When it comes to gold production, people typically don’t think of Idaho. In fact, upon hearing the word "Idaho," most people tend to think "potato." Nevada clearly has a headlock on producing gold in the U.S. -- and the world for that manner -- but, that doesn’t discount the fact that Idaho was first settled because of a gold rush in the 1860s.
Nor does it give Idaho the credit as the "Gem State" because of the wide abundance and array of valuable stones that are contained within its perimeter. Further, according to the United States Geologic Survey, Idaho was a leading placer-mining state and from 1860-1866 was credited with producing as much as 19% of all United States gold equivalent to approximately 2.5 million ounces.
Quite simply, Nevada’s huge open pit mines and massive gold production annually (80% of all U.S. production) have overshadowed many other areas in the States that are producing gold as well and hold potential to bolster total U.S. production.
A company looking to gain a little more recognition for Idaho gold (and silver) is Toronto-based Atlanta Gold, Inc. (TSX-Venture:ATG) (OTCQX:ATLDF). Through its 100%-owned subsidiary, Atlanta Gold Corporation, the Company leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometres) located 90 air kilometres north east of Boise, in Elmore County, Idaho. A long history of mining makes Atlanta very suitable for development of new mining projects. The Company is focused on advancing its core asset, Atlanta, towards mine development and production.
Mining north of Boise is the hotspot in Idaho ever since a classic mesothermal vein deposit was discovered in the Coeur d’Alene District. The Boise Basin, remains a chief dredging area with other placer deposits located along the Salmon Clearwater Rivers. Atlanta Gold has already produced strong reports of gold on their property, but today the stock got a shot in the arm with news of a significant increase in just how much gold and silver are held within the Company’s land.
The Company reported that P&E Mining Consultants Inc. completed a re-evaluation of the mineral resource estimate at the Atlanta Gold Project which was previously announced in January. Using the same assay database, 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 (or 3.45 grams per tonne) gold and an Inferred mineral resource of 282,400 ounces contained within 1.79 million tons at an average grade of 0.158 opt (or 5.42 gpt) gold.
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.
This update outpaces the previous estimate by a whopping 54% by adding 252,000 equivalent ounces of gold to the mix. Moreover, the 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.
Investors are rapidly acknowledging the news as shares of ATG are screaming upward. Midway through the trading day, the value of a share hit as high as 11 cents; representing a nearly-70% premium to yesterday’s closing price but by the end of the day shares slipped to $0.075, still a respectable 15% gain on the day on nine million shares traded. While still in its early stages of development on the project, Atlanta Gold just may be looking to inspire a 1800-style resurgence to Idaho gold in the future.
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