Anybody know what is going on with YGC Resources?
Cheers,
Blake
Atna Resources Ltd -
Year end results
Atna Resources Ltd
ATN
Shares issued 20203788
1998-06-11 close $0.85
Friday Jun 12 1998
Mr. Peter Delancey reviews the company
Wolverine Project
The Wolverine deposit is a high grade volcanogenic massive sulphide deposit in
the Yukon territory. The project is a joint venture with Westmin Resources, which
were recently acquired by Boliden. An exploration program to expand the size of
the Wolverine deposit and to locate additional deposits on the large land package
was undertaken by the joint venture partners in 1997.
A highlight of the 1997 drill program was the discovery of thicker than expected,
precious metal rich massive sulphides on the eastern edge of the Wolverine zone.
Ore grade mineralization was intersected in 19 or the 22 successfully completed
holes and all were outside the margins of the deposit as outlined in the 1995 and
1996 drilling. An updated geological resource estimate in December 1997
increased the tonnage by 17.5 per cent over the 1996 calculations. The new
resource estimate is 6.2 million tonnes grading 1.76 g/t gold, 370.9 g/t silver, 1.33
per cent copper, 1.55 per cent lead and 12.66 per cent zinc.
The Wolverine and Lynx zones remain open down dip onto claims owned by
Cominco. To test for stacked lenses below the deposit horizon, additional drilling
will be required.
Another highlight was a thin high grade massive sulphide drill intersection on the
Sable zone.
This new zone indicates a separate mineralizing centre 1.6 kilometres to the
southeast of the Wolverine deposit. Regional drilling also defined intense alteration
associated with laminated zinc mineralization in the area south of the Fisher zone
and potential remains for a deposit in the down dip direction. Both the Sable and
Fisher zone area merit additional drilling.
Metallurgical studies undertaken in 1997 identified anomalous quantities of
selenium within the sulphide concentrates. The quantities are sufficient to raise
concerns with respect to the marketability of those concentrates.
Selenium contaminates either the product, by-products, or effluent of the metal
smelting/refining process and therefore must be removed. Discussions with smelter
companies that may be able to handle the Wolverine concentrates are under way
and the use of hydrometallurgical techniques to address the selenium issue is also
being investigated.
A significant event for Atna in 1997 was the discovery of the Wolf deposit, a zinc,
lead, silver volcanogenic massive sulphide deposit. The discovery hole WF 97-7
intersected 25.2 metres of massive sulphides grading 6.9 per cent zinc, 2.8 per
cent lead, and 138.9 g/t silver (no selenium). The deposit has since been
intersected by an additional eight holes over a strike length of 500 metres and a
down dip length of 250 metres. The thickness of the deposit varies from 2.5 to 25
metres and is open down dip and along strike to the north. An airborne
geophysics program conducted on the property in late 1997 has identified
additional targets.
The Wolf property is within the Pelly Mountains, approximately 90km south of
Ross River, Yukon. Atna has an option to earn 65 per cent interest in the Wolf
property from YGC Resources by incurring exploration expenditures of
$1.5-million over five years and by making cash payments totalling $320,000. To
date, Atna has incurred exploration expenditures of approximately $600,000 and
made cash payments of $60,000.
Atna plans a drill program on the property in 1998 to further delineate the deposit
and to test additional targets, including those identified by the airborne geophysics.
An area of strong soil geochemistry with a coincident EM geophysical anomaly
south of the deposit will also require drill testing. Three sulphide bearing horizons
have been identified on the property and extend in excess of 2km along strike.
Previous drilling, 1.7km along strike from the Wolf deposit, intersected 75 metres
of highly anomalous zinc values.
The discovery of the Wolf deposit in a relatively under explored but highly
prospective 60km long volcanic belt provided Atna an opportunity to act quickly
in evaluating and acquiring by staking or option an additional four properties that
show similar features to the Wolf property. Geological mapping, geochemical and
geophysical testing will be carried out on these properties to outline specific
targets for drilling.
Kutcho Creek Project
The Kutcho project is within a belt of volcanic rocks in northern British Columbia.
Volcanogenic massive sulphide mineralization was discovered in the eastern end of
this belt in the early 1970s.
Atna has an option to earn a 100 per cent interest, subject to a 2 per cent nsr
(reducible to 1.5 per cent) in the Kutcho property which is 5km west of the
Homestake/Sumitomo deposits. Last year, following detailed geological mapping
and soil geochemistry, a program of deep penetration EM geophysics and 1,700m
of drilling was carried out. Results of these programs indicate a volcanogenic
hydrothermal centre on the property. This centre is similar to and along strike from
the volcanic centre associated with the Kutcho Creek deposits. Drilling to test high
potential areas is planned for 1998.
Abitibi Greenstone Belt
Atna acquired an option from Falconbridge to earn up to a 60 per cent interest in
the Temagami properties, near North Bay, Ontario.
Several holes have returned encouraging results and Falconbridge has
recommended further surveys.
Atna is evaluating other massive sulphide proposals in the Abitibi belt and will start
exploration drilling on attractive properties.
Bonnifield District
Atna completed a $3-million private placement in Grayd Resources by purchasing
1.5 million shares and received the first right of offer to purchase or joint venture
Grayd's Bonnifield properties in central Alaska. The Bonnifield property is
underlain by rocks that are favourable for hosting volcanogenic massive sulphide
deposits.
The agreement between Atna and Grayd covers five prospective properties in the
Bonnifield district in Alaska. The two most advanced prospects are the Red
Mountain (Dry Creek) and Anderson Mountain properties.
The 1997 drilling program focused on the Dry Creek massive sulphide zone which
extends for more than 6,000 feet. Hole 97-4 (Discovery zone) returned a true
width of 3.34m grading 25.9 per cent zinc, 11.7 per cent lead, 0.9 per cent
copper, 346.3 g/t silver and 3.4 g/t gold. The zone appears to be open 2km along
strike and down dip. Grayd plans to drill over 3,600m in this area in 1998.
The Anderson Mountain property contains large, banded massive sulphide talus
boulders grading on average 2.25 per cent copper, 8.5 per cent zinc, 2.2 per cent
lead and 342.9 g/t silver, and has the potential to host a discovery. Over 1,800m
of drilling is scheduled for 1998.
STATEMENT OF EARNINGS
Year ended Dec. 31
1997 1996
Revenues
Interest
income $ 689,468 $ 670,879
Other income - -
----------- -----------
689,468 670,879
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Expenses
Amortization 21,045 13,900
Consulting - 53,400
Corporate
capital tax 10,209 20,254
Listing and
filing fees 13,890 38,992
Office 67,143 103,949
Property
investigation 71,186 64,328
Professional
fees 52,273 71,084
Rent and
services 54,331 87,208
Shareholder
communications 148,807 180,596
Transfer
agent fees 5,734 12,573
Wages and
benefits 297,497 83,101
Foreign exchange
(gain) loss (1,038) 655
Resource
properties
written off 2,265,590 340,919
Assets
written off - 2,609
----------- -----------
3,006,667 1,073,568
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Net loss $(2,317,199) $ (402,689)
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Loss per
share (11 cents) (2 cents) |
