Atna Commences Mining Gold Ore at Briggs

GOLDEN, CO - Atna Resources Ltd. reported that it has commenced the mining and stockpiling of gold ore at the Briggs Mine in Inyo County, California. Operations at the mine are currently on track to commence gold production in mid April 2009. The status of operations is as follows: ¥ In the first week of mining, approximately 26,500 tons of ore was placed on the crusher stockpile. Pre-stripping operations and haulage ramp construction are underway to develop upper levels of the mine. ¥ Construction of the leach pad is nearing completion: the laying of plastic liner has been completed and placement of crushed rock
over-liner is expected to be completed by mid-February. ¥ Rehabilitation of the crushing facility is nearing completion: crushing operations and placement of crushed ore on the leach pad are expected to commence at the beginning of March.¥ A total of 41 employees are now working at the Briggs mine. This number is expected to increase to over 80 full time employees by year end. In addition, over 30 contractors have been involved in the re-start. ¥ The existing mining fleet at Briggs has been increased with the two DM45E blasthole drills. A new 15 cubic yard loader is being leased from Komatsu. One additional 100 ton haul truck and an 8,000 gallon water truck will be leased or purchased. ¥ A new ore reserve and life of mine plan is nearing completion and will be released as a NI 43-101 compliant Technical Report later in the first quarter. The new report will detail a five year mine life targeting a gold production target of 40,000 to 45,000 ounces per year. This new mine plan incorporates new drilling and combines the previous underground and open pit reserves into an open pit only mine plan. ¥ The 2009 Briggs budget plan anticipates the production of approximately 19,000 ounces of gold during its initial production ramp-up year. In addition, the plan estimates that by year end, the mine will have built a recoverable inventory of 8,900 ounces of gold in the heap leach pad and 2,100 ounces in the crusher stockpile. By year end, it is anticipated that the mine will be producing gold at a rate equivalent to a 40,000 ounce per year production rate. ¥ A total of $6.4 million has been spent at Briggs since initiation of the re-start project and an additional $7.3 million has been committed to complete capital projects including pre-stripping operation, pre-production costs and working capital build-up through April 2009. In addition, $2.0 million worth of mining equipment will be leased or purchased over the next three months. ¥ The budget anticipates that mine operations will develop a positive cash flow of $2.6 million for the second half of 2009 utilizing a gold price outlook of $750 per ounce. For each $100 increase in the average realized gold price, Briggs Mine cash flow will increase by approximately $1.9 million for the year. ¥ The exploration and development drilling program at Briggs, first announced on October 8th, 2008, continues to evaluate tonnage expansion potential within, adjacent, and beneath the planned pit limits. A total of 17 holes have been completed totaling 13,845 feet (6 holes at BSU-Goldtooth and 11 at Briggs Main deep). Results to are positive with significant above cut-off grade gold intercepts existing beyond the currently designed pit walls. ¥
The previously reported NI 43-101 compliant Technical Report dated May 2008 estimated that the Briggs Mine had a proven and probable reserve of 151,000 ounces of gold grading 0.034 ounce per ton gold. Additionally, Briggs contains an estimated 532,500 ounces of measured and indicated resource grading 0.027 oz/ton gold and an inferred resource of 314,000 ounces grading 0.044 ounce per ton gold. This Technical Report was completed using a $500 per ounce gold price. The updated optimization study, will use a higher gold price outlook and additional drill hole information, and will increase these reserves.
The companyÕs address is 14142 Denver West Parkway, Suite 250, Golden, CO 80401, 303-278-8464, fax: 303-279-3772.