GOLDEN, Colo., May 8 /PRNewswire-FirstCall/ -- Atna Resources Ltd.
("Atna") -- (TSX: ATN) is pleased to announce that it has completed NI
43-101 compliant Technical Reports ("Technical Reports") for the estimation
of open pit and underground reserves and resources at the Briggs Mine in
Inyo County, California. The Technical Reports support the re-start of
mining operations at the 100 percent owned Briggs Mine.
Gold production at the Briggs Mine originally commenced in 1996 and
historically produced over 550,000 ounces of gold. The site continues to
produce gold by rinsing of the leach pads, including 181 ounces produced
and sold in May 2008. The Technical Reports estimate the project has a
Proven and Probable Reserve of 151,000 ounces of gold grading 0.034 oz/ton
gold. Additionally, Briggs contains an estimated 532,500 ounces of Measured
and Indicated resource grading 0.027 oz/ton gold and an Inferred Resource
of 314,000 ounces grading 0.044 oz/ton gold. Atna has commenced initial
re-start activities at the site including plant and equipment
refurbishment, site preparation for leach pad expansion, and personnel
recruitment. New ore is forecast to be loaded on the leach pad in the first
quarter of 2009 with production beginning to ramp up to an annualized rate
of 25,000 to 35,000 ounces of gold per year. An optimization study is
presently underway to convert underground ore to open pit ore and may
enable an early increase in the production rate.
Briggs Mine economics are favorable for the open pit mine re-start
alone or combined with the Goldtooth underground mine at gold prices
significantly below current market. The open pit project cash cost of
production is US$494 per ounce. Break even full cash costs, including
recapture of capital spent, is approximately US$626 per ounce and free cash
flow increases by US$8.9 million per every US$100 increase in gold price.
Mining would commence using open pit methods around existing pits and
would recover an estimated 89,000 ounces over a four year period. Gold
production from underground mining may add an additional 34,000 ounces of
production over the four year period. Site cash cost of operations for the
underground and open pit case is projected to be US$484 per ounce of gold
and the full cost is US$623 per ounce. Re-starting the mine is expected to
pave the way for development of additional open pit and high grade
underground mineralization as well as potential satellite mines. Initial
capital investment for the open pit case is US$10.5 million. The
underground mine requires another US$2.5 million capital investment.
Included in this capital investment is US$1.2 million of expenditures
underway.
Management is in the process of completing a block model that combines
the open pit and underground models, including the addition of recent
drillhole results, to evaluate an expanded open pit mine plan. An optimized
and expanded open pit mine plan may include much of the ore designated for
the Goldtooth underground project. If underground mining continues to look
feasible, then the report recommends test mining to gain additional
underground geotechnical information and to provide access for closer
spaced drillholes for further ore block definition and detailed stope
design.
The existing mining equipment at Briggs will be utilized for re-start
of open pit operations along with the addition of two blasthole drills and
ancillary equipment. A mining contractor will be considered for underground
mine development and operations. Current gold prices are significantly
higher than those used in the mine design. Additional reserve upside may be
developed, should gold prices remain high, within the existing mineral
resource base of mineralization.
The report details an estimate of mineral reserves and mineral
resources, which are summarized in the tables below.
Mineral Reserves (1,2,3,& 4)
Contained Gold
Category Tons (1,000) Gold - Opt Ounces
Open Pit
Proven 1,841 0.028 50,900
Probable 2,314 0.025 57,600
Total 4,155 0.026 108,500
Underground
Proven
Probable 259 0.164 42,500
Total 259 0.164 42,500
Proven & Probable 4,414 0.034 151,000
(1) Gold price of US$500 per ounce for open pit (late 2006 dollars),
US$600/ounce underground
(2) Strip ratio of 3.4 tons of waste per ton of ore
(3) Included within total mineral resource
(4) Internal economic cutoff grade of 0.013 oz/ton
Estimate of Open Pit Resource (1,2, &3)
Cut-Off Tons Gold Contained
Classification Grade (1,000) Grade Gold Ounces
(oz/ton) (opt) (Ounces)
Measured 0.01 5,548 0.024 130,500
Indicated* 0.01 12,309 0.021 251,900
Measured + Indicated 0.01 17,857 0.021 382,400
Inferred 0.01 4,175 0.022 93,400
(1) Overlap between underground and open pit resources estimates have
been reconciled
(2) Mineralization previously mined by underground methods has been
eliminated from the estimate
(3) Proven and probable reserve are included in the above resource
Mineral Resource Summary for Underground Goldtooth Structure (1)
Classification Cut-Off Tons Gold Contained
Grade (1,000) Grade Gold Ounces
(oz/ton) (opt) (Ounces)
High Grade Measured 0.10 60 0.205 12,400
High Grade Indicated 0.10 285 0.227 64,500
Total High Grade M&I 0.10 345 0.223 76,900
Low Grade Measured 0.02 341 0.046 15,700
Low Grade Indicated 0.02 1,279 0.045 57,500
Total Low Grade M&I 0.02 1,620 0.045 73,200
Total Measured & Indicated 1,965 0.076 150,100
High Grade Inferred 0.10 426 0.209 89,000
Low Grade Inferred 0.02 2,563 0.051 131,600
Total Inferred 2,989 0.074 220,600
(1) Proven and probable reserve are included in resource
The reserves and resources reported above do not include mineralized
material totaling 8.3 million tons grading 0.028 ounces of gold per ton in
the Cecil-R, Suitcase, and Mineral Hill satellite deposits near the Briggs
operating area, which were previously reported by Canyon Resources under
SEC Guide 7 regulations and have not been recalculated to NI43-101
compliance.
The initial report completed "Technical Report on the Briggs Mine
Project, Inyo County, California, USA", focused on estimation of open pit
mineral resources for the re-start of open pit mining at Briggs. During
compilation of this report the high grade potential of the Goldtooth
structure was recognized. Subsequent drilling focused on that structure,
which led to the completion of a second report titled "Technical Report -
Briggs Mine Underground Project, Inyo County, California, USA". This report
estimated higher grade underground mineral resource potential associated
with the Goldtooth Structure. The underground model was reconciled to
eliminate areas with open pit mining potential. The third report, "Mineral
Reserve Technical Report on the Briggs Mine Project, Inyo County,
California, USA" consolidates (but does not optimize) underground and open
pit feasibility study work used to develop estimates of mineral reserves.
Definitions used in the Technical Reports and 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 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.
Qualified Persons
Mr. John Taylor, Registered Professional Engineer (Geology), State of
Arizona, acted as the independent qualified person in the preparation of
"Technical Report on the Briggs Mine Project, Inyo County, California, USA"
edited October 27, 2007.
Mr. Timothy J. Carew, Registered Professional Geoscientist, British
Columbia, and Mr. Bill Fleshman, PGeo, AUSIMM acted as the independent
qualified persons in the preparation of "Technical Report - Briggs Mine
Underground Project, Inyo County, California, USA", edited May, 2008
Mr. Thomas McNamara, Registered Professional Engineer, State of
Colorado, acted as the independent qualified person in the preparation of
"Mineral Reserves Technical Report on the Briggs Mine Project, Inyo County,
California, USA" dated May 2, 2008.
For additional information on Atna Resources and the Briggs Project,
please visit our website at http://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 possible improvements to the outcome of an ongoing optimization study,
and the Company's plans to re-start mining operations at the Briggs Mine
based on technical reports compliant with Canadian NI 43-101.
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
re-starting mining operations at the Briggs Mine, and the other risk
factors discussed in greater detail in the Company's various filings on
SEDAR (http://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 25, 2008.
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 COO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
Kendra Johnston, Investor Relations (800) 789-2862
http://www.atna.com
SOURCE Atna Resources Ltd.
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Related links:
http://www.atna.com
CONTACT:
James Hesketh, President and COO,
+1-303-278-8464, or Valerie Kimball, Investor Relations, toll
free, 1-877-692-8182, or Kendra Johnston, Investor Relations,
1-800-789-2862, all of Atna Resources Ltd.
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