Atlanta seeks partner in Idaho gold project

A joint venture partner is being sought by Atlanta Gold Corp. (VSE) to help develop its gold property in Elmore Cty., Idaho. “Atlanta is inviting proposals from interested parties,” President Olaf Tolpinrud says. “Participation by a company with financial and technical resources, combined with a history of low cost mining experience would greatly enhance the project.”

Approximately $3 million was spent in 1987 to expand ore reserves and complete engineering and metallurgical tests.

Proven reserves to date are 7,432,000 tons grading 0.07 oz gold per ton and 0.227 oz silver, mineable from the East end of the ore zone at a strip ratio of 3.24 tons of waste to one ton of ore. In the West end of the zone 1,344,000 tons grading 0.051 oz gold and 0.087 oz silver are mineable at ratio of 3.64 tons of waste to one ton of ore.

A 70-ton ore sample was sent for metallurgical testing in 1987. Results showed that direct cyanidation of the ore was not effective and that milling and flotation concentrate, followed by pressure oxidation and cyanidation of the concentrate achieved recoveries of around 85%. Atlanta is pursuing the latter alternative and is nearing completion of an environmental assessment study to be submitted to U.S. regulators.

A 32,000-ft reverse circulation drill program is under way to test the recently acquired Minerva claim group which is adjacent to the Atlanta property. The Main zone, open along strike and at depth will also be a target in an attempt to expand proven ore reserves.