Atlas Gold Bar mill expansion will raise output to 60,000 oz

The company has re-calculated its reserve inventory to reflect additional exploration work completed during 1988. Gold reserves increased 19% to approximately 2.7 million oz and its four Eureka Cty. deposits accounted for some 1.5 million oz of those reserves. Of that total, 869,000 oz are classified as proven, 538,000 as probable and 83,000 as possible.

Reserves at the company’s Malheur Cty. property in Oregon are approximately 1.2 million oz of which 169,000 are proven, 758,000 oz are probable and the remainder possible.

The company has defined the outer boundaries of the Grassy Mountain deposit where pre- development drilling on 100-ft spacings is planned shortly along with metallurgical and engineering feasibility studies.

The company’s board recently approved a two-for-one common stock split which Atlas said will be effected in the form of a 100% stock dividend and a related two-for-one split of the company’s option warrants to purchase common stock, distributable on Apr 24, 1989 to stockholders and warrant holders on record Apr 5. “Our intent with the stock split is to develop a deeper and more accessible market for Atlas stock. The lower market price per share and the increased number of shares outstanding resulting from the split should improve the interest of investors in Atlas and benefit the company and its stockholders,” said Richard Weaver, president and chief executive officer.

“We are very encouraged by the significant and rapid progress Atlas continues to make in building a profitable mining company through gold exploration and development. The increase and over-all upgrade of Atlas’ gold reserves, the expansion of our Gold Bar mill, and the bank loan, demonstrate the company’s active commitment to building a value for its stockholders and remaining a low cost gold producer,” he added.

Atlas recently amended a revolving line of credit with Bank of America National Trust and Savings Association for $15 million(US). The company said it would use these borrowings to finance the capital expenditures associated with the development of the Goldstone, Gold Ridge, and Gold Pick deposits ore from which will be processed through the Gold Bar mill.

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