TORONTO, Aug. 8, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that the U.S. Forest Service ("USFS") has approved the Supplemental Plan of Operations (the "SPOO") submitted by the Company's wholly-owned subsidiary, Atlanta Gold Corporation ("AGC"), for the 900 Adit Closure and Reclamation Plan pertaining to short-term water treatment and evaluation of the Adit near the Company's Atlanta gold project (the "Project") in Idaho.
The SPOO was prepared following consultation with consulting engineers, the USFS, the United States Environmental Protection Agency and the Idaho Department of Environmental Quality, and it addresses the following initiatives:
- Diversion of Montezuma Creek and realignment of USFS Road 207;
- Maintenance and additions to the Existing Pilot Water Treatment Facility; and
- Underground evaluation for closure of the 900 Level Adit.
While implementing the SPOO, the Company will continue its test-processing bulk sample program which is designed to more fully evaluate how to optimize the economic potential of the Atlanta property.
In the first quarter of 2012 the Company reported an updated NI 43-101 resource estimate by P&E Mining Consultants Inc. which comprised an Indicated mineral resource of 752,000 gold ounces within 7.77 million tons at an average grade of 0.097 ounces per ton ("opt") (3.32 grams per tonne) ("gpt") Au and an Inferred mineral resource of 385,900 ounces contained within 2.72 million tons at an average grade of 0.142 opt (4.87 gpt) Au. Using a gold to silver price ratio of 50.35:1, the updated Indicated mineral resource is 785,000 gold equivalent ("AuEq") ounces within 7.77 million tons at an average grade of 0.101 opt (3.46 gpt) AuEq and the Inferred mineral resource is 397,300 AuEq ounces within 2.72 million tons at an average grade of 0.146 opt (5.01 gpt) AuEq.
As previously announced in the Company's news release of July 20th, on July 19th the U.S. District Court for the State of Idaho ordered AGC to implement measures to come into compliance with the NPDES Permits and to pay a penalty in the amount of US$2,000,000 by October 31, 2012.
In order to implement the SPOO and to comply with the Court order by October 31st, the Company and / or AGC will require significant funding in excess of current financial resources. The Company is currently investigating a number of financing alternatives to generate the required funds.
"Approval of the SPOO demonstrates cooperation between AGC and the other agencies for advancement of the Project. Now that the SPOO has been approved and the final damage award is known, future costs can be more accurately determined and tendered. These costs can now be reflected in our financial projections for the Atlanta gold project with much greater certainty," said Wm. Ernest Simmons, President and CEO of the Company.
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 obtaining additional financing and the completion of AGC's obligations under the SPOO and under the Court Order. 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 AGC; the availability of requisite equipment and manpower; the ability to achieve water treatment standards by October 31, 2012 and achieve other 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 carry out the terms of the Court's order and the SPOO, 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; the implementation of additional penalties by the Court should compliance with the Court's order not be achieved in the time permitted; 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
Senior Account Manager
Telephone: (416) 868-1079 ext. 239
Fax: (416) 868-6198