GOLDEN, Colo., June 2 /CNW/ -- Atna Resources Ltd. ("Atna") - (TSX: ATN)
has entered into a Supplemental Agreement to the Sand Creek Uranium Project
Exploration, Development and Mine Operating Agreement dated August 25, 2006,
with High Plains Uranium Inc. ("High Plains"), a subsidiary of Uranium One
Inc. (TSX: UUU). Under this Supplemental Agreement, High Plains shall assume
the role of project manager and may spend up to US$1.6 million before December
31, 2012 to increase its interest in the project from 30 percent to 51
percent. Atna's equity position may decrease from 70 percent to 49 percent,
should High Plains meet this commitment.
Atna will be carried at no expense while High Plains spends the funds to
increase its interest. High Plains may either provide notice of completion of
its expenditures or terminate their earn-in right with prior notice. If High
Plains terminates its accelerated earn-in right, they will be credited for
expenditures made and their equity in the project will increase accordingly.
If they do not earn up to a 50 percent position, then Atna will assume the
role of operator in the project. At termination or completion of the
Supplemental Agreement, the existing Exploration, Development and Mine
Operating Agreement will remain effective and the partners' operating
interests will be set in proportion to the amount of their respective
High Plains has submitted a work plan and budget for 2009 detailing
$320,000 in expenditures. These expenditures cover the cost of property
maintenance for the remainder of 2009, permitting activities and a 20,000 foot
drilling program with associated analytical testwork.
The Sand Creek uranium joint venture area of interest, located south east
of Douglas, Wyoming, was identified by a subsidiary of Atna and its former
joint venture partners during a uranium exploration effort in the early 1980s.
The company drilled 88 holes for approximately 69,000 feet in 1981 and 1982,
discovering several zones of uranium mineralization. In late 2006, the current
partners' drill program began in the western portion of the Sand Creek JV
area. Fourteen holes totaling 10,395 feet clearly demonstrated the presence of
"roll front" style uranium mineralization. A follow up drill program
consisting of 16 drill holes totaling 11,700 feet was completed in mid-2007
and the favorable results were announced in a press release in August 2007.
Three of the 16 holes intercepted significant uranium grades. The drilling
program consisted primarily of wide-spaced, reconnaissance style drilling with
drill hole spacing of 500 to 1,000 feet. Uranium mineralization in the area is
hosted in sandstones of the White River Formation, which is composed of
sandstones, conglomerates, and red to green siltstones and claystones. The
sandstones are lenticular in nature and average from five to 20 feet in
thickness and occasionally range up to 45-feet thick. The White River
Formation is being mined for uranium using In-situ Recovery methods at the
Crowe Butte mine in Nebraska.
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.
For additional information on Atna and its exploration and 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 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.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
For further information:
For further information: James Hesketh, President and CEO,
+1-303-278-8464, or Valerie Kimball, Investor Relations, 1-877-692-8182, both
of Atna Resources Ltd. Web Site: http://www.atna.com