TORONTO, Sept. 15 /CNW/ - Atlanta Gold Inc. (TSX V: ATG) announced that drill core for the first intermediate depth hole (hole D10026E23) in the East Extension area west of the Glaspey Zone at its Atlanta gold property in Idaho indicates that there is a significant intercept (core width of 110 feet) (34 metres) of visible sulfide and alteration mineralization. This hole is still in progress at 1,740 feet (531 metres) which is a vertical depth of approximately 1,600 feet (488 metres) below its collar location on the surface. The hole represents a significant step out from previous drilling since it was drilled approximately 200 feet (61 metres) west of the pierce point of the nearest hole in the Glaspey Zone in the East Extension at a minus 70 degree angle.
The mineralization intersected was over a width of 110 feet (34 metres) starting at 1,127 feet (344 metres). This intercept indicates that the mineralization is more widespread than previously recognized. Widths and distances quoted above are down hole core widths and distances. Assay results for hole D10026E23 are expected in late September and pending receipt of these results, no assumptions should be made as to the potential grade of the assays.
"So far, every one of the intermediate depth holes we have completed intercepted epithermal style mineralization across attractive widths. The information from these holes is providing us with a better understanding of the dynamics of this potentially significant gold-bearing system. If the Atlanta Shear continues to be gold-bearing between the Newmont and Glaspey Zones, this could greatly expand the potential size of the mineralized gold system and mineral resources at Atlanta. We will conduct additional intermediate depth drilling in 2010 and 2011 to determine if these zones are connected within the same mineralized body," said Bill Baird, President and CEO of the Company.
The significance of drill hole D10026E23 is that it has identified a westward continuation of mineralization and alteration in the Glaspey Zone similar in style of alteration and structure to those recently identified east of the Newmont Zone. The 1,000 foot (305 metre) long corridor between these two mineralized zones is virtually unexplored. At present, the Company considers these two zones to be part of the main Atlanta Shear that has been sparsely drilled to date. In addition to establishing the strike length and down dip extent of the Newmont and Glaspey mineralization, future drilling will concentrate on establishing continuity between and within these two zones.
The 2010 exploration program is currently focused on the Atlanta Shear Zone which has a surface expression that is 11,400 feet (3,475 metres) long, 30 to 120 feet (9 to 37 metres) wide and extends from surface to a known vertical depth of 1,850 feet (564 metres) with numerous splays branching off to the northwest and southeast of the main Shear. The Company is also investigating possible satellite mineralization systems in areas surrounding the main Shear, including the Tahoma structure which is located approximately half a mile north of the main Shear.
The larger drill rig employed by the Company is currently focusing on drilling two or three intermediate depth holes to explore deeper horizons west of the Glaspey Zone (below the East Extension area) and two or three additional intermediate holes in the Glaspey Zone. It will then be relocated to the Monarch area to conduct infill drilling and better define the mineralization in that area. Both the Newmont and Glaspey Zones remain open for expansion. The Company's smaller drill rig is currently drilling shallow confirmation holes to test the upper contact of the recently identified mineralized zones east of the Newmont Zone (below the Monarch area).
As previously announced, the overall objective of the Company's 2010 exploration program is to increase the gold mineral resource inventory at Atlanta by the end of this year. To date in 2010, the Company has drilled 37 diamond drill holes totaling approximately 28,000 feet (8,534 metres) comprised of 34 shallow confirmation drill holes totaling 22,500 feet (6,858 metres) and three intermediate depth holes totaling 5,500 feet (1,676 metres). A minimum of 37 additional holes totaling approximately 25,000 feet (7,620 metres) are planned of which approximately six holes totaling about 9,000 feet (2,743 metres) are expected to be intermediate depth holes.
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
About the Company
Atlanta Gold Inc. (TSXV: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,197 acres located 65 miles 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.
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 results of the Company's 2010 exploration program and its impact on the economics of the Atlanta project. 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 accuracy of historical records, the accuracy of the Company's resource estimates and of the geological, metallurgical and price assumptions on which the estimates are based. 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 speculative nature of mineral exploration, development and mining (including with respect to size, grade and recoverability of mineral reserves and resources); operational and technical difficulties; risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards; changes in resource prices and fluctuations in currency exchange rates; 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.
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