TORONTO, Feb. 9, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario
has completed an independent updated resource estimate on the Company's
Atlanta property in Idaho, USA. The estimate incorporates all drilling
results to date, including the 57,000 foot core drilling program
completed in 2011.
P&E estimates 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.
"Results from the 2011 exploration program have increased the Indicated
gold resource by nearly 10% and our Inferred gold resource by 37%. We
will now do some sensitivity studies on open-pit cut-off grades to
optimize the economics of the project. Preliminary work indicates that
modest increases in the open-pit cut-off grade will have a positive
impact on project economics. This project now requires detailed
economic and engineering studies to take it to production" said Ernest Simmons, Vice President and COO.
Details of the P&E resource estimate as at January 31, 2012 are provided
in the following table:
| GOLD | SILVER | TOTAL EQUIVALENT OUNCES OF GOLD (000's) |
| Tons (000's) | Cut-Off Grade Au (opt) | Grade | Ounces of Gold (000's) | Grade | Ounces of Silver (000's) | Ounces of Silver as Gold Equivalent (000's) |
Area | Ounces Per Ton Au | Grams Per Tonne Au | Ounces Per Ton Ag | Grams Per Tonne Ag |
OPEN -PIT: |
|
|
|
|
|
|
|
|
|
|
Indicated | 7,140 | 0.035 | 0.091 | 3.13 | 652.4 | 0.218 | 7.47 | 1,556.4 | 29.6 | 682.0 |
Inferred | 1,478 | 0.035 | 0.127 | 4.36 | 188.2 | 0.275 | 9.43 | 406.5 | 7.8 | 196.0 |
UNDERGROUND: |
|
|
|
|
|
|
|
|
|
|
Indicated | 633 | 0.098 | 0.157 | 5.40 | 99.6 | 0.163 | 5.59 | 103.2 | 3.4 | 103.0 |
Inferred | 1,239 | 0.098 | 0.160 | 5.47 | 197.7 | 0.153 | 5.25 | 189.6 | 3.6 | 201.3 |
TOTAL: |
|
|
|
|
|
|
|
|
|
|
Indicated | 7,773 |
| 0.097 | 3.32 | 752.0 | 0.214 | 7.32 | 1,659.6 | 33.0 | 785.0 |
Inferred | 2,717 |
| 0.142 | 4.87 | 385.9 | 0.219 | 7.52 | 596.1 | 11.4 | 397.3
|
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
- The quantity and grade of reported Inferred resources in this estimate
are uncertain in nature and there has been insufficient exploration to
define these Inferred resources as an Indicated or Measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured mineral resource category.
- The mineral resources in this news release were estimated using the CIM
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions.
- AuEq was calculated such that one ounce of Au = 50.35 ounces Ag. Metal
prices used were the January 31, 2012 two-year trailing average for Au
at US$1,419/oz and Ag at US$28.18/oz with respective mill recoveries of
83% for gold and 88% for silver. Prevailing metal prices at January 31,
2012 were US$1,744.00 per ounce of gold and US$33.60 for silver.
- The historically mined tonnage from historic operations was removed from
the block model.
- Gold cut-off grades of 0.035 opt (1.20 gpt) for open pit and 0.098 opt
(3.36 gpt) for underground resources were established from metal
prices, expected recoveries, and estimated operating costs. Operating
costs for the open pit resource estimate cut-off grade calculation were
mining costs of $2 per ton, G&A expenses of $8 per ton and processing
and concentrate shipping and smelter charges of $32 per ton. Operating
costs for the underground resource estimate cut-off grade calculation
were mining costs of $60 per ton, G&A expenses of $8 per ton and
concentrate shipping and smelter charges of $42 per ton.
Mineral resources contained within a preliminary optimized pit shell are
considered to be amenable to lower cost open pit extraction, whereas
mineral resources below this are considered to be amenable to
underground extraction. Open pit slopes were 50 degrees.
The average gold equivalent grade (including silver resources as a gold
equivalent) of the open pit resource is 0.096 opt (3.28 gpt) AuEq in
the Indicated resource classification and 0.133 opt (4.55 gpt) AuEq in
the Inferred open pit resource classification. The average gold
equivalent grade of the underground resource is 0.163 opt (5.58 gpt)
AuEq in the Indicated resource classification and 0.162 opt (5.57 gpt)
AuEq in the Inferred underground resource classification.
Certain technical measurements in this news release have been converted
to metric based on the conversion factors shown below:
Measure of Concentration
1 troy ounce per short (Imperial) ton = 34.2857 grams per metric tonne
or 34.2857 parts per million
Linear Measure
1 metre = 3.2808 feet
1 centimetre = 0.3937 inch
1 kilometre = 0.621371 miles
Quality Control and Assurance
Exploration program drill samples were handled and assayed in accordance
with NI 43-101 standards. Assaying was 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. Samples were 30-gram fire assays of split NQ-sized core (4.76
centimetres in diameter). The NQ diameter drill-core samples were
split in half; one half was retained in its original core box and the
second half was sent to Inspectorate. Quality control and assurance of
the analytical results were monitored by inserting standards, blanks,
and duplicates into the sample run, for approximately every 30 samples
at the project site.
Qualified Persons
The independent Qualified Persons as defined by NI 43-101 for the
purpose of this news release regarding the Atlanta Project resource
update are Fred Brown, CPG, Tracy Armstrong P.Geo., and Eugene Puritch,
P.Eng., all of P&E Mining Consultants Inc. of Brampton, Ontario. The
contents of this news release have been reviewed and approved by Mr.
Puritch. P&E Mining Consultants Inc. is an established and
internationally recognized geological and mine engineering consulting
firm specializing in resource estimates, scoping, pre-feasibility
studies and participation with other consulting firms on feasibility
studies, with over 130 projects undertaken in the last seven years. P&E
has Certificates of Authorization from the Association of Professional
Geoscientists of Ontario, Professional Engineers of Ontario and the
Association of Professional Engineers and Geoscientists of Saskatchewan
and Professional Engineers and Geoscientists of Newfoundland and
Labrador.
Mr. Fred Brown CPG, PrSciNat, of P&E is a Certified Professional
Geologist (#11015) with the American Institute of Professional
Geologists and a registered Professional Natural Scientist with the
South African Council for Natural Scientific Professions (#400008/04),
and has over 25 years of worldwide experience in mining resource and
reserve assessments and related work.
Ms. Tracy Armstrong, P.Geo., a graduate of Queen's University at
Kingston, Ontario with a B.Sc. (Hons) in Geological Sciences (1982), is
a geological consultant currently licensed by the Order of Geologists
of Québec (License 566), by the Association of Professional
Geoscientists of Ontario (License 1204) and by the Association of
Professional Engineers and Geoscientists of British Columbia (Licence
34720). She is an independent geological consultant contracted by P&E
Mining Consultants Inc. and has worked as a geologist continuously
since her graduation from university.
Mr. Eugene Puritch, P.Eng. (Haileybury School of Mines, Queen's
University), President of P&E, has more than 30 years experience in
mine evaluation and resource estimating for some of Canada's largest
mining companies. He has undertaken more than 300 resource estimates
and mine designs in his career, many of which formed the basis for
feasibility studies and subsequent production decisions. Prior to
co-founding P&E, Mr. Puritch was regularly under contract to provide
his services to Micon International Ltd., Aker Solutions Canada Inc.,
A.C.A. Howe International Ltd. and Strathcona Mineral Services.
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 kilometres) located 90
air kilometres north-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.
Forward-Looking Information
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 resource
estimates, recovery rates and mining methods. 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 accuracy of historical
records, the accuracy of the Company's resource estimates and of the
geological, metallurgical and price assumptions on which the estimates
are based, the availability of adequate financing and the ability to
achieve operating cost estimates. 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
speculative nature of mineral exploration, development and mining
(including uncertainties with respect to the interpretation of geology,
continuity, size and grade estimates and recoverability of mineral
reserves and resources); insufficient funding or delays in raising
additional financing on satisfactory terms; operational and technical
difficulties which could increase operating and/or capital costs; risks
and hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, changes in
laws or regulations and the risk of obtaining necessary licenses and
permits; the outcome of ongoing environmental litigation involving the
Company's subsidiary; fluctuations in resource prices and in 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.
Information Concerning Estimates of Mineral Reserves and Resources
The mineral resource estimates reported in this news release were
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101"), as required by Canadian
securities regulatory authorities. For United States reporting
purposes, the United States Securities and Exchange Commission ("SEC")
applies different standards in order to classify mineralization as a
reserve. In particular, while the terms "measured," "indicated" and
"inferred" mineral resources are required pursuant to NI 43-101, the
SEC does not recognize such terms. Canadian standards differ
significantly from the requirements of the SEC. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories constitute or will ever be converted into reserves. In
addition, "inferred" mineral resources have a great amount of uncertainty as to their existence and their economic feasibility. It
cannot be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category.
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.
<p> <b>Atlanta Gold Inc.:</b><br/> <br/> Bill Baird<br/> Vice-President and CFO<br/> Telephone: (416) 777-0013<br/> Fax: (416) 777-0014<br/> E-mail: <a href="mailto:info@atgoldinc.com">info@atgoldinc.com </a> </p> <p> <b>P&E Mining Consultants Inc.:</b><br/> <br/> Eugene Puritch<br/> Principal<br/> Telephone: (905) 595-0575<br/> Fax: (905) 595-0578<br/> E-mail: <a font-weight="bold" href="mailto:gene@peconsulting.ca">gene@peconsulting.ca</a><b> </b><br/> <br/> <b>CHF Investor Relations:</b><br/> <br/> Juliet Heading<br/> Senior Account Manager<br/> Telephone: (416) 868-1079, ext. 239<br/> Fax: (416) 868-6198<br/> E-mail: <a href="mailto:juliet@chfir.com">juliet@chfir.com</a><br/> <br/> </p>