Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) has completed a re-evaluation of the mineral resource estimate at the company’s Atlanta Gold Project in Idaho, USA, previously announced on January 6, 2011. Using the same assay database, P&E Mining Consultants (P&E) estimates an Indicated mineral resource of 686,600 gold ounces within 6.83 million tons at an average grade of 0.101 ounces per ton (“opt”) (3.45 grams per tonne) (“gpt”) Au and an Inferred mineral resource of 282,400 ounces contained within 1.79 million tons at an average grade of 0.158 opt (5.42 gpt) Au.
Using a gold to silver price ratio of 55.6:1, the new Indicated mineral resource is 719,000 gold equivalent (“AuEq”) ounces within 6.83 million tons at an average grade of 0.106 opt (3.63 gpt) AuEq and the Inferred mineral resource is 290,000 AuEq ounces within 1.79 million tons at an average grade of 0.163 opt (5.59 gpt) AuEq.
“The new mineral resource update adds approximately 252,000 equivalent ounces of gold for a 54% increase in the Indicated resource. We are pleased to cross this milestone and look forward to the results from this year’s drilling campaign and continued growth in the size of the resource”, said Bill Baird, President and CEO of the Company.
“This new resource model is still open to depth and mineralization extends along strike in both directions. Subject to the availability of financing, the Company plans to complete up to 60,000 feet (18,300 metres) of core drilling in 2011. The current increased mineral resource together with drill results from the aggressive exploration program currently underway will boost the production profile and add considerably to the scope of the planned Preliminary Economic Assessment.
We have decided to include the results from our 2011 exploration program in the Preliminary Economic Assessment, which will delay its completion until early 2012. At the same time, we are cognizant of our obligation to work closely with local communities, government agencies and other land and resource users to minimize the environmental impact of the Atlanta Project and respect the priorities and concerns of local people. That important work is continuing, and we are pleased with the progress made to date.”
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Watchdawg
This company is not living up to its obligations to treat Arsenic laden water. In the end they will lose because they cannot be trusted.