HomeContactQwikReport
Abacus Mining & Exploration Corp.


Show printable version of 'Feasibility Study Update' in a New Window


Ajax Cu-Au Project
South Central British Columbia, Canada

Ajax Copper/Gold Project - Feasibility Study Update, February 19, 2016


Feasibility Study Update

On February 19, 2016 Feasibility Study Update superseded the Feasibility Study of January 6, 2012 and incorporated an updated reserve and significantly updated engineering. The updated FS was prepared in accordance with NI 43-101 by a consortium of independent consultants under the direction of M3 Engineering and Technology Corp., a recognized global provider of design and construction services. Several significant changes were introduced to the project scope and layout which yielded positive economic, processing and environmental impacts for the Ajax Project.

Highlights (In US$ unless otherwise indicated)
  • Total proven and probable mineral reserves of 426 million tonnes containing 2.7 billion lbs Cu, 2.6 million oz Au, and 5.3 million oz Ag, at an average life of mine (LOM) head grade of 0.29% Cu, 0.19 g/t Au and 0.39 g/t Ag.*
  • 18 year mine life at an average nominal processing rate of 65,000 tonnes per day (t/d) at an overall stripping ratio of 2.65:1
  • Average annual production of copper and gold in concentrate of 58,000 tonnes Cu and 125,000 oz Au
  • Average mine operating costs of $1.50/t; average process operating costs of $4.31/t
  • Initial capital expenditures of $1.307 billion
  • Pre-tax NPV (8%) = $429.4 M Pre-tax NPV (5%) = $872.5 M
  • Pre-Tax IRR 13.4%; payback (years) 6.5
*Based on LOM metal prices of Cu: US$3.21/lb, Au: US$1,200/oz, Ag: US$17/oz

Financial Results using 5% and 8% discount rate with KGHM price deck*
Financial Indicators before Taxes  
NPV @ 5% $872.5 M
NPV @ 8% $429.4 M
IRR % 13.4%
Payback (years) 6.5
   
Financial Indicators after Taxes  
NPV @ 5% $543.0 M
NPV @ 8% $215.6 M
IRR % 11.1%
Payback (years) 6.7
*Based on LOM long term metal prices of Cu (with higher short term Cu prices): US$3.21/lb, Au: US$1,200/oz Ag: US$16/oz

Mine Plan

The mine plan incorporates a revised throughput from 60,000 t/d to 65,000 t/d, an updated block model that includes increased geological interpretations, recent drilling results and metallurgical testwork, outcomes of three trade-off studies, and updated economic factors.

The mine plan is based on the extraction of 426 Mt of ore containing 0.29% Cu, 0.19 g/t Au and 0.39 g/t Ag. This compares to the 2012 Feasibility Study of a reported 503 Mt of reserves containing 0.27% copper and 0.17 g/t of gold. Mine life is calculated to be 18 years at an average nominal processing rate of 65,000 t/d and an overall stripping ratio of 2.65:1, waste to ore. Based on the contained metal content of 1.2 Mt (2.7 billion lbs) of copper, 2.6 million oz of gold and 5.3 million oz of silver, average annual production is estimated to be 58,000 tonnes of copper and 125,000 ounces of gold in concentrate.

Initial Capital Expenditures

Capital expenditures, estimated at US$1.307 billion, reflect changes to the general arrangement of the Project whereby the facilities have been moved farther from the Kamloops community, several important technological changes aimed at increasing metals recovery during processing, decreasing operating costs and reducing the environmental impact (e.g. changes in preliminary milling and ore transport systems, technological solutions at the processing plant and in the tailings storage system). The C1 cash cost has been calculated at US$1.37/lb. Mine construction is expected to take 2.5 years.

Mine $279.4
Process $910.1
G&A $85.3
Subtotal $1,274.8
Capitalized Mill Turnover $32.4
Total $1,307.2
Note 1. Numbers in millions US$.

Operating Costs

The LOM mine operations costs were calculated to average $1.50 per tonne mined.

Area Unit Cost ($/t mined)
Drilling 0.07
Blasting 0.20
Loading 0.19
Hauling 0.66
Support 0.17
Mine General 0.22
Total Cost 1.501
Note 1. Numbers may not add due to rounding.

The process operating costs were calculated to average $4.31 per tonne ore.

Area US$/tonne ore
Maintenance 0.68
Supplies 1.72
Consumables 0.95
Outside Service 0.19
Salaries & Wages 0.64
Taxes 0.12
Total 4.311
Note 1. Numbers may not add due to rounding.

The NI 43-101 technical report entitled "Ajax Project, NI 43-101 Feasibility Study Update Technical Report" dated February 19, 2016 is available on this website and the Company's filings on Sedar (www.sedar.com). References to the Feasibility Study Update ('FS Update') for purposes of this website have been taken from Abacus press releases dated January 13, 2016 and February 23, 2016, which were accordingly reviewed and approved for scientific, technical, and economic content by the respective Qualified Persons involved in the preparation of the FS Update under the direction of M3 Engineering & Technology Corp.

Mr. Keith Dagel, P.E. of M3 Engineering & Technology Corp. reviewed and approved the scientific, technical, and economic information contained in the news releases. For further details on the Ajax Project, NI 43-101 Feasibility Study Update Technical Report, including the list of Qualified Persons involved in its preparation, please refer to the technical report available on this website and the Company's filings on Sedar (www.sedar.com).


Adnet Communications Inc.