Abacus Mining & Exploration Corporation: Feasibility Study Underway on Ajax Copper-Gold Project, B.C.
December 01 2010 - 8:00AM
Marketwired
Abacus Mining & Exploration Corporation (TSX VENTURE: AME)
("Abacus") through the KGHM Ajax Joint Venture with KGHM Polska
Miedz S.A. ("KGHM"), is pleased to provide an update on the
Feasibility Study currently underway on the Ajax copper-gold
project located 10 kilometres southwest of Kamloops, B.C.
The Feasibility Study commenced shortly after Abacus and KGHM
announced the formation of the Joint Venture in May 2010, and is
expected to be completed next year. The purpose of the Study is to
determine updated estimates for the life of mine production
schedule of the Ajax project, initial and sustaining capital, as
well as operational costs.
The study is being managed by a team of highly recognized
consultants:
Wardrop Engineering Inc. (Wardrop) - mineral processing, surface
site infrastructure financial analysis and general QP for the
43-101 feasibility report
AMEC Americas Ltd. (AMEC) - geology, mineral resource estimate
and mine design
Knight Piesold Ltd. (Knight Piesold) - environmental base line
studies and facilitation of the permitting process
Golder Engineering Ltd. (Golder) - slurry transport, tailings
design and water management
BGC Engineering Inc. (BGC) - pit slope design and pit
hydrogeology
G&T Metallurgical Services Ltd. (G&T) - metallurgical
test work
In its NI-43-101 compliant Preliminary Economic Assessment
Report dated June 22, 2009, Wardrop contemplated a 60,000 tonne per
day plant producing on average 110 million pounds of copper
(approx. 50,000 tonnes) and 100,000 ounces of gold in concentrate
annually. The report shows the Ajax deposit to be amenable to bulk
mining with straight forward ore control and process. The Ajax Mine
will benefit significantly from nearby infrastructure which,
together with the significant gold content, should translate into a
low cost copper operation. The Ajax extension remains open along
strike and at depth.
Field work and engineering studies are underway to further
define measured and indicated mineral resources, process plant
milling circuit, mine haulage and in-pit crushing, and tailing
deposition methods to increase project value.
An infill drill hole program is being completed in, around, and
between the Ajax East and West pits where approximately 85% of the
502 million tonnes of 43-101 compliant estimated pit inventory
resource is classified as measured and indicated. Continued
drilling in the Ajax East Extension could provide additional
tonnage to the Ajax deposit which will have a positive impact on
the project's economics. This data will be incorporated into the
Feasibility Study.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
Jim Excell, President & CEO
Donna Yoshimatsu, Director, Investor Relations
About Abacus
Abacus Mining is an exploration and mine development company
focused on the development of the Ajax copper-gold project located
10 kms southwest of Kamloops, B.C. with joint venture partner KGHM
Polska Miedz SA. The project has a positive preliminary economic
assessment report (June 22, 2009) that contemplates a 60,000 tonne
per day operation producing an average of approximately 110 million
pounds of copper (approx. 50,000 tonnes) and 100,000 ounces of gold
in concentrate annually. Sensitivity analyses approximating metal
prices (US$3.00 per pound copper and US$1,000 per ounce gold) in
the assessment indicate a NPV of $1.46 billion discounted 8% over a
23 year mine life, with an IRR of 35.4%, cash costs of $0.90 per
pound copper, and payback of 2.0 years. The Ajax extension remains
open along strike and at depth. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
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. Except as required by applicable securities laws, 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 Corporation Donna
Yoshimatsu Director, Investor Relations dyoshimatsu@amemining.com
Abacus Mining & Exploration Corporation Tim Mikula Investor
Relations 866-834-0301 or 604-682-0301 604-682-0307 (FAX)
tmikula@amemining.com www.amemining.com
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