Atna Provides NI-43-101 Resource Estimate for Cecil R Project
James Hesketh, President and CEO, states, "We believe that the Cecil R deposit has an excellent potential to extend the operating life of our Briggs Mine complex. The deposit is adjacent to the existing access road and is potentially amenable to open pit mining. A preliminary economic evaluation has been initiated to determine the economics of developing this project in association with the Briggs Mine. Permitting and a feasibility study would begin immediately following completion of a positive economic evaluation."
The table below displays the new resource estimate at various cut-off grades.
| Cut-off Grade | Category | Short Tons (x 1,000,000) |
Grade (oz/ton Au) | Contained ounces |
| 0.005 oz/ton gold | Measured | 1.427 | 0.017 | 24,900 |
| Indicated | 4.017 | 0.016 | 64,470 | |
| Measured + Indicated * |
5.444 | 0.016 | 89,370 | |
| Inferred | 8.724 | 0.015 | 125,820 | |
| 0.010 oz/ton gold | Measured | 0.858 | 0.024 | 20,830 |
| Indicated | 2.382 | 0.022 | 52,660 | |
| Measured + Indicated * |
3.24 | 0.023 | 73,490 | |
| Inferred | 5.144 | 0.019 | 99,390 | |
| 0.015 oz/ton gold | Measured | 0.568 | 0.03 | 17,250 |
| Indicated | 1.522 | 0.028 | 42,140 | |
| Measured + Indicated * |
2.09 | 0.028 | 59,390 | |
| Inferred | 2.982 | 0.025 | 72,840 |
* totals may not precisely add up due to rounding
The Cecil R gold mineralization is hosted in a shallow-dipping, blanket-like zone directly below a thin cover of alluvial gravels. The mineralized zone is strongly weathered and oxidized and is hosted by the same geologic units as ores being mined to the south at the Briggs Mine. Work in 2010 will include additional baseline environmental data collection, column-leach metallurgical testing, and preliminary economic evaluation of the project.
Detailed information on the Cecil R Project and the mineral resource estimate contained in this release will be filled as an NI 43-101 Technical Report on SEDAR (www.sedar.com) within 45 days. Authors of this report are independent Qualified Persons with the consulting firm of Chlumsky, Armbrust & Meyer, LLC. of Lakewood, Colorado. Resource estimates were interpolated utilizing an inverse distance squared methodology.
Definitions used in this release are consistent with those adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Council in December 2005, as amended, and prescribed by the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, Standards of Disclosure for Mineral Projects. The Cecil R Project contains no mineral reserves and the mineral resources reported in this press release have no demonstrated economic viability at this time. The quantity and grade of reported inferred resources in this estimation are conceptual in nature. It is uncertain if further exploration will result in discovery of an indicated or measured mineral resource within areas classed as inferred.
Qualified Persons
This press release was prepared under the supervision and review of William Stanley, V.P. Exploration of Atna, a Licensed Geologist, and Qualified Person with the ability and authority to verify the authenticity and validity of information contained within this news release.
Robert Sandefur, P.E., of Chlumsky, Armbrust & Meyer, LLC of Lakewood, Colorado, was responsible for preparing the mineral resource estimate discussed in this press release. Mr. Sandefur is an independent Qualified Person and co-author of the Technical Report which will be filed for the Cecil R Project on SEDAR.
For additional information on Atna Resources, the Cecil R project and the Briggs Mine, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation relating to potential economic and permitting viability, metallurgical amenability and other factors regarding the Cecil R Project and extension of mine life at the Briggs Mine. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the Company might encounter problems such as the significant depreciation of metals prices, accidents and other risks associated with mining exploration, development and production operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's mine development plans and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F dated March 31, 2009.
Cautionary Note to U.S. Investors --- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this report, such as "measured," "indicated," and "inferred resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to closely consider the disclosure in our Form 20-F which may be obtained from us or found on www.sec.gov/edgar.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com
Atna Reaches Commercial Production Levels at the Briggs Mine
"We are pleased with the current gold production levels and operations at Briggs. The mine is on track to achieve budgeted gold production rates, and at these production levels Briggs will produce a positive operating cash flow at current gold prices," states James Hesketh, President & CEO.
Unit cash cost for gold production in 2010 is estimated to be $600 to $625 per ounce. Life of mine gold production, including 2010, based on the current mineral reserve, is expected to have a cash cost of production in the range of $500 to $525 per ounce. Projected cash costs have increased from prior expectations due to an increase in fuel cost, the primary consumable at Briggs, and an increase in life-of-mine strip ratio. The slope angle on the eastern sector of the Briggs Main Pit was reduced to create a greater safety factor resulting in an increased strip ratio for that pit. Productivity improvement and cost containment will be a primary focus of operations in 2010.
Restart activities at Briggs commenced in fourth quarter 2008 and the first gold pour was completed in May 2009. Overall spending was generally on target with original budget. In-process gold inventory at year end 2009 was approximately 8,300 ounces with an inventory value of $6.9 million. Production details for Briggs in 2009 are shown in the following table:
Note: Cash cost of gold production is a non-GAAP measure and is calculated utilizing Gold Institute standards. Production accounting commenced at Briggs at the end of the Second Quarter.
The unit cash cost of gold production was higher than anticipated for 2009, primarily due to normal mine start up conditions:
- Small working areas;
- Limited availability of trained operators and mining professionals;
- Mining equipment availability;
- Leach pad dynamics.
For additional information on Atna Resources and the Briggs Mine, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation relating to gold production at the Biggs Mine. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the Company might encounter problems such as the significant depreciation of metals prices, accidents and other risks associated with mining exploration, development and production operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's mine development plans and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F dated March 31, 2009.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com
Atna Updates Reserve Estimates for Briggs and Reward
Briggs Mine
Mineral reserves at Briggs have been updated to account for the following changes:
- 2009 production
- New resource estimate (announced on August 11, 2009) that included additional results from 2008 and 2009 drill programs
- A reduction in slope angle in the east sector of the Briggs Main Pit
- An increase in the three year trailing gold price outlook from $750 per ounce to $845 per ounce
- A six percent increase in estimated direct operating costs
Briggs Mine Mineral Reserve as of Dec. 31, 2009
Contained Gold Ounces
2009 Other
EOY 2008 Production Changes EOY 2009
-------- ---------- ------- --------
Proven 147,000 127,217
Probable 120,000 105,450
Total 267,000 (24,272) (10,061) 232,667
Revised mineral reserves were estimated using a 0.007 ounce per ton cut-off grade is shown in the following table:
Briggs Mine Mineral Reserve as of Dec. 31, 2009
Proven + Probable Ore
(>=0.007 oz Au/ton, incremental leach cutoff)
Area Tons Au (opt) Au Ounces
---- ---- ------- ---------
Briggs Main 4,949,886 0.0160 79,336
BSU 1,408,674 0.0232 32,686
Gold Tooth - North 2,249,988 0.0260 58,508
Gold Tooth - South 2,369,557 0.0262 62,137
Total 10,978,105 0.0212 232,667
The estimate shown above does not include 676,800 tons of in-pit inferred material containing approximately 10,000 ounces of gold. This material is currently considered as waste in the overall mine plan. No changes to pit design parameters other than those mentioned above were made. The remaining life of mine waste to ore stripping ratio increased from 2.2 to 2.8. This was primarily due to the use of a shallower slope angle in the eastern sector of Briggs Main Pit and a shortfall in waste mining during 2009. Use of a shallower pit slope angle in the Briggs Main Pit was instituted to create a greater safety factor.
The mineral resource estimate for Briggs, using a cutoff grade of 0.006 ounces of gold per ton, after mining depletion in 2009 is shown in the following table:
Briggs Mine Mineral Resource as of Dec. 31, 2009
Tons Gold Contained
Category (x1,000) (oz/ton) Gold Ounces
-------- ------ ------ -----------
Measured & Indicated 32,531 0.020 642,000
Inferred 15,313 0.017 264,172
Reward Mine
Mineral reserves at Reward have been updated to account for the following changes:
- An increase in the gold price outlook from $700 per ounce to $845 per ounce
- An eight percent increase in estimated direct operating costs
Mineral Reserves as of Dec. 31, 2009 - (Reward and Gold Ace)
Contained Gold Ounces
EOY 2008 Increase EOY 2009
-------- -------- --------
Proven 36,000 1,215 37,215
Probable 121,000 15,479 136,479
Total 157,000 16,694 173,694
Revised mineral resources were estimated using an internal net value of greater than $0.01/ton is shown in the following table:
Mineral Reserves as of Dec. 31, 2009 - (Reward and Gold Ace)
Reserve Ore Au Grade Contained
Classification Tons (opt) Au Ounces
-------------- ---- -------- ---------
Proven 1,366,339 0.0272 37,215
Probable 5,781,382 0.0236 136,479
Total 7,147,721 0.0243 173,694
The estimate shown above does not include 476,400 tons of in-pit inferred material containing approximately 8,875 ounces of gold. This material is currently considered as waste in the overall mine plan. No changes to pit design parameters other than those mentioned above were made. The life of mine waste to ore stripping ratio increased from 2.1 to 2.8, as the depth of the designed ultimate pit has been increased. An infill drilling program is planned at Reward later this year intended to convert inferred material to the indicated resources category and potentially to reserves as well as to add step-out information where no drill information currently exists.
Detailed information on the Reward Mine is contained in a technical report dated March 21, 2008, prepared by Chlumsky, Armbrust & Meyer, LLC., of Lakewood, Colorado, titled "NI 43-101 Technical Report - Reward Gold Project, Nye County, Nevada," which is available on SEDAR at www.sedar.com.
Definitions used in this release are consistent with those adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Council in December 2005, as amended, and prescribed by the Canadian Securities Administrators' National Instrument 43-101 and Form 43-101F1, Standards of Disclosure for Mineral Projects. The measured and indicated resources stated above include reserves, which are a sub-set of resources. Mineral resources that are not mineral reserves do not currently have demonstrated economic viability. Inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
The mineral reserves contained herein comply with the reserve categories of Industry Guide 7 published by the US Securities and Exchange Commission.
Qualified Persons
This press release was prepared under the supervision and review of William Stanley, V.P. Exploration of Atna, a Licensed Geologist, and Qualified Person with the ability and authority to verify the authenticity and validity of information contained within this news release.
Mr. Mike Read, Chlumsky, Armbrust & Meyer, LLC of Lakewood, Colorado, was responsible for preparing the updated ore reserve estimates and mine plans for both the Briggs Mine and Reward Mine project report in this press release and is the independent qualified person for those sections of the technical report.
For additional information on Atna Resources and the Briggs Project, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation relating to successful completion of resource to reserve conversion and completion of permitting, financing, and development of the Reward Gold Mine and gold production at the Biggs Mine. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the Company might encounter problems such as the significant depreciation of metals prices, accidents and other risks associated with mining exploration, development and production operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's mine development plans and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 20-F dated March 31, 2009.
Cautionary Note to U.S. Investors --- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this report, such as "measured," "indicated," and "inferred" "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com
Atna Initiates Development of Reward Gold Mine
Jim Hesketh, President and CEO stated "Receiving this permit is exciting news because it enables us to accelerate the development of the Reward deposit. We have hired a project manager to oversee mine development and plan to open an office in Beatty, Nevada, in the near future."
Immediate development activities will include the completion of design engineering, development of contractor bid packages, and initial infrastructure development at the site. Infrastructure development includes access road improvements, fencing, and placement of orders for long lead-time items, power line and water supply development. Anticipated cost for this phase of work will be approximately US$3.0 million to be expended over a period of six months.
Phase 2 activities will include the construction of leach pad facilities, purchase of a semi portable crushing plant, and installation of office, lab and shop facilities. Pre-stripping of mine waste would also commence simultaneously with the other construction activities. Timing on this construction phase will be dependent upon a number of factors including availability of free cash flow from our Briggs Mine operation, availability of equipment, staffing and other financing and logistical issues. We anticipate that Phase 2 construction could be completed within a nine month period after the completion of Phase 1.
A new estimate of mineral reserves is being developed for the Reward Project based on the current three year trailing average gold price of US$845 per ounce. Prior reserve estimates were calculated using a gold price of US$700 per ounce. Detailed information on the project is contained in a technical report dated March 21, 2008, prepared by Chlumsky, Armbrust & Meyer, LLC., titled "NI 43-101 Technical Report - Reward Gold Project, Nye County, Nevada," which is available on SEDAR at www.sedar.com. This information is also available on our website at www.Atna.com.
About Atna
Atna is a rapidly growing gold production and development company with operations focused in the western United States. Atna's Briggs Mine in Inyo County, California, began producing gold in May 2009. In addition, Atna has a portfolio of advanced stage development and exploration projects, including:
• Pinson Gold Project in Nevada, a joint venture with Barrick Gold (70 percent) and Atna (30 percent), where Barrick is the operator.
• Columbia Gold Project in Montana
• Reward Gold Project (see above information)
• Carried interests in eight exploration projects in North and South America.
For additional information on Atna Resources and the Reward Project, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to successful completion of permitting, financing and project development for the Reward Gold Project, production at the Briggs Mine, development of the Pinson Gold Project in Nevada and the Columbia Gold Project in Montana. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the Company might encounter problems such as the significant depreciation of metals prices; accidents and other risks associated with mining exploration and development operations; the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing; and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's 2008 Form 20-F dated March 31, 2009.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com
Atna Resources Begins Trading on OTC Bulletin Board
Golden, CO - Atna Resources Ltd. ("Atna" or the "Company") (TSX:ATN - OTCBB:ATNAF) is pleased to announce that in addition to its primary trading market on the Toronto Stock Exchange, the stock has moved from the U.S. over-the-counter Pink Sheets to the over-the-counter Bulletin Board ("OTCBB") and will be quoted under the symbol "ATNAF".
The listing on the OTCBB provides U.S. shareholders with a more robust electronic trading platform including real time quotes to simplify trading activities. Jim Hesketh, President and CEO, stated, "This new service should increase Atna's exposure to retail and institutional investors in the U.S. In the future, Atna intends to pursue a listing on a major U.S. exchange. The move to the OTCBB is a positive first step in that direction."
The OTC Bulletin Board is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs) and Direct Participation Programs (DPPs). For more information please visit www.otcbb.com. Atna files its annual financials on Form 20-F and all other publicly disclosed documents on Form 6-K through EDGAR with the U.S. Securities and Exchange Commission to maintain an OTCBB listing.
About Atna
Atna Resources is building a successful gold mining company focused in the western U.S. and is dedicated to responsible gold production and the creation of sustainable value for its shareholders, employees and the communities where it operates. Atna commenced gold production at its Briggs Mine in Inyo County, California in May 2009, which is expected to produce 213,000 ounces of gold over a six year mine life. In addition, the company plans to begin development of the Reward gold property located in Nye County, Nevada in 2010. Atna has a pipeline of development and exploration gold properties including its 30 percent joint venture interest in the Pinson gold property, Humboldt County, Nevada and the Columbia gold project in Lewis and Clark County, Montana.
For additional information on Atna Resources, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements including the Company's potential inability to meet the criteria required to pursue a listing on a major US exchange or its ability to increase its U.S. retail investor base. Other risk factors are discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's 2008 Form 20-F dated March 31, 2009.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182