Atlanta Gold Inc. evaluates parallel heap leach and milling for processing of gold ore at its Atlanta property in Idaho

    TORONTO, Sept. 27 /CNW/ - Atlanta Gold Inc. (TSX: ATG) announces that
management together with independent engineering consulting firms engaged by
the Company are undertaking engineering and economic evaluations of parallel
heap leaching and milling circuits to improve gold recoveries at its Atlanta
project ("Atlanta") located in Elmore County, Idaho. Management believes that
the opportunity exists to significantly improve upon the 64% average heap
leach recovery rate predicted in the 2005 Feasibility Study, which proposed
only heap leaching for Atlanta open-pit ores.
    Open-pit mine design studies completed in the second quarter of 2007
identified high-grade zones within the open pit shells which justify more
selective mining methods. At a modest additional mining cost, the highest
grade Atlanta open pit ore could be delivered to a small milling process,
built to achieve a much higher recovery rate. Heap-leach circuits for lower
and medium grade ores are expected to remain unchanged from those included in
the 2005 Feasibility Study. Milling operations now under consideration consist
of grinding, gravity recovery of coarse gold, flotation recovery of gold
associated with sulfides, and cyanide leaching of the flotation tailings.
Engineering designs and cost estimates of these milling operations are
currently being developed.
    Data from metallurgical studies undertaken between 1987 and 1998 provide
support for a potential recovery rate as high as 90% by selective mining and
milling of high-grade ore from Atlanta. However, during that period, milling
of ore was rejected as the target was to produce Doré bullion, and ore
processing costs were excessive. The studies currently being undertaken
reflect two factors that did not exist in the 1987-1998 period: higher current
gold prices, which make incremental recovery improvements more profitable; and
the availability of new refractory ore processing facilities which use either
roasters or autoclaves to liberate gold from sulfides. Sale of flotation
concentrates to these facilities, which are currently operating in northern
Nevada within 300 miles of Atlanta, would provide a final gold recovery step
following on-site milling of Atlanta's high-grade ores.
    Although the percentage of total open pit reserves which would justify
selective mining and milling is relatively small, the selectively mined ore
would be high-grade and would therefore have a significant impact on operating
results. Management believes that the studies now underway will lead to an
overall recovery improvement, from the 64% predicted in the 2005 Feasibility
Study, to approximately 75% if parallel heap leach and milling is economically

    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 1,891 acres and is located 65 miles east of Boise, in Elmore County,
Idaho. A long history of mining makes Atlanta very suitable for the
development of new mining projects. Atlanta was historically mined from at
least 24 underground adits when the gold price was US$20 - $35 per ounce.
    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. 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 involves 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 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
    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, Interim CEO, Telephone: (416)
777-0013, Fax: (416) 777-0014, E-mail: info@atgold

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Atlanta Gold Inc.

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