Atlanta Gold announces 54% increase in Indicated gold equivalent resource at its Atlanta property in Idaho

TORONTO, July 21, 2011 /CNW/ --
TORONTO, July 21, 2011 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that P&E Mining Consultants Inc. ('P&E') of Brampton, Ontario
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 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.'

Details of the P&E resource estimate as at June 30, 2011 are provided in
the following table:

 ____________________________________________________________________________________________
|            |       |                  GOLD      |                  SILVER       |          |
|____________|_______|____________________________|_______________________________|          |
|            |       |       |     Grade  |       |     Grade  |       |          |          |
|____________|       |       |____________|       |____________|       |          |          |
|            |       |       |      |     |       |      |     |       |Ounces of |  TOTAL   |
|            |       |Cut-Off|Ounces|Grams|Ounces |Ounces|Grams|Ounces |  Silver  |EQUIVALENT|
|            |       | Grade | Per  | Per |  of   | Per  | Per |  of   | as Gold  |OUNCES OF |
|            | Tons  |  Au   | Ton  |Tonne| Gold  | Ton  |Tonne|Silver |Equivalent|  GOLD    |
|      Area  |(000's)| (opt) |  Au  | Au  |(000's)|  Ag  | Ag  |(000's)| (000's)  | (000's)  |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|OPEN -PIT:  |       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |  6,732|  0.041| 0.099| 3.39|  665.5| 0.263| 9.02|1,769.2|      31.8|     697.3|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |    850|  0.041| 0.093| 3.19|   79.4| 0.200| 6.86|  170.2|       3.1|      82.5|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|UNDERGROUND:|       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |     95|  0.113| 0.222| 7.61|   21.1| 0.319|10.92|   30.3|       0.6|      21.7|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |    938|  0.113| 0.216| 7.42|  203.0| 0.272| 9.33|  255.2|       4.6|     207.6|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|TOTAL:      |       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |  6,828|       | 0.101| 3.45|  686.6| 0.264| 9.04|1,799.5|      32.4|     719.0|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |  1,788|       | 0.158| 5.42|  282.4| 0.238| 8.16|  425.4|       7.7|     290.1|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|

  1. Mineral resources which are not mineral reserves do not have
     demonstrated economic viability. The estimate of mineral resources
     may be materially affected by environmental, permitting, legal,
     title, taxation, sociopolitical, marketing, or other relevant
     issues.
  2. The quantity and grade of reported inferred resources in this
     estimate are uncertain in nature and there has been insufficient
     exploration to define these Inferred resources as an Indicated or
     Measured mineral resource and it is uncertain if further
     exploration will result in upgrading them to an Indicated or
     Measured mineral resource category.
  3. The mineral resources in this press release were estimated using
     the CIM Standards on Mineral Resources and Reserves, Definitions
     and Guidelines prepared by the CIM Standing Committee on Reserve
     Definitions.
  4. AuEq was calculated such that one ounce of Au = 55.6 ounces Ag.
     Metal prices used were the June 30, 2011 two year trailing average
     for Au at US$1,231/oz and Ag at US$22.48/oz with respective mill
     recoveries of 83% for gold and 88% for silver. Prevailing metal
     prices at June 30, 2011 were US$1,506 per ounce of gold and
     US$35.02 for silver.
  5. The mined tonnage from historic operations was removed from the
     block model.
  6. Gold cut-off grades of 0.041 opt (1.41 gpt) for open pit and 0.113
     opt (2.25 gpt) for underground resources were established from
     metal prices, expected recoveries, and estimated operating costs.

For comparative purposes, details of the P&E resource estimate as at
December 31, 2010 are provided in the following table:

 ____________________________________________________________________________________________
|            |       |                  GOLD      |                  SILVER       |          |
|____________|_______|____________________________|_______________________________|          |
|            |       |       |     Grade  |       |     Grade  |       |          |          |
|____________|       |       |____________|       |____________|       |          |          |
|            |       |       |      |     |       |      |     |       |Ounces of |  TOTAL   |
|            |       |       |Ounces|Grams|Ounces |Ounces|Grams|Ounces |  Silver  |EQUIVALENT|
|            |       |Cut-Off| Per  | Per |  of   | Per  | Per |  of   | as Gold  |OUNCES OF |
|            | Tons  | Grade | Ton  |Tonne| Gold  | Ton  |Tonne|Silver |Equivalent|  GOLD    |
|      Area  |(000's)| (opt) |  Au  | Au  |(000's)|  Ag  | Ag  |(000's)| (000's)  | (000's)  |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|OPEN -PIT:  |       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |  2,331|   0.04| 0.130| 4.46|  303.0| 0.389|13.34|  906.8|      11.7|     314.7|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |     58|   0.04| 0.123| 4.22|    7.1| 0.235| 8.06|   13.6|       0.2|       7.3|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|UNDERGROUND:|       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |    934|   0.09| 0.158| 5.42|  147.6| 0.311|10.66|  290.5|       3.7|     151.3|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |  1,500|   0.09| 0.185| 6.34|  277.5| 0.267| 9.15|  400.5|       5.2|     282.7|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|TOTAL:      |       |       |      |     |       |      |     |       |          |          |
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Indicated   |  3,265|       | 0.138| 4.73|  450.6| 0.367|12.58|1,197.3|      15.4|     466.0|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|
|Inferred    |  1,558|       | 0.183| 6.27|  284.6| 0.265| 9.09|  414.1|       5.4|     290.0|
|____________|_______|_______|______|_____|_______|______|_____|_______|__________|__________|

  1. Mineral resources which are not mineral reserves do not have
     demonstrated economic viability. The estimate of mineral resources
     may be materially affected by environmental, permitting, legal,
     title, taxation, sociopolitical, marketing, or other relevant
     issues.
  2. The quantity and grade of reported inferred resources in this
     estimate are uncertain in nature and there has been insufficient
     exploration to define these Inferred resources as an Indicated or
     Measured mineral resource and it is uncertain if further
     exploration will result in upgrading them to an Indicated or
     Measured mineral resource category.
  3. The mineral resources in this press release were estimated using
     the CIM Standards on Mineral Resources and Reserves, Definitions
     and Guidelines prepared by the CIM Standing Committee on Reserve
     Definitions.
  4. AuEq was calculated such that one ounce of Au = 77.6 ounces Ag.
     Metal prices used were the November 30, 2010 two year trailing
     average for Au at US$1,075/oz and Ag at US$16.61/oz with process
     recoveries of 90% for gold and 75% for silver.
  5. The mined tonnage from historic operations was removed from the
     block model.

The increase over the previous mineral resource estimate is primarily
attributable to expansion of the conceptual open pit shell onto
unpatented lands and to a lesser extent due to increases in trailing
average metal prices, offset somewhat by increases in estimated
operating costs. 'The 2010 exploration program identified several potential gold-bearing
splays and veins to the northwest and southeast of the main Shear. The
conceptual open pit shell was expanded to provide access to these
mineralized splays and veins', said Ernie Simmons, Vice President of
Mining and COO of the Company.

The Company currently owns or leases approximately 406 acres (18.8%) of
patented claims and 1,754 acres (81.2%) of unpatented claims, for a
total of 2,159 contiguous acres. The previous P&E resource estimate was
restricted to mineralization occurring solely on patented claims. 'The conceptual open pit shell will now be within the boundaries of both
patented and unpatented claims', said Mr. Simmons. The Company has completed approximately 14,000 feet (4,270 metres) of
drilling in 2011 which has intersected a number of mineralized zones of
significant thicknesses and assays are currently pending for these
drill holes.

Mineral resources contained within a preliminary optimized pit shell are
considered to be amenable to lower cost open pit extraction, whereas
mineral resources below this are considered to be amenable to
underground extraction.

The average gold equivalent grade (including silver resources as a gold
equivalent) of the open pit resource is 0.104 opt (3.57 gpt) AuEq in
the Indicated resource classification and 0.097 opt (3.33 gpt) AuEq in
the Inferred open pit resource classification. The average gold
equivalent grade of the underground resource is 0.228 opt (7.82 gpt)
AuEq in the Indicated resource classification and 0.221 opt (7.58 gpt)
AuEq in the Inferred underground resource classification.

Certain technical measurements in this news release have been converted
to metric based on the conversion factors shown below:

Measure of Concentration

1 troy ounce per short (Imperial) ton = 34.2857 grams per metric tonne
or 34.2857 parts per million

Linear Measure

1 metre = 3.2808 feet


1 centimetre = 0.3937 inch


1 kilometre = 0.621371 miles

Quality Control and Assurance

2010 exploration program drill samples were handled and assayed in
accordance with NI 43-101 standards.  Assaying was done by Inspectorate
America Corporation of Sparks, Nevada, U.S.A. Inspectorate is a well
known international laboratory that has operated in Nevada for more
than 10 years. Samples were 30-gram fire assays of split NQ-sized core
(4.76 centimetres in diameter).  The NQ diameter drill-core samples
were split in half; one half was retained in its original core box and
the second half was sent to Inspectorate. Quality control and assurance
of the analytical results were monitored by inserting standards,
blanks, and duplicates into the sample run, for approximately every
twenty samples at the project site.

Qualified Persons

The independent Qualified Persons as defined by NI 43-101 for the
purpose of this news release regarding the Atlanta Project resource
update are Fred Brown, CPG, Tracy Armstrong P.Geo., and Eugene Puritch,
P.Eng., all of P&E Mining Consultants Inc. of Brampton, Ontario. The
contents of this press release have been reviewed and approved by Mr.
Puritch.  P&E Mining Consultants Inc. is an established and
internationally recognized geological and mine engineering consulting
firm specializing in resource estimates, scoping, pre-feasibility
studies and participation with other consulting firms on feasibility
studies, with over 130 projects undertaken in the last seven years. P&E
has Certificates of Authorization from the Association of Professional
Geoscientists of Ontario, Professional Engineers of Ontario and the
Association of Professional Engineers and Geoscientists of Saskatchewan
and Professional Engineers and Geoscientists of Newfoundland and
Labrador.

Mr. Fred Brown CPG, PrSciNat, of P&E is a Certified Professional
Geologist (#11015) with the American Institute of Professional
Geologists and a registered Professional Natural Scientist with the
South African Council for Natural Scientific Professions (#400008/04),
has over 25 years of worldwide experience in mining resource and
reserve assessments and related work.

Ms. Tracy Armstrong, P.Geo., a graduate of Queen's University at
Kingston, Ontario with a B.Sc. (Hons) in Geological Sciences (1982), is
a geological consultant currently licensed by the Order of Geologists
of Québec (License 566), by the Association of Professional
Geoscientists of Ontario (License 1204) and by the Association of
Professional Engineers and Geoscientists of British Columbia (Licence
34720). She is an independent geological consultant contracted by P&E
Mining Consultants Inc. and has worked as a geologist continuously
since her graduation from university.

Mr. Eugene Puritch, P.Eng. (Haileybury School of Mines, Queen's
University), President of P&E, has more than 30 years experience in
mine evaluation and resource estimating for some of Canada's largest
mining companies. He has undertaken more than 300 resource estimates
and mine designs in his career, many of which formed the basis for
feasibility studies and subsequent production decisions. Prior to
co-founding P&E, Mr. Puritch was regularly under contract to provide
his services to Micon International Ltd., Aker Solutions Canada Inc.,
A.C.A. Howe International Ltd. and Strathcona Mineral Services.

About the Company

Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) 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 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.

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 resource
estimates, recovery rates, mining methods, the continuance and extent
of additional exploration in 2011, the completion of a preliminary
economic assessment and the timing thereof.  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 accuracy of historical
records, the accuracy of the Company's resource estimates and of the
geological, metallurgical and price assumptions on which the estimates
are based, the availability of adequate financing and the ability to
achieve operating cost estimates. 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
speculative nature of mineral exploration, development and mining
(including uncertainties with respect to the interpretation of geology,
continuity, size and grade estimates and recoverability of mineral
reserves and resources); insufficient funding or delays in raising
additional financing on satisfactory terms; operational and technical
difficulties which could increase operating and/or capital costs; risks
and hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, changes in
laws or regulations and the risk of obtaining necessary licenses and
permits; fluctuations in resource prices and in currency exchange
rates; 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.

Information Concerning Estimates of Mineral Reserves and Resources

The mineral resource estimates reported in this news release were
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ('NI 43-101'), as required by Canadian
securities regulatory authorities. For United States reporting
purposes, the United States Securities and Exchange Commission ('SEC')
applies different standards in order to classify mineralization as a
reserve. In particular, while the terms 'measured,' 'indicated' and
'inferred' mineral resources are required pursuant to NI 43-101, the
SEC does not recognize such terms. Canadian standards differ
significantly from the requirements of the SEC. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories constitute or will ever be converted into reserves. In
addition, 'inferred' mineral resources have a great amount of uncertainty as to their existence and their economic feasibility. It
cannot be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category.

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.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/21/c6765.html