OSBURN, Idaho, May 20, 2003 (PRIMEZONE) -- Atlas Mining Company (OTCBB:ALMI), today announced that it has signed a Memorandum of Understanding with Cia Minera Mimosa, S.A. de C.V. of Costa Rica, giving the two companies 30 days to execute a contract under which Atlas would become the operating manager of a gold mine property located approximately 50 miles from the country's capital city of San Jose.
The property, located in the heart of the Costa Rica Central Gold Belt, currently has between 35,000 to 85,000 ounces of recoverable gold according to previous geological reports, with a large unexplored potential. According to company records, past production is estimated at close to 500,000 ounces. The property has a number of vein structures, but has not been actively mined for a number of years. However, in the mid-1990s work was completed to verify potential deposits, and a mill has been constructed on site.
"We have been looking to put this property into production for some time now, said Cia Mimosa's president-elect, John Nakao. "We believed all along that we had the ore, and we worked to build the facility to process it, but we did not have qualified personnel to move this project into actual gold production. With the expertise in underground narrow vein mining that Atlas can bring to the project, we would have all the ingredients needed to make this project the next major producer in Costa Rica."
"As a small mining company, this is the size project we can really get into," said William Jacobson, president of Atlas. "We have the flexibility to move into production quicker than a larger company, and this is exactly the niche we want to be in at this stage of our company's development."
About Atlas Mining Company
Atlas Mining Company's current main interest is the development of it halloysite clay property in Juab County, Utah. Halloysite clay is the whitest clay available and has several unique features, including fine particle size, high brightness, purity and uniformity of composition. Currently available only from suppliers in New Zealand, halloysite is naturally derived, nontoxic and biodegradable, and is best known for its use in the highest quality porcelain and bone china. However, researchers are identifying a number of new applications for the product. Atlas Mining Company also has mining and timber properties located in Shoshone County, Idaho, as well as an underground mining contracting business.
Safe Harbor Statement -- As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its business model and strategic plans; and the risks described from time to time in the Company's SEC filings.