Atna Reported Operating Results

 

GOLDEN, CO - Atna Resources Ltd. generated net income of $0.8 million, $0.01 per basic share, in the First Quarter 2013 net of an income tax expense of $0.1 million. Net cash provided by operating activities in the First Quarter 2013 was $3.4 million. Cash provided by operating activities before working capital adjustments was $2.4 million. As of quarter-end, cash and cash equivalents were $5.9 million, not including $1.1 million in receivables from the late-March sale of Pinson ore.

The Briggs Mine in Inyo County, California produced $4.7 million in operating cash flow and $2.4 million of income before tax in the First Quarter 2013. Gold sales for the First Quarter 2013 totaled approximately 8,420 ounces, a decrease of 19 percent relative to Fourth Quarter 2012 principally due to decreased production at Briggs as a result of an increased focus on waste stripping operations. Waste stripping increased at Briggs to 7.1 tons of waste per ton of ore in First Quarter 2013 from 2.9 in Fourth Quarter 2012 as mine operations transitioned between pits.

Pinson Mine, in Humboldt County, Nevada sold approximately 8,345 tons of oxide ore in March 2013 containing 1,242 recovered ounces, resulting in a quarter-end receivable of $1.1 million. In March 2013, Atna entered into an agreement with Veris Gold USA Inc. to process Pinson's ores in 5,000 ton or greater lots, providing an outlet for mixed ore (combinations of oxide and sulfide ore) and allowing Atna to decrease expected invested working capital.  Shipment of Pinson sulfide ore commenced in April to the Jerritt Canyon roaster of Veris Gold.

At Pinson, 1,339 feet of development was completed in First Quarter 2013, a 109 percent increase over the Fourth Quarter 2012. April development totaled 864 feet or 62 percent of total First Quarter development. Three stopes are currently being mined and five additional stopes are under development. The ramp-up of production is dependent on the number of stopes brought into production. Pinson mined 9,896 tons of ore in First Quarter 2013 compared to 4,187 tons of ore in Fourth Quarter 2012. In February 2013, Pinson received its major permit modification to allow the expansion of production to 400,000 tons of ore per year.