Atlanta Gold Drilling Increases Reserves

The 1988 drilling program has significantly increased proven reserves on the Atlanta project in Idaho, says Atlanta Gold Corp. (VSE), which is curmine. The company can acquire 100% control (subject to a 5% net smelter royalty) of the 3,150-acre property located in the historic Atlanta mining camp.

According to Olaf Tolpinrud, president, the program produced “better than anticipated results” in the East pit where it moved about 300,000 tons of ore from the probable to proven category, improved the grade of mineralization near the bottom of the reserve, deepened the designed pit, and added ore to the reserve in structures extending away from the main mineralized zone.

Tolpinrud says the total proven reserves in the East pit have been increased from 7.4 million tons at 0.070 oz gold to 9.18 million tons at 0.072 oz gold per ton. (The company now estimates contained gold at 661,000 oz and contained silver at about 1.8 million oz). About 40% of the East pit reserve is classed as oxide or transitional material.

The West pit has a proven reserve of 1.3 million tons of 0.051 oz gold and 0.087 oz silver in mainly (about 75%) sulphide ores. Atlanta Gold says about one-third of the 7,644 ft of drilling planned for the West pit has been completed, and “results indicate an improved reserve which will result in an enlarged pit design.”

Last year Atlanta Gold collected over 70 tons of ore from surface trenches and from underground for metallurgical testing and reports that milling and flotation concentration of the various ores, followed by pressure oxidation and cyanidation of the concentrate, showed over-all recoveries of about 85% of the gold and silver.

That treatment was selected as most profitable after being compared with heap leaching and with direct shipping of flotation concentrate in a detailed feasibility study by Wright Engineers. An environmental assessment study of a milling operation, complete with a tailing impoundment area, is nearing completion. The project has an over-all stripping ratio of 3.98 tons of waste to one ton of ore.

The company is continuing to assess the importance of deep drill holes completed earlier this year along the west end of the East pit. Results include: 10 ft of 0.141 oz gold per ton; 7.75 ft of 0.392 oz; 4.50 ft of 1.797 oz and 11 ft of 0.107 oz. After analyzing results, Atlanta Gold says it has inferred a block of 170,000 tons grading 0.38 oz gold which occurs below any elevation previously tested by drilling or mining. The company is considering the most cost effective method of proving and extending this predominantly sulphide reserve, including exploration from underground drill stations.

An exploration program is also being carried out on the 230-acre Minerva group of claims adjacent to the Atlanta project, which are believed to contain a lateral extension of the Atlanta Main zone.

In California, Atlanta Gold is under way with a drill program on its Moon property, and the company recently entered into an agreement to acquire a 50% interest in the WHY mineral claims located next to the Corona/Huntington Brett property near Vernon, B.C.