Atna Resources Ltd -
First quarter results
Atna Resources Ltd
ATN
Shares issued 20203788
1998-06-05 close $0.9
Monday Jun 8 1998
Mr. Peter Delancey reviews the company
THREE MONTHS ENDED MARCH 31, 1998
Studies and discussions regarding the future of the Wolverine deposit have been
the focus of Atna's activity since Westmin indicated that the presence of high levels
of selenium in the sulphide minerals would adversely affect the marketing of the
copper, lead and zinc concentrates. In order to gain a better understanding of this
complex issue, Atna has begun, independently of Westmin, pre-feasibility,
metallurgical and concentrate marketing studies. Although selenium is present in
several mines, the higher amounts of selenium in the Wolverine concentrates could
interfere with the smelting/refining processing. Atna will contact smelters familiar
with complex ores to look at ways, such as blending, to lower the selenium levels.
In addition, investigations are under way to determine if hydometallurgy might
provide a way to reduce or remove selenium. Discussions are continuing with
Boliden, which recently acquired Westmin, about the best structure for advancing
the Wolverine project. Atna, Boliden and Cominco have agreed to share technical
data on the basis that the addressing of metallurgical concerns and advancing the
development of both Kudz Ze Kaya and Wolverine deposits could best be
accomplished co-operatively.
Plans are under way for an aggressive follow-up drilling program on the Wolf
deposit which was discovered last fall. The deposit is in the Pelly Mountains about
90 kilometres south of Ross River. Based on the significance of the discovery,
Atna staked and acquired by option, a large and attractive land position in this 60
kilometre long belt of favourable volcanic rocks. A $750,000 program is
budgeted for the Pelly project and exploration, including drilling, will commence in
June.
With over $17-million in the treasury and a technically strong exploration team,
Atna is in a favourable position. Unlike other junior companies that have focused
on gold exploration in Africa or Asia, Atna has focused on, and been successful
in, the discovery of silver and zinc-rich volcanogenic massive sulphide deposits
(VMS). Atna is evaluating several attractive VMS prospects in the Americas and
anticipates one or more new exploration projects in the near future.
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