TORONTO, Aug. 1, 2012 /CNW/ - (TSXV: ATG; OTCQX: ATLDF) (the "Company") is pleased to announce that Knife River Corporation ("KRC") has completed transporting and crushing 107 of the 145 tons of bulk sample material from the Atlanta Shear Zone at the Company's Atlanta gold project in Idaho. The crushed sample was then delivered to KRC's pad for processing.
The original 145-ton bulk sample was excavated from four existing surface trenches. The trenches are approximately 150 feet (45.7 meters) apart and are open cuts across the Main Shear Zone east of the Monarch Shaft above the 6800-foot elevation.
"This 107-ton bulk sample has been crushed to minus 1/8-inch material, which is representative of mine feed. This next stage of test processing, the bench scale test run, will assist the Company in determining whether this beneficiation method for the resources is an option for on-site processing. There is also significant exploration potential to increase the Atlanta project's gold inventory both along strike, at depth and within other mineralized structures," said Wm. Ernest Simmons, President and CEO of the Company.
The proposed system of metallurgical recovery from the test processing plant has been successfully applied and achieved high gold recovery rates at a similar deposit within a 50-mile (80-kilometer) radius of the Atlanta property. The pilot scale model will be used to test the recovery of precious metals from the bulk sample and the Company expects to reduce the 107 tons of feed material to less than 1,000 pounds of gold and silver concentrate. No chemicals will be added because the gravity processing system only uses water.
Provided there are no delays during final processing of the bulk sample, assay results will be reported by news release in August 2012.
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 commencement of test processing, the time to receive the results therefrom. 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 additional financings by the Company, the ability to achieve capital and operating 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 limited financial resources and its ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary to achieve its business objectives and continue as a going concern; operational and technical difficulties; 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; 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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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
Senior Account Manager
Telephone: (416) 868-1079 ext. 239
Fax: (416) 868-6198