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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: que seria	7/14/2007 1:03:43 AM
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I'm surprised this is the first SI post on Atna's big news of 10 days ago--that Barrick is commencing a very significant drilling program at Pinson. Barrick's scope of work will either be huge, or cease if intial work doesn't justify more. Barrick is now commencing the work needed to decide if it wants to spend $30 million over the next 21 months to claw back to a 70% interest in Pinson. Barrick now has a 30% interest because Atna met its earn-in requirement. biz.yahoo.com I've doubled my Atna position on this news. While no junior gold company is a "conservative" investment, Atna does seem a nice risk/reward balance here. It has 1.7M ounces in the M&I (700k) plus inferred (1M+) categories per its report of 2 days ago biz.yahoo.com and has a major starting a program that will go through $30M in less than 2 years. For that it has a market cap that seems light for either 70% ownership of what will probably be at least a 2M oz. deposit, or 30% ownership of a much bigger one. (65M shares x $1.80/share). From all I've read, the current 1.7M M&I+I ounces will have to be quadrupled to be worth the major's trouble building a mine. It just about takes a Barrick to begin a program that will only make economic sense if the company can spend $30M in 21 months--or can just buy out the JV partner if the ounces are being found faster than the money is being spent. Upside is maybe "only" a double or triple in next 2 years, but the non-market-related downside for ATN appears minimal with Barrick engaged in an intense program.

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