Toronto, Ontario – Atlanta Gold Inc. (TSX V: ATG) announced that the core from the first intermediate depth hole at its Atlanta gold property in Idaho indicates that there are two significant intercepts (core widths of 370 feet and 180 feet [113 and 55 metres] respectively) of visible sulfide and alteration mineralization. This 1,848 foot (563 metre) hole was drilled approximately 300 feet (91 metres) east of the pierce point for the nearest hole in the Newmont Zone in the west (below the Monarch area) at a minus 74 degree angle and it reaches a vertical depth of approximately 1,700 feet (518 metres) below its collar location on surface. Assay results for this hole are expected by the last week in August and pending receipt of these results, no assumptions should be made as to the potential grades of the assays.
“While we must be cautious in terms of any assumptions regarding grade based on visual observations of drill core, this may prove to be a very interesting hole. The core from this hole, combined with historical geological data regarding the relatively unexplored area in the 900 to 1,200 foot (274 to 366 metre) horizon between the Newmont Zone in the west and the Glaspey Zone in the east (below the East Extension), suggests the existence of a significant epithermal gold system at deeper levels which has encouraged us to focus our intermediate depth drilling on these targets”, said Bill Baird, President and CEO of the Company.
The overall objective of the Company’s 2010 exploration program is to increase the gold mineral resource inventory at Atlanta by the end of 2010. To date in 2010, the Company has drilled 31 diamond drill holes which are principally confirmation holes focused on the shallower mineralization, totaling approximately 21,000 feet (6,400 metres) and a minimum of 47 additional holes totaling approximately 34,000 feet (10,400 metres) are planned.
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 objective of the 2010 shallow confirmation drilling program is to upgrade and expand this resource.
Surface Exploration Program
The Company also announced the results from an additional seven shallow holes in its 2010 surface diamond core drilling program in the Monarch and East Extension. These results supplement the results from the previously announced initial ten shallow holes of the program (see news release dated July 21, 2010).
Assay results for the most recent shallow confirmation drill holes in the 2010 surface drilling program are provided below with four assays above 0.10 opt (3.43 gpt) Au shown in bold italics.
|Hole Identification||From (Feet)||To (Feet)||Width (Feet)||True Width (Feet)*||Assay (opt Au) **||True Width (Metres)*||Assay (gpt Au)|
Assays of less than 0.020 opt Au have not been reported.
* 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.
(1) Includes 0.5 feet of 0.297 opt (10.17 gpt) Au
Although the results from the shallow holes are insufficient at this time to draw any conclusions, most of the reported holes penetrated intervals of gold mineralization and approximately half of the holes have an interval above 0.10 opt which was the cut-off grade used for the underground resource in the March 2009 NI 43-101 Technical Report.
The Company has initiated its 2010 surface trenching program and plans to survey, sample and assay 1,400 feet (427 metres) of trenches and assay approximately 1,000 soil samples to further evaluate the near surface potential of the Atlanta Shear Zone. 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 Atlanta has been reviewed by William L. (Bill) 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 (1⅞ inches in diameter). Quality control and assurance of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, 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.
For further information:
Atlanta Gold Inc.:
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Telephone: (647) 258-3310, (888) 258-3323
Fax: (416) 363-7977
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