a ripper of a quarterly from atlantic gold

With the gold price going ballistic and Atlantic Gold making solid progress things are looking decidely promising for Atlantic Gold, the projects economics have improved tremendously with a new ore processing option available which is attracting the attention of financiers. The share price is absurdly cheap at these levels.

QUARTERLY REPORT FOR PERIOD ENDING 31 DECEMBER 2008
HIGHLIGHTS
• Detailed financial analysis, engineering evaluations and site visits under the
terms of a Memorandum of Understanding with Acadian Mining Corporation
have determined that Touquoy ore could be transported and treated at its
Scotia Mine plant with a low capital investment of C$32m plus C$7m working
capital and cash operating cost of C$620 per ounce. Gold is currently C$1,100
per ounce.
• Preliminary engineering and financial analyses have determined that an
alternative approach to Touquoy using Gekko gravity-float-intensive leach
processing provides an attractive option with upfront capital of C$53m plus
C$7m working capital, and operating costs reduced to C$455 per ounce.
• The company’s investigations into project finance have determined that a
debt provider is particularly attracted to the low operating cost indicated by
the Gekko studies, the Nova Scotia government is very attracted to the
potential jobs provided by the Touquoy development and the Canadian
Budget stimulus package announced this week contains financial incentives
which will benefit Touquoy.
• Under the terms of a Memorandum of Understanding discussions are in
progress with Acadian Mining to consolidate both companies’ gold properties
in Nova Scotia which together comprise almost 3.0 million ounces of gold
resources and more than 1000km2 of highly prospective exploration lands.
• The company is engaged in ongoing discussions with various funding parties
in order to access additional working capital.

http://www.atlanticgold.com.au/pdf/quarterly_reports/ATV_Dec_2008_Qtr_Rpt.pdf