Atna options Grayd's Dry Creek and Anderson Mountain properties
Atna Resources Ltd
ATN
Shares issued 20,203,788
1999-06-14 close $0.81
Monday Jun 14 1999
Also Grayd Resource Corporation (GYD)
Mr. Peter DeLancey and Mr. John McCluskey report
Atna Resources and Grayd Resource have entered into a letter of
agreement whereby Atna has an option to earn a 51 per cent interest
in Grayd's Dry Creek and Anderson Mountain, Bonnifield properties
in Alaska. This transaction is subject to regulatory approval. The
properties are owned 100 per cent by Grayd; there are no
underlying agreements or interests. Atna has an 11 per cent equity
interest in Grayd.
To earn its interest Atna must spend $5-million (Canadian) in
exploration expenditures over five years. This year's program is a
firm commitment of 10,000 feet of diamond drilling. Atna will be
the operator. Once Atna has earned a 51 per cent interest, a joint
venture will be formed (Atna 51 per cent/Grayd 49 per cent) with
subsequent project expenditures shared accordingly to each parties
respective interest.
The Dry Creek and Anderson Mountain properties, comprising in
excess of 17,700 acres, are 60 miles south of Fairbanks and are
close to rail, power, highway and deep-water port facilities. The
properties are underlain by Paleozoic sedimentary and volcanic
rocks of the Yukon-Tanana terrane which hosts several rich,
polymetallic volcanogenic massive sulphide (VMS) deposits in
Alaska and the Yukon, including the Delta, Wolverine and Kudz Ze
Kayah deposits.
Exploration in the early 1980s at Dry Creek focused on the WTF
zone where wide-spaced drilling outlined 3.1 million tons of 6.0 per
cent zinc, 2.5 per cent lead, 6.7 ounces per ton silver, and 0.03
ounces per ton gold. Grayd's 1997 and 1998 drill programs targeted
the DC North horizon which has now been traced 5,000 feet along
the north slope of Red Mountain. The relatively shallow drilling
(maximum depth 600 feet), intersected steeply dipping, stratiform
zinc and silver rich massive sulphide lenses hosted within mottled
metarhyolite and a brown mudstone.
Significant drill hole intercepts include:
True
Width Cu Pb Zn Au Ag
ft % % % oz/t oz/t
Hole DC97-04
11 0.88 11.7 25.9 0.10 10.1
Hole DC97-33
20 0.35 6.6 15.1 0.03 9.7
Hole DC98-40
95 0.22 2.6 6.2 0.30 5.3
Hole DC98-60
160 0.10 2.0 4.2 0.01 2.1
Atna plans to commence drilling in July. Two diamond drills are on
the property and the base camp is already established. Initial drilling
will follow up last year's encouraging intersections with the objective
of testing the property for a large, rich massive sulphide deposit.
(c) Copyright 1999 Canjex Publishing Ltd.
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