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.
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
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.
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.
<p> <b>Atlanta Gold Inc.</b><br/> Wm. Ernest Simmons<br/> President and CEO<br/> Telephone: (208) 424-3343<br/> Fax: (208) 338-6513<br/> E-mail: <a href="mailto:esimmons@atlantagold.com">esimmons@atlantagold.com </a><br/> <br/> <b>Atlanta Gold Inc.</b><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><br/> <br/> <b>CHF Investor Relations</b><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> </p>