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TORONTO, May 18 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) announces that it has mobilized drilling crews and equipment and commenced the 2010 exploration program at its Atlanta Gold Project currently in development near Atlanta, Idaho. The Company plans to complete 37,000 to 55,000 feet (11,000 to 17,000 metres) of diamond drilling utilizing two drill rigs.
The objectives of this program are to upgrade the confidence category of resources defined during previous drill campaigns, increase the known resource and further refine the geological model. The Company expects to extend the mineralized system, complete in-fill and definition drilling in preparation for an updated Block Model by the fall and an independent NI 43-101 resource calculation by the year-end.
As previously announced, in March 2009 prior to this drill program, the Company completed 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) gold for the mini-pit resource and 0.10 opt gold for the underground resource with an average grade of 0.154 opt gold and 0.357 opt silver, that contain 460,338 ounces of gold and 1,069,900 ounces of silver, respectively, or approximately 474,900 equivalent ounces of gold (including silver resources as a gold equivalent).
The exploration program will focus on the 11,400 foot (3,475 metre) long, 30-120 foot (9-37 metre) wide Atlanta Shear Zone which has a surface expression that 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 also plans to further investigate possible satellite mineralization systems in areas surrounding the main Shear.
The Company has prioritized surface accessible targets in the 2010 program and will conduct underground drilling from the historic 900 Adit when it has been rehabilitated.
The Company will assay all future drill holes and re-assay historical core for gold and silver, and on a selective basis for evidence of tungsten and other potential by-products.
The Company intends to complete and assay 1,400 feet (427 metres) of trenches and sampling and to assay approximately 1,000 soil samples to further evaluate the near surface potential of the Atlanta Shear Zone.
During the 2010 exploration program, independent Advanced Scoping and Pre-Feasibility Studies, geotechnical drilling and mapping, as well as additional metallurgical test work, environmental baseline sampling and collaboration with local communities, environmental, regulatory and other stakeholders will be continuing.
Information of a technical nature in this news release regarding Atlanta has been reviewed by Fred Brown, CPG PrSciNat and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. who are designated "Qualified Persons" under National Instrument 43-101. Mr. Brown is a registered professional geologist in the United States and South Africa and Mr. Puritch is a registered professional engineer in the provinces of Ontario and Saskatchewan.
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 the extent, timing and objectives of the Company's 2010 exploration program, the completion of the Block Model and resource calculation and the continuance of other developmental initiatives. 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 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 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. 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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SOURCE Atlanta Gold Inc.
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