Atna to complete work at Pinson by Q1 2009
posted on Apr 24, 2008 08:18AM
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Atna to complete work at Pinson by Q1 2009
2008-04-24 10:17 ET - News Release
Mr. James Hesketh reports
ATNA REPORTS ACCELERATED DEVELOPMENT AT PINSON GOLD PROJECT
Atna Resources Ltd. has increased work activity at the Pinson gold mine, Humboldt county, Nevada. Pinson Mining Company, a subsidiary of Barrick Gold, has provided Atna with an operating plan and budget that targets completion by the first quarter of 2009 of its $30-million (U.S.) back-in expenditure obligation. The work program is focused on completing underground development work and infill drilling in the upper Ogee and Range Front resource zones, to enable completion of a feasibility study and initial ore reserve estimate by the end of the first quarter of 2009.
Pinson Mining may earn a 70-per-cent interest in the project by spending a total of $30-million (U.S.) by April 6, 2009, which would result in Atna retaining a 30-per-cent interest. Pinson Mining's reported expenditures for the first quarter of 2008 were $4.1-million (U.S.), bringing its total project-to-date expenditures to $8.0-million (U.S.). Spending levels are increasing as the pace of development activities have accelerated to 24 hours per day, seven days per week.
"We are excited and encouraged to see the high level of exploration and development focus that Pinson Mining is applying to the Pinson project. Their work program and activities are designed to take the project to a near-production status and may facilitate a second quarter 2009 production decision," states David Watkins, chairman and chief executive officer.
Dewatering infrastructure is well advanced for the project with the completion of two rapid infiltration basins and associated pipelines. Pinson Mining is planning several additional dewatering wells to accelerate dewatering ahead of planned decline development. During the quarter the underground contractor, Small Mine Development, completed rehabilitation of existing underground workings and advanced development an additional 552 feet on three headings. Underground drifting is focused on establishing new diamond drill stations to enable resource definition drilling in both the Ogee and Range Front resource zones. This drifting will aid decline development and establish bulk sampling/test mining locations. Underground drilling operations have now commenced with one drill, additional drills will be mobilized as stations are developed.
Pinson Mining is also evaluating open-pit mining potential, primarily in the Mag pit area. The Mag pit was one of the last production areas at the Pinson mine in 1999 prior to closure due to low gold price. Unmined resources remain in and around this pit, which will form the basis for Pinson Mining's evaluation of the open-pit potential of the project. Pinson Mining drilled two core holes to acquire metallurgical samples; the intercepts in these two holes are shown in the attached table.
Drill hole No. From (ft) To (ft) Length (ft) Gold (oz/t)
BMAG-001C 20.0 447.5 427.5 0.066
including 350.0 407.0 57.0 0.124
BMAG-002C 238.0 464.0 226.0 0.064
including 368.0 402.0 34.0 0.163
A portion of the remaining Mag pit material is believed to be refractory and may require autoclave or roasting preoxidation to be amenable to conventional cyanidation.
Surface reverse circulation and diamond drilling continued throughout the quarter. One surface and one underground drill are operating at the site. A total of 30,895 feet of underground definition drilling and 15,000 feet of surface drilling are planned for the remainder of 2008. Since the commencement of work in August, 2007, Pinson Mining has completed 46 surface drill holes for a total of 46,282 feet (27,289 feet of reverse circulation and 18,993 feet of diamond drilling). Drilling continues to support Atna's 2007 resource estimate.
All sample preparation and gold assays in this press release were completed by American Assay Laboratories in Reno, Nev., an independent analytical laboratory with a certificate of laboratory proficiency PTP-MAL from the Standards Council of Canada. Gold assays were completed by standard fire assay methods with an atomic absorption finish or a gravimetric finish for higher-grade samples. Pinson Mining has instituted a rigorous QA/QC protocol which includes certified assay standards and blanks, replicates and duplicate samples, which bolsters American Assay's own internal QA/QC program.
This press release was prepared under the supervision and review of William Stanley, vice-president exploration of Atna, a licensed geologist and qualified person, with the ability and authority to verify the authenticity and validity of information contained within this news release.
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