Atna Reports Reserve Increase At Briggs Mine

GOLDEN, CO - Atna Resources Ltd. Reported that it has completed a study that has significantly increased open pit ore reserves at the Briggs Mine in Inyo County, California. The study estimates that the project has open pit proven and probable reserves containing 267,000 ounces of gold grading 0.021oz/ton, a 77 percent increase over the previous reserve estimate, dated May 8, 2008. An additional 650,367 tons of inferred resource containing 9,510 ounces of gold are contained within the pit shell limits, but are not included in the reserves. An updated technical report ("Technical Report") will be filed shortly. Open pit mining is underway and construction of the leach pad expansion has been completed. Crushing of stockpiled ore is expected to commence in early March, with first gold production expected in April 2009.
The new mine plan completed for the study projects a mine life of six years. The plan produces approximately 213,000 ounces of gold with an annual average full year production rate that ranges from 40,000 to 50,000 ounces per year during the years 2010 to 2013 with residual gold recovery in 2014. Gold production and sales for 2009 is expected to be over 20,000 ounces. Life-of-mine cash cost and full cost is projected to be $468 and $587 per ounce of gold, respectively. Life-of-mine pre-tax cash flow at a gold price of $750 is approximately $36 million net of capital recapture including sustaining capital and project closure costs. Cash flow increases by over $20 million for every $100 increase in gold price.
Diesel consumption is estimated to be 44 gallons per ounce of gold produced. The above economics were based on a delivered diesel price of $1.90 per gallon. Approximately $7.0 million in capital has been spent on the project with an additional $7.5 million of work underway or nearly complete. Life-of-mine sustaining capital is approximately $11.4 million including payment of capitalized leases on leased mining units and engine replacements required to meet stringent California diesel emissions standards.
The company's address is 14142 Denver West Parkway, Suite 250, Golden, CO 80401, 303-278-8464, fax: 303-279-3772, email: [email protected].