Atna Resources has begin mining and stockpiling gold ore at its Briggs mine, in Inyo County, California, and expects to produce its first metal in April, the firm said on Wednesday.

About 26 500 t of ore was placed on the crusher stockpile in the first week of mining, Atna said.

The Briggs mine is expected to produce around 19 000 oz of gold this year, excluding heap leach pad and crusher inventories at year-end, and the operation will ramp up to an output rate of 40 000 oz/y by the end of 2009.

Atna acquired the past-producing Briggs mine when it merged with Canyon Resources last year.

The firm has spent $6,4-million on the operation since it initiated the restart project, and has committed another $7,3-million, including for prestripping, preproduction costs and working capital build-up through April.

The company also expects to lease or buy $2-million worth of mining equipment over the next three months.

The construction of the heap leach pad is nearly completed, with the crushed rock overliner scheduled to be in place by mid-February, the firm reported.

The crushing facility, which Atna is rehabilitating, is also progressing well, with crushing operations and the first placement of crushed ore on the leach pad expected to take place in early March.

The company is also working on a new ore-reserve and life of mine plan, which it expects to publish later in the first quarter.

The new report will detail a five-year mine life, with a gold production target of between 40 000 and 45 000 oz/y, the firm said.

The new mine plan incorporates new drilling and combines the previous underground and open pit reserves into an open pit only mine plan.

Atna shares rose 3,03% on Wednesday, to C$0,68 apiece by 12:44 in Toronto.

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