Atna Enters into New Agreement in the Sand Creek Uranium Joint Venture; Drilling to Resume
FOR
IMMEDIATE RELEASE: June 2, 2009
|
PR
09-12
|
Atna
Enters into New Agreement in the Sand Creek Uranium Joint Venture;
Drilling
to Resume
Golden, CO – Atna Resources
Ltd. (“Atna”) –
(TSX:ATN) has entered into a
Supplemental Agreement to the Sand Creek Uranium Project Exploration,
Development and Mine Operating Agreement dated August 25, 2006, with High Plains
Uranium Inc. (“High Plains”), a subsidiary of Uranium One Inc. (TSX:UUU). Under
this Supplemental Agreement, High Plains shall assume the role of project
manager and may spend up to US$1.6 million before December 31, 2012 to increase
its interest in the project from 30 percent to 51 percent. Atna’s equity
position may decrease from 70 percent to 49 percent, should High Plains meet
this commitment.
Atna will
be carried at no expense while High Plains spends the funds to increase its
interest. High Plains may either provide notice of completion of its
expenditures or terminate their earn-in right with prior notice. If High Plains
terminates its accelerated earn-in right, they will be credited for expenditures
made and their equity in the project will increase accordingly. If they do not
earn up to a 50 percent position, then Xxxx will assume the role of operator in
the project. At termination or completion of the Supplemental Agreement, the
existing Exploration, Development and Mine Operating Agreement will remain
effective and the partners’ operating interests will be set in proportion to the
amount of their respective expenditures.
High
Plains has submitted a work plan and budget for 2009 detailing $320,000 in
expenditures. These expenditures cover the cost of property maintenance for the
remainder of 2009, permitting activities and a 20,000 foot drilling program with
associated analytical testwork.
The Sand
Creek uranium joint venture area of interest, located south east of Douglas,
Wyoming, was identified by a subsidiary of Atna and its former joint venture
partners during a uranium exploration effort in the early 1980’s. The company
drilled 88 holes for approximately 69,000 feet in 1981 and 1982, discovering
several zones of uranium mineralization. In late 2006, the current partners’
drill program began in the western portion of the Sand Creek JV
area. Fourteen holes totaling 10,395 feet clearly demonstrated the
presence of “roll front” style uranium mineralization. A follow up drill program
consisting of 16 drill holes totaling 11,700 feet was completed in mid-2007 and
the favorable results were announced in a press release in August 2007. Three of
the 16 holes intercepted significant uranium grades. The drilling program
consisted primarily of wide-spaced, reconnaissance style drilling with drill
hole spacing of 500 to 1,000 feet. Uranium mineralization in the area is hosted
in sandstones of the White River Formation, which is composed of sandstones,
conglomerates, and red to green siltstones and claystones. The sandstones are
lenticular in nature and average from five to 20 feet in thickness and
occasionally range up to 45-feet thick. The White River Formation is being mined
for uranium using In-situ Recovery methods at the Crowe Butte mine in
Nebraska.
This
press release was prepared under the supervision and review of Xxxxxxx Xxxxxxx,
V.P. Exploration of Atna, a Licensed Geologist, and Qualified Person with the
ability and authority to verify the authenticity and validity of information
contained within this news release.
For
additional information on Atna and its exploration and development projects,
please visit our website at xxx.xxxx.xxx.
This
press release contains certain “forward-looking statements,” as defined in the
United States Private Securities Litigation Reform Act of 1995, and within the
meaning of Canadian securities legislation. Forward-looking statements are
statements that are not historical fact. They are based on the
beliefs, estimates and opinions of the Company’s management on the date the
statements are made and they involve a number of risks and uncertainties.
Consequently, there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such statements. The Company undertakes no obligation to update
these forward-looking statements if management’s beliefs, estimates or opinions,
or other factors, should change. Factors that could cause future results to
differ materially from those anticipated in these forward-looking statements
include: the Company might encounter problems such as the significant
depreciation of metals prices; accidents and other risks associated with mining
exploration and development operations; the risk that the Company will encounter
unanticipated geological factors, the Company’s need for and ability to obtain
additional financing; the possibility that the Company may not be able to secure
permitting and other governmental clearances necessary to carry out the
Company’s exploration programs; and the other risk factors discussed in greater
detail in the Company’s various filings on SEDAR (xxx.xxxxx.xxx) with Canadian
securities regulators and its filings with the U.S. Securities and Exchange
Commission, including the Company’s 2008 Form 20-F dated March 31,
2009.
FOR
FURTHER INFORMATION, CONTACT:
Xxxxx
Xxxxxxx, President and CEO - (000) 000-0000
Xxxxxxx
Xxxxxxx, Investor Relations - toll free (000) 000-0000
xxx.xxxx.xxx