Toronto, Ontario – Atlanta Gold Inc. (TSX: ATG) has completed a Canadian Securities Administrators National Instrument 43-101 compliant Technical Report and Resource Estimate (the “Technical Report”) on the Company’s Atlanta Gold project (“Atlanta”) in Idaho.

The Technical Report estimates 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) gold for the mini-pit resource and 0.100 opt gold for the underground resource with an average grade of 0.154 opt gold and 0.357 opt silver, that contain 460,300 ounces of gold and 1,069,900 ounces of silver, respectively, or 474,900 equivalent ounces of gold (including silver resources as a gold equivalent) using an average expected recovery rate of 90 % for gold and silver.

Atlanta has been an intermittent gold and silver producer from the 1800s to 1957. Historically, 340,000 equivalent ounces has been extracted from high grade sections at gold prices of US$20-$35 per ounce using cut-off grades of 0.5 ounces opt up to and including 1935 and 0.4 opt thereafter.

The purpose of the Technical Report was to review the geology and existing data from exploration of the Atlanta gold deposit and estimate the resource with a view to mining by a combination of shallow open pit and underground methods, in compliance with disclosure and reporting requirements set forth in National Instrument 43-101. The Technical Report focuses on mineral Resources, and not Reserves.

The Company previously completed other NI 43-101 compliant technical reports and resource estimates as well as a 2005 feasibility study proposing to develop Atlanta as a bulk mining open pit and cyanide heap leach operation. In 2008 the Company changed its strategy to instead proceed with a small, shallow open pit and underground mining operation with an on-site milling facility. The new strategy, which involves no cyanide circuit, will reduce the environmental impact by 95% over previously proposed methods and will contain mining and processing facilities and waste impoundment on private lands. This more selective method of ore extraction positively addresses environmental concerns identified during previous permitting efforts. It also increases expected metal recovery rates from 63% to 90%.

Since the Company started exploration activities in 1985, a total of 165,824 feet of reverse circulation drilling and 62,291 feet of diamond core drilling have been completed. In the 2007 and 2008 drill seasons, drilling was largely in the East Extension area. These total footages do not include any holes drilled for geotechnical or condemnation purposes. The mineral resource estimates presented in the Technical Report are based on drill information available as of March 30, 2009.

The scope of the Technical Report is to provide estimates of the gold and silver resources within the 11,400-foot Atlanta Shear Zone at the following cut-off grades:

  • Measured and Indicated Resource - 0.05 opt for the mini-pit   resource and 0.10 opt for the underground resource (see Table 1 below)
  • Overall Resource - 0.025, 0.050, 0.100, 0.150 opt (see Table 2 below)

The economic viability of these resources has not been demonstrated at this time.

TABLE 1 - SUMMARY OF MEASURED AND INDICATED RESOURCE ESTIMATE

 

GOLD

SILVER

Total
Equivalent
Ounces
of Gold (6)
(000's)

Area

Cut-Off

Grade

(opt)

Gold

Grade

(opt)

Tons

(000’s)

Ounces

of Gold

(000’s)

Ratio

of Silver

to

Gold

Ounces


Ounces
of Silver
(000's)

Price Factor (2)
Gold Price /
Silver Price

Equivalent
Ounces of Gold
(000's)

MINI-PIT RESOURCE:

 

 

 

 

 

 

 

 

 

East and West Monarch (1)

0.05

0.111

419.3

46.4

4.28

198.6

73.7

2.7

49.1

Idaho (1)

0.05

0.060

82.3

4.9

4.28(4)

21.1

73.7

0.3

5.2

TOTAL MINI PIT RESOURCE

 

0.095

501.6

51.3

4.28

219.7

 

3.0

54.3

UNDERGROUND RESOURCE:

 

 

 

 

 

 

 

 

 

Monarch and Idaho (1)

0.10

0.161

2,125.8

343.3

2.02

797.7

73.7

10.8

354.1

East Extension (5)

0.10

0.177

370.5

65.7

0.80

52.5

73.7

0.7

66.4

TOTAL UNDERGROUND RESOURCE

0.10

0.164

2,496.3

409.0

1.81

850.2

73.7

11.5

420.5

TOTAL RESOURCE

0.154(3)

2,997.9

460.3

2.12

1,069.9

 

14.5

474.9

(1)    Based on a compilation of the same input data used for the independent NI 43-101 compliant Technical Report prepared by Vector Engineering, Inc. in June 2007 (the “2007 Technical Report).

(2)   Price Factor, using closing prices as of the close of business on November 3, 2008 on New York Globex is 73.70 (US$722.00 per ounce of gold   / US$9.79 per ounce of silver).

(3)   Average grade of gold per ton = 0.154ounces per ton (460,300 ounces / 2,997,900 tons).

(4)   Estimated ratio of silver to gold ounces.

(5)   The resource for the East Extension is a total resource.  It has not been decided with certainty whether the East Extension area can be mined by open pit methods or underground or both.

(6)   The average grade of gold equivalent (including silver resources as a gold equivalent) per ton = 0.158 ounces per ton (474,900 ounces / 2,997,900 tons).

TABLE 2 - SUMMARY OF OVERALL RESOURCE ESTIMATES USING A RANGE OF CUT-OFF GRADES

CUT-OFF GRADE (opt Au)

CLASS

TONS

(000’s

GOLD (Au)

SILVER (Ag)

Grade

(opt)

Ounces

(000’s)

Grade

(opt)

Ounces

(000’s)

0.025

Measured

15,452.2

0.063

974.1

0.097

2,564.4

Indicated

5,706.4

0.055

313.5

0.107

609.6

Measured + Indicated

21,158.6

0.061

1,287.6

0.150

3,174.0

Inferred

9,520.9

0.053

499.8

0.067

636.4

0.050

Measured

7,328.7

0.094

688.5

0.246

1,805.7

Indicated

3,024.6

0.091

275.7

0.137

415.1

Measured + Indicated

10,353.3

0.093

964.2

0.215

2,220.8

Inferred

2,933.5

0.049

143.6

0.102

298.8

0.100

Measured

1,949.2

0.164

319.8

0.437

851.4

Indicated

741.4

0.163

121.0

0.185

137.4

Measured + Indicated

2,690.6

0.164

440.8

0.368

988.8

Inferred

919.6

0.150

138.2

0.168

154.0

0.150

Measured

750.6

0.236

176.9

0.623

467.8

Indicated

322.1

0.222

71.6

0.204

65.8

Measured + Indicated

1,072.7

0.232

248.5

0.497

533.6

Inferred

299.5

0.214

64.2

0.075

22.3

Exploration at Atlanta is ongoing and continues to outline additional resources that will be incorporated in the mine plan at the appropriate time.  Therefore, the Technical Report should not be used as a definitive measure of the ultimate economic potential of Atlanta. Copies of the Technical Report and the 2007 Technical report are available on SEDAR at www.sedar.com.

Qualified Person

The author of the Technical Report is William (Bill) L. Josey (Arizona Registered Geologist #10839), who is not independent of the Company since he is the Chief Geologist and a full-time employee of the Company. Mr. Josey meets the requirements of a Qualified Person as specified by NI 43-101, and is a registered professional geologist in the State of Arizona. Mr. Josey has planned and managed the drilling at the Atlanta Gold project for the 2007 and 2008 drill seasons, maintains the drill database, and is responsible for geological modeling. Mr. Josey has reviewed and approved this news release.

About the Company

Atlanta Gold Inc. (TSX: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, a 100% interest in the Atlanta property which comprises approximately 2,081 acres and is 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 and on acquiring, exploring and developing other attractive gold projects.

Forward-Looking Information

This news release contains forward-looking information and 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 information and statements, including with respect to our intent to complete the offering, the intended use of proceeds therefrom and the stock exchange listing of the Company's common shares. 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. Forward looking information and 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 information and 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 limited financial resources and the availability of financing alternatives; 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; government action or delays in the receipt of governmental approvals, permits and licenses; changes in resource prices and fluctuations in currency exchange rates; contests to the title of Company property and changes in general economic conditions or conditions in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual information form on Form 20-F, 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.

Readers are cautioned that the foregoing lists of risks, uncertainties 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 information or 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.

For further information:

Atlanta Gold Inc.:
Bill Baird
President and CEO
Telephone: (416) 777-0013
Fax: (416) 777-0014
E-mail: info@atgold.com