Atna Resources Reports Second Quarter 2008 Results

    GOLDEN, Colo., Aug. 14 /CNW/ -- Atna Resources Ltd. ("Atna") -- (TSX:
ATN) is pleased to provide a summary of the unaudited results for the
Company's second quarter ended June 30, 2008.

    Highlights for the Year-To-Date Period

    --  Merger with Canyon Resources Corporation ("Canyon") closed March 18,
    --  Acquired the remaining land position at the Columbia gold property
        (formally known as Seven-Up Pete gold property).
    --  Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold, provided
        guidance on their US$30 million work program at the Pinson gold
        project which is moving towards a production decision by mid-2009.
    --  Positive Technical Reports filed for the Briggs Mine and commencement
        of re-start operations.
    --  Reward Gold Project feasibility report completed and reserves
    --  Reward Gold Project permitting advancing towards completion.
    --  Optioned the Adelaide and Tuscarora Nevada gold properties to Golden
    --  Mountain States Legal Foundation files petition with US Supreme Court
        for Atna Resources in the McDonald takings case.

    Operating Activities and Other Developments:
    Columbia Gold Property Claims (Formally Seven-Up Pete Gold Property)
    In June 2008, the Company acquired certain claims at the Columbia gold
property in order to consolidate the land package containing the known body of
mineralization. An historic, non NI43-101 compliant, estimate of mineralized
material for Columbia, including the acquired claims, was completed by Phelps
Dodge Corporation in 1991 and 1993. This estimate totaled 23.7 million tons
grading 0.035 ounces of per ton gold ("opt") and containing 837,000 ounces
gold at a 0.02 opt gold cutoff grade. Approximately 28 percent of this total
is attributed to the newly acquired claims. The aggregate acquisition cost was
US$500,000 in cash and 604,308 common shares of Atna and the Seller retains a
four percent net smelter return royalty on the claims purchased.
    Atna is consolidating existing information on the project and has begun
an NI43-101 compliant estimate of resources for the property.
    Atna -- Canyon Merger
    Atna Resources Ltd. and Canyon signed an Agreement and Plan of Merger on
November 16, 2007. The transaction closed on March 18, 2008. The merger with
Canyon significantly increased the gold resources controlled by the Company,
which are highly leveraged to the price of gold and provides near term gold
production opportunities from the Briggs Mine and the Reward Gold Project.
    Asset Sales
    Atna is marketing non-core assets from the merged companies, including
royalties and certain mineral property interests, to provide additional funds
necessary to finance the development costs of the Briggs, Reward, Columbia and
Pinson projects.

    Development Activities
    Pinson Project, Nevada
    Pinson Mining Company, a subsidiary of Barrick Gold, spent US$5.2 million
on drilling and development activities at Pinson in the second quarter of 2008
bringing their total project-to-date expenditures to US$13.2 million. PMC may
earn a 70 percent interest in the project by spending a total of US$30 million
by April 6, 2009, which would result in Atna retaining a 30 percent interest.
    Initial results of PMC resource optimization studies indicate the
potential to combine the underground resource with un-mined resources
remaining in and around four of the historic Pinson mine pits into a large pit
concept. PMC plans an additional 30,000 feet of surface drilling to evaluate
the open pit model with further delineation of mineralization in the four
historic pit areas. PMC is conducting additional metallurgical studies to
further define possible metallurgical process routes for the various sulfide
and oxide mineralization types at the site.
    Simultaneous work is being conducted on optimizing underground mine
design and economic trade-off studies on the benefits of mining the high grade
resource zone by underground methods or proceeding with the project using a
large scale open pit concept.
    Briggs Mine, California
    A technical report for the estimation of open pit and underground
reserves and resources at the Briggs Mine in Inyo County, California, was
completed in April 2008. The report estimates that a good economic return may
be achieved from the re-start of mining operations at the wholly-owned Briggs
    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 proven and probable reserve is estimated to be 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 opt
gold and an inferred resource of 314,000 ounces grading 0.044 opt gold. Atna
has commenced 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
20,000 to 30,000 ounces of gold per year. An optimization and economic
trade-off study is underway to convert underground ore to open pit ore to
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
estimated to be about US$500 per ounce and a capital investment of $8.3
million is required.
    Reward Project, Nevada
    The Company completed a positive economic feasibility study for its
Reward Gold Project located near Beatty, Nevada. The feasibility study
recommends development of a conventional open pit mining, ore crushing, and
heap leach gold production operation. The project has good operating synergies
and cost benefits from the nearby Briggs Mine.
    Proven and probable mineral reserves estimated in the feasibility study
total 5.2 million tons averaging 0.027 opt containing 137,700 ounces of gold
based on a gold price of US$575 per ounce and a strip ratio of 2.0 tons of
waste per ton of ore. The Reward operation is expected to produce
approximately 117,000 ounces of gold over a four year mine life at an
estimated average cash cost of US$409 per ounce of gold produced. The
feasibility study includes capital costs for crushing and process plants,
facilities and infrastructure, mining fleet and pre-production stripping of
US$24.3 million. The project has been carefully designed to create the
smallest environmental footprint possible. The permitting process is well
advanced and key permits are expected to be granted this year.
    Financial Results:
    Atna recorded a net loss of $1.5 million, or negative $0.02 per share, on
revenues of $0.2 million for the second quarter ended June 30, 2008. This
compares to a net loss of $0.8 million, or negative $0.01 per share, on
revenues of nil for the second quarter ended June 30, 2007. The negative
variance of $0.7 million in net loss was due primarily to the following
    --  Negative variance of $0.6 million in operating loss due to increased
general and administrative cost due to the consolidation of Canyon's costs and
other Canyon related operation costs partially offset by cost reductions in
the Atna operations.
    --  Negative variance of $0.1 million related to unrealized loss on short
term investments.
    Cash and short term investments totaled $7.4 million and $10.6 million as
of June 30, 2008 and December 31, 2007, respectively. The decrease of $3.2
million was due primarily to normal operating expenditures of $2.8 million,
merger transaction costs of $0.7 million and purchases and development of
property of $0.5 million offset by cash received in the merger of $0.9
    Conference Call
    Management will host a conference call on Monday, August 18th at 1:00
p.m. EDT, to discuss the second quarter 2008 results as well as project and
general corporate activities. Shareholders are invited to participate by
dialing US/Canada (888) 355-4499 or (706) 645-9757, Conference ID 60082296.
The call will also be available by webcast, to access please go to and click on "2nd Quarter 2008 Web Cast".
    The conference call will be available for replay through midnight August
20, 2008, by dialing (800) 642-1687 or (706) 645-9291, Conference ID 60082296.
    For additional information on Atna Resources, please visit our website at
    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 the
significant increase in gold resources and leverage to the price of gold,
success in marketing non-core assets, PMC's ability to complete their earn-in
and feasibility study, the Company's plan to re-start mining operations at the
Briggs Mine or the Pinson Gold Project, success of the Briggs optimization
study and the availability of financing to fund the Company's development
    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,
changes in equity ownership, 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 Company's development projects. The principal risk
factors associated with the Company's business are discussed in greater detail
in the Company's various filings on SEDAR ( 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.


     James Hesketh, President and COO - (303) 278-8464
     Valerie Kimball, Investor Relations  toll free (877) 692-8182

                     ATNA RE

SOURCES LTD. AND SUBSIDIARIES SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION (Unaudited) June 30, Dec. 31, 2008 2007 BALANCE SHEETS ASSETS Current assets $8,084,700 $11,266,500 Noncurrent assets 41,804,500 2,221,200 Total assets $49,889,200 $13,487,700 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $2,340,800 $695,800 Notes payable - long term 834,200 - Noncurrent liabilities 5,609,400 379,700 Shareholders' equity 41,104,800 12,412,200 Total liabilities and shareholders' equity $49,889,200 $13,487,700 Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 STATEMENTS OF OPERATIONS REVENUE $156,800 $- $156,800 $- EXPENSES AND OTHER (INCOME) Cost of sales 150,000 - 150,000 - Depreciation, depletion and amortization 31,300 29,700 59,300 56,300 Selling, general and administrative 1,307,300 377,900 2,154,000 1,169,900 Exploration 148,400 186,100 355,800 345,000 Accretion expense 107,000 - 140,100 - Gain on asset disposals (70,300) - (70,300) - Write down of assets - 323,200 - 323,200 Gain on sale of securities - (38,300) - (38,300) Other expense (income), net 5,800 (64,000) (177,500) (233,100) Net loss $(1,522,700) $(814,600) $(2,454,600) $(1,623,000) Other comprehensive loss $(80,500) $(163,100) $(253,500) $(397,300) Comprehensive loss $(1,603,200) $(977,700) $(2,708,100) $(2,020,300) Net loss per share $(0.02) $(0.01) $(0.03) $(0.03) Basic and diluted weighted-average shares outstanding 82,708,400 64,314,100 74,997,000 64,758,600 CASH FLOWS Cash and cash equivalents, beginning of period $3,596,500 $3,375,200 $3,516,800 $3,534,800 Effect of exchange rate changes on cash 36,200 - 61,800 - Net cash used in operating activities (1,969,500) (798,900) (2,809,600) (1,138,800) Net cash provided by investing activities 4,521,800 412,900 5,387,200 510,700 Net cash provided in financing activities 485,300 138,900 514,100 221,400 Cash and cash equivalents, end of period $6,670,300 $3,128,100 $6,670,300 $3,128,100

For further information:

For further information: James Hesketh, President and COO,
+1-303-278-8464, or Valerie Kimball, Investor Relations, 1-877-692-8182, both
of Atna Resources Ltd. Web Site:

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