Atna Increasing Reserves At Reward Gold Project

 

GOLDEN, CO - Atna Resources Ltd. reported audited financial and operating results for the Company's year ended December 31, 2013. Unless otherwise designated, all amounts are in U.S. dollars.

Atna generated operating cash flows of $8.3 million in 2013, of which $1.5 million was generated in the Fourth Quarter. A net, after-tax loss of $49.6 million was recognized in 2013, and included long term asset impairments at year-end of $33.1 million, a $10.3 million write-off of deferred tax assets, write-downs in inventory values of $2.6 million, and a write-off of loan fees of $1.1 million. The full year operating loss was $1.5 million prior to impairments and write-offs, $0.8 million of which was recognized in the fourth quarter. Year-end impairments of $33.1 million were recognized in relation to the Company's Montana mineral rights, exploration properties, Kendall lands and secondary underground development at the Pinson property in Nevada. As of year-end 2013, cash and cash equivalents were $0.8 million. On January 31, 2014, the Company refinanced $22.0 million of current obligations with a 2-year credit facility.

Gold sales totaled 36,252 ounces from the Briggs and Pinson in 2013 at an average sales price of $1,412 per ounce, relative to 2012 when 36,454 ounces were sold at $1,667 per ounce. Gold sales for the Fourth Quarter 2013 totaled 8,100 ounces at an average price of $1,310 per ounce. Briggs produced $15.4 million in operating cash flow and $0.4 million of income before tax and intercompany allocations in 2013. Fourth Quarter 2013 operating cash flow was $3.7 million. The average cash cost per ounce at Briggs was $1,042 in 2013 relative to $985 in 2012. The cash cost per gold ounce sold averaged $977 per ounce in Fourth Quarter 2013 and all-in sustaining cost was $1,109 per ounce. Briggs mined 11.6 million tons of material in 2013, a 36 percent increase relative to the 8.5 million tons mined in 2012. In February 2014, Briggs concluded a year without any lost-time or medical-reportable accidents.

A total of 30,150 tons of ore mined during development at Pinson was shipped for processing. This ore contained 7,915 ounces of gold, from which 6,834 ounces were recovered. A total of 4,100 feet of primary and secondary development was completed at Pinson-underground. The primary spiral was driven to the 4530 level from the 4650 adit level (120 feet below the mine portal) and both top cut and underhand ore mining occurred in three Ogee-zone stope blocks during development. In Third Quarter 2013, strong gold recovery was demonstrated by column test work from the Mag open-pit project, adjacent to the Pinson-underground mine. The Company concluded an updated resource and reserve estimate in February 2014 for the permitted Reward Gold Project, increasing measured and indicated gold resources by 7 percent to 387,900 contained gold ounces. Inferred resources increased 62 percent to 106,400 ounces.