Atlanta Gold extends Mining Lease and Option to Purchase at Atlanta Property



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

    TORONTO, May 1 /CNW/ - Atlanta Gold Inc. (TSX: ATG) has renewed its lease
and option to purchase a strategically significant 658.9 acre property located
at its Atlanta Gold project in Idaho, U.S.A. for a further two years. Under
the terms of the agreement entered into by the Company's wholly-owned Idaho
subsidiary, Atlanta Gold Corporation, with Monarch Greenback, LLC, the lease
and option to purchase first entered into in February 1999, has been extended
until April 30, 2011. Under the terms of the agreement, Atlanta Gold
Corporation has the right to acquire a 100% interest in the property subject
to a floating rate net smelter return royalty with a maximum rate of 3.5%. The
agreement requires optional annual lease payments and optional monthly
payments totaling US$580,000 over the next two years to maintain the Option in
good standing.
    "This property is an essential component of the Company's strategy to
build a profitable gold mine at Atlanta and we are pleased to have renewed our
option", said Bill Baird, President and CEO of Atlanta.

    About the Company

    Atlanta Gold Inc. (TSX: 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.

    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
planned development of and production from the Atlanta Gold project. 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: Atlanta Gold Inc.: Bill Baird, President and
CEO,  Telephone: (416) 777-0013, Fax: (416) 777-0014, E-mail:
info@atgoldinc.com; CHF Investor Relations: Jacqueline Wagenaar, Account
Manager, Telephone: (416) 868-1079, extension 289, Fax: (416) 868-6198,
E-mail: jacqueline@chfir.com

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Atlanta Gold Inc.

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