Atna outlines Wolf

Drill results from the Wolf property in southeastern Yukon have returned significant widths of banded zinc, lead and silver massive sulphides.

Atna Resources (ATN-T) is earning a 65% interest in the property from owner YGC Resources (YGC-V) in return for spending $1.5 million over five years and paying $320,000 in cash. (Atna has about $17 million in its treasury.)

Highlights from the first seven holes are as follows:

* Hole WF-24 hit 2.2 metres (true width) averaging 3.4% zinc and 3.2% lead, as well as 126.8 grams silver per tonne, starting at 143.3 metres down-hole. This was followed by a 4.3-metre intercept (true width) of 5.6% zinc, 2.5% lead and 107.2 grams silver starting at 152.2 metres down-hole. A 1.2-metre interval (true width) was struck at a depth of 206.6 metres down-hole and averaged 9.7% zinc, 1.1% lead and 11.7 grams silver.

* Hole WF-25 undercut hole 24 and hit 16.1 metres (true width) grading 7.7% zinc, 2.5% lead and 118.3 grams silver starting at a depth of 196.9 metres down-hole.

* Hole WF-26 stepped back 50 metres and undercut hole 25. This hole intersected 7.7 metres (true width) of massive sulphide mineralization. Assays are still pending for this hole.

* Hole WF-16 was collared on the western edge of the deposit, about 400 metres northwest of hole 25, and drilled downdip. Assays returned 0.9 metre grading 6.7% zinc, 0.7% lead and 39.1 grams silver starting at a depth of 101.5 metres down-hole. Deeper down the hole at 142.9 metres, a 0.7-metre intercept returned 8.1% zinc, 1.1% lead and 14.1 grams silver. Atna believes that there is potential for finding additional mineralization at lower stratigraphic levels.

* Hole WF-17 was collared 250 metres southeast of hole 16. The company says results from the hole indicate that mineralization was displaced by a fault 400 metres downdip from the surface.

* Hole WF-18 was collared 100 metres southwest of the discovery hole, 97-07, and intersected 6.8 metres (true width) grading 10% zinc, 3% lead and 119.7 grams silver starting at a depth of 148.7 metres down-hole.

* Holes WF-20 and 21 were drilled between holes 16 and 18 and intersected banded massive sulphides. Hole 20 hit 5.6 metres averaging 4.4% zinc, 0.9% lead and 48.3 grams silver starting at a depth of 104.1 metres down-hole. Hole 21 hit 2.4 metres averaging 4.4% zinc, 2% lead and 84 grams silver starting at a depth of 121.9 metres down-hole.

* Hole WF-23 was designed to test updip of mineralization for stacked sulphide lenses in the stratigraphy. It was collared 175 metres northeast of the discovery hole and intersected two lower massive sulphide zones. The first zone was 1.2 metres thick and started at a depth of 82 metres down-hole. It averaged 5.5% zinc, 1.2% lead and 63.8 grams silver. The second zone was 2.1 metres thick and averaged 7.4% zinc, 2% lead and 59.7 grams silver starting at a depth of 107 metres down-hole.

* Hole WF-33 was collared 1.2 km east of the Wolf deposit and intersected 4.5 metres of massive sulphides. Assays are pending.

Results to date indicate that the Wolf mineralization extends for a strike length of about 500 metres and extends downdip for 400 metres. Mineralization remains open for expansion.

The property is 80 km south of Ross River, in the Finlayson Lake-Dawson area.

Meanwhile, in southeastern Alaska, field work has begun on the Palmer base metals project, in which Atna is earning a half-interest from Rubicon Minerals (RMX-V).

The US$400,000 field program will entail geological mapping, re-sampling of the previous operator’s drill core, geophysics and rock sampling. Also, a 3,000-ft. diamond drill program is expected to test priority targets.

Numerous high-grade base metal and barite showings can be found over a trend of 9.1 km. A 4.6-metre chip sample from the Little Jarvis showing ran 13% zinc, 7% copper, 0.68 gram gold and 240 grams silver, while a 6.1-metre sample from the Main zone showing ran 8% zinc, 1.4% copper, 1.02 grams gold and 325.7 grams silver.

Despite the presence of high-grade showings, the area has seen only limited and sporadic exploration. Atna can earn its half-interest in the 340-claim property by spending US$2 million on exploration by the fall of 2001.