TORONTO, Oct. 7 /CNW/ – Atlanta Gold Inc. (TSX V: ATG) announces that additional assay results for the first two holes from its ongoing intermediate depth drilling program at its Atlanta property in Idaho, U.S.A. indicate gold mineralization between and below the previously known mineralized zones.
Assay results for one intercept from the first intermediate depth hole D10026E17 and from the second complete intermediate depth hole D10026E21 both located east of the Newmont Zone (below the Monarch area) are provided in the table below. The results from hole D10026E21 included assays with gold values of 0.203 ounces per ton (6.96 grams per tonne) Au over 15.0 feet (4.57 metres) (this composite intersection included an intercept of 0.445 opt (15.26 gpt) Au over 2.3 feet (0.70 metres) of core width) and 0.174 opt (5.97 gpt) Au over 5.0 feet (1.52 metres). These significant assays confirm the potential for higher grade gold mineralization at depth.
The Company previously announced intercepts from hole D10026E17 (see news release dated September 2, 2010) which included assays of 0.263 opt (9.02 gpt) Au over 5.0 feet (1.52 metres) and 0.178 opt (6.09 gpt) Au over 6.1 feet (1.86 metres). Major intercepts (core widths of 219 and 743 feet (67 and 227 metres) respectively) in hole D10026E21 appear to be extensions of the mineralized zones identified in the core from the prior intermediate depth hole D10026E17, which showed two wide intercepts (core widths of 370 and 175 feet (113 and 54 metres) respectively) of visible sulfide and alteration mineralization.
Drilling of the Newmont and Glaspey zones to date confirms that the main shear continues at depth with alteration and gold mineralization within and below these respective zones. Both zones warrant further drilling and the 1,300 foot (396 metre) + section between the easternmost hole in the Newmont zone (below the Monarch area) and the westernmost hole in the Glaspey zone (below the East Extension area) is very sparsely drilled. Results from Atlanta’s recent drilling east of the Newmont zone and west of the Glaspey zone also support the hypothesis that the shear zone with alteration continues between the two zones. With the presence of alteration characteristically associated with gold mineralization elsewhere in the Atlanta deposit, management is optimistic that continued drilling will intersect gold mineralization.
|Hole Identification||From (Feet)||To (Feet)||Width (Feet)||True Width (Feet)*||True Width (Metres)*||Gold||Silver|
|Assays (opt Au)**||Assays (gpt Au)||Assays (opt Ag)**||Assays (gpt Ag)|
1 Includes 2.3 feet (0.7 metres) of 0.445 opt (15.26 gpt) Au
* True widths are estimates based on current available data and may be subject to change.
** Assays of less than 0.02 opt (0.69 g/t) Au have not been reported.
All assay results are length-weighted averages, weighting each assay interval according to the core length for that respective interval. All assay intervals above the cutoff grade of 0.020 opt (0.69 gpt) Au are included in the average. True widths of mineralization in these drill holes are not precisely known as there is insufficient drill hole density at this time to estimate true widths. Each drill hole is oriented/angled from each side (i.e. north or south of the 30 to 120 foot (9.1 to 36.6 metre) wide Atlanta Shear Zone) to try to avoid underground workings. Where workings are intercepted and/or no core is recovered, grades of nil are assigned and those intervals of no value are separated from the weighted average grades.
As previously announced, the Company’s internal NI 43-101 Technical Report and Resource Estimate completed in March 2009 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 using a gold to silver price ratio of 73.7:1).
Most of the existing Measured and Indicated resource on the Atlanta property is located down to a vertical depth of 800 feet and included little or no mineralization below a vertical depth of 800 feet. The Company expects to have sufficient new assay results from its 2010 surface drilling campaign for P&E Mining Consultants Inc. to provide an independent NI 43-101 technical report and resource estimate in Q4 of 2010. This updated resource estimate will form the basis for a NI 43-101 Advanced Scoping Study (Preliminary Economic Assessment) planned for completion in Q1 of 2011 and a Pre-Feasibility Study expected in Q3 of 2011.
The larger drill employed by the Company is currently drilling the fifth intermediate depth hole from the south side of the Atlanta Shear in the Monarch area toward hole D10010E19 to obtain data just below the area immediately east of the Newmont zone (below the Monarch area), where holes D10010E19, D10026E13, and D10026E15 were lost in historic underground workings. It will then move to the north side of the shear and drill an intermediate depth hole in an open section in the eastern part of the Newmont zone. The drill may then be returned to the East Extension to drill one hole in the central part of the Glaspey zone (below the East Extension area). The smaller drill is continuing to complete shallow confirmation holes in the East Extension.
To date in 2010, the Company has drilled 40 diamond drill holes totaling approximately 32,199 feet (9,814 metres) comprised of 36 shallow confirmation drill holes totaling 24,403 feet (7,438 metres) and four intermediate depth holes totaling 7,796 feet (2,376 metres). A minimum of 34 additional holes totaling approximately 22,000 feet (6,705 metres) are planned of which approximately six holes totaling approximately 7,000 feet (2,134 metres) are expected to be intermediate depth holes.
Most of the historic deep drill holes penetrated gold mineralization above a cutoff grade of 0.020 opt (0.69 gpt) Au generally over short intercepts. The best historical assay noted was 1.71 opt (58.63 gpt) Au over a core width of 9.5 feet (2.9 metres) from hole R8713W272. This deep hole was drilled prior to National Instrument 43-101. While the quality and accuracy of such historical assays cannot currently be verified, it is believed that they indicate potential for higher grade mineralization at depth and are therefore relevant to ongoing exploration.
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? 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
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.
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 extent, timing, objectives and the interpretation of the results of the Company’s 2010 exploration program, and the time needed to complete an updated resource estimate, advanced scoping study and prefeasibility study . 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 availability of financing, the continued availability of equipment and skilled personnel, no significant decline in existing general business and economic conditions, the level and volatility of the gold price, 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 Company’s limited financial resources and the availability of financing alternatives; changes in general economic conditions or conditions in the financial market; 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; contests to the title of Company property; 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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