GOLDEN, Colo., Feb. 18 /CNW/ -- Atna Resources Ltd. ("Atna") - (TSX: ATN)
is pleased to announce that it has completed a study that has significantly
increased open pit ore reserves at the Briggs Mine in Inyo County, California.
The study estimates that the project has open pit proven and probable reserves
containing 267,000 ounces of gold grading 0.021oz/ton, a 77 percent increase
over the previous reserve estimate, dated May 8, 2008. An additional 650,367
tons of inferred resource containing 9,510 ounces of gold are contained within
the pit shell limits, but are not included in the reserves. An updated
technical report ("Technical Report") will be filed shortly. Open pit mining
is underway and construction of the leach pad expansion has been completed.
Crushing of stockpiled ore is expected to commence in early March, with first
gold production expected in April 2009.
The new mine plan completed for the study projects a mine life of six
years. The plan produces approximately 213,000 ounces of gold with an annual
average full year production rate that ranges from 40,000 to 50,000 ounces per
year during the years 2010 to 2013 with residual gold recovery in 2014. Gold
production and sales for 2009 is expected to be over 20,000 ounces.
Life-of-mine cash cost and full cost is projected to be $468 and $587 per
ounce of gold, respectively. Life-of-mine pre-tax cash flow at a gold price
of $750 is approximately $36 million net of capital recapture including
sustaining capital and project closure costs. Cash flow increases by over $20
million for every $100 increase in gold price.
Diesel consumption is estimated to be 44 gallons per ounce of gold
produced. The above economics were based on a delivered diesel price of $1.90
per gallon. Approximately $7.0 million in capital has been spent on the
project with an additional $7.5 million of work underway or nearly complete.
Life-of-mine sustaining capital is approximately $11.4 million including
payment of capitalized leases on leased mining units and engine replacements
required to meet stringent California diesel emissions standards. All amounts
are in United States dollars, unless otherwise noted and all units are in
The report details an estimate of mineral reserves and mineral resources,
which are summarized in the tables below.
Mineral Reserves (1,2,3,4&5)
Category Tons (1,000) Gold - oz/ton Contained Gold Ounces
Proven 6,389 0.023 147,000
Probable 6,075 0.020 120,000
Total 12,465 0.021 267,000
1) Gold price of US$750 per ounce (2009 dollars)
2) Strip ratio of 2.2 tons of waste per ton of ore
3) Included within total mineral resource
4) Internal incremental economic cutoff grade of 0.007 oz/ton
5) All reserves are included within the Briggs permit boundary; GT South
pushback requires modification of reclamation plan for mining
Estimate of Resource (1)
Classification Cut-Off Grade Tons Gold Grade Contained Gold
(oz/ton) (1,000) (oz/ton) (Ounces)
Measured 0.01 8,997 0.028 249,000
Indicated* 0.01 11,691 0.026 301,000
Indicated 0.01 20,688 0.027 550,000
Inferred 0.01 6,686 0.026 175,000
1) Proven and probable reserves are included in the above resource
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 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.
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. Alan Noble, Ore Reserves Engineering of Lakewood, Colorado,
Registered Professional Engineer, State of Colorado, is acting as the
independent qualified person in the preparation of "Technical Report on the
Briggs Mine Project".
Mr. Mike Read, Chlumsky, Armbrust & Meyer, LLC of Lakewood, Colorado, was
responsible for preparing the ore reserve estimate and mine plan 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, 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 restarting or expanding mining operations at the Briggs Mine and
associated satellite deposits, 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 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 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
for Atna Resources Ltd Web Site: http://www.atna.com