TORONTO, Sept. 2 /CNW/ - Atlanta Gold Inc. (TSX V: ATG) announced that drill core for the second completed intermediate depth hole (hole D10026E21) at its Atlanta gold property in Idaho indicates that there are two significant intercepts (core widths of 219 feet and 743 feet (67 and 226 metres) respectively) of visible sulfide and alteration mineralization. Assay results for hole D10026E21 are expected in September and pending receipt of these results, no assumptions should be made as to the potential grade of the assays. This 2,059 foot (628 metre) hole was drilled approximately 250 feet (76 metres) east of the pierce point for the nearest hole in the Newmont Zone in the west (below the Monarch area) at a minus 65 degree angle, 870 feet (265 metres) south of intermediate depth hole D10026E17 and it reaches a vertical depth of approximately 1,950 feet (594 metres) below its collar location on surface. Drill hole D10026E21 was collared south of hole D10026E17 and drilled toward D10026E17.
The significant intercepts in hole D10026E21 appear to be extensions of the zones identified in the core from intermediate depth hole D10026E17, which showed two wide intercepts (core widths of 370 feet and 175 feet (113 and 54 metres) respectively) of visible sulfide and alteration mineralization. As these holes are the first holes drilled in the new mineralized zones, the shape, orientation and true width of these zones cannot yet be determined with certainty. Core widths quoted above are down hole widths.
The gold-bearing intercepts in hole D10060E17 combined with the intercepts in hole D10026E21 show that the related structures are potentially more extensive than initially expected and have the potential to support higher grade mineralization. The wider and deeper intervals of mineralization in hole D10060E17 have resulted in the Company drilling deeper holes than originally anticipated and the surface drilling program has been modified to reflect the additional footage being drilled.
For the first phase of the surface drilling program at Atlanta, the Company focused both drills on shallow confirmation holes in the Monarch area above the Newmont Zone and in the East Extension area above the Glaspey Zone. The larger drill was then directed to commence drilling intermediate depth holes to explore deeper horizons east of the Newmont Zone (below the Monarch area). For the next phase of the surface drilling program, the Company plans to swap the locations of these drills and commence using the larger drill for intermediate depth holes west of the Glaspey Zone (below the East Extension area) and the smaller drill for shallow confirmation holes to test the upper contact of the newly identified mineralized zones east of the Newmont Zone (below the Monarch area).
Assay results for intermediate depth hole D10026E17 located east of the Newmont Zone (below the Monarch area) and four shallow confirmation holes (holes D10026E15, D10164E24, D10174E26 and D10174E28) in the Monarch area and the East Extension area (above the Glaspey Zone), respectively, are provided in the table below. Assays above 0.10 opt (3.43 gpt) Au are shown in bold italics. The assays above 0.10 opt (3.43 gpt) Au from 1020 to 1035 feet (311 to 315 metres) and the large number of assays above the cutoff of 0.02 opt (0.7 gpt) Au in the intermediate depth hole confirm the potential for new gold mineralization at depth and are viewed by management as very encouraging for the first hole drilled on a new showing.
|Hole Identification||From (Feet)||To (Feet)||Width (Feet)||True Width (Feet)*||Assay (opt Au)**||True Width (Metres)*||Assay (gpt Au)|
1 Includes 2.3 feet (0.7 metres) of 0.392 opt (13.44 gpt) Au
2 Includes 1.5 feet (0.5 metres) of 0.401 opt (13.75 gpt) Au
Includes 1.5 feet (0.5 metres) of 0.131 opt (4.51 gpt) Au
Includes 1.5 feet (0.5 metres) of 0.171 opt (5.86 gpt) Au
* True widths are estimates based on current available data and may be subject to change.
** Assays of less than 0.02 opt Au have not been reported.
The overall objective of the Company's 2010 exploration program is to increase the gold mineral resource inventory at Atlanta by the end of this year. To date in 2010, the Company has drilled 34 diamond drill holes totaling approximately 25,000 feet (7,620 metres) comprised of 32 shallow confirmation drill holes totaling 21,100 feet (6,430 metres) and two intermediate depth holes totaling 3,900 feet (1,188 metres). A minimum of 44 additional holes totaling approximately 30,000 feet (9,144 metres) are planned of which seven holes totaling 7,500 feet (2,286 metres) are expected to be intermediate depth holes.
The 2010 exploration program is currently focused on the Atlanta Shear Zone which has a surface expression that is 11,400 feet (3,475 metres) long, 30 to 120 feet (9 to 37 metres) wide and extends from surface to a known vertical depth of 1,850 feet (564 metres) with numerous splays branching off to the northwest and southeast of the main Shear. The Company is also investigating possible satellite mineralization systems in areas surrounding the main Shear, including the Tahoma structure which is located approximately half a mile north of the main Shear.
As previously announced, the Company completed in March 2009 an internal NI 43-101 Technical Report and Resource Estimate which estimated 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) (1.71 grams per ton or gpt) gold for the mini-pit resource and 0.10 opt (3.43 gpt) gold for the underground resource with an average grade of 0.154 opt (5.28 gpt) gold and 0.357 opt (12.24 gpt) silver, that contain 460,338 ounces (13,050,000 grams) of gold and 1,069,900 ounces (30,331,000 grams) of silver, respectively, or approximately 474,900 equivalent ounces (13,463,000 grams) of gold (including silver resources as a gold equivalent).
Historic gold production from Atlanta of 344,000 equivalent ounces (9,752,000 grams) of gold was shallow high grade mining from surface to a vertical depth of 800 feet below surface. Most of this was mined using cut-off grades of 0.5 opt (17.1 gpt) and 0.4 opt (13.7 gpt). A significant portion of the remaining 474,900-ounce (13,463,000-gram) gold equivalent Measured and Indicated resource is also located in the zero to 800 foot horizon.
The Company has initiated its 2010 surface trenching program and plans to survey, sample and assay 2,560 feet (780 metres) of trenches and assay approximately 500 soil samples to further evaluate the near surface potential of the Atlanta Shear Zone. Trench samples will be used to assist in the identification of additional drill targets. The 2008 and 2009 trenching programs exposed and identified significant gold-bearing mineralization in 95% of the returned samples.
Information of a technical nature in this news release regarding the Atlanta gold project has been reviewed by William (Bill) L. Josey who is a designated "Qualified Person" under NI 43-101. Mr. Josey is a registered professional geologist in the State of Arizona.
Quality Control and Assurance
Drill samples were handled and assayed in accordance with NI 43-101 standards. Assaying was done by Inspectorate America Corporation of Sparks, Nevada, U.S.A. Inspectorate is a well known international laboratory that has operated in Nevada for more than 10 years. Samples were 30-gram fire assays of split NQ-sized core (1 7/8 inches in diameter). Quality control and assurance of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, for approximately every twenty samples at the project site.
About the Company
Atlanta Gold Inc. (TSXV: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,197 acres 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.
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 results of the Company's 2010 exploration program and its impact on the economics of the Atlanta project. 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. 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 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; changes in resource prices and fluctuations in currency exchange rates; 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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