Wednesday 23rd April 2014

resource clips logo


Posts tagged ‘Atna Resources Ltd (ATN)’

Clarifying cash costs

June 27th, 2013

The World Gold Council wants miners to report expenses more thoroughly

by Greg Klein

According to convention, gold can be mined for a few hundred bucks an ounce. Or, when byproduct metals are factored in, for less than nothing. But that method of reporting cash costs might be coming to an end, thanks to the World Gold Council. On June 27 the agency prodded companies to report “all-in sustaining costs” and “all-in costs metrics” to include “additional costs which reflect the varying costs of producing gold over the life cycle of a mine.” That includes exploration.

The guidelines aren’t compulsory, even for WGC members. Nevertheless council spokesperson Terry Heymann said, “We expect that many will use these new metrics, providing further consistency for investors and other stakeholders.”

The World Gold Council wants miners to report expenses more thoroughly

Goldcorp’s Porcupine fleet comprises just one of many mining expenses. With the company’s predicted all-in sustaining costs already close to the price of gold, total all-in costs would be even closer under the
World Gold Council’s new guidelines.

The WGC, which describes itself as “the market development organization for the gold industry,” devised the formula in consultation with its mining company members. Some of them began reporting all-in sustaining costs earlier this year. Barrick TSX:ABX explained its new approach in February. “Our current definition of all-in sustaining cash costs starts with total cash costs and adds sustaining capital expenditures, general and administrative costs, mine site exploration and evaluation costs, and environmental rehabilitation costs.”

As a result the company reported traditionally calculated cash costs for 2012 at $584 per ounce of gold, but all-in sustaining costs of $972. The company predicted 2013 cash costs holding firm at $584 but a drop in all-in sustaining costs to $945.

The previous month Goldcorp TSX:G explained that it considered “byproduct cash costs, sustaining capital, corporate general and administrative expenses and exploration.” But “as the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation.”

The company’s 2012 cash costs came to $645 or, after factoring in credits for other metals, a measly $315 an ounce. (Byproduct credits have given other companies negative cash costs.) But under the all-in sustaining cost formula, Goldcorp reckoned $865 an ounce for 2012. The company’s January statement forecast 2013 all-in sustaining costs at $1,000 to $1,100 an ounce, attributing the increase to inflation and “the impacts of lower grades and byproduct production at Peñasquito,” the company’s second-largest producer.

Newmont TSX:NMC and Yamana TSX:YRI ranked among others reporting all-in sustaining costs. The WGC suggests others start the next calendar year with the new guidelines.

But those announced June 27 go further than all-in sustaining costs. Now considered are costs not related to current operations: community, permitting, and reclamation and remediation. Also included are non-sustaining costs: exploration and study, capital exploration, capitalized mine development and other capital expenditures. Added together, they form the “all-in cost.”

Not factored in, however, are income tax, working capital, financing charges, “costs related to business combinations, asset acquisitions and asset disposals [and] items needed to normalize earnings, for example impairments on non-current assets and one-time material severance charges.”

The WGC considers the new approach “helpful to investors, governments, local communities and other stakeholders in understanding the economics of gold mining.” Presumably that might help clarify discussions about investment return, royalties and community benefits.

Of course the guidelines come at a time when bullion prices are falling towards or even below inflationary costs. Among last week’s most widely publicized mining news was Barrick’s announcement that it was slashing 100 desk jobs. Looked at less dramatically, that amounts to about 0.004% of the company’s 25,000 employees.

More troubling news, however, came from smaller companies. Golden Minerals TSX:AUM, Huldra Silver TSXV:HDA and Atna Resources TSX:ATN have all suspended mining over the last week, while Troy Resources TSX:TRY cut pay, staff and exploration, among other expenses. In a statement accompanying Troy’s June 27 announcement, CEO Paul Benson said, “Although we are bullish on the gold price over the medium and longer term, we will position the company to operate in the current price environment and any rise in the price of gold will be a bonus.”

Auguries—Public Enemy

April 26th, 2012

April 26, 2012

By Kevin Michael Grace

Next Page 1 | 2

Gold was up (at press time) $14.30 (+0.8%) for the week to $1,657.30, and silver was down $0.57 (-1.8%) to $31.16. GoldCore attributed gold’s rise to “concerns that the Fed could employ more QE in a further attempt to stimulate the economy… Continuing ultra-loose monetary policies and negative real interest rates continue to support gold.”

At a press conference yesterday, the Ben Bernanke declared, “If appropriate…we remain entirely prepared to take additional action.” One wonders why this would be necessary given the sunshine, lollipops and rainbows contained within Wednesday’s Federal Open Market Committee statement: economy expanding, unemployment down, household spending up, inflation not a threat.

Perhaps he’s got wind of the “smoking ruin” that is Europe. From Thursday’s Deutsche Bank communiqué: “Yesterday, the UK became the latest country to return to recession as GDP (-0.2% vs +0.1% expected) disappointed. Of major Western developed countries, the UK now joins Greece, Italy, Portugal, Ireland, Belgium, Denmark, Holland, Czech Republic and Slovenia as being in recession. By the time the data comes out next week, it’s likely to be followed by Spain, and remember German GDP was negative in 4Q and is expected to be flat in 1Q, so it’s not impossible that they will also follow.”

April 26, 2012

GoldCore reports that John Butler, author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard, told Reuters TV, “The era of paper currency is coming to an end” and that $2,000-an-ounce gold could be “the bargain of a lifetime.”

Butler predicts that Russia could be the first country to return to the gold standard, which “could lead to a run on the US dollar and financial assets and could see the dollar lose 20% in 24 hours as investors pour into real assets such as oil and gold. This could lead to a depression in the US.” Butler sees this leading to another Bretton Woods conference, which would serve as the Congress of Vienna of the post-2008 world order.

Should gold, as Butler suggests, go to $5,000 an ounce, the Ben Bernanke would face death by pitchfork, which explains why the US Government is so keen on gold suppression. What remains unexplained is why the Obama administration has refused to do something, anything, to persuade Americans they have not been branded as Gadarene swine.

When Kwik-E-Mart proprietor Apu Nahasapeemapetilon was caught on camera selling spoiled meat, he replied (like Obama and the Ben Bernanke) that he was only “following standard procedure.” A corporate henchman countered, “But it’s also standard procedure to blame any problems on a scapegoat or sacrificial lamb.” Poor Apu pleaded, “Uh huh, and if I can obtain for you these animals?”

The obvious fall guy for America’s tainted financial system is public enemy Jon Corzine, erstwhile CEO of the erstwhile MF Global. Why is he yet not delivered to the mob for ritual slaughter?

At AlterNet, Pam Martens delivers the indictment. “Only on Wall Street can you bankrupt a company, misplace $1.6 billion of customers’ money; lose 75% of shareholders’ money in two weeks, speed dial a high-priced criminal attorney and get a court to authorize the payment of your multimillion dollar legal tab from the failed company’s insurance policies, have regulators waive your requirements to take licensing exams required to work in the securities and commodities industry, have your Board of Directors waive your loyalty to the firm, run a bucket shop out of the UK and still have the word ‘Honorable’ affixed to your name in a Congressional investigations hearing.”

Stock Tips and the Joke of the Week

Next Page 1 | 2

Atna reports Nevada Results up to 1.8 g/t Gold over 117.3m

November 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Reward Gold Mine in Nye County, Nevada. Results include

1.8 g/t gold over 117.3 metres
(including 4.46 g/t over 27.4 metres)
0.89 g/t over 45.7 metres
(including 1.36 g/t over 16.8 metres)
0.98 g/t over 41.1 metres
(including 1.85 g/t over 9.1 metres)
0.93 g/t over 41.1 metres
(including 1.89 g/t over 9.1 metres)
1.17 g/t over 27.4 metres

President/CEO James Hesketh stated, “The 2011 drill program produced very encouraging results and should help strengthen the economics of the project. Gold mineralization along the southeastern 305 metres of the main deposit has been expanded to the east by up to 60 metres and remains open to further extensions. This program clearly indicates the potential to expand and increase mine life at Reward.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

or Valerie Kimball
Investor Relations
877.692.8182

by Greg Klein

Atna reports Nevada Results as high as 1.1 g/t Gold over 61m

October 25th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Reward Gold Project in Nye County, Nevada. Results include

1.1 g/t gold over 61 metres
(including 3.15 g/t over 9.1 metres)
2.72 g/t over 19.8 metres
(including 5.34 g/t over 7.6 metres)
0.72 g/t over 70.1 metres
(including 1.14 g/t over 21.3 metres)
1.3 g/t over 21.3 metres
(including 2.46 g/t over 9.1 metres)
0.64 g/t over 42.7 metres
0.89 g/t over 21.3 metres

President/CEO James Hesketh remarked, “Early results from our September drilling program indicate that we have yet to define the limits of the Reward Gold Deposit. Several of the holes have thicknesses and grades significantly better than the deposit’s average and extend the known gold mineralization further to the east and southeast. These encouraging results justify additional drilling to further increase reserves and to increase the expected mine life at Reward.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

Valerie Kimball
Investor Relations
877.692.8182

by Greg Klein

Atna reports California Gold Assays including 1.91 g/t over 25.9m

October 13th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Briggs Mine in Inyo County, California. Results include

1.24 g/t gold over 18.3 metres
1.14 g/t over 13.7 metres
1.91 g/t over 25.9 metres (including 3.85 g/t over 12.2 metres)
1.16 g/t over 33.5 metres
1 g/t over 15.2 metres
1.05 g/t over 25.9 metres (including 1.83 g/t over 10.7 metres)

President/CEO James Hesketh stated, “Our 2011 drilling program at Briggs significantly expanded the size of the mineralized zones in Deep Briggs, Main Briggs and North Main Briggs. Work is underway to model the gold zones to produce a new resource and reserve statement for the mine. Drilling now has shifted to the Reward Project in Nevada, where we hope to have similar success in increasing the resource base.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

or Valerie Kimball
Investor Relations
877.692.8182

by Ted Niles

Atna reports California Gold Results as high as 0.69 g/t over 85.4m

June 20th, 2011

Atna Resources Ltd TSX:ATN announced drill results from its Briggs Mine in Inyo County, California. Highlights include 0.69 g/t gold over 85.4 metres (including 0.94 g/t over 42.7 metres), 1.13 g/t over 24.4 metres (including 1.65 g/t over 9.1 metres), 1.19 g/t over 18.3 metres (including 2.26 g/t over 7.6 metres) and 1.36 g/t over 15.2 metres.

President/CEO James Hesketh stated, “We are pleased that the development and expansion drilling in the North Main Briggs area is returning better than anticipated grades and intercept thicknesses. The positive results we continue to see in our Deep Briggs drilling highlights the potential for future resource and reserve expansion.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

or Valerie Kimball
Investor Relations
877.692.8182

by Greg Klein

Atna reports California Gold Assays including 1.58 g/t over 16.8m

May 3rd, 2011

Atna Resources Ltd TSX:ATN announced assay results from its North Main Briggs pit and Deep Briggs Zone in California. Highlights include 0.93 g/t gold over 13.7 metres, 1.58 g/t over 16.8 metres (including 2.72 g/t over 7.6 metres), 0.69 g/t over 25.9 metres, 0.41 g/t over 25.9 metres, 1.06 g/t over 3.1 metres, 0.65 g/t over 7.6 metres and 0.58 g/t over 22.9 metres (including 1.34 g/t over 4.6 metres).

President/CEO James Hesketh commented, “The positive drilling results at North Main Briggs has the potential to rapidly add to existing minable reserves. North Main Briggs remains open for extension and we have added seven holes to the drilling plan to test for further reserve potential. The Briggs Main Deep drilling is also producing very positive results.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

by Ted Niles

Atna reports California Gold Assays including 1.23 g/t over 39.6m

March 22nd, 2011

Atna Resources Ltd TSX:ATN announced results from the Deep Briggs and East Wall Zones of its Briggs Mine in Inyo County, California. Assays include 1.23 g/t gold over 39.6 metres (including 1.37 g/t over 15.2 metres) and 1.1 g/t over 19.8 metres.

President/CEO James Hesketh said, “These results demonstrate our ability to find new resource potential at Briggs and may lead to a material increase in the gold mineral resource in the Briggs Deep and East Wall zones. Furthermore, the intersections include higher than average mine grade mineralization that will undoubtedly help in development of additional economic reserves. This drilling program is likely to achieve the goal of adding to ore reserves and mine life at the Briggs Mine.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

by Ted Niles

Auguries — Madmen Across The Border

January 19th, 2011

January 19th, 2011

By Kevin Michael Grace

The phrase “gold bug” was invented in 1843 by Edgar Allan Poe. His short story “The Gold-Bug” is about a man bitten by a gold scarab who then goes barmy in search of buried treasure. Possibly, whoever first used the phrase to describe opponents of fiat money missed Poe’s point, but in any event, gold bugs already had a bad press even before Jared Loughner.

In Salon January 10, Andrew Leonard begins by cautioning that the Tucson mass murderer is, as psychiatrists put it, coo-coo for Cocoa Puffs, but he then charges right ahead and uses Loughner’s purported goldbuggery as a stick with which to beat a straw man—anyone who believes “a return to the gold standard [is] the solution to all that plagues the modern global economy.” Never mind that, as Jesse Walker points out in Reason January 11, “actual gold bugs” are “as mystified by Loughner’s ideas about an ‘infinite source of currency’ as anyone else.”

January 19th, 2011

In other gold-related criminality, Dale McFeatters of Scripps Howard relates January 19 how, “On her way out of the country…Tunisian first lady Leila Trebelsi stopped by the country’s central bank and after a phone call or two withdrew 1.5 tons of gold to cushion her forced exile.” Proving yet again that it’s gold, not diamonds, which is a girl’s best friend.

Perhaps the nasty tinge gold has taken on of late can be ascribed to triumphalism among gold bears following its recent plunge from $1,420 an ounce to $1,360. “Gold rally over,” was the headline of a January 11 Financial Post story by David Pett. Therein, we learn that Pierre Lapointe of Brockhouse Cooper “is sticking with many of the same calls that worked for him last year.” However, “One hit from last year that he will not be sticking with is gold and silver. After recommending an overweight position last summer, he has turned negative on both precious metals and sees lower prices over the next 12 months.”

Our favourite gold bear, the Globe and Mail‘s David Berman, writes January 4, “The argument in favour of rising gold prices—the U.S. is printing money like you wouldn’t believe!—was heard throughout most of 2010, when gold reached its high of more than $1,400 an ounce. But the supply-and-demand picture continues to suggest that gold’s lustre is fading.”

Berman quotes Pawel Rajszel of Veritas Investment Research: “Global production of the precious metal is headed up, which will mean increased supply and likely put a lid on prices.” Rajszel sees gold at $900 by 2013, and, “If central banks start to sell their gold holdings again, after taking a recent breather, then $800 an ounce could be possible.”

But ounce gold started creeping up again—it reached $1,369 January 19—there was a host of stories, such as “Economy`s slow recovery benefits gold,” in the International Business Times January 19, declaring in favour of gold’s fundamentals. According to Mark O’Byrne of brokerage GoldCore Ltd in Dublin, “With inflation pressures threatening emerging markets and taking hold in developed markets, as seen in the UK yesterday, inflation-hedging buying continues.” Similarly, Pham-Duy Nguyen, on Bloomberg January 19, cites gold’s renewed “appeal as an alternative investment.”

A January 5 CNNMoney survey concludes, “On average, investment strategists and money managers are predicting oil prices will rise 4% and gold will edge up just 1% [to $1,431] by the end of 2011.”

Beyond the question of supply Berman raises, there is broad agreement that gold has an inverse relationship to the health of the world economy. In that regard, the head of the World Economic Forum seems to have thrown in the towel. According to Jonathan Lynn in the January 19 Financial Post, “The world is suffering from ‘global burnout syndrome’ and is too weak to tackle the web of interrelated threats facing businesses and governments, [Klaus Schwab] said.” Schwab concluded, “We have in the world a situation where the political system and the institutions are just overwhelmed by the complexity which they have to face.”

There is no doubting the complexity which investors in precious metals have to face, but Jordan Roy-Byrne of Trendsman Research, writing on Minyanville January 18, attempts a clarification: “Stick with juniors and avoid large caps.” He declares, “Too often we hear about how gold stocks are cheap and how they are priced for $1,000 gold or $800 gold… The reality is that large gold stocks have consistently underperformed gold over time.” He concludes, “Sure, the juniors have already had a fantastic run, but our [historical research] argues that it may be even better in the next few years. As the bull market rages on, the herd will naturally become more speculative. The large players have begun to resort to takeovers and acquisitions. This will continue and further catalyze the junior sector.”

In the tips category, Jonathan Ratner in the Financial Post January 7 cites Desjardins Securities analyst Brian Ratner’s characterization of the valuation of Semafo as “compelling… His price target remains at $16.50.” At end of trading January 19, it was at $10.72.

Reuters January 19 touts silver miner Silver Standard Resources, quoting BMO Capital Markets analyst Andrew Kaip, who says “it boasts an ‘unrivaled pipeline’ of projects” and “has the potential ‘to evolve into the fastest growing intermediate silver producer.’”

At Seeking Alpha January 18, Marco G is sweet on Great Basin Gold: “Great Basin Gold is a junior gold miner that is turning cash-flow positive. This coming event—together with the discovery of the super high grade gold above its existing Hollister veins—gives some material information to support the movement of the stock forward in 2011. Perhaps my favorite gold junior will have more spectacular moves this year.”

Also at Seeking Alpha, on January 19, Hyperinflation gives us his “Top Five Gold Miners to Own in 2011″: the aforementioned Great Basin, Wesdome Gold, Brigus Gold, Gammon Gold and Atna Resources.

By the way, the madman in Poe’s “The Gold-Bug” ends up finding his fortune. Just as Poe made a small fortune selling his story: $100, the same amount he paid to rent his last house for an entire year.