VANCOUVER, March 27, 2013 /CNW/ - Veris Gold Corp. (TSX:VG) (OTCQB:YNGFF) (Frankfurt Xetra Exchange:NG6A)
is pleased to announce Veris Gold USA Ltd. has entered into a toll
milling agreement with Atna Resources Inc., a subsidiary of Atna Resources Ltd. (TSX:ATN), to process ore from the Pinson Mine at the Jerritt Canyon Mill located
in Elko County, Nevada. The Jerritt Canyon Mill is operated by Veris
Gold USA Ltd., a wholly-owned subsidiary of Veris Gold Corp. (the
"Company" or "Veris").
The toll milling agreement with Atna Resources Inc. ("Atna") has a one
year term. Under the terms of the agreement, ore produced from the
Pinson Mine, located nearby in Humboldt County, Nevada, will be
delivered to the Jerritt Canyon Mill for processing. Atna will pay to
Veris a toll milling fee that will be adjusted on a quarterly basis to
reflect any changes to input costs associated with processing the ore.
The toll milling agreement is structured so that all dore produced from
the ore will remain the property of Atna throughout the process and the
associated toll milling fee charged to each ton will be treated as a
credit to Jerritt Canyon operating costs.
Randy Reichert, Co-CEO and COO of Veris stated, "This agreement is a
win-win situation with our gold producing neighbor in Nevada.
Processing third party ores makes excellent use of the upcoming excess
capacity at the Jerritt Canyon Mill as we gradually phase out the low
grade stockpile ore. This provides the Company with excellent revenue
which will increase our positive cash flow from mining and processing
operations. Jerritt Canyon's operations are largely fixed-cost, so
making use of the additional capacity will bring down the operation's
cost per ounce considerably. We expect to start toll milling early in
Q2 2013 and low-grade stockpiles will be used in Q2 2013 to provide
100% of the necessary mill feed."
"This agreement provides additional processing flexibility with a
smaller lot size for Pinson and an outlet for our oxide-sulfide
transition ores. We look forward to a positive working relationship
with Veris", stated James Hesketh, President and CEO, Atna Resources.
Veris is presently evaluating other ores and concentrates to determine
which are best suited to being processed with the Company's surplus
Veris Gold Corp. is a growing mid-tier North American gold producer in
the business of developing and operating gold mines in geo-politically
stable jurisdictions. The Company's primary asset is the permitted and
operating Jerritt Canyon gold mine located 50 miles north of Elko,
Nevada, USA. The Company also holds a diverse portfolio of precious
metals properties in British Columbia and the Yukon Territory, Canada,
including the former producing Ketza River mine. The Company's focus
has been on the re-development of the Jerritt Canyon mining and milling
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This press release contains "forward-looking statements" and "forward
looking information" within the meaning of applicable securities laws.
All statements, other than statements of historical fact, including
without limitation, statements relating to plans for or intentions with
respect to the offering of Securities and the Company's use of proceeds
from the sale of Securities are forward-looking statements. Generally,
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may cause our actual results, performance or achievements, or industry
results, to be materially different from future results, performance or
achievements expressed or implied by such forward-looking information.
Such risks, uncertainties and other factors include among other things
the following: the Company's ability to engage underwriters, dealers or
agents on terms and conditions deemed reasonable by the Company; the
need to satisfy regulatory and legal requirements with respect to any
offerings; gold price volatility; discrepancies between actual and
estimated production and mineral reserves and resources; the
speculative nature of gold exploration; mining operational and
development risk; and regulatory risks. See our Annual Information Form
for additional information on risks, uncertainties and other related
factors. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
SOURCE: Veris Gold Corp.
For further information:
Veris Gold Corp.
Investor Relations Manager
Tel: (604) 688-9427 ext 224
CHF Investor Relations
Director of Operations
Tel: (416) 868-1079 ext. 225
Tel: +49 711 25 35 92 40