TORONTO, July 20, 2012 /CNW/ - Atlanta Gold Inc. (TSXV:
ATG; OTCQX: ATLDF) (the "Company") announces that the U.S.
District Court for the State of
Idaho issued a Memorandum Decision on July 19, 2012 ("The Decision") in a case in which
the Company's wholly-owned subsidiary, Atlanta Gold Corporation
("AGC") is a party, pertaining to AGC's non-compliance with the
United States Federal Water Pollution Control Act ("Clean Water
Act"). The Court imposed a penalty in the amount of
$2,000,000 to be paid on or before
October 31, 2012. In addition,
the Decision orders AGC to implement measures to come into
compliance with the NPDES Permit by that same date.
The Company's CEO Wm. Ernest Simmons commented "The Court has rendered
a decision and AGC intends to honor its ruling, comply with its
direction and pay the imposed fine. We appreciate that the Court
recognized that the existing pilot water treatment facility
("PWTF") removes a significant amount of toxic materials from the
Adit waters. With the penalty-phase defined, the Company will
commence improvements to the PWTF to meet compliance with the Clean
Water Act, to initiate final closure and remediation of the Adit,
and to develop the Atlanta Project subject to approval of the U.S.
Forest Service," commented Simmons.
The Court's earlier decision, reported in the
Company's news release dated January 10,
2012, held that AGC was not in compliance with the Clean
Water Act with respect to its operation of the PWTF at the historic
900 level adit (the "Adit") which is located on property owned by
the Bureau of Land Management and administered by the United States Forest Service near
Atlanta, Idaho. AGC did not
construct the Adit or cause the discharge that flows from the Adit.
The PWTF has treated discharge from the Adit since 2006 to remove
85% of the naturally-occurring arsenic before it flows into
Montezuma Creek.
AGC has been working closely with the regulatory
agencies over the past four years to evaluate alternative methods
to decrease effluents and select the optimum method for water
treatment. AGC has submitted a staged Supplemental Plan of
Operations ("SPOO") and a closure plan for the Adit intended to
resolve all issues relating to the Adit discharge. Subject to
approval by the U.S. Forest Service, AGC's 2012 SPOO and Remedial
Action Plan ("RAP") are expected to be initiated in July 2012. Given the mandates of the
Court's Decision, that process will be expedited and completed at
the earliest time possible.
About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, Atlanta
Gold Corporation, leases, options or ownership interests in its
Atlanta properties which comprise
approximately 2,159 acres (8.74 square kilometers) located 90 air
kilometers 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.
Forward-Looking Information
This news release contains forward-looking information and
forward-looking statements (collectively "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical fact, are
forward-looking statements. We use words such as "may", "intend",
"will", "should", "anticipate", "plan", "expect", "believe",
"estimate" and similar terminology to identify forward-looking
statements, including with respect to the advancement of the
Project and the receipt of regulatory approval of the SPOO and RAP
and completion of AGC's obligations thereunder and under the
Court's decision. Such are based upon assumptions, estimates,
opinions and analysis made by management in light of its
experience, current conditions and its expectations of future
developments as well as other factors which it believes to be
reasonable and relevant. These assumptions include those concerning
the successful and timely completion of additional financings by
the Company, availability of requisite equipment, the ability to
achieve water treatment standards by October
31, 2012, and other cost estimates, and general business and
economic conditions. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results to differ materially from those expressed or implied
in the forward-looking statements and accordingly, readers should
not place undue reliance on those statements. Risks and
uncertainties that may cause actual results to vary include, but
are not limited to, the Company's limited financial resources and
its ability to raise sufficient funds on a timely basis to fund the
capital and operating expenses necessary to carry out the terms of
the Court's decision, achieve its business objectives and continue
as a going concern; operational and technical difficulties; risks
and hazards associated with the business of mineral exploration,
development and mining, including environmental, health and safety
hazards, changes in laws or regulations and the risk of obtaining
necessary consents, licenses and permits; changes in general
economic conditions and in the financial markets; as well as other
risks and uncertainties which are more fully described in the
Company's annual and quarterly Management's Discussion and Analysis
and in other Company filings with securities and regulatory
authorities which are available at www.sedar.com. Should one or
more risks and uncertainties materialize or should any assumptions
prove incorrect, then actual results could vary materially from
those expressed or implied in the forward-looking statements and
accordingly, readers should not place undue reliance on those
statements. Readers are cautioned that the foregoing lists of
risks, uncertainties, assumptions and other factors are not
exhaustive. The forward-looking statements contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements contained herein or in any other
documents filed with securities regulatory authorities, whether as
a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Atlanta Gold Inc.