Atlanta Gold Inc. completes second phase of trenching program at its Atlanta property in Idaho



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

    TORONTO, Jan. 22 /CNW/ - Atlanta Gold Inc. (TSX: ATG) announces that it
has completed the second and final phase of its 2008 surface trenching program
at its Atlanta gold property in Idaho. Combined with assay results from the
first phase of the trenching program announced in the Company's news release
of October 14, 2008, the second phase of the program extended the surface
expression of the mineralized system in the following three areas: Idaho,
Monarch and East Extension and identified a number of excellent gold resource
targets amenable to low-cost selective shallow open-pit mining which will
provide early plant feed.
    The 2008 trenching program exposed and identified significant
gold-bearing mineralization in 22 out of 25 trenches. All samples taken above
the Atlanta Shear Zone had anomalous gold. A total of 131 five-foot samples
with significant gold values representing 655 out of 2,180 feet of trenching
are listed in the table below. With the exception of Trench 7 ID-03 on the
Idaho section of the property, trenches were made perpendicular to the Shear
Zone. Sample lengths ranged from 5 to 50 feet.
    Twenty-two trenches carried significant gold values. Fourteen in the
Monarch area (MN) are within the trend of the Shear Zone. These include two
groupings of 7 trenches, each covering a strike length of approximately 700
feet which indicate continuity of good grade values, over mineable widths.
Follow up trenching in 2009 will be designed to expand each of these
favourable areas. Details of results of all the trenches are being evaluated
along with the remainder of the exploration results to assess potential
viability. Follow up trenching in 2009 will be designed to expand each of
these favourable areas along strike.
    In all cases the trenching sampled soil horizon C which is decomposed
bedrock. In three trenches, soil horizon A (top layer of soil) was also
identified and sampled. In two of the three trenches, very respectable values
were encountered and will be followed up. The A horizon for these two trenches
showed assays with gold grades ranging from Nil to 0.396 ounces per ton (13.58
grams per tonne) and an average grade of 0.121 opt (4.15 gpt). Assays for C
horizon showed gold grades ranging from 0.001 opt (0.03 gpt) to 1.476 opt
(50.61 gpt) with an average grade of 0.313 opt (10.73 gpt).

    
    -------------------------------------------------------------------------
                                         Sample Length        Average Grade
             Trench         Number of   -------------------------------------
    No.  Identification(1)   Samples    Feet     Meters      opt Au  gpt Au
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    1         EE-01             2       10.0       3.0        0.030   1.03
    -------------------------------------------------------------------------
    2         EE-02             2       10.0       3.0        0.039   1.34
    -------------------------------------------------------------------------
    3         EE-03                                          No Significant
                                                                 Values
    -------------------------------------------------------------------------
    4         EE-04             3       15.0       4.6        0.059   2.02
    -------------------------------------------------------------------------
    5         ID-01             4       20.0       6.1        0.090   3.09
    -------------------------------------------------------------------------
    6         ID-02             3       15.0       4.6        0.214   7.34
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                               10       50.0      15.2        0.178   6.10
                          ---------------------------------------------------
    7         ID-03             3       15.0       4.6        0.067   2.30
                          ---------------------------------------------------
                                2       10.0       3.0        0.074   2.54
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                7       35.0      10.7        0.226   7.75
                          ---------------------------------------------------
    8        MN-01              2       10.0       3.0        0.090   3.09
                          --------------------------------------------------
                                1        5.0       1.5        0.200   6.86
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    9        MN-02              7       35.0      10.7        0.201   6.89
                          ---------------------------------------------------
                               10       50.0      15.2        0.128   4.39
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    10       MN-03              4       20.0       6.1        0.128   4.39
    -------------------------------------------------------------------------
    11       MN-04              5       25.0       7.6        0.086   2.95
    -------------------------------------------------------------------------
    12       MN-05              8       40.0      12.2        0.100   3.43
    -------------------------------------------------------------------------
    13       MN-06              2       10.0       3.0        0.124   4.25
    -------------------------------------------------------------------------
    14       MN-07             10       50.0      15.2        0.096   3.29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    15       MN-08              3       15.0       4.6        0.066   2.26
                          ---------------------------------------------------
                                3       15.0       4.6        0.067   2.30
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    16       MN-09              2       10.0       3.0        0.098   3.36
                          --------------------------------------------------
                                2       10.0       3.0        0.160   5.49
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    17       MN-10              5       25.0       7.6        0.058   1.99
                          ---------------------------------------------------
                                4       20.0       6.1        0.069   2.37
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    18       MN-11                                           No Significant
                                                                 Values
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    19       MN-12              4       20.0       6.1        0.105   3.60
                          ---------------------------------------------------
                                2       10.0       3.0        0.500  17.14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    20       MN-13                                           No Significant
                                                                 Values
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    21       MN-14              5       25.0       7.6        0.100   3.43
                          ---------------------------------------------------
                                2       10.0       3.0        0.184   6.31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    22       MN-15              2       10.0       3.0        0.763  26.16
    -------------------------------------------------------------------------
    23       MN-16              4       20.0       6.1        0.185   6.34
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    24       MN-17              3       15.0       4.6        0.206   7.06
                          ---------------------------------------------------
                                1        5.0       1.5        0.255   8.74
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    25       MN-18              4       20.0       6.1        0.271   9.29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Notes:
    (1) EE represents the East Extension, ID represents the Idaho and MN
        represents the Monarch areas of the property.

    (2) Samples consisted mostly of decomposed bedrock that characterizes the
        Atlanta Shear Zone immediately beneath the overburden. In some
        locations the overburden has been disturbed and may not directly
        correlate with the underlying bedrock.
    

    These results confirm that the overburden contains residual gold, and the
decomposed bedrock beneath the overburden is consistent with the
mineralization elsewhere in the Atlanta Shear Zone.
    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, all on Company-controlled land. 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 at depth.
    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. In 2009 the Company intends to continue a second phase of 10,250 feet of infill drilling in the East Extension area which is east of the Monarch area. Confirmation holes will also be drilled in the West Monarch and East Idaho Mini Pits in 2009. The Company is encouraged by the 2008 surface trenching results and will continue with a trenching program in 2009. A table showing the 2008 surface trenching results to date along with a drawing showing locations of trenches 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 Trench 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. 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 ability to selectively open-pit mine the gold targets identified, 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

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