TORONTO, Oct. 18, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces positive metallurgical results from the 107-ton bulk sample extracted from exploration trenches at its Atlanta gold project in Elmore County, Idaho.
As previously announced on July 5th and August 12th, the Company processed the initial bulk sample at Knife River Corporation's test facility in Boise, Idaho. This test facility is meant to model their process plant operating in Idaho City which is effectively a giant sluice box that washes away lighter crushed rock from the gold particles. It uses no chemicals, is cost effective and is described in more detail in a September 15th local news article that can be viewed at: http://www.idahostatesman.com/2012/09/15/2272575/gold-mining-with-a-green-twist.html#storylink=misearch.
"These initial metallurgical test results confirm that the processing method successfully liberates the gold content present in the extracted material. We plan to work with Knife River to replicate the existing process facility on the Atlanta project site, improve the technology and customize it for Atlanta's purposes. Apart from the significant environmental benefits such as no use of chemicals, the recycling of water and the capturing of heavy metals, the capital and operating costs for this type of facility are expected to be much less than those for a conventional mill", said Ernie Simmons, President and CEO of the Company.
The 107-ton bulk sample was crushed down to a feed size of 1/8" which was processed in two days through the gravity-washed system, and samples were assayed at four collection points in the system (feed, sluice carpet, underjig and tailings). Free gold particles collected in the system would be sent for refining into doré gold bars; while the remaining sulphide material, commonly referred to as black sand will be further processed offsite.
|opt Au||gpt* Au||tons||pounds|
*1 troy ounce per short (Imperial) ton = 34.2857 grams per metric tonne or 34.2857 parts per million
The results indicate that processing of the initial bulk sample left significant amounts of gold behind in the tailings. Further test work is obviously necessary to improve recovery. Therefore, the Company will reduce the grind size of material to a feed size of +50 (+10 mm) mesh, relocate the jigs and reduce the angle of the sluice boxes so that less than 0.001 opt (0.034 gpt) Au remains in the tailings. A small test sample has been successfully processed subsequent to the 107-ton bulk sample, and demonstrates the potential of this refinement. It is anticipated that an ongoing program will be necessary to customize the process for the material extracted from the exploration trenches, and to optimize recoveries.
The Company had previously anticipated that the 107-ton bulk sample would yield a gold and silver concentrate weighing less than 1,000 pounds (news release of August 1, 2012). By implementing the above processing changes, the Company expects to meet its recovery and concentrate grade objectives.
Eric Berentsen, a director of Atlanta Gold Inc. and a qualified person as defined by NI 43-101, has reviewed and verified the technical information contained in this news release. Mr. Berentsen is a Registered Member of The Society for Mining, Metallurgy and Exploration, Inc. (SME).
Quality Control and Assurance
Assay analyses are done by Inspectorate America Corporation of Sparks, Nevada, U.S.A. Inspectorate is a well known international laboratory that has operated in Nevada for more than 10 years. The facility is ISO certified 9001:2008.
Quality control and assurance of the analytical results is maintained at the laboratory by inserting standards, and blanks, into the sample run.
About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometers) located 90 air kilometers 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.
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 to the interpretation of the sampling results; replicating the process facility at the Atlanta site and the expected costs thereof; and the means of additional processing and the achievement of recovery and grade objectives. 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 successful and timely completion of sufficient additional financings by the Company and/or Atlanta Gold Corporation ("AGC"); the availability of requisite equipment and manpower; the ability to achieve cost estimates; and general business and economic conditions. 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 and AGC's limited financial resources and their ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary for AGC to carry out the terms of the Court's order, and for the Company to achieve its business objectives and continue as a going concern; the speculative nature of mineral exploration and mining (including with respect to the interpretation of geology, continuity, size and grade estimates and the recoverability of reserve and resource estimates); operational and technical difficulties which could increase operating and/or capital costs; the implementation of additional penalties by the Court should compliance with the Court's order not be achieved in the time permitted; risks and hazards associated with the business of mineral exploration, development and mining, including environmental, health and safety hazards, changes in laws or regulations and the risk of obtaining necessary consents, licenses and permits; fluctuations in resource prices and currency exchange rates; changes in general economic conditions and in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's 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.
For further information:
Atlanta Gold Inc.
Wm. Ernest Simmons
President and CEO
Telephone: (208) 424-3343
Fax: (208) 338-6513
Atlanta Gold Inc.
Vice President and CFO
Telephone: (416) 777-0013
Fax: (416) 777-0014
CHF Investor Relations
Director of Operations
Telephone: (416) 868-1079 ext. 225
Fax: (416) 868-6198