Atlanta Gold improves mineral recoveries in tests using new technique developed by Knife River Corporation

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TORONTO, Sept. 3, 2013 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") today reported that further gold recovery process testing by Knife River Corporation ("KRC") on material from the Company's Atlanta project, in Idaho, has achieved higher recovery rates by reducing the grain size of the feed material to liberate gold and sulphides from unwanted gangue material. The process by which KRC reduces the size, but without grinding, is its own new proprietary technical application that is both cost effective and energy efficient.

By way of background, the Company has been working this year with KRC on ways to improve the gravity system's mineral recovery on material obtained in the Company's 107-ton bulk sample, which was completed in August 2012. The first testing of the pilot gravity recovery plant's process provided anticipated results that free gold could be separated but gold attached to gangue material could not be easily recovered. Additional testing had determined that substantial size reduction would be required to liberate additional gold and minerals from unwanted gangue.

KRC embarked on an innovative method to achieve required size reduction without grinding to liberate gold and sulphides from the gangue materials. As material size is reduced, recovery percentages have increased.

Atlanta Gold's President and CEO Wm. Ernest Simmons said, "The Knife River Corporation's proprietary technical application that markedly reduces the feed grain size to the gravity recovery process is a significant step to advancing the Atlanta gold-silver project and could lead to a low cost gravity recovery system in the near future. Our next larger bulk sample will provide the data needed to define the final production flowsheet."

"The objective for a 100:1 ratio of feed to concentrate with acceptable recovery rates is becoming a reality," added Mr. Simmons, "and the metallurgical testing of the gravity recovery process will continue." Detailed analysis of all samples required for a metallurgical balance of tested recoveries in future tests will be performed by a certified NI43-101 compliant laboratory.

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 kilometres) 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, including with respect to the completion of a low cost gravity recovery system, additional metallurgical testing and an additional bulk sample. Such are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors that management believe to be reasonable and relevant. These assumptions include those concerning the generation of an additional bulk sample, the achievement of recovery objectives, the completion of additional financings, the availability of equipment and manpower, the ability to achieve operating and cost estimates and general business and economic conditions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause 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 and AGC's limited financial resources and their ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary to carry out its planned initiatives; fluctuations in resource prices and currency exchange rates; the speculative nature of mineral exploration and mining (including with respect to the interpretation of geology, continuity, size and grade estimates and the recoverability of resource estimates); 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, 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.

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SOURCE Atlanta Gold Inc.