Abacus Discovers New Near Surface Mineralization at the Ajax Deposit
January 14 2010 - 8:00AM
Marketwired
Abacus Mining & Exploration Corp. ("Abacus" or the "Company")
(TSX VENTURE: AME) is pleased to announce the results of a 19 hole
drill program completed in December 2009 on the Ajax East Extension
("AEE") area, a near-surface copper-gold rich zone identified by
Abacus geologists in 2008. The AEE area is fault offset of the main
Ajax deposit, approximately 200 metres east of the Ajax East pit.
Both the Ajax deposit and the AEE are 100 per cent owned by Abacus.
The focus of the recent drill program is to convert
approximately 80 million tonnes of inferred resources in the AEE to
a measured and/or indicated status (announced June 22, 2009), for
inclusion into the 503 million tonne resource containing
approximately 3.0 billion pounds of copper and 2.7 million ounces
of gold. In addition, the program is designed to outline a
near-surface higher-grade resource that could be an initial starter
pit for the Prefeasibility Study mine plan.
Doug Fulcher, President of Abacus states, "We are very pleased
with the excellent results from this phase of the drill program. It
definitely demonstrates that the Ajax East extension has the
potential for a higher grade starter pit that potentially supplies
the initial years' production of higher grade feed than the current
"in-pit" resource, as well as for converting the inferred resource
into a measured or indicated category for the Prefeasibility study.
The Ajax deposit is currently estimated to contain over 500 million
tonnes that could feed a 60,000 tonne per day operation yielding an
average of 110 million pounds of copper and 100,000 ounces of gold
in concentrate annually over a 23 year mine life."
Drilling at Ajax has now resumed and is expected to run through
the middle of February. The focus of this phase is to follow up on
recent near surface results with a program of grid drilling in the
area of the potential starter pit mineralization with an additional
20 vertical holes.
Please visit www.amemining.com for a drill plan map of this
area, and other Company information.
Drill Highlights
-- Hole AM-09-018 intersects 325.55 metres (1068 feet) averaging 0.33%
copper and 0.27g/t gold, and 105.05 metres (344.7 feet) averaging 0.47%
copper and 0.39 g/t gold; both of which are part of a larger interval
consisting of 520.2 metres (1706.7 feet) averaging 0.27% copper and 0.22
g/t gold. This hole is still in the mineralized zone at the end of the
hole at 678.48 metres (2226 feet) and will be deepened at the first
opportunity.
-- Hole AM-09-024 intersects 137.5 metres (451.1 feet) averaging 0.39%
copper and 0.36 g/t gold; including 37.5 metres (123 feet) averaging
0.68% copper and 0.61 g/t gold. These intercepts form part of a larger
mineralized interval consisting of 198 metres (649.6 feet) averaging
0.33% copper and 0.29 g/t gold.
-- Hole AM-09-031 intersects 71.5 metres (234.6 feet) averaging 0.47%
copper and 0.25 g/t gold; and a 112.5 metre (369.1 feet) intercept
averaging 0.35% copper and 0.26 g/t gold; both of which are part of a
larger interval consisting of 263.5 metres (864.5 feet) averaging 0.32%
copper and 0.21 g/t gold.
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ABACUS DRILL RESULTS FROM AJAX EAST EXTENSION PROGRAM--NOV-DEC 2009
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Section Hole No. Dip Deg Az. Deg From To (m) Length Length Cu % Au
(m) (metres) (feet) g/t
----------------------------------------------------------------------------
AM-09-018 -64.5 300 148.8 669.0 520.2 1706.7 0.27 0.22
----------------------------------------------------------------------------
Incl 148.8 173 24.2 79.4 0.36 0.33
----------------------------------------------------------------------------
230.95 556.5 325.55 1068.1 0.33 0.27
----------------------------------------------------------------------------
230.95 336 105.05 344.7 0.47 0.39
----------------------------------------------------------------------------
505.5 556.5 51 167.3 0.45 0.31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-019 -90 - Scattered Low Grade Mineralization - NSV
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-020 -45 120.3 Not Sampled; Hole Abandoned @ 90.5m
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-021 -60.5 118 Scattered Low Grade Mineralization in
Picrite - NSV
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-022 -51.7 59.2 49.5 142.5 93 305.1 0.20 0.17
----------------------------------------------------------------------------
Incl 125.5 142.5 17 55.8 0.38 0.28
----------------------------------------------------------------------------
326 345.5 19.5 64 0.29 0.15
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-023 -90 - 159 196 37 121.4 0.33 0.22
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Incl 159 178 19 62.3 0.51 0.34
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----------------------------------------------------------------------------
AM-09-024 -65.9 25 270.5 468.5 198 649.6 0.33 0.29
----------------------------------------------------------------------------
Incl 270.5 408 137.5 451.1 0.39 0.36
----------------------------------------------------------------------------
270.5 286.5 16 52.5 0.81 0.73
----------------------------------------------------------------------------
331.5 369 37.5 123 0.68 0.61
----------------------------------------------------------------------------
453 468.5 15.5 50.9 0.47 0.36
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-025 -47.9 117.1 Scattered Low Grade Mineralization in
Picrite - NSV
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-026 -71.1 125 142 167.9 25.9 85 0.37 0.35
----------------------------------------------------------------------------
254.85 276.0 21.15 69.4 0.38 0.29
----------------------------------------------------------------------------
309 362 53 173.9 0.45 0.38
----------------------------------------------------------------------------
449 500 51 167.3 0.42 0.46
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----------------------------------------------------------------------------
AM-09-027 -90 - 211.5 238.15 26.65 87.4 0.37 0.18
----------------------------------------------------------------------------
AM-09-028 -90 - 10.36 40.5 30.14 98.9 0.40 0.07
----------------------------------------------------------------------------
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AM-09-029 -48.5 30 Not Sampled; Hole Abandoned @ 38.71m
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-030 -90 - 117.96 149.50 31.54 103.5 0.41 0.20
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-031 -46 28.3 56.5 320 263.5 864.5 0.32 0.21
----------------------------------------------------------------------------
Incl 56.5 128 71.5 234.6 0.47 0.25
----------------------------------------------------------------------------
170 282.5 112.5 369.1 0.35 0.26
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-032 -56.4 30.2 38.71 63.09 24.38 80 0.28 0.18
----------------------------------------------------------------------------
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AM-09-033 -90 - 9.75 42 32.25 105.8 0.56 0.25
----------------------------------------------------------------------------
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AM-09-034 -47.8 296.1 112 170 58 190.3 0.32 0.23
----------------------------------------------------------------------------
270 441.05 171.05 562.4 0.26 0.16
----------------------------------------------------------------------------
Incl 270 333 63 206.7 0.39 0.23
----------------------------------------------------------------------------
270 300 30 98.4 0.62 0.37
----------------------------------------------------------------------------
279 294 15 49.2 0.94 0.51
----------------------------------------------------------------------------
----------------------------------------------------------------------------
AM-09-035 -45 118 9.34 46.5 37.16 121.9 0.38 0.36
----------------------------------------------------------------------------
Incl 9.34 37.5 28.16 92.4 0.45 0.44
----------------------------------------------------------------------------
And 118.5 133.5 15 49.2 0.36 0.18
----------------------------------------------------------------------------
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AM-09-036 -55 28 255 338.5 83.5 274 0.35 0.24
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(i)NOTE: Intercept lengths are core lengths, which do not necessarily
reflect true width
Discussion of Results
The above results are considered to be very positive in that
Abacus has made significant progress by converting inferred
"in-pit" resources to indicated and/or measured resource category;
and successfully identifying a near-surface zone(s) of
mineralization that may be the source of a "starter pit" that could
supply early production of higher grade feed than the current
"in-pit" resource.
The drilling in 2009 successfully extended the mineralization in
the AEE along strike for about 150 metres to the northeast from the
main offsetting fault. It covers an area that is generally within
the current pit design, but consists mainly of inferred category
resources; although some new tonnage is also expected as a result.
More exploration work needs to be done to the northeast due to
additional fault offsets complicating the mineralized horizon and
the occurrence of an expanding volume of picrite in this direction
relative to Sugarloaf diorite, the main host unit for copper-gold
mineralization. The mineralization immediately north of the main
offsetting fault can be continuous from surface to depths of more
than 600 metres, as evidenced by hole AM-09-018 which is still in
the mineralized zone at the end of the hole at 678 metres. This
hole, as well as hole AM-09-034, will be deepened at the earliest
opportunity.
Most of the shallow mineralization that is being considered for
a "starter pit" occurs south of the main offsetting fault that
produced the AEE zone; and actually appears to lie within a splay
of faults associated with the main offset that form a zone of from
20-30 metres wide in the Ajax East pit area to possibly 200 metres
wide or more, as it traverses the property to the east southeast.
It is in this fault splay area that current drilling for the
starter pit is concentrating.
It should also be noted that many of the assay results have
shown a significant increase in gold content relative to the copper
assay than has been seen in the main Ajax deposit.
About the Ajax Project
Abacus is an exploration and development company with a 43-101
compliant positive preliminary economic assessment report
(announced June 22, 2009) for its Ajax copper/gold project located
10 kilometres southwest of Kamloops, British Columbia. The report
contemplates a 60,000 tonne per day operation producing an average
of approximately 110 million pounds of copper and 100,000 ounces of
gold in concentrate annually. Sensitivity analyses approximating
metal prices (US$2.75 per pound copper and US$1,000 per ounce gold)
in the assessment indicate a NPV of $1.2 billion discounted 8% over
a 23 year mine life, with an IRR of 31.3%, cash costs of $0.90 per
pound copper, and payback of 2.3 years. The Ajax extension remains
open along strike and at depth. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Eco Tech Laboratory Ltd. of Kamloops, B.C., will complete all of
Abacus' analytical work on the project. A quality-control program,
using specific standards and blank samples is in place. Robert G.
Friesen, P.Geo., the Company's Senior Geologist, is the Qualified
Person responsible for the design and conduct of the work
performed.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
Doug Fulcher, President and Chief Executive Officer
Forward-Looking Information
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address events or
developments that Abacus Mining and Exploration Corp. (the
"Company") expects to occur, are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, and continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are
made. The Company undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Abacus Mining & Exploration Corp. Donna Yoshimatsu
Director of Investor Relations 1-866-834-0301
dyoshimatsu@amemining.com Abacus Mining & Exploration Corp. Tim
Mikula Investor Relations 1-866-834-0301 tmikula@amemining.com
www.amemining.com
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