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 processing capabilities.
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 facility.
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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, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". By their nature, forward-looking statements and information are based on assumptions and involve known and unknown risks, uncertainties and other factors that 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 securities laws.
SOURCE: Veris Gold Corp.
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