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.