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TORONTO, June 3 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) announces that it is compiling all available historical exploration data on the Tahoma structure at its Atlanta Gold Project currently in development near Atlanta, Idaho, with the intention of carrying out follow-up trenching and drilling on the structure following completion of the Company's 2010 exploration program.
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) 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 objective of the Company's 2010 exploration program is to increase the gold mineral resource inventory at Atlanta by the end of 2010.
The exploration program is currently focused on the Atlanta Shear Zone which has a surface expression that is 11,400 feet (3,475 metres) long, 30-120 feet (9-37 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 and half a mile south of the town of Atlanta.
Historic records indicate that significant size lode deposits were discovered and mined and that these lodes frequently carried grades in excess of one ounce of gold per ton. Subsequent sampling of the Tahoma structure on surface also encountered significant gold grades. In the immediate vicinity of the Atlanta Shear Zone, better known mines were Monarch, Buffalo, Pettit (all on the Atlanta Shear Zone), Last Chance, Minerva and Tahoma. Most of these mines were developed in the early days for their very rich silver ores; subsequently lode gold was discovered. Based on a preliminary review of historical data, these structures appear to be part of a larger system of buried mineralization.
The most recent production, though small-scale, on the Tahoma structure was carried out in 1949. Given the length of the structure, the recorded widths of the mineralized zone and some excellent historic assay results, it is a reasonable expectation that the Tahoma structure reaches a considerable depth below Quartz Creek. The deepest workings in the area reached a depth of about 1,400 feet (426.7 metres) below surface (Buffalo Mine).
Based on historical exploration data recorded in technical reports prepared for previous operators in 1987 and 1989 and prior to the implementation of National Instrument 43-101 ("NI 43-101"), the surface expression of the Tahoma shear structure extends over a distance of at least 4,000 feet (1,219.2 metres) and can be observed in both outcrop and trenches along its entire strike length.
The Tahoma structure remains open along strike and at depth. Historic drilling also penetrated new structures which could be parallel or splay structures to the Tahoma shear.
While the historic data and reports are believed to have been acquired, processed and reported by technically competent persons, the Company has not completed the work necessary to have these findings verified by a Qualified Person under NI 43-101. The Tahoma structure will require considerable future exploration and it is uncertain whether this exploration will result in a mineral resource.
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 and the subsequent conduct of exploration on the Tahoma structure. 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 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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