Atlanta Gold Inc. (TSX V: ATG) has announced that additional assay results for the first two holes from its ongoing intermediate depth drilling program at its Atlanta property in Idaho, U.S.A. indicate gold mineralization between and below the previously known mineralized zones.
Assay results for one intercept from the first intermediate depth hole D10026E17 and from the second complete intermediate depth hole D10026E21 both located east of the Newmont Zone (below the Monarch area) are provided in the table below. The results from hole D10026E21 included assays with gold values of 0.203 ounces per ton (6.96 grams per tonne) Au over 15.0 feet (4.57 metres) (this composite intersection included an intercept of 0.445 opt (15.26 gpt) Au over 2.3 feet (0.70 metres) of core width) and 0.174 opt (5.97 gpt) Au over 5.0 feet (1.52 metres). These significant assays confirm the potential for higher grade gold mineralization at depth.
The Company previously announced intercepts from hole D10026E17 (see news release dated September 2, 2010) which included assays of 0.263 opt (9.02 gpt) Au over 5.0 feet (1.52 metres) and 0.178 opt (6.09 gpt) Au over 6.1 feet (1.86 metres). Major intercepts (core widths of 219 and 743 feet (67 and 227 metres) respectively) in hole D10026E21 appear to be extensions of the mineralized zones identified in the core from the prior intermediate depth hole D10026E17, which showed two wide intercepts (core widths of 370 and 175 feet (113 and 54 metres) respectively) of visible sulfide and alteration mineralization.
Drilling of the Newmont and Glaspey zones to date confirms that the main shear continues at depth with alteration and gold mineralization within and below these respective zones. Both zones warrant further drilling and the 1,300 foot (396 metre) + section between the easternmost hole in the Newmont zone (below the Monarch area) and the westernmost hole in the Glaspey zone (below the East Extension area) is very sparsely drilled. Results from Atlanta's recent drilling east of the Newmont zone and west of the Glaspey zone also support the hypothesis that the shear zone with alteration continues between the two zones. With the presence of alteration characteristically associated with gold mineralization elsewhere in the Atlanta deposit, management is optimistic that continued drilling will intersect gold mineralization.
All assay results are length-weighted averages, weighting each assay interval according to the core length for that respective interval. All assay intervals above the cutoff grade of 0.020 opt (0.69 gpt) Au are included in the average. True widths of mineralization in these drill holes are not precisely known as there is insufficient drill hole density at this time to estimate true widths. Each drill hole is oriented/angled from each side (i.e. north or south of the 30 to 120 foot (9.1 to 36.6 metre) wide Atlanta Shear Zone) to try to avoid underground workings. Where workings are intercepted and/or no core is recovered, grades of nil are assigned and those intervals of no value are separated from the weighted average grades.
As previously announced, the Company's internal NI 43-101 Technical Report and Resource Estimate completed in March 2009 estimated the total Measured and Indicated resource for Atlanta to be 3.0 million tons above cut-off grades of 0.05 ounces per ton (opt) (1.71 grams per ton or gpt) gold for the mini-pit resource and 0.10 opt (3.43 gpt) gold for the underground resource with an average grade of 0.154 opt (5.28 gpt) gold and 0.357 opt (12.24 gpt) silver, that contain 460,338 ounces (13,050,000 grams) of gold and 1,069,900 ounces (30,331,000 grams) of silver, respectively, or approximately 474,900 equivalent ounces (13,463,000 grams) of gold (including silver resources as a gold equivalent using a gold to silver price ratio of 73.7:1).
Most of the existing Measured and Indicated resource on the Atlanta property is located down to a vertical depth of 800 feet and included little or no mineralization below a vertical depth of 800 feet. The Company expects to have sufficient new assay results from its 2010 surface drilling campaign for P&E Mining Consultants Inc. to provide an independent NI 43-101 technical report and resource estimate in Q4 of 2010. This updated resource estimate will form the basis for a NI 43-101 Advanced Scoping Study (Preliminary Economic Assessment) planned for completion in Q1 of 2011 and a Pre-Feasibility Study expected in Q3 of 2011.
The larger drill employed by the Company is currently drilling the fifth intermediate depth hole from the south side of the Atlanta Shear in the Monarch area toward hole D10010E19 to obtain data just below the area immediately east of the Newmont zone (below the Monarch area), where holes D10010E19, D10026E13, and D10026E15 were lost in historic underground workings. It will then move to the north side of the shear and drill an intermediate depth hole in an open section in the eastern part of the Newmont zone. The drill may then be returned to the East Extension to drill one hole in the central part of the Glaspey zone (below the East Extension area). The smaller drill is continuing to complete shallow confirmation holes in the East Extension.
To date in 2010, the Company has drilled 40 diamond drill holes totaling approximately 32,199 feet (9,814 metres) comprised of 36 shallow confirmation drill holes totaling 24,403 feet (7,438 metres) and four intermediate depth holes totaling 7,796 feet (2,376 metres). A minimum of 34 additional holes totaling approximately 22,000 feet (6,705 metres) are planned of which approximately six holes totaling approximately 7,000 feet (2,134 metres) are expected to be intermediate depth holes.
Most of the historic deep drill holes penetrated gold mineralization above a cutoff grade of 0.020 opt (0.69 gpt) Au generally over short intercepts. The best historical assay noted was 1.71 opt (58.63 gpt) Au over a core width of 9.5 feet (2.9 metres) from hole R8713W272. This deep hole was drilled prior to National Instrument 43-101. While the quality and accuracy of such historical assays cannot currently be verified, it is believed that they indicate potential for higher grade mineralization at depth and are therefore relevant to ongoing exploration.
Qualified Person
Information of a technical nature in this news release regarding the Atlanta gold project has been reviewed by William (Bill) L. Josey who is a designated "Qualified Person" under NI 43-101. Mr. Josey is a registered professional geologist in the State of Arizona.
Quality Control and Assurance
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 (1? inches in diameter). Quality control and assurance of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, for approximately every twenty samples at the project site.