Thursday September 17, 8:00 am Eastern Time
Company Press Release
Alta Gold Co. Begins Gold Production At
Olinghouse
HENDERSON, Nev.--(BUSINESS WIRE)--Sept. 17, 1998--Alta Gold
Co. (Nasdaq/NM:ALTA - news) Thursday announced that gold production has begun at Olinghouse.
Production presently consists of gold concentrates recovered from high grade ore processed through the gravity mill.
Gold production from the lower grade ore being placed on the leach pad is scheduled to begin in mid-October 1998.
Site development and construction began at Olinghouse in May 1998. Mining began in July 1998, with crushing
commencing shortly thereafter. The company expects Olinghouse to be in full operation by the end of 1998, with an
average rate of production of 100,000 ounces of gold per year over a period of at least five years. The average cash
cost of production is expected to be less than $200/oz.
In addition to Olinghouse, the company continues to produce gold at Griffon at an average rate of 1,000 ounces per
week and at an average cash cost of $145/oz.
Through the purchase of put options, the company has fully hedged its anticipated gold production through the end of
February 1999 at $335/oz. and thereafter at $280/oz. through the end of 2001.
Robert N. Pratt, president and CEO of Alta Gold, stated: ''While other companies have been closing down and/or
curtailing mining operations, we have taken a different tact. In fact, during 1998, only two new gold mines in Nevada
have been brought into production -- and both of them, Olinghouse and Griffon, have been opened by one company --
Alta Gold.
''Our philosophy is really quite simple -- even during tough times, good gold mines make good investments.''
Alta Gold is engaged in the exploration, development, mining and production of gold on properties in Nevada. The
company also has three base metals properties in the western United States which are in various stages of
development.
This news release contains statements that may be considered forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, such as management's expectations regarding scheduled gold
production from and the overall economics of the company's mining properties. Such forward-looking statements are
inherently uncertain, and the actual results may differ from management's expectations. Further information on
potential factors which could affect the financial condition and results of operations of the company are included in the
filings of the company with the Securities and Exchange Commission, including, but not limited to, the company's
Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1997.
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