Atlanta Gold Completes NI 43-101 Technical Report and Resource Estimate at its Atlanta Gold Project



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

    TORONTO, April 2 /CNW/ - Atlanta Gold Inc. (TSX: ATG) has completed a
Canadian Securities Administrators National Instrument 43-101 compliant
Technical Report and Resource Estimate (the "Technical Report") on the
Company's Atlanta Gold project ("Atlanta") in Idaho.
    The Technical Report estimates 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 0.100 opt gold for the underground
resource with an average grade of 0.154 opt gold and 0.357 opt silver, that
contain 460,300 ounces of gold and 1,069,900 ounces of silver, respectively,
or 474,900 equivalent ounces of gold (including silver resources as a gold
equivalent) using an average expected recovery rate of 90 % for gold and
silver.
    Atlanta has been an intermittent gold and silver producer from the 1800s
to 1957. Historically, 340,000 equivalent ounces has been extracted from high
grade sections at gold prices of US$20-$35 per ounce using cut-off grades of
0.5 ounces opt up to and including 1935 and 0.4 opt thereafter.
    The purpose of the Technical Report was to review the geology and
existing data from exploration of the Atlanta gold deposit and estimate the
resource with a view to mining by a combination of shallow open pit and
underground methods, in compliance with disclosure and reporting requirements
set forth in National Instrument 43-101. The Technical Report focuses on
mineral Resources, and not Reserves.
    The Company previously completed other NI 43-101 compliant technical
reports and resource estimates as well as a 2005 feasibility study proposing
to develop Atlanta as a bulk mining open pit and cyanide heap leach operation.
In 2008 the Company changed its strategy to instead proceed with a small,
shallow open pit and underground mining operation with an on-site milling
facility. The new strategy, which involves no cyanide circuit, will reduce the
environmental impact by 95% over previously proposed methods and will contain
mining and processing facilities and waste impoundment on private lands. This
more selective method of ore extraction positively addresses environmental
concerns identified during previous permitting efforts. It also increases
expected metal recovery rates from 63% to 90%.
    Since the Company started exploration activities in 1985, a total of
165,824 feet of reverse circulation drilling and 62,291 feet of diamond core
drilling have been completed. In the 2007 and 2008 drill seasons, drilling was
largely in the East Extension area. These total footages do not include any
holes drilled for geotechnical or condemnation purposes. The mineral resource
estimates presented in the Technical Report are based on drill information
available as of March 30, 2009.
    The scope of the Technical Report is to provide estimates of the gold and
silver resources within the 11,400-foot Atlanta Shear Zone at the following
cut-off grades:

    
    -   Measured and Indicated Resource - 0.05 opt for the mini-pit
        resource and 0.10 opt for the underground resource (see Table 1
        below)
    -   Overall Resource - 0.025, 0.050, 0.100, 0.150 opt (see Table 1 below)

    The economic viability of these resources has not been demonstrated at
this time.

    TABLE 1 - SUMMARY OF MEASURED AND INDICATED RE

SOURCE ESTIMATE ----------------------------------------------------- GOLD ------------------------------------------------------------------------- Cut-Off Gold Ounces of Grade Grade Tons Gold Area (opt) (opt) (000's) (000's) ------------------------------------------------------------------------- MINI-PIT ------------------------------------------------------------------------- East and West Monarch(1) 0.05 0.111 419.3 46.4 ------------------------------------------------------------------------- Idaho(1) 0.05 0.060 82.3 4.9 ------------------------------------------------------------------------- TOTAL MINI PIT 0.095 501.6 51.3 ------------------------------------------------------------------------- UNDERGROUND ------------------------------------------------------------------------- Monarch and Idaho(1) 0.10 0.161 2,125.8 343.3 ------------------------------------------------------------------------- East Extension(5) 0.10 0.177 370.5 65.7 ------------------------------------------------------------------------- TOTAL 0.10 0.164 2,496.3 409.0 ------------------------------------------------------------------------- TOTAL RE

SOURCE 0.154(3) 2,997.9 460.3 ------------------------------------------------------------------------- ------------------------ ----------------------------------------------------- SILVER ----------------------------------------------------------- Price Factor (2) Total Ratio of Gold Equivalent Equivalent Silver to Ounces of Price/ Ounces of Ounces Gold Silver Silver Gold of Gold (6) Area Ounces (000's) Price (000's) (000's) ------------------------------------------------------------------------- MINI-PIT ------------------------------------------------------------------------- East and West Monarch(1) 4.28 198.6 73.7 2.7 49.1 ------------------------------------------------------------------------- Idaho(1) 4.28(4) 21.1 73.7 0.3 5.2 ------------------------------------------------------------------------- TOTAL MINI PIT 4.28 219.7 3.0 54.3 ------------------------------------------------------------------------- UNDERGROUND ------------------------------------------------------------------------- Monarch and Idaho(1) 2.02 797.7 73.7 10.8 354.1 ------------------------------------------------------------------------- East Exten- sion(5) 0.80 52.5 73.7 0.7 66.4 ------------------------------------------------------------------------- TOTAL 1.81 850.2 73.7 11.5 420.5 ------------------------------------------------------------------------- TOTAL RE

SOURCE 2.12 1,069.9 14.5 474.9 ------------------------------------------------------------------------- ---------- ---------- ---------- (1) Based on a compilation of the same input data used for the independent NI 43-101 compliant Technical Report prepared by Vector Engineering, Inc. in June 2007 (the "2007 Technical Report). (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 = 0.154 ounces per ton (460,300 ounces / 2,997,900 tons). (4) Estimated ratio of silver to gold ounces. (5) The resource for the East Extension is a total resource. It has not been decided with certainty whether the East Extension area can be mined by open pit methods or underground or both. (6) The average grade of gold equivalent (including silver resources as a gold equivalent) per ton = 0.158 ounces per ton (474,900 ounces / 2,997,900 tons). TABLE 2 - SUMMARY OF OVERALL RE

SOURCE ESTIMATES USING A RANGE OF CUT-OFF GRADES ------------------------------------------------------------------------- GOLD (Au) SILVER (Ag) CUT-OFF --------------------------------- GRADE TONS Grade Ounces Grade Ounces (opt Au) CLASS (000's) (opt) (000's) (opt) (000's) ------------------------------------------------------------------------- Measured 15,452.2 0.063 974.1 0.097 2,564.4 --------------------------------------------------------------- Indicated 5,706.4 0.055 313.5 0.107 609.6 --------------------------------------------------------------- 0.025 --------------------------------------------------------------- Measured + Indicated 21,158.6 0.061 1,287.6 0.150 3,174.0 --------------------------------------------------------------- --------------------------------------------------------------- Inferred 9,520.9 0.053 499.8 0.067 636.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Measured 7,328.7 0.094 688.5 0.246 1,805.7 --------------------------------------------------------------- Indicated 3,024.6 0.091 275.7 0.137 415.1 --------------------------------------------------------------- 0.050 --------------------------------------------------------------- Measured + Indicated 10,353.3 0.093 964.2 0.215 2,220.8 --------------------------------------------------------------- --------------------------------------------------------------- Inferred 2,933.5 0.049 143.6 0.102 298.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Measured 1,949.2 0.164 319.8 0.437 851.4 --------------------------------------------------------------- Indicated 741.4 0.163 121.0 0.185 137.4 --------------------------------------------------------------- 0.100 --------------------------------------------------------------- Measured + Indicated 2,690.6 0.164 440.8 0.368 988.8 --------------------------------------------------------------- --------------------------------------------------------------- Inferred 919.6 0.150 138.2 0.168 154.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Measured 750.6 0.236 176.9 0.623 467.8 --------------------------------------------------------------- Indicated 322.1 0.222 71.6 0.204 65.8 --------------------------------------------------------------- 0.150 --------------------------------------------------------------- Measured + Indicated 1,072.7 0.232 248.5 0.497 533.6 --------------------------------------------------------------- --------------------------------------------------------------- Inferred 299.5 0.214 64.2 0.075 22.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Exploration at Atlanta is ongoing and continues to outline additional resources that will be incorporated in the mine plan at the appropriate time. Therefore, the Technical Report should not be used as a definitive measure of the ultimate economic potential of Atlanta. Copies of the Technical Report and the 2007 Technical report are available on SEDAR at www.sedar.com. Qualified Person The author of the Technical Report is William (Bill) L. Josey (Arizona Registered Geologist No. 10839), who is not independent of the Company since he is the Chief Geologist and a full-time employee of the Company. Mr. Josey meets the requirements of a Qualified Person as specified by NI 43-101, and is a registered professional geologist in the State of Arizona. Mr. Josey has planned and managed the drilling at the Atlanta Gold project for the 2007 and 2008 drill seasons, maintains the drill database, and is responsible for geological modeling. Mr. Josey has reviewed and approved this news release. 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 2,081 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 with respect to the resource estimates included in the Technical Report, the proposed mining method and its impact on metal recovery rates and the environment. 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 with respect to the accuracy of the Company's resource estimates and of the geological, metallurgical, operational and gold price assumptions on which the estimates are based, the level and volatility of the gold price, the estimated time required for development of Atlanta and related thereto, the time to obtain all required permits and regulatory approvals, and the continued availability of financing. 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, continuity, 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, 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 Canadian and U.S. 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