Atna Announces Barrick to Back-In at Pinson
Atna announces that Pinson Mining Company (PMC) will increase its interest in the Pinson property in Nevada to seventy percent (70%). Under the terms of the agreement, PMC must spend US$30 million on further exploration and development of the property to back-in to a 70% interest. Completion of qualifying expenditures would result in formation of a 70:30 joint venture with PMC holding the 70% interest. If Pinson fails to make US$30 million of qualifying expenditures within 3 years Atna will regain a 70% interest.
Atna's President, David Watkins, said "Atna has discovered an exceptional amount of gold at Pinson and created an opportunity to build a gold mine in a short time period. Atna shareholders will benefit from the $30 million being spent to add value to the project. The Pinson Mining Company's expenditures will reduce Atna's risk and capital requirements and may create an opportunity to participate in a larger operation. The Pinson Mining Company decision to back-in exhibits confidence that the Pinson project may satisfy Barrick's operating threshold. Barrick is a well established and reputable operator in the district and can be relied upon to do an excellent job as our partner. The Pinson property is bound to play a key role in the growth of Atna as a gold exploration and mining enterprise."
Revised Pinson Resource Estimate
Atna has recalculated the February 2005 resource estimate to include drill results received by January 2006. Measured and indicated resources increased to 712,000 ozs (compared to 467,000 ozs in February 2005). The average grade of those ounces increased from 0.34 opt to 0.42 opt. Ogee zone resources are mainly in measured and indicated categories and could provide early high grade minable material. In the upper portion of the Range Front zone (above the 4,200-foot level) mineralization in the measured and indicated categories increased from 240,000 tons to 270,000 tons and the grade increased from 0.33 oz/t to 0.44 oz/ton. Additional holes in the Range Front and Ogee Zones completed after this resource estimate are reported below. No additional drilling was done the CX zone and results are unchanged from February 2005.
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Pinson Project Revised Resource Estimate
Measured and Indicated Resources (0.20 oz/ton Au cutoff)
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Contained
Short Tons Gold Grade Ounces Gold
Area Resource Category (x 1,000) (oz/ton Au) (x 1,000)
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Ogee Zone Measured 201.0 0.647 130.2
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Indicated 131.0 0.654 85.4
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Measured+Indicated 331.0 0.650 215.6
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Range Front Measured 176.4 0.341 60.2
Zone --------------------------------------------------------
Indicated 437.9 0.479 209.8
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Measured+Indicated 614.3 0.439 270.0
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CX Zone Measured 319.0 0.300 97.0
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Indicated 427.0 0.300 130.0
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Measured+Indicated 746.0 0.300 226.0
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Total Ogee, Measured 696.4 0.413 287.4
Range Front, --------------------------------------------------------
& CX Zones Indicated 995.9 0.427 425.2
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Measured+Indicated 1692.3 0.421 712.6
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Compared to
February 2005
Estimate of M+I Measured+Indicated 1,467.0 0.320 467.0
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Pinson Project Revised Resource Estimate
Inferred Resources (0.20 oz/ton Au cut-off)
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Contained
Short Tons Gold Grade Ounces Gold
Area Resource Category (x 1,000) (oz/ton Au) (x 1,000)
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Ogee Zone Inferred 17.0 0.765 13.0
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Range Front Zone Inferred 2,422.0 0.353 855.7
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CX Zone Inferred 658.0 0.280 185.0
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Total Ogee,
Range Front,
& CX Zones Inferred 3,097.0 0.340 1,053.7
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Compared to
February 2005
Inferred
Estimate Inferred 3,889.0 0.330 1,273.0
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The mineral resource estimates above were calculated utilizing the commercial software, Surpac Vision Version 5.1, for both the revision of the upper Range Front and the Ogee zone. Grade shells (0.1 oz/ton or above) were constructed utilizing geologic cross sections and 15-foot level plans. Drill data within the grade shells was composited into 5-foot assay intervals to build a block model of the material within the grade shell constraints. The grade distribution within the block model was calculated using the Inverse distance weighted estimation algorithm. Each block within the model is a 10 foot cube. Resource blocks within the shell were classified as Measured (blocks within 50 feet of a drill hole data point), Indicated (blocks within 50 to 100 feet of a drill hole data point) and Inferred (blocks within 100 to 150 feet of a drill hole data point). The projections from drill hole data points is consistent with projections made in the original resource estimate for the property by R. Sim and first published in February 2005 and supported by a Technical Report filed in March 2005 with Sedar.
The reader is cautioned that the mineral resources are not mineral reserves and therefore do not have any demonstrated economic viability at the present time. Additionally, the reader must recognize that the resource estimate is based upon a series of preliminary assumptions and does not represent an economic analysis for this project or for the mineral resources tabulated above. Atna has used industry standard methods and general cost estimates from operating mines in Northern Nevada, with similar ore type, exploitation methods, metallurgy, and milling characteristics to formulate the revised resource estimate with a base case of 0.20 oz/ton cutoff.
Additional Drill Results
A significant number of drill holes from recent drilling had not been assayed prior to the cut-off date for inclusion in the resource revision. Drill hole results received since the resource recalculation was completed include the following:
Ogee Zone Drill Hole Results
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Drill Hole From (ft) To (ft) Length - ft (m) Au opt (g/t)
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UGOG-021 76.0 110.8 34.8 (10.6) 0.744 (25.5)
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UGOG-022 659.0 676.2 17.2 (5.2) 0.831 (28.5)
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and 743.1 748.3 5.2 (1.6) 0.370 (12.7)
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UGOG-023 136.0 152.5 16.5 (5.0) 0.286 (9.8)
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UGOG-024 189.0 200.5 11.5 (3.5) 0.232 (7.9)
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UGOG-025 266.5 302.5 36.0 (11.0) 0.554 (19.0)
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UGOG-026 153.5 158.5 5.0 (1.5) 0.218 (7.5)
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UGOG-029 117.3 126.0 8.7 (2.7) 0.350 (12.0)
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UGOG-031 173.0 188.0 15.0 (4.6) 0.632 (21.7)
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UGOG-032 526.0 532.4 6.4 (1.9) 0.423 (14.5)
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UGOG-034 489.0 533.4 44.4 (13.5) 0.677 (23.2)
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Range Front Zone Drill Hole Results
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Drill Hole From (ft) To (ft) Length - ft (m) Au opt (g/t)
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APRF-251 589.0 599.0 10.0 (3.1) 0.457 (15.7)
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and 623.5 639.4 15.9 (4.8) 0.133 (4.6)
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and 672.5 705.0 32.5 (9.9) 0.376 (12.9)
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APRF-258 551.0 562.5 11.5 (3.5) 0.569 (19.5)
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APRF-269 410.0 425.0 15.0 (4.6) 0.232 (8.0)
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APRF-277 90.0 150.0 60.0 (18.3) 0.219 (7.5)
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APRF-284 605.0 680.0 75.0 (22.9) 0.648 (22.2)
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APRF-285 405.0 445.0 40.0 (12.2) 0.109 (3.7)
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UGRF-005 186.0 203.0 17.0 (5.2) 0.884 (30.3)
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UGRF-006 334.0 364.8 30.8 (9.4) 0.804 (27.6)
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This press release and the mineral resource calculation were prepared under the supervision and review of William Stanley, V.P. 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. All analytical results in this news release are from samples prepared and assayed by BSI Inspectorate Laboratories in Reno, Nevada, an independent ISO certified analytical laboratory. All gold analyzes were completed using standard fire assay methods with appropriate replicate and analytical standards to ensure high quality control and quality assurance. ALS Chemex in Reno, Nevada re-analyzes all mineralized intervals to verify assays reported by BSI Inspectorate.
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SOURCE: Atna Resources Ltd.
please visit our website, www.atna.com, or contact: ATNA RESOURCES LTD., Deanna
McDonald, Geologist & Corporate Communications Manager, Tel: (604) 684-2285, Fax
(604) 684-8887, E-mail: dmcdonald@atna.com
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