gold Corporation, a 100% interest in the Atlanta
property which comprises approximately 2,081 acres and is located 65 miles
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 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, including with respect to the resource estimates included in
the Technical Report, the proposed mining method and its impact on metal
recovery rates and the environment. 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 with respect to the accuracy of the
Company’s resource estimates and of the geological, metallurgical,
operational and gold price assumptions on which the estimates are based,
the level and volatility of the gold price, the estimated time required
for development of Atlanta and related thereto, the time to obtain all
required permits and regulatory approvals, and the continued availability
of financing. 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, continuity, 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, 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: Bill Baird President and CEO Telephone: (416) 777-0013; Fax: (416) 777-0014 E-mail: info@atgoldinc.com
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