Atlanta Gold announces final results of 2008 surface exploration drilling program at its Atlanta property in Idaho



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
    IN THE UNITED STATES/
    

    TORONTO, Jan. 28 /CNW/ - Atlanta Gold Inc. (TSX: ATG) announces the
results from the final two drill holes of a 57-hole 15,074-foot surface
diamond core drilling program at its Atlanta gold property in Idaho. One hole
intersected 5 feet of 0.452 ounces per ton (15.5 grams per tonne) Au.
Definition drilling was conducted with infill holes to increase the density of
drilling in mineralized zones which increases confidence in, and confirms
continuity of, higher grade portions of the resource, and with step-out holes
which test areas outside previously interpreted limits.
    Many of the 57 drill holes in the 2008 program intersected old mine
workings. Since this historic mining was done at cut-off grades exceeding 0.40
opt (13.71 gpt) Au and the recovered gold grade between 1931 and 1963 (prior
to National Instrument 43-101) ranged from 0.243opt (8.33 gpt) to 0.319 opt
(10.94 gpt), it is not surprising that drill results indicate that the wall
rocks contain lower grade material. Nevertheless, the drilling has been
important in indicating the grade and width of those unmined areas and the
potential for finding ore grades in the wall rocks.
    Assay results for the last two drill holes in the 2008 surface drilling
program are provided below

    
    -------------------------------------------------------------------------
                                           True               True      Assay
         Hole        From    To   Width    Width     Assay    Width     (gpt
    Identification  (Feet) (Feet) (Feet) (Feet)(*) (opt Au) (Meters)(*)  Au)
    -------------------------------------------------------------------------
    D08120E054        133    153   20.0     14.0     0.033     4.3      1.14
                   ----------------------------------------------------------
                      153    178   25.0     17.5     0.021     5.3      0.73
    -------------------------------------------------------------------------
    D08100E055         63     73   10.0      7.0     0.022     2.1      0.75
                   ----------------------------------------------------------
                      208    218   10.0      7.0     0.021     2.1      0.70
                   ----------------------------------------------------------
                      233    238    5.0      3.5     0.452     1.1      15.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) True widths are estimates based on current available data and may be
        subject to change

    As reported in the Company's Management Discussion and Analysis for the
third quarter of 2008, based on a compilation of geological and geochemical
data to June 30, 2007, the Company has outlined approximately 390,200 Measured
and Indicated ounces or 436,500 equivalent ounces (including silver resources
as a gold equivalent) as follows:

                                 --------------------------------------------
                                                     GOLD
                                 --------------------------------------------
                                 Cut-Off     Gold                     Ounces
                                  Grade      Grade       Tons        of Gold
    Area                          (opt)      (opt)     (000's)       (000's)
    -------------------------------------------------------------------------
    MINI-PIT RE

SOURCE: ------------------------------------------------------------------------- ------------------------------------------------------------------------- East and West Monarch(1) 0.05 0.103 510.9 52.6 ------------------------------------------------------------------------- Idaho(1) 0.05 0.060 82.3 4.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL MINI PIT RE

SOURCE 593.2 57.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- UNDERGROUND RE

SOURCE: ------------------------------------------------------------------------- ------------------------------------------------------------------------- Monarch and Idaho(1) 0.10 0.169 1,367.0 231.0 ------------------------------------------------------------------------- East Extension 0.10 0.356 285.5 101.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL UNDERGROUND RE

SOURCE 1,652.5 332.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL RE

SOURCE 0.174(3) 2,245.7 390.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ---------------------- --------------------------------------------- SILVER --------------------------------------------- Price Factor Historical (2) Ratio Silver Equivalent of Silver Ounces Price/ Ounces of to Gold of Silver Gold Gold Area Ounces (000's) Price (000's) ------------------------------------------------------------------------- MINI-PIT RE

SOURCE: ------------------------------------------------------------------------- ------------------------------------------------------------------------- East and West Monarch(1) 8.754 460.7 73.7 6.3 ------------------------------------------------------------------------- Idaho(1) 8.754 43.2 73.7 0.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL MINI PIT RE

SOURCE 503.9 6.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- UNDERGROUND RE

SOURCE: ------------------------------------------------------------------------- ------------------------------------------------------------------------- Monarch and Idaho(1) 8.754 2,022.4 73.7 27.4 ------------------------------------------------------------------------- East Extension 8.754 889.7 73.7 12.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL UNDERGROUND RE

SOURCE 2,912.1 39.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL RE

SOURCE 3,416.0 46.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- --------- ---------- --------------------------------------------------- Total Equivalent Ounces of Gold Area (000's) --------------------------------------------------- MINI-PIT RE

SOURCE: --------------------------------------------------- --------------------------------------------------- East and West Monarch(1) 58.9 --------------------------------------------------- Idaho(1) 5.5 --------------------------------------------------- --------------------------------------------------- TOTAL MINI PIT RE

SOURCE 64.4 --------------------------------------------------- --------------------------------------------------- UNDERGROUND RE

SOURCE: --------------------------------------------------- --------------------------------------------------- Monarch and Idaho(1) 258.5 --------------------------------------------------- East Extension 113.7 --------------------------------------------------- --------------------------------------------------- TOTAL UNDERGROUND RE

SOURCE 372.1 --------------------------------------------------- --------------------------------------------------- TOTAL RE

SOURCE 436.5 --------------------------------------------------- --------------------------------------------------- ------------- (1) Based on a compilation of the same input data used for the 2007 Technical Report which is Canadian National Instrument 43-101 compliant (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 = 0.174 ounces per ton (390,200 ounces / 2,245,700 tons) Note: The average grade of gold equivalent (including silver resources as a gold equivalent) per ton = 0.194 ounces per ton (436,600 ounces / 2,245,700 tons) Since the above estimate does not reflect assay results from 23,000 feet of drilling and the 2008 surface trenching program, it will be updated by the second quarter of 2009 to reflect such results. Going forward, the Company's exploration objective is to identify and add an additional 200,000 ounces of gold to the updated resource estimate by the end of 2009. Drilling to date has extended the length of the Atlanta Shear Zone by 42% from 8,000 to 11,400 feet (2.4 to 3.5 kilometers) and the zone remains open to the east and west. The majority of the current resources are located between the surface and the 6,400-foot elevation (a vertical depth of 800 feet from the top of Atlanta Hill). A number of deeper holes indicate that the zone also continues to depth, including the deepest hole which is at a vertical depth of 2,111 feet below surface. Surface exploration drilling to date has identified several excellent exploration targets. A follow-up surface drilling program is planned for 2009 to determine the extent of these targets. In 2009 the Company intends to continue a second phase of 10,250 feet of infill drilling in the East Extension which is East of the Monarch area. Confirmation holes in the West Monarch and East Idaho Mini Pits will also be drilled in 2009. Deep levels of the resource make excellent drilling targets for resource expansion, especially by using underground mining methods. A follow-up work program consisting of underground diamond drilling to determine vein continuity, and to locate areas of undeveloped gold-bearing zones outside historic mine workings is planned for 2009. A table showing the complete 2008 surface drilling results as well as additional information on Atlanta will be available on the Company's website at http://www.atgoldinc.com. As previously announced, the Company has changed its mining strategy from bulk mining and cyanide heap leaching, to a combined shallow open-pit and underground operation with an on-site milling facility with no cyanide circuit. This new mining strategy will produce both a gravity concentrate and a precious metal rich sulphide concentrate to be custom smelted. It will also reduce the environmental footprint by 95% and increase expected metal recovery rates from 63% to 90%. Qualified Person The Atlanta drill program is managed and supervised by William (Bill) L. Josey the Company's Chief Geologist and designated "Qualified Person" under NI 43-101. Mr. Josey is a registered professional geologist in the State of Arizona. Information of a technical nature in this news release regarding Atlanta has been reviewed by Mr. Josey. Quality Control and Assurance Drill samples were handled and assayed in accordance with NI 43-101 standards. Assaying was done by Chris Christopherson, Inc., an Umpire laboratory for major mining companies, which is based in Kellogg, Idaho, and American Assay Laboratories, Inc. ("AAL"), in Sparks, Nevada. AAL is a well known international lab that has operated in Nevada for more than 20 years. Samples were 30-gram fire assays of split NQ-sized core (1 7/8 inches in diameter). 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 2,197 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 in respect of the potential of the Atlanta property to host a major gold discovery, the planned completion of an updated resource calculation and our exploration plans for 2009 . 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 securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

For further information:

For further information: Bill Baird, President and CEO, Telephone: (416)
777-0013, Fax: (416) 777-0014, E-mail: info@atgoldinc.com

Organization Profile

Atlanta Gold Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890