Strong Quarter Of Production At Briggs
GOLDEN, CO - Atna Resources Ltd. reported that the Briggs Mine in Inyo County, California enjoyed a strong quarter of production with both ore mining and crushing exceeding plan. Total ore tons mined exceeded budget by 16 percent and crushed ore tons exceeded budget by 10 percent. Approximately 1,200 ounces of gold mined was contained in previously designated waste blocks and were not previously included in ore reserve. The unit cash cost of gold production was marginally lower than anticipated for the first quarter at $892 per ounce versus a budget of $902 per ounce. The Briggs Mine site is now fully staffed and all planned production units are operating. There was no lost time injury accidents reported at Briggs for the quarter.
Target production for 2010 at Briggs is 36,000 to 40,000 ounces of gold at an average unit cash cost of production in the range of $600 to $650 per ounce of gold. Improvement in productivity and cost containment is the primary focus of operations in 2010. A drilling program at Briggs is planned for third quarter 2010. The program will target extensions to the previously announced Briggs deep zone located beneath the existing Briggs main pit as well as extensions to the deposit where ore has been found during current mining operations but were not shown in the existing ore reserve models due to a lack of drill information. The Cecil R satellite project is located four miles north of the Briggs Mine proximal to the mine access road. An initial NI 43-101 compliant mineral resource estimate and technical report for Cecil R was completed in March 2010. The resource estimate for Cecil R includes a measured and indicated gold mineral resource containing 73,490 ounces and an inferred gold mineral resource containing 99,390 ounces using a cutoff grade of 0.01 ounce per ton. Cecil R represents a potential ore source to expand the life of operations in the Briggs district. A Preliminary Economic Evaluation for the Cecil R project is planned for completion in the third quarter 2010. Bottle roll and column gold recovery testwork is presently being conducted using drill cuttings from prior programs. At the Reward Mine Project, Nevada current development activities include the completion of design engineering, development of contractor bid packages, and initial infrastructure development. Infrastructure development includes access road improvements, fencing, and placement of orders for long lead-time items, power line and water supply development. Anticipated cost for this phase of work will be approximately $3.0 million. Many of the drillholes on the eastern flank of the Reward mineral resource model terminate in or contain ore grade mineralization indicating a probable extension to the mineral resource. A drilling program is planned to test this potential extension in September 2010. The State of Nevada has approved a plan to phase-in the environmental and closure bonds for Reward. The initial bonding requirements for initial development activities are approximately $0.9 million. A second bond of approximately $0.9 million must be posted prior to the commencement of facilities construction and a final bond must be posted prior to commencement of leach pad operations sometime in 2011. The total cost for reclamation and closure bonds is approximately $5.9 million. The Reward operation is expected to produce approximately 139,000 ounces of gold over a four year mine life at estimated average cash cost of $435 per ounce of gold produced. The Pinson Mine property is located in Humboldt County, Nevada, about 30 miles east of Winnemucca and is operated as a joint venture with Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold Corporation. Atna owns a 30 percent equity interest in the joint venture and PMC owns 70 percent and manages the project. PMC has completed an in-house review of the project for both underground and open pit mining potential. They are currently reviewing their strategic options in regards to the project, which may include sale of their interest. Should they decide to sell their interest, Atna retains a right of first refusal to match any offer within 60 days of that offer being presented to Atna. Atna's share of the 2010 operating budget for the Pinson project is $0.3 million, which includes ongoing underground pumping and maintenance operations. No change in project status occurred in the first quarter. In January 2010, Atna acquired a 1.5 percent net smelter return royalty ("NSR") pertaining to approximately four sections of land within the area of interest of the Pinson Mine project. This interest was acquired from Barrick Turquoise Ridge Inc., a subsidiary of Barrick Gold. One of these sections contains gold resources previously announced by Atna. Barrick acquired the royalty in its merger of Placer Dome in 2006 and this royalty interest was covered under the area of mutual interest clause within the Mining Venture Agreement. At the Columbia Gold Property in Montana activities during the first quarter 2010 included water sampling and analysis to set baseline water quality standards. Additional work continued on the completion of a Preliminary Economic Assessment, which is scheduled for completion in the second quarter 2010. The mineral resource model is currently being upgraded to include structural and other geologic information to be used in designing a metallurgical drilling program for the project. The company's address is 14142 Denver West Parkway, Suite 250, Golden, CO 80401, (303) 278-8464, fax: (303) 279-3772.