Atna sees underground potential at Pinson

Vancouver – Atna Resources has struck a deal to earn up to a 100% in the former Pinson gold mine on the Getchell trend from Barrick Gold (ABX-T). Homestake shut the mine down in 1999 at which time Barrick was 50% owner, and through its merger with Homestake obtained 100% interest. Barrick hung on to back-in rights in the deal with Atna.

The agreement allows Atna to acquire an initial 70% interest in the Pinson property by spending US$12 million over four years. After vesting a 70% interest in the project and delivering a preliminary feasibility study, Barrick has several choices: it can back-in to a 70% interest by spending another US$30 million over three years or; form a 70:30 JV with Atna as operator or; sell its remaining 30% interest to Atna for US$15 million.

The Pinson property is situated in the Getchell gold belt in north-central Nevada, some 15 km southwest of Newmont’s (NEM-N) Twin Creek mine complex, 8 km south of Placer Dome’s (PDG-T) Getchell Turquoise Ridge mine complex, and 32 km north of Newmont’s Lone Tree mine. The Pinson open pit mine produced over 987,000 ounces of gold from relatively low-grade oxidized ore by open pit. Mineralization is focused along and adjacent to the Getchell Fault zone, a major ore control at the Getchell Mine to the north of the project. The Carlin-type gold mineralization is associated with elevated levels of mercury, arsenic, and antimony.

Homestake closed Pinson after it failed to reach production targets in 1999 and due to high cash costs. The mine was expected to produce 68,800 oz. in 1998 and actual production was only half that. The shortfall was due to clay-rich ore, which blocked the heap-leach solution. Cash costs for the fourth quarter of 1998 were US$537 per oz., and US$446 per oz. for the year. Atna’s initial exploration efforts will focus on drilling to establish a resource in areas of known mineralization on the property.

Atna wants the project as a “flagship” amongst its other Nevada exploration prospects. The company has optioned its nearby Clover property in the Midas Trough to Grandcru Resources (GR-V) and the Sno property to Pacific Ridge Exploration (PEX-V).