August 5, 2011 - Toronto, Ontario - TSX News reports that Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) will potentially be reporting a substantial gold discovery in their Atlanta Gold Project in Idaho, USA. From their
news release dated July 8, 2011, the company reported that the
"Assay results from the first 8,000 feet (2,438 metres) of core drilling are pending and are expected by the end of July". Investigation into the delay has revealed that the assays may be in the process of re-evaluation to ensure the correctness of the high-grade discovery. The recent high volume in trading and price uptick, which
includes over 9 million shares being traded on the TSX Venture Exchange on July 21 suggests that lab results were outstanding as people close to them decided to purchase shares.
The Atlanta Gold Project has recently significantly increased its indicated gold and silver resource as seen in the following news release:
"Using the same assay database, P&E estimates an Indicated mineral resource of 686,600 gold ounces within 6.83 million tons at an average grade of 0.101 ounces per ton ("opt") (3.45 grams per tonne) ("gpt") Au and an Inferred mineral resource of 282,400 ounces contained within 1.79 million tons at an average grade of 0.158 opt (5.42 gpt) Au. Using a gold to silver price ratio of 55.6:1, the new Indicated mineral resource is 719,000 gold equivalent ("AuEq") ounces within 6.83 million tons at an average grade of 0.106 opt (3.63 gpt) AuEq and the Inferred mineral resource is 290,000 AuEq ounces within 1.79 million tons at an average grade of 0.163 opt (5.59 gpt) AuEq.
"The new mineral resource update adds approximately 252,000 equivalent ounces of gold for a 54% increase in the Indicated resource. We are pleased to cross this milestone and look forward to the results from this year's drilling campaign and continued growth in the size of the resource", said Bill Baird, President and CEO of the Company."
Further results from the current drill program will increase this gold equivalent resource. The company has received support from analysts as Ubika Research has announced a strong buy with a target price of 61 cents.
Read the Ubika Research Report on Atlanta Gold Inc
Atlanta Gold has also received support from Longwave Group Founder Ian Gordon as seen in his interview from
Resource Investor. An excerpt is seen below:
"Atlanta Gold Inc. (TSX.V:ATG)has a tiny market cap of about $14 million. It has 475 Koz. at surface in an old mining area about 65 miles northeast of Boise, Idaho. Essentially, there's been no publicity from this company so investors are overlooking it and are unaware of the huge potential to add significant high-grade ounces at depth. Atlanta's chairman, James K. Gray, was cofounder of Canadian Hunter Exploration Ltd., which became one of Canada's largest natural gas producers. The company was taken over by Burlington Resources. Jim and his partner believed that if you drilled deeper, below the shale in Alberta, you'd find more gas. They drilled deep, found the gas and made Canadian Hunter a huge success. Jim is convinced that Atlanta Gold will reap similar success by drilling deep on its Idaho property."
Atlanta Gold last traded at 8 cents with 158.4M shares outstanding for a market cap of $12.7M.