Atna Announces Gold Participating Bond Offering
The Bonds, which will mature on September 30, 2014, and will bear interest at a rate of 8.5 percent per annum on the declining balance. The Bonds will represent a senior unsecured obligation of Atna by way of a corporate guarantee. The Bonds will be redeemed in 16 equal quarterly installments based on a Gold Equivalent Amount. The Gold Equivalent Amount will be established, at closing, by dividing the amount of the Offering by the lesser of the London PM fixing price and the trailing 30 calendar day average gold price based on the London PM fixing price. The quarterly gold deliveries will be converted to participating interests in a gold exchange-traded fund equivalent to the value of gold ounces delivered.
It is anticipated that the amount of gold committed over the term of the Bonds, including the previous tranche A bonds will represent less than 20 percent of the average annual forecast gold production of Atna's wholly-owned Briggs Mine in California over the term of the Bond. Atna intends to use the proceeds of the Offering for general corporate purposes including the construction and development of its Reward Gold Mine in Nevada. Closing of the Offering will be subject to final documentation as well as regulatory and final board approvals.
"We have now made two payments on our tranche A gold participating bonds and the structure, which is non-dilutive to our shareholders, is working as expected. Closing this second tranche of gold participating bonds will further strengthen our balance sheet and allow us to initiate drilling operations at our Briggs and Reward gold properties and to further advance construction activities at our Reward Gold Project. Reward is expected to commence facility construction during Q3 2010 and enter production in the summer of 2011. This will afford Atna a multi-mine production profile and is expected to increase our annual production by up to 30,000 ounces of gold," states James Hesketh, President & CEO.
For additional information on Atna, please visit our website at www.atna.com.
This news 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 a proposed sale of gold participating bonds and the proposed use of proceeds. Such statements include, without limitation, statements regarding the anticipated amount of gold to be committed under the Bonds and the proposed use of proceeds. Although Atna believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of Atna'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. Atna disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable law. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: Atna's inability to secure subscriptions from subscribers to complete the proposed gold bond sale in whole or in part, a management decision to change the use of proceeds based on changing circumstances, Atna 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 Atna will encounter unanticipated geological factors, Atna's need for and ability to obtain additional financing, and the other risk factors discussed in greater detail in Atna's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including Atna's 2009 Form 20-F dated March 26, 2010.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
Ryan Cohen, Canaccord Genuity Limited - 44 (0) 207 050 6765
www.atna.com
Atna Announces Positive Preliminary Economic Assessment for the Columbia Gold Project
Golden, CO - Atna Resources Ltd. ("Atna") - (TSX:ATN, OTCBB:ATNAF) is pleased to announce the completion of an NI 43-101 compliant Preliminary Economic Assessment (PEA) for the Columbia Project, located near Lincoln, Montana. Results demonstrate favorable economic returns using the current three year trailing average price of gold and silver. Exception economic returns are shown using current metal prices.
Columbia Project Highlights
- Projected average annual production of approximately 70,000 ounces of gold and 96,000 ounces of silver over a nine year mine life at an estimated cash cost of $639 per ounce of gold, net of by product credits.
- Pre-tax discounted Net Present Value (NPV) at $900 per ounce of gold and $15 per ounce of silver of $51 million at discount rate of five percent, giving an Internal Rate of Return (IRR) of 16 percent.
- Using a current gold price of $1,190 per ounce of gold and $18 per ounce of silver the NPV and IRR increase to $181 million and 39 percent IRR.
- Estimated capital expenditures of US$72.2 million and a payback of 4.9 years at $900 gold and $15 silver, or 3.1 years at today's prices.
The PEA contemplates a conventional open pit mining operation with sequential pit backfill and a conventional 5,000 ton per day gravity and flotation mill to produce both doré and a gold and silver concentrate. Concentrates would be sold to third party processing facilities. The initial design seeks to minimize environmental impact by incorporating dry tailings for pit backfill versus a conventional wet tailings dam.
The PEA is an estimate of the economic viability of the project and does not contemplate a number of important engineering or regulatory factors. Further study is required prior to making a production decision. The preliminary assessment includes inferred mineral resources within the pit boundary that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.
The PEA developed a number of recommendations for future work. These include:
- Additional metallurgical sampling to adequately test the various parts of the deposit sufficient to refine the process flow and complete a plant design.
- Additional drilling to confirm the resource and upgrade the ore classification of the Donnely South area.
- An evaluation of the permitting risk of the project.
- A geotechnical study to optimize pit slope angles and confirm waste dump stability and design.
- Feasibility and project optimization studies.
Preliminary Economic Sensitivity Results (1)(2)(3)
| Gold Price ($US/oz) |
Net Present Value (US$ million) Discount Rate 5% |
LOM cash Flow (US$ million) |
Internal Rate of return |
Payback (Years) |
|---|---|---|---|---|
| $800 | 4.5 | 30.8 | 6% | 6.9 |
| $900 | 49.3 | 91.3 | 16% | 4.9 |
| $1,000 | 94.0 | 151.8 | 25% | 3.9 |
| $1,100 | 138.8 | 212.4 | 32% | 3.4 |
| $1,200 | 183.6 | 272.9 | 39% | 3.0 |
| $1,300 | 228.3 | 333.4 | 46% | 2.7 |
(1) Preliminary economics are reported on a pre-tax basisPreliminary Mine Plan
(2) Assumes $15.00 silver price in all cases.
(3) Operating costs held constant
| Year (1,000) |
Ore Tons (oz/ton) |
Gold Grade (oz/ton) |
Silver Grade | Recovered Gold (oz) |
Recovered Silver (oz) |
Waste Tons (1,000) |
Strip Ratio |
|---|---|---|---|---|---|---|---|
| 1 | 801 | 0.044 | 0.183 | 31,207 | 58,853 | 6,201 | 7.7 |
| 2 | 1,750 | 0.040 | 0.133 | 61,978 | 93,570 | 5,264 | 3.0 |
| 3 | 1,849 | 0.042 | 0.103 | 69,512 | 76,744 | 5,534 | 3.0 |
| 4 | 1,751 | 0.053 | 0.174 | 81,586 | 122,711 | 5,325 | 3.0 |
| 5 | 1,750 | 0.052 | 0.176 | 80,249 | 124,152 | 5,288 | 3.0 |
| 6 | 1,751 | 0.049 | 0.161 | 76,375 | 113,416 | 4,486 | 2.6 |
| 7 | 1,750 | 0.053 | 0.170 | 82,626 | 119,891 | 4,394 | 2.5 |
| 8 | 1,750 | 0.051 | 0.116 | 79,588 | 81,793 | 4,531 | 2.6 |
| 9 | 1,742 | 0.041 | 0.111 | 63,696 | 77,586 | 2,557 | 1.5 |
Key Project Parameters - Preliminary
| Life of Mine | |
|---|---|
| Estimate Gold Contained in Pit (oz.) | 706,000 |
| Estimate Silver Contained in Pit (oz.) | 2,158,000 |
| Recoverable Gold (oz.) | 626,000 |
| Recoverable Silver (oz.) | 869,000 |
| Average Gold Recovery | 89% |
| Average Silver Recovery | 40% |
| Life of Mine (Years) | 9 |
| Overall Strip Ratio | 3.1 |
| Capital Including Contingency ($ million) | 72.2 |
| Operating Cost Including Contingency ($/ton ore) | 20.26 |
| Average LOM Unit Site Cost ($/oz) | 359 |
| Average LOM Total Cash Cost ($/oz) | 639 |
| Average LOM Full Cost ($/oz) | 755 |
| Contingency | |
Mine |
10% |
Plants & Infrastructure |
20% |
Operating Cost |
15% |
| Plant Capacity (tons per day) | 5,000 |
| Pit Slope Angles (degrees) | 45 |
Columbia Mineral Resource Estimate (1)(2)
| Classification | Tons (x1,000) |
Gold Grade (oz/ton Au) |
Contained Ounces Gold |
Silver Grade (oz/ton Ag) |
Contained Ounces Silver |
|---|---|---|---|---|---|
| Measured | 5,370 | 0.047 | 254,450 | 0.155 | 831,100 |
| Indicated | 11,294 | 0.043 | 487,230 | 0.116 | 1,304,380 |
| Measured + Indicated (1) | 16,665 | 0.045 | 741,680 | 0.128 | 2,135,480 |
| Inferred | 10,705 | 0.042 | 453,570 | 0.097 | 1,035,790 |
(1) Rounding may cause totals to not precisely add up.The resource estimate is based on 337 drill holes totaling 146,973 feet of drilling and 12,538 feet of surface trenching in 78 trenches carried out between 1989 and 1993. Bulk sampling, development studies, metallurgical testing, and environmental baseline studies were conducted during the same time period. The deposit remains open for possible extension both along strike and to depth.
(2) Reported at a cut-off grade of 0.020 oz/ton Au
The Columbia property is covered by middle Tertiary andesitic volcanic rocks. Gold and silver occurs with quartz-pyrite mineralization in several low-sulfidation, epithermal, quartz-adularia vein swarms. The vein systems are focused along north to northwest-trending faults and in stockwork and breccia flooding adjacent to the principal shears. The gold mineralized structures generally dip west and are up to 150 feet wide.
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. The resource estimate and PEA disclosed in this press release was prepared by Gustavson Associates, LLC of Lakewood, Colorado, under the direction of Mr. Donald E. Hulse, P.E., an independent Qualified Person. All mineral resource estimates were prepared utilizing standard industry software and resource estimation methodologies.
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. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
For additional information on Atna Resources, the Columbia Project, and Atna's other development projects, 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 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, 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, that will prevent it from developing mining operations at the Columbia Gold Project, 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 2009 Form 20-F dated March 26, 2010.
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. Investors are urged to closely consider the disclosure in our Form 20-F which may be obtained from Atna or found online at www.sec.gov.
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 Reports First Quarter 2010 Results
First Quarter 2010 Highlights:
- Revenue from gold sales totaled $6.1 million, based on the sale of 5,465 ounces at an average price of $1,106 per ounce.
- Gold mined at Briggs totaled 9,647 ounces, 25 percent above plan. Gold contained in ores placed on the leach pad exceeded plan by 34 percent.
- Gold doré production at Briggs totaled 6,031 ounces, six percent below plan due to timing of gold pours.
- Cash cost of production was $892 per ounce, marginally below budget.
- Estimated recoverable gold inventory at quarter end was 11,400 ounces in all stages of process, an increase of 3,100 ounces from year end.
- In February 2010, the Nevada Department of Environmental Protection issued a Reclamation Permit for the Reward Mine allowing construction to begin. In April 2010, the Department approved a plan to phase in bonding requirements reducing initial cash impact on the Company
- An experienced Project Manager was retained for the Reward Mine project and initial development activities have commenced.
- In March 2010, Atna declared a measured and indicated gold mineral resource containing 73,490 ounces and an inferred gold mineral resource containing 99,390 ounces at the Cecil R project located adjacent to the Briggs Mine in California.
For the first quarter ended March 31, 2010, cash and cash equivalents were $8.8 million, a decrease of $4.2 million from December 31, 2009. The net decrease was due primarily to the following:
- $2.1 million of cash was used in gold inventory build, corporate overhead, exploration, and interest payments, partially offset by cash received in a legal settlement and option payments from joint venture partners.
- $0.8 million of net cash used in capital spending at Briggs.
- $1.3 million of cash used in principal payments for capital leases and the gold bond.
Briggs Mine, California
Briggs enjoyed a strong quarter of production with both ore mining and crushing exceeding plan. Total ore tons mined exceeded budget by 16 percent and crushed ore tons exceeded budget by 10 percent. Approximately 1,200 ounces of gold mined was contained in previously designated waste blocks and were not previously included in ore reserve. The unit cash cost of gold production was marginally lower than anticipated for the first quarter at $892 per ounce versus a budget of $902 per ounce. The Briggs Mine site is now fully staffed and all planned production units are operating. There was no lost time injury accidents reported at Briggs for the quarter.
Target production for 2010 at Briggs is 36,000 to 40,000 ounces of gold at an average unit cash cost of production in the range of $600 to $650 per ounce of gold. Improvement in productivity and cost containment is the primary focus of operations in 2010.
A drilling program at Briggs is planned for third quarter 2010. The program will target extensions to the previously announced Briggs deep zone located beneath the existing Briggs main pit as well as extensions to the deposit where ore has been found during current mining operations but were not shown in the existing ore reserve models due to a lack of drill information.
Briggs Satellite Projects
The Cecil R satellite project is located four miles north of the Briggs Mine proximal to the mine access road. An initial NI 43-101 compliant mineral resource estimate and technical report for Cecil R was completed in March 2010. The resource estimate for Cecil R includes a measured and indicated gold mineral resource containing 73,490 ounces and an inferred gold mineral resource containing 99,390 ounces using a cutoff grade of 0.01 ounce per ton. Cecil R represents a potential ore source to expand the life of operations in the Briggs district. A Preliminary Economic Evaluation for the Cecil R project is planned for completion in the third quarter 2010. Bottle roll and column gold recovery testwork is presently being conducted using drill cuttings from prior programs.
Reward Mine Project, Nevada
Current development activities include the completion of design engineering, development of contractor bid packages, and initial infrastructure development. 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 $3.0 million.
Many of the drillholes on the eastern flank of the Reward mineral resource model terminate in or contain ore grade mineralization indicating a probable extension to the mineral resource. A drilling program is planned to test this potential extension in September 2010.
The State of Nevada has approved a plan to phase-in the environmental and closure bonds for Reward. The initial bonding requirements for initial development activities are approximately $0.9 million. A second bond of approximately $0.9 million must be posted prior to the commencement of facilities construction and a final bond must be posted prior to commencement of leach pad operations sometime in 2011. The total cost for reclamation and closure bonds is approximately $5.9 million.
The Reward operation is expected to produce approximately 139,000 ounces of gold over a four year mine life at estimated average cash cost of $435 per ounce of gold produced.
Pinson Mine Project, Nevada
The Pinson Mine property is located in Humboldt County, Nevada, about 30 miles east of Winnemucca and is operated as a joint venture with Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold Corporation. Atna owns a 30 percent equity interest in the joint venture and PMC owns 70 percent and manages the project.
PMC has completed an in-house review of the project for both underground and open pit mining potential. They are currently reviewing their strategic options in regards to the project, which may include sale of their interest. Should they decide to sell their interest, Atna retains a right of first refusal to match any offer within 60 days of that offer being presented to Atna. Atna's share of the 2010 operating budget for the Pinson project is $0.3 million, which includes ongoing underground pumping and maintenance operations. No change in project status occurred in the first quarter.
In January 2010, Atna acquired a 1.5 percent net smelter return royalty ("NSR") pertaining to approximately four sections of land within the area of interest of the Pinson Mine project. This interest was acquired from Barrick Turquoise Ridge Inc., a subsidiary of Barrick Gold. One of these sections contains gold resources previously announced by Atna. Barrick acquired the royalty in its merger of Placer Dome in 2006 and this royalty interest was covered under the area of mutual interest clause within the Mining Venture Agreement.
Columbia Gold Property, Montana
Activities at Columbia during the first quarter 2010 included water sampling and analysis to set baseline water quality standards. Additional work continued on the completion of a Preliminary Economic Assessment, which is scheduled for completion in the second quarter 2010. The mineral resource model is currently being upgraded to include structural and other geologic information to be used in designing a metallurgical drilling program for the project.
Conference Call:
Management will host a conference call on Tuesday, May 18, 2010, at 11:00 a. m. EDT to discuss these results and general corporate and project activities. Participants in the U.S. and Canada dial (877) 559-1977; International callers dial (660) 422-4979. Please reference conference ID #75824718.
A replay of the first quarter call will be available through midnight EDT May 20, 2010 by dialing (800) 642-1687 or (706) 645-9291, reference conference ID #75824718.
For additional information on Atna, its mining, development and exploration projects, 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 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; the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration programs; 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 2009 Form 20-F dated March 26, 2010.
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," "inferred," and "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. Investors are urged to closely consider the disclosure in our Form 20-F which may be obtained from Atna or found online at www.sec.gov.
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 LTD. AND SUBSIDIARIES SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION (US dollars, Canadian GAAP basis) (Unaudited) |
|||||
| March 31, | December 31, | ||||
| BALANCE SHEETS | 2010 | 2009 | |||
| ASSETS | |||||
| Current assets | $ 20,137,300 | $ 21,331,700 | |||
| Non-current assets | 58,565,800 | 58,525,600 | |||
| Total assets | 78,703,100 | 79,857,300 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities | 11,280,300 | 9,679,500 | |||
| Notes payable - long term | 10,300 | 837,200 | |||
| Gold bonds, net of discount | 9,109,200 | 9,857,400 | |||
| Other non-current liabilities | 6,250,500 | 5,445,800 | |||
| Shareholders' equity | 52,052,800 | 54,037,400 | |||
| Total liabilities and shareholders' equity | $ 78,703,100 | $ 79,857,300 | |||
| Three Months Ended | |||||
| March 31, | |||||
| STATEMENTS OF OPERATIONS | 2010 | 2009 | |||
| Revenues | $ 6,086,700 | $ - | |||
| Cost of sales | 6,116,500 | - | |||
| Depreciation | 26,100 | 33,700 | |||
| General and administrative | 1,037,900 | 782,800 | |||
| Exploration | 342,900 | 488,600 | |||
| Other expense (income), net | 415,600 | (272,300) | |||
| Net loss | (1,852,300) | (1,032,800) | |||
| Comprehensive (loss) income | (2,069,800) | (1,052,800) | |||
| Basic (loss) income per share | $ (0.02) | $ (0.01) | |||
| Basic weighted-average shares outstanding | 83,307,478 | 83,291,133 | |||
| STATEMENTS OF CASH FLOWS | |||||
| Cash and cash equivalents, beginning of the period | $ 13,060,300 | $ 16,707,300 | |||
| Net cash used in operating activities | (2,105,800) | (2,787,600) | |||
| Net cash used in investing activities | (788,200) | (4,835,900) | |||
| Net cash used in financing activities | (1,333,800) | (181,000) | |||
| Effect of exchange rate changes on cash | 15,000 | (2,000) | |||
| Cash and cash equivalents, end of the period | $ 8,847,500 | $ 8,900,800 | |||
Atna Resources Presents at European Gold Forum!
President and CEO Jim Hesketh, is pleased to present the exciting Atna Resources gold production story and outlook, at the European Gold Forum on Thursday, April 15th, 2010 at 14:00 Zurich time.
The full slide presentation will be webcast and is available for replay at the following link: European Gold Forum
Atna Resources Reports Fourth Quarter and Year End 2009 Results
"Atna completed a successful start-up of operations at its Briggs Mine in California and completed permitting activities for its Reward Mine in Nevada. In addition, the compliant gold resource base for the Company was increased by more than 80 percent. In 2010, the staff and management of Atna will focus diligently on increasing production and reducing operating costs at Briggs, continuing the development of Reward, completing an economic assessment of the Columbia project, and unlocking value from its interest in the Pinson project," states James Hesketh, President & CEO.
Highlights
- Revenues of $8.7 million
- Cash and cash equivalents at year end of $13.1 million
- Net loss of $6.0 million or a loss per share of $0.07
- An 81 percent increase in measured and indicated gold resource, for a total of 2.0 million ounces, net of ounces mined in 2009
- An increase of 112 percent in inferred gold resource for a total 1.2 million ounces, net of ounces mined
- Gold production of 11,195 ounces of gold in doré, and gold sales of 10,886 ounces at an average gold price of $962 per ounce valued at $10.4 million
- Cash cost of $908 per ounce for second half 2009 due to unforeseen start up problems
- A measured and indicated mineral resource was declared for the Columbia gold project totaling 741,700 ounces of gold and 2.1 million ounces of silver. Inferred mineral resource totaled an additional 453,600 ounces of gold and 1.0 million ounces of silver
- Closed in December 2009 an offering of a $14.5 million gold participating bond ("Gold Bonds").
- Closed in September 2009 a $1.5 million convertible debt financing
At December 31, 2009, cash and cash equivalents totaled $13.1 million. Net cash used in 2009 for operating activities was $11.5 million, primarily consisting of the net cash loss from operations plus cash expended to build gold inventory-in-process of approximately 8,300 ounces with an inventory value of $6.9 million. Net cash used in investing activities of $6.0 million was due to purchases of property, plant and equipment at the Briggs Mine partially offset by proceeds from sales of assets. Net cash provided by financing activities of $13.8 million included $13.6 million in net proceeds from the issuance of the Gold Bonds and $1.4 million in net proceeds from the issuance of debentures partially offset by $1.1 million of payments on capital leases.
For the year ended December 31, 2009, Atna recorded a net loss of $6.0 million, or a loss per share of $0.07, on revenues of $8.7 million. This compares to net income of $15.8 million, or income per share of $0.20, on revenues of $0.2 million for the year ended December 31, 2008.
2010 Outlook and Objectives
- Further increase reserves/resources at both the Briggs and Reward mines
- The Briggs Mine is expected to produce positive cash flow in 2010 at a production target of 36,000 to 40,000 ounces of gold for the year
- Cash cost of production for 2010 is estimated to range from $600 to $625 per ounce of gold
- The 2010 goal for Briggs is to improve operational productivity while containing costs
- Complete infrastructure development at the Reward Mine and initiate project construction
- Complete an economic assessment of the Columbia project; continue permitting activities, baseline environmental sampling, metallurgical test work and initiate feasibility study
- Advance our opportunities arising from the interest held in the Pinson project
Commercial production at Briggs was declared on February 26, 2010, when the mine produced 80 ounces of gold per day for a period of greater than 30 days. At this production rate, the mine should produce sufficient cash flow to support both its operational and capital requirements, as well as support corporate overheads and return cash to the Company. The Briggs Mine is expected to produce positive cash flow in 2010 at a production target of 36,000 to 40,000 ounces of gold for the year. Cash cost of production for 2010 is estimated to decline to $600 to $625 per ounce of gold. The life of mine cash cost of production for current reserves is expected to range from $500 to $525 per ounce of gold.
Approximately $15.7 million in capital has been spent on the Briggs project through December 31, 2009. Capital spending for 2010 at Briggs is projected to be approximately $5.1 million, primarily for capital lease payments for major mining equipment and leach pad expansion. The pad expansion will add an additional seven million tons of leach pad capacity, which will be sufficient for all ores included in the current reserves.
Briggs Satellite Project (100%)
The Cecil R satellite project is located four miles north of the Briggs Mine. In March 2010, Atna declared a measured and indicated gold mineral resource containing 73,490 ounces and an inferred gold mineral resource containing 99,390 ounces (at a 0.01 oz/ton Au cut-off). Gold mineralization at Cecil R is hosted by the same geologic unit which hosts the nearby Briggs Mine gold deposit. The gently west dipping blanket-like zone of gold mineralization dips beneath Quaternary gravel cover and is distributed over an area 1,500 feet by 1,200 feet and has a thickness of 10 to 60 feet.
Work on the Cecil R project will continue during 2010 with economic evaluation of the newly defined resource, baseline environmental studies, infill drilling to upgrade resource classification, metallurgical testing, and permitting.
Reward Project, Nevada (100%)
The Company has received all major permits required to initiate development activities. A project manager has been retained for the project and an office has been opened in Beatty, Nevada. Immediate development activities include the completion of design engineering, development of contractor bid packages, and initial infrastructure development. 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 $3.0 million to be expended over a period of up to six months beginning in March 2010.
The Reward operation is expected to produce approximately 139,000 ounces of gold over a five year mine life at estimated average cash cost of $435 per ounce of gold produced. The feasibility study included capital costs of $24.3 million for crushing and process plants, leach pads, other facilities and infrastructure, mining fleet and deferred stripping. The Company is currently updating project capital and economic estimates to reflect higher gold prices, more accurate operating costs and increased gold reserves.
Pinson Project, Nevada (30%)
Atna owns a 30 percent equity interest in the Pinson joint venture. Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold, owns 70 percent and PMC acts as operator of the project. The project is under further evaluation and Atna's share of project expenditures for 2009 and January 2010 totaled $0.5 million.
In 2009, PMC completed an in-house review of the project for both underground and open pit mining potential. They are currently reviewing their strategic options in regards to the project, which may include sale of their interest. Should they decide to sell their interest Atna retains a right of first refusal to match any offer within 60 days of that offer being presented to Atna. The 2010 budget for the Pinson project includes ongoing underground pumping and maintenance operations. Atna's share of the 2010 budget is $0.3 million.
In January 2010, Atna acquired a 1.5 percent net smelter return royalty ("NSR") on approximately four sections of land within the area of interest. The NSR was acquired from Barrick Turquoise Ridge Inc., a subsidiary of Barrick Gold. One of these sections contains gold resources previously announced by Atna.
Columbia Gold Property, Montana (100%)
Atna completed an NI 43-101 compliant Technical Report and Mineral Resource Estimate on the property in October 2009 (filed on SEDAR on October 21, 2009). The Technical Report declared a measured and indicated mineral resource of 741,700 ounces of gold and 2.1 million ounces of silver. Inferred mineral resource totaled 453,600 ounces of gold and 1.0 million ounces of silver (at a 0.01 oz/ton Au cut-off).
Montana state law currently prohibits the development of the Columbia project as an open-pit mine using cyanide based recovery technology. As a result, the Company is conducting conventional gravity and froth flotation recovery analysis on bulk samples from the mineralized zones. Initial results are promising, but additional test work and economic analysis is required to economically optimize this process route. The Columbia project will be required to complete an environmental impact statement and the permitting process before any development activities can take place on the property.
During 2010, the Company is planning to conduct additional metallurgical test work, environmental base-line studies, and a preliminary economic assessment of development alternatives for the property.
Conference Call
Management will host a conference call on Monday, March 29, 2010 at 11:00 am (EDT), to discuss these results and general corporate and project activities. Participants in the US and Canada dial (877) 559 -- 1977, International callers dial (660) 422 -- 4979. Please reference conference ID # 64688371
A replay of the call will be available until midnight April 1, 2010, by dialing (800) 642-1687 or (706) 645-9291, reference conference ID # 64688371.
For additional information on Atna, its mining, development and exploration projects, 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 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; the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration programs; 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.
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," "inferred," and "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. Investors are urged to closely consider the disclosure in our Form 20-F which may be obtained from us or found on line at 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 RESOURCES LTD. AND SUBSIDIARIES | ||||||||
| SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION | ||||||||
| (US dollars, Canadian GAAP basis) | ||||||||
| (Audited) | ||||||||
| December 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| BALANCE SHEETS | ||||||||
| ASSETS | ||||||||
| Current assets | $21,331,700 | $17,896,300 | ||||||
| Noncurrent assets | 58,525,600 | 49,515,300 | ||||||
| Total assets | 79,857,300 | 67,411,600 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | 9,679,500 | 3,012,000 | ||||||
| Notes payable - long term | 837,200 | 825,000 | ||||||
| Gold bonds, net of discount | 9,857,400 | - | ||||||
| Noncurrent liabilities | 5,445,800 | 4,300,000 | ||||||
| Shareholders' equity | 54,037,400 | 59,274,600 | ||||||
| Total liabilities and shareholders’ equity | $ 79,857,300 | $ 67,411,600 | ||||||
| Three Months Ended | Twelve Months Ended | |||||||
| December 31, | December 31, | |||||||
| 2009 | 2008 | 2009 | 2008 | |||||
| STATEMENTS OF OPERATIONS | ||||||||
| Revenues | $ 4,957,800 | $ - | $ 8,689,200 | $ 155,100 | ||||
| Cost of sales | 5,568,300 | - | 9,126,100 | 148,400 | ||||
| Depreciation | 41,000 | 33,700 | 155,600 | 125,400 | ||||
| General and administrative | 1,050,700 | 908,800 | 3,402,900 | 4,062,900 | ||||
| Exploration | 106,900 | 68,800 | 1,464,700 | 532,800 | ||||
| Other expense (income), net | 14,800 | 2,416,900 | 500,000 | (17,515,300) | ||||
| Income Tax Benefit | - | 3,004,100 | - | 3,004,100 | ||||
| Net (loss) income | (1,823,900) | (424,100) | (5,960,100) | 15,805,000 | ||||
| Unrealized gains (losses) on translating the | ||||||||
| financials of self sustaining foreign operations | 16,000 | 132,200 | (7,000) | (394,100) | ||||
| Unrealized (loss) gain on investments available-for-sale | (91,700) | 326,600 | 53,900 | - | ||||
| Realized gain on available for sale securities | ||||||||
| recognized in net loss | 199,500 | - | 199,500 | - | ||||
| Comprehensive (loss) income | (1,700,100) | 34,700 | (5,713,700) | 15,410,900 | ||||
| Basic (loss) income per share | $ (0.02) | $ (0.01) | $ (0.07) | $ 0.20 | ||||
| Basic weighted-average shares outstanding | 83,291,133 | 83,291,100 | 83,291,133 | 79,166,725 | ||||
| CASH FLOWS | ||||||||
| Cash and cash equivalents, beginning of period | $ 1,712,400 | $ 23,201,700 | $ 16,707,300 | $ 3,581,300 | ||||
| Net cash used in operating activities | (1,064,700) | (1,235,000) | (9,633,200) | (6,064,100) | ||||
| Net cash (used in) provided by investing activities | (746,500) | (5,316,600) | (7,842,600) | 18,769,900 | ||||
| Net cash provided by (used in) financing activities | 13,153,800 | (3,200) | 13,820,000 | 495,600 | ||||
| Effect of exchange rate changes on cash | 5,300 | 60,300 | 8,800 | (75,400) | ||||
| Cash and cash equivalents, end of period | $ 13,060,300 | $ 16,707,200 | $ 13,060,300 | $ 16,707,300 | ||||