TORONTO, Feb. 9, 2012/CNW/ - AtlantaGold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario has completed an independent updated resource estimate on the Company's Atlantaproperty in Idaho, USA. The estimate incorporates all drilling results to date, including the 57,000 foot core drilling program completed in 2011.
P&E estimates 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.
"Results from the 2011 exploration program have increased the Indicated gold resource by nearly 10% and our Inferred gold resource by 37%. We will now do some sensitivity studies on open-pit cut-off grades to optimize the economics of the project. Preliminary work indicates that modest increases in the open-pit cut-off grade will have a positive impact on project economics. This project now requires detailed economic and engineering studies to take it to production" said Ernest Simmons, Vice President and COO.
Details of the P&E resource estimate as at January 31, 2012are provided in the following table:
| | GOLD | SILVER | TOTAL
EQUIVALENT
OUNCES OF
GOLD (000's) |
| | Tons
(000's) | Cut-Off
Grade
Au (opt) | Grade | Ounces
of
Gold
(000's) | Grade | Ounces of
Silver (000's) | Ounces of Silver
as Gold
Equivalent (000's) |
| Area | Ounces
Per
Ton
Au | Grams
Per
Tonne
Au | Ounces
Per
Ton
Ag | Grams
Per
Tonne
Ag |
| OPEN -PIT: | | | | | | | | | | |
| Indicated | 7,140 | 0.035 | 0.091 | 3.13 | 652.4 | 0.218 | 7.47 | 1,556.4 | 29.6 | 682.0 |
| Inferred | 1,478 | 0.035 | 0.127 | 4.36 | 188.2 | 0.275 | 9.43 | 406.5 | 7.8 | 196.0 |
| UNDERGROUND: | | | | | | | | | | |
| Indicated | 633 | 0.098 | 0.157 | 5.40 | 99.6 | 0.163 | 5.59 | 103.2 | 3.4 | 103.0 |
| Inferred | 1,239 | 0.098 | 0.160 | 5.47 | 197.7 | 0.153 | 5.25 | 189.6 | 3.6 | 201.3 |
| TOTAL: | | | | | | | | | | |
| Indicated | 7,773 | | 0.097 | 3.32 | 752.0 | 0.214 | 7.32 | 1,659.6 | 33.0 | 785.0 |
| Inferred | 2,717 | | 0.142 | 4.87 | 385.9 | 0.219 | 7.52 | 596.1 | 11.4 | 397.3
|
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
- The quantity and grade of reported Inferred resources in this estimate are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
- The mineral resources in this news release were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
- AuEq was calculated such that one ounce of Au = 50.35 ounces Ag. Metal prices used were the January 31, 2012two-year trailing average for Au at US$1,419/oz and Ag at US$28.18/oz with respective mill recoveries of 83% for gold and 88% for silver. Prevailing metal prices at January 31, 2012were US$1,744.00 per ounce of gold and US$33.60 for silver.
- The historically mined tonnage from historic operations was removed from the block model.
- Gold cut-off grades of 0.035 opt (1.20 gpt) for open pit and 0.098 opt (3.36 gpt) for underground resources were established from metal prices, expected recoveries, and estimated operating costs. Operating costs for the open pit resource estimate cut-off grade calculation were mining costs of $2per ton, G&A expenses of $8per ton and processing and concentrate shipping and smelter charges of $32per ton. Operating costs for the underground resource estimate cut-off grade calculation were mining costs of $60per ton, G&A expenses of $8per ton and concentrate shipping and smelter charges of $42per ton.
Mineral resources contained within a preliminary optimized pit shell are considered to be amenable to lower cost open pit extraction, whereas mineral resources below this are considered to be amenable to underground extraction. Open pit slopes were 50 degrees.
The average gold equivalent grade (including silver resources as a gold equivalent) of the open pit resource is 0.096 opt (3.28 gpt) AuEq in the Indicated resource classification and 0.133 opt (4.55 gpt) AuEq in the Inferred open pit resource classification. The average gold equivalent grade of the underground resource is 0.163 opt (5.58 gpt) AuEq in the Indicated resource classification and 0.162 opt (5.57 gpt) AuEq in the Inferred underground resource classification.
Certain technical measurements in this news release have been converted to metric based on the conversion factors shown below:
Measure of Concentration
1 troy ounce per short (Imperial) ton = 34.2857 grams per metric tonne or 34.2857 parts per million
Linear Measure
1 metre = 3.2808 feet
1 centimetre = 0.3937 inch
1 kilometre = 0.621371 miles