TORONTO, Aug. 8, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that the U.S. Forest Service ("USFS") has approved the Supplemental Plan of Operations (the "SPOO") submitted by the Company's wholly-owned subsidiary, Atlanta Gold Corporation ("AGC"), for the 900 Adit Closure and Reclamation Plan pertaining to short-term water treatment and evaluation of the Adit near the Company's Atlanta gold project (the "Project") in Idaho.
The SPOO was prepared following consultation with consulting engineers, the USFS, the United StatesEnvironmental Protection Agency and the Idaho Department of Environmental Quality, and it addresses the following initiatives:
- Diversion of Montezuma Creek and realignment of USFS Road 207;
- Maintenance and additions to the Existing Pilot Water Treatment Facility; and
- Underground evaluation for closure of the 900 Level Adit.
While implementing the SPOO, the Company will continue its test-processing bulk sample program which is designed to more fully evaluate how to optimize the economic potential of the Atlanta property.
In the first quarter of 2012 the Company reported an updated NI 43-101 resource estimate by P&E Mining Consultants Inc. which comprised 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.
As previously announced in the Company's news release of July 20th, on July 19th the U.S. District Court for the State of Idaho ordered AGC to implement measures to come into compliance with the NPDES Permits and to pay a penalty in the amount of US$2,000,000 by October 31, 2012.
In order to implement the SPOO and to comply with the Court order by October 31st, the Company and / or AGC will require significant funding in excess of current financial resources. The Company is currently investigating a number of financing alternatives to generate the required funds.
"Approval of the SPOO demonstrates cooperation between AGC and the other agencies for advancement of the Project. Now that the SPOO has been approved and the final damage award is known, future costs can be more accurately determined and tendered. These costs can now be reflected in our financial projections for the Atlanta gold project with much greater certainty," said Wm. Ernest Simmons, President and CEO of the Company.