Atlanta Gold Reports Positive Results from Preliminary
Metallurgical Testwork
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.