By acquiring a 60% interest in the Horsefly property, 80 km southeast of Prince Rupert, B.C., Atna Resources (VSE) will expand its holdings along an extensively altered and metamorphosed belt of volcanic and sedimentary rocks.
The setting is believed to be favorable for hosting volcanogenic massive sulphide deposits.
Under the option-joint venture agreement, Atna must spend $2.5 million and pay Ecstall Mining (VSE) $110,000 plus 200,000 shares over a period of four years.
The property hosts a zone of disseminated and semi-massive sulphide mineralization which is exposed intermittently over 1.5 km. Limited sampling has returned grades of up to 1.7% copper, 4.6% zinc and 0.13% lead, as well as 39 grams silver and 1 gram gold per tonne. The mineralization is coincident with strong electro-magnetic conductors.
Horsefly is 15 km south of, and along trend of, Atna’s fully owned Ecstall property, where exploration last year focused on disseminated and vein-type copper mineralization in the Thirteen Creek area.
Rock chip sampling across the zone, which measures up to 200 metres in width and more than 2,000 metres in length, returned copper values in the order of 0.1% to 0.7% over widths of 30-150 metres.
The 3,000-hectare property hosts another centre of mineralization, northeast of Thirteen Creek in the Red Gulch area. The Ecstall deposit contains a mineral reserve estimated at 7 million tonnes grading 0.6% copper and 2.5% zinc, plus 0.5 gram gold and 20 grams silver per tonne.
Within the deposit is a zone of 600,000 tonnes grading 2% copper.
Drill programs are to begin soon on both the Horsefly prospect and the Thirteen Creek zone.
Meanwhile, in the Voisey Bay area of Labrador, Atna and Major General Resources (VSE) have acquired a half interest each in two properties consisting of a total of 152 claims covering 3,720 hectares.
The properties, situated along the margins of the Harp Lake complex, were selected on the basis of favorable geology and anomalous nickel-copper lake sediment values. An airborne geophysical survey is planned.
Proceeds from a private placement of 1.1 million units, each of which is priced at 40 cents, will be used to fund Atna’s various exploration programs.
Each unit consists of one common flow-through share and one non-transferable share purchase warrant.
One warrant is exercisable for one additional common share at a price of 50 cents for one year. Atna has 9.6 million shares outstanding.
Atna also has a land package in the Yukon near Cominco’s ABM base metal discovery.
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