Atna Reports Updated Gold Reserves at
Briggs and Reward Mines
Golden, CO -- Atna Resources Ltd. ("Atna")
-- (TSX:ATN -- OTCBB:ATNAF) is pleased to report updated mineral reserve
estimates at December 31, 2010 for the Briggs Mine in Inyo County,
California and for the Reward Mine in Nye County, Nevada.
Proven and probable mineral reserves at the Briggs Mine have been revised
to 201,000 contained ounces as of December 31, 2010. During 2010,
approximately 38,000 ounces of contained gold were mined, while 6,300
ounces were added back to reserves due to the impacts of increased gold
price, cost structure changes, and changes to pit slope geometry. No
drilling was performed at Briggs during 2010 and results from the 2011
drilling program are not included in this estimate. An increase in
mineral reserves and reduction in waste material resulted from steepening
the pit slope angle in the eastern sector of the Briggs Main pit as a
consequence of strongly improved slope management and operating practices
at the mine. The change was approved by a third party geotechnical
consultant.
At the Reward Mine, gold mineral reserves were increased by 7,200 ounces
to a total of 180,900 contained ounces. This four percent increase in
contained gold reserve was driven entirely by increased gold price and
changes in estimated costs. No drilling was conducted at Reward in 2010
but drilling planned for 2011 is expected to add to the reserves.
"These results display leverage to increase ore reserves with
increased gold price. We believe that we will also be able to increase
mineral reserves at both Briggs and Reward during 2011 based on our
planned and ongoing drilling campaigns. Operations at the Briggs Mine
have seen substantial improvement with the mine returning approximately
$2.1 million in positive cash flow during the fourth quarter of 2010.
This cash flow helped Atna to reduce debt while
ending the year with $9.6 million in cash. In addition, Briggs ended the
year with an estimated recoverable in-process gold inventory of 13,600
ounces with a year-end market value of approximately $19.1 million.
Infrastructure development has commenced at the Reward Mine to prepare
the site for construction. Furthermore, we are seeing positive political
changes in the State of Montana, which could have a material, positive
impact on the development of our Columbia project. Overall, we anticipate
a strong 2011 for Atna," states James Hesketh, President & CEO.
Gold mineral reserves at Briggs and Reward have been updated to account
for the following changes:
- An
increase in the three year trailing gold price outlook from $845 per
ounce to $1,025 per ounce;
- 2010 mine production at Briggs;
- an
increase in slope angle in the east sector of the Briggs Main Pit;
- a five percent increase in
estimated direct operating costs at both Briggs and Reward.
Briggs Mine revised gold mineral reserves were estimated using a 0.007
ounce per ton cut-off grade. Revised gold mineral reserves at Reward were
estimated using an internal net value of greater than $0.01/ton. Results are shown in the following table:
|
|
Tons
|
Gold
|
Contained
|
Strip
|
Mining Area
|
Category
|
(x1,000)
|
(oz/ton)
|
Ounces
|
Ratio
|
Briggs - All Pits
|
Proven
|
4,794
|
0.021
|
103,000
|
|
|
Probable
|
4,853
|
0.020
|
98,000
|
|
Total Proven
and Probable
|
|
9,647
|
0.021
|
201,000
|
2.82
|
|
|
|
|
|
|
Reward -
All Pits
|
Proven
|
1,444
|
0.026
|
38,000
|
|
|
Probable
|
6,264
|
0.023
|
143,000
|
|
Total Proven
and Probable
|
|
7,708
|
0.023
|
181,000
|
2.77
|
|
|
|
|
|
|
Total All Proven and Probable
|
|
17,355
|
0.022
|
382,000
|
|
The revised Briggs Mine mineral resources estimate using a 0.006 ounce
per ton cut-off grade after subtraction of 2010 mining is shown in the
following table:
This press release was prepared under the supervision and review of
William Stanley, V.P. Exploration of Atna, a
Licensed Geologist and Qualified Person. Revised reserve and resource
estimates were developed by Michael J Read as Principal Mine Engineer
under the supervision of Robert L. Sandefur as
Qualified Person, with Chlumsky, Armbrust & Meyer of Lakewood, Colorado.
For additional information on Atna Resources
and the Briggs Mine, 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 in relation to the estimation and potential
expansions of mineral reserves and resources at the Briggs and Reward
Mines. 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, unless required by law. Factors that
could cause future results to differ materially from those anticipated in
these forward-looking statements include: gold production and operating
costs at the Briggs Mine, 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 and
development 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 2009 Form 20-F dated
March 26, 2010.
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,"
"inferred," and "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
www.atna.com
|