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Gold/Mining/Energy : ATNA ( v.atn t.atn) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Humphrey who wrote (432)	6/8/1999 10:58:00 AM
From: phoenix_investor	Read Replies (1) \| Respond to of 509

Expatriate and Atna begin detailed metallurgical investigation of Wolverine Deposit Atna Resources Ltd ATN Shares issued 20,203,788 1999-06-07 close $0.82 Tuesday Jun 8 1999 See Expatriate Resources Ltd (EXR) News Release Mr. Harlan Meade reports The Wolverine joint venture, Expatriate Resources Ltd. (60 per cent) and Atna Resources Ltd. (40 per cent) has launched a detailed investigation of the metallurgy of the Wolverine massive sulphide mineralization. The investigation will examine both the marketing of Wolverine concentrates and alternative metallurgical approaches involving the production of metals rather than concentrates. Mineralization at Wolverine is particularly high grade having an average gross metal value of approximately $370 (Canadian) per tonne in contained zinc, copper, lead, silver and gold. In calculating the gross metal value of the Wolverine resource, the following metal prices and exchange rate are used: 45 cents per pound zinc, 80 cents per pound copper, 25 cents per pound lead, $5.50 per ounce silver, $300 per ounce gold and United States dollars equals $1.47 (Canadian). The deposit contains a large metal resource of 1.7 billion pounds of zinc and 72 million ounces of silver. Zinc and silver account for about 80 per cent of the gross metal value. Preliminary test work undertaken by the Wolverine joint venture in the spring of 1997 identified anomalously high selenium content in all sulphide minerals in the Wolverine mineralization. Discussions with marketing agents in early fall of 1997 indicated that the selenium content in copper and zinc concentrates was higher than that normally received by smelters. These findings created uncertainty over the ability to market concentrates to smelters on reasonable terms. Little investigation of the selenium issue followed, largely because Westmin Resources Limited, the senior co-venturer in the Wolverine joint venture, became the subject of a takeover bid. Subsequently, Westmin was acquired by Boliden Limited which sold its interest in the Wolverine joint venture to Expatriate in March 1999. Ores of precious metal rich massive sulphide deposits commonly have complex mineralogy; but, high content of selenium in the sulphide minerals is less common. Preliminary test work indicates that there are high levels of selenium in all sulphide minerals; however, lead sulphide and sulphosalt minerals have the highest selenium content and account for about half the selenium in the copper and zinc concentrates. The initial copper and zinc concentrates produced have average selenium contents of 0.43 per cent and 0.15 per cent, respectively, several times the levels normally seen in similar concentrates. The joint venture has contracted Brad Marchant, M.A.Sc. to lead a team to undertake the investigation of the marketing of concentrates and metallurgical processing of Wolverine ores. The marketing investigations will include contacting of smelters by persons experienced in smelter operations to determine reasonable terms and conditions for the sale of Wolverine concentrates. Opportunities for reducing levels of selenium in the concentrates will be evaluated as part of the marketing considerations. The investigation of alternative metallurgical processes will focus on capturing approximately 50 per cent of the gross metal value that is commonly lost when producing concentrate due to metallurgical losses, smelting and refining charges, metal deductions, penalties and transportation costs. The application of metal leaching and related technologies is expected to increase capital and operating costs for processing of the ores; however, these costs are expected to be more than offset by gains from increased metal recoveries, higher payables for recovered metals, reduced transportation and marketing costs, and possible recovery of selenium. Metal leaching technology is particularly suited to high grade ores such as those at Wolverine. Mr. Marchant has a history of solving metallurgical problems with complex ores and brings considerable metallurgical and business experience to the team. He will be assisted by Dr. David Dreisinger who holds the industrial research chair in hydrometallurgy in the metallurgy department of the University of British Columbia. An initial budget of $200,000 has been approved to conduct these metallurgical investigations. The study will commence immediately and is expected to take six to nine months. On completion the joint venture should have a good understanding of which options provide the most economic return. A favourable outcome would allow the joint venture to commence prefeasibility studies on the development of the deposit. The joint venture partners are confident that the metallurgical challenges associated with the Wolverine deposit will be successfully overcome and the joint venture may then continue with its exploration plan to expand reserves within the Finlayson Lake District and realize its potential to be Canada's next major zinc-silver mining camp. WARNING: The company relies on litigation protection for "forward-looking" statements. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)