Atna, YGC wrap up at Wolf

Atna Resources (ATN-T) and YGC Resources (YGC-V) have completed their 1998 drill program on the Wolf property in southeastern Yukon.

Thirty holes totalling 6,625 metres were drilled this past season. Mineralization has now been defined along a strike length of 600 metres, and it extends downdip for about 450 metres. Drill results this year have demonstrated that mineralization shows continuity and potential for expansion.

Atna is earning a 65% interest in the property from owner YGC in return for spending $1.5 million over five years and paying $320,000 in cash.

Highlights from select holes are as follows:

* Hole 26 intersected 5.2 metres of mineralization about 75 metres downdip of previously reported hole 25 (16.1 metres grading 7.7% zinc and 2.5% lead, plus 118.3 grams silver per tonne). Hole 26 assayed 6.3% zinc, 1.4% lead and 71.8 grams silver starting at a down-hole depth of 228.6 metres.

* Holes 27 and 28 were collared on the western, updip area of the deposit and intersected low-grade intervals of massive sulphide mineralization. Hole 27 hit 3.9 metres (true width) grading 2.68% zinc, 0.39% lead and 8.3 grams silver starting 72.2 metres down-hole. At a depth of 128 metres, the hole cut a 2.4-metre interval that ran 3.25% zinc, 0.84% lead, and 28.6 grams silver.

At 93.3 metres down-hole, hole 28 cut a 3.9-metre interval (true width) grading 2.32% zinc, 0.92% lead and 17.7 grams silver. At a depth of 100.5 metres down-hole, an additional 3.3 metres (true width) were hit, grading 3.82% zinc, 0.66% lead and 13.7 grams silver.

* Holes 30, 31 and 32 formed a fence with 50-metre spacing. These holes tested the eastern and downdip area of the deposit.

The three holes intersected massive sulphides which were characterized by higher lead and silver grades and lower zinc values.

Hole 30 intersected a 1-metre interval (true width) grading 2.84% zinc, 5.15% lead and 206.7 grams silver starting at a depth of 239.1 metres down-hole.

Hole 31 hit 3.3 metres (true width) averaging 3.31% zinc, 2.96% lead and 149.3 grams silver starting at a down-hole depth of 243 metres.

Hole 32 intersected 1.5 metres (true width) averaging 2.87% zinc, 0.77% lead and 27.8 grams silver starting at a depth of 288.5 metres down-hole.

The sulphide values in holes 30-32 have been diluted by the presence of barite. Atna speculates that mineralization in this zone may by proximal to the original vent. The area is also characterized by a down-dropped fault block that displaces part of the mineralization by as much as 65 metres.

* Hole 35 was collared 60 metres east of hole 97-10 and indicates that mineralization remains open to the east. The hole hit 2.3 metres grading 5.4% zinc, 1.1% lead and 78.1 grams silver starting at a down-hole depth of 168.4 metres.

* Hole 33 was the first hole to test the East Slope zone, 1.2 km east of the Wolf deposit along strike. The hole cut through 140 metres of mineralized felsic pyroclastic rocks and pierced three massive sulphide zones. The uppermost zone correlates with the main zone of the Wolf deposit.

Assay results from hole 33 include 3.9 metres (true thickness) grading 4.63% zinc, 2.12% lead and 30 grams silver starting at a down-hole depth of 123.2 metres. The other two mineralized zones are thought to correlate with the Wolf footwall zones.

Atna believes significant exploration potential exists for the area between the Wolf deposit and the East Slope zone. Hole 34 was collared about 60 metres down-dip from hole 33 and hit 0.7 metre grading 9.24% zinc, 1.15% lead and 57.9 grams silver. The hole hit another narrow zone of mineralization farther down-hole.

* Drill holes 38, 39 and 40 were collared down-dip in the east-central area of the Wolf deposit. Mineralization in these holes has confirmed the presence of a higher-grade core that extends downwards with a slight easterly rake.

WF-39 intersected the thickest interval, cutting 10.2 metres (true width) averaging 8.41% zinc, 0.91% lead and 46.1 grams silver starting at a down-hole depth of 257 metres.

Atna has $16 million in working capital.