Atlanta Gold announces that high runoff causes exceedance of discharge limits at the Atlanta Project

TORONTO, June 16, 2014 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) (OTCQX: ATLDF) (the "Company") today reported that two events in May caused arsenic and iron discharge from the water treatment facility at the Atlanta Project to exceed U.S. Environmental Protection Agency standards. High spring runoff and an uncontrolled release in water flow caused by a ground collapse in the cross-cut behind the bulkhead in the 900 Level adit resulted in water cresting the bulkhead and flushing sediment from the floor of the crosscut and carrying it downstream through the pre-pond solids filters, to the containment ponds. This could be seen as a 12 inch orange line above the normal high water mark on May 17^th. A further surge in water raised the pond surface water over 24" on June 10^th.

From the containment ponds, the water pushed over and through the filters in the water treatment facility, depositing silt throughout. The silt restricted flow through most of the filters in the system. Large scale cleaning of the water treatment facility is in progress.

The influent flow to the water treatment facility on May 1, 2014 was 73.8 gallons per minute ("gpm") and by May 13, 2014 had risen to 121.3 gpm. On May 14^th the flow surged to 462.9 gpm and flow spiked to 1,048.2 gpm on May 17^th. The most recent surge occurred in the morning of June 10^th raising the pond water by 24" and receded to 180 gpm within 24 hours.

Best management practices are being used to address the issues. New filter material has been ordered and the installation is expected to be completed within the next two weeks at a cost of approximately $30,000. Portions of the water treatment facility have been taken off line for cleaning, rebuilding and maintenance. These were the first incidents of exceedance at the water treatment facility in more than six months of operation. The Company has a plan in place to install a plug in the crosscut that is necessary to manage water flows and treatment.

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.

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SOURCE Atlanta Gold Inc.