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Sector NewswireTM Sector: Mining - Metals and Minerals :
News Release - January 27, 2012 1:40 PM ET
Abcourt Mines Inc. Fast-Tracks Reopening of Past Producing Gold Mine, Two Near-Term Production Scenarios
NEW YORK, NY, January 27, 2012 /Sector Newswire/ - Abcourt Mines Inc. (TSX-V: ABI) (US Listing: ABMBF) (Frankfurt: AML) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors as ABI.V is poised for change this 2012; the new board of directors have tasked management to unleash the significant inherent resource value at two near term production scenarios in northwestern Quebec, Canada -- ABI.V has a market cap under $16M CAD, ~$5.5M in the bank (as of January 26, 2012), and appears grossly undervalued. Abcourt has plans to take back into production both the once producing open-pit Abcourt-Barvue Silver-Zinc Mine and the once producing underground Elder gold mine. The Elder gold project is the priority as it is relatively low capex and a very near-term cash flow scenario -- it is conceivable that by year end ABI.V could begin stockpiling ore destined for local custom milling.
The full Mining Journal review may be found at http://www.miningmarketwatch.net/abi.htm online.
Reopening the 100% owned Elder Gold
Mine is a priority for Abcourt this 2012; by the end of this March both
dewatering of the mine and a new resource calculation are expected to be
complete. Within ~1 month thereafter a preliminary economic assessment is
expected and subject to favorable findings it is conceivable that by year end ABI.V could begin stockpiling ore destined for local custom milling (~135,000
tonnes per year with an average grade around 6+ g/T). Elder is an advanced stage
past producing underground gold mine project with equipment and infrastructure
in place, from 1944 to 1964 the Elder Gold Mine produced 350,000 ounces of gold.
Currently the established resource is 215,758 ounces gold in all categories
(Measured and Indicated resources of 805,028 tonnes @ 6.5 g/T. Au with a 3.8 g/T
Au cut off grade, and Inferred resources of 237,289 tonnes @ 6.1 g/T). The
upcoming resource calculation should be noticeably higher as it will incorporate
a lower cut-off grade and include recent drilling, including 36 holes drilled on
the north-eastern half of the West gold zone which indicates a potential of
225,000 tonnes with a grade of 8.12 grams of gold per tonne above a depth of 150
meters. It is expected Abcourt will begin first by extracting ore from the limit
of the old 5th, 6th, 7th, 8th and 9th levels of the mine where the bulk of the
ore is. Infrastructure is assumed to be well preserved and only nominal
development costs (~$10M possibly) to access the new ore at these levels and
begin cash flowing may be required. The soon to be complete dewatering, new
resource calc., and PEA costs are pegged at $1.6M. The upcoming changes and
projected cash flow metrics will position shares of ABI.V as an improved quality
of equity for investors; the PEA is expected to affirm 22,500+ oz gold per annum
for close to a decade with a cash cost of ~US$650 per oz. Elder is currently
developed to ~2000 feet and has large resource expansion potential; it is open
at depth and along strike, plus 2011 drilling revealed a new gold zone just
under the old one. Greenstone belts run deep, there are mines at 8,000 – 10,000+
feet and statistically over the life of the mine the average produces ~8+ times
the original estimates.
Note: The current share price is
only attributing minimal value to the in-ground zinc resources at the
Abcourt-Barvue project alone (currently trading at less than $0.04 per
Zn-equivalent lb found at the Abcourt-Barvue project alone, a level generally
attributed to earlier stage exploration companies with resources), ignoring 1)
its large ~20M oz silver resources, 2) the 215K+ oz gold resources at Elder, 3)
its other properties, and 4) the significant infrastructure the Company
possesses from when it was a past producer at the silver-zinc operation and the
Elder Gold mine sites -- a share price over $0.60 per share would seem a more
appropriately discounted trading price. The full Mining Journal review may be found at http://www.miningmarketwatch.net/abi.htm online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
SOURCE: Sector Newswire editorial
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