Atlanta Gold Inc TSXV:ATG announced drill results from its Atlanta property in Idaho. Assays include
7.79 g/t gold over 19.8 metres (including 25.92 g/t over 4.6 metres)
11.58 g/t over 10.7 metres (including 24.32 g/t over 4.6 metres)
8.14 g/t over 6.1 metres (including 11.83 g/t over 3 metres)
4.51 g/t over 13.7 metres
A September 2011 43-101 estimates 6.83 million tonnes grading 3.45 g/t gold for 686,600 gold ounces and 9.04 g/t silver for 1.8 million silver ounces indicated and 1.79 million tonnes grading 5.42 g/t gold for 282,400 gold ounces and 8.16 g/t silver for 425,400 silver ounces inferred. The gold-equivalent numbers are 719,000 ounces indicated and 290,100 ounces inferred.
Director/VP/CFO Bill Baird tells ResourceClips.com, “We’re very pleased with the results. We believe that the Atlanta Project is a significant gold epithermal system. Until this year the exploration was only on the Atlanta shear zone, which is 11,400 feet [3,477 metres] long, between 30 and 120 feet [9.15 and 36.6 metres] wide and goes down to a known vertical depth of 1,000 feet [305 metres]. We recently announced that we stepped off the Atlanta shear zone, and we’re drilling holes north of the zone. We’re hitting some new gold-bearing zones there. We don’t know yet if they’re part of the Atlanta shear zone.
We’ll continue to expand the resource, but it doesn’t make sense to spend money on drilling when you could be generating cash flow to cover the cost—Bill Baird
“The total mineralized structures cover a horizontal distance of 50,000 feet [15,250 metres]. All of these structures have hosted historic mines which produced very good grades. They were in production when gold was $20 to $35 an ounce. So they were high grade. We’ve drilled 46,000 feet [14,030 metres] to date this year,” Baird says.
“Our last 43-101-compliant resource estimate was released in early September. That showed total indicated and inferred resources of just over a million gold-equivalent ounces. Our game plan has been to increase the resource by 250,000 ounces a year. Our discovery or development cost per ounce—including all overhead, all expenses in the company, everything—is less than $20 an ounce. We’ve got a very cost-effective operation. And that’s principally because of Ernie Simmons, who’s our Vice-President of Mining, COO and a Director. He’s based in Boise, Idaho.
“We have three drills working the site 24 hours a day,” Baird adds. “Our objective is to drill 60,000 feet [18,300 metres]. We have a number of assays pending, so there’s going to be news releases coming out probably through November. We’d like to end the year with 1,250,000 [gold-equivalent] ounces.
“Once we complete the drilling, there’ll be an updated 43-101 technical report and resource estimate. That will be followed by a preliminary economic assessment. We previously planned it for the middle of this year, but we postponed that to capture the results of the 2011 drilling program,” he says.
“We expect to have the PEA out early next year and follow with a prefeasibility study. We’ll probably do another 50,000 or 60,000 feet of drilling next year as well. People love to see the resource going up, and we’ve always overshot every target we’ve set on the resource. But you get to the point where you have to start mining. We’ll continue to expand the resource, but it doesn’t make sense to spend money on drilling when you could be generating cash flow to cover the cost.”
Baird concludes, “Someone might come in and make a takeover bid. Then it becomes a matter of price. But certainly our plan is to go into production, and we have just the team to do that. If you look at the board of directors and management, there’s over 200 years of mining experience there. We had a meeting with an investment banker from London recently, and I asked him, ‘What did you learn from the recession?’ He said, ‘We learned that we’ve invested in a lot of junior companies that don’t have the capacity to bring a project into production. But you guys do.’”
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by Ted Niles and Greg Klein