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.
Bulk Sample | Grade | Weight |
opt Au | gpt* Au | tons | pounds |
Feed
|
0.049
|
1.69
|
107.00
|
214,000
|
Sluice
|
1.341
|
45.98
|
0.34
|
680
|
Underjig
|
0.058
|
2.00
|
7.50
|
15,000
|
Tailings
|
0.048
|
1.63
|
99.16
|
198,320
|
Total Sample |
107.00
|
214,000
|
*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.
Qualified Person
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.
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 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.
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/> Email: <a href="mailto:esimmons@atlantagold.com">esimmons@atlantagold.com</a> </p> <p> <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> </p> <p> <b>CHF Investor Relations</b><br/> Jeanny So<br/> Director of Operations<br/> Telephone: (416) 868-1079 ext. 225<br/> Fax: (416) 868-6198<br/> E-mail: <a href="mailto:jeanny@chfir.com">jeanny@chfir.com</a> </p>