January 14, 2009 Abacus Announces Ajax Deposit Resource 365 Million Tonnes Grading 0.31% Copper and 0.20 G/T Gold
Vancouver, BC - January 14, 2009 - Abacus Mining and Exploration Corp. (TSXV:AME), is pleased to announce results from an independent, NI 43-101 compliant resource estimation for the Ajax deposit in the Afton camp near the city of Kamloops, British Columbia. The resource estimate was calculated by AMEC Americas Limited (AMEC) and a full report will be filed on SEDAR within 45 days.
Resources total 365 million tonnes grading 0.31% copper and 0.20 g/t gold using a 0.20% copper equivalent cut-off, containing over 2.5 billion pounds of copper and approximately 2.3 million ounces of gold in measured and indicated categories
Over 54% of the resource reported is contained in the measured category (1,365,000,000 pounds copper and 1,232,700 ounces gold.)
Ajax Deposit Resources Summary
Copper ('000 lb)
Measured + Indicated
* CuEq=((% Cu)(Cu recovery)(22.0462)(2.5)+(g/t gold) (gold recovery)(1/31.1035)(750))/((Cu recovery)(22.0462)(2.5))
Cu recovery=43.619 x (% Cu)+63.002, max value = 92% Au recovery = 33.871 x (g/t gold) + 75.29, max value = 90%
Copper equivalent cutoff grades and pit shells were established using metal prices of $2.50 US per pound copper and $750 US per ounce gold.
Doug Fulcher, president of Abacus, said "We are extremely pleased with the results of the resource estimate for the Ajax Deposit. This resource demonstrates the large size of Ajax with approximately 2.5 billion pounds of copper and 2.3 million ounces of gold in a measured and indicated category. Abacus now plans to complete a preliminary economic assessment ("PEA") that contemplates a 60,000 tonne per day operation. The Ajax deposit remains open along strike and at depth. In addition, initial drilling was carried out at the end of 2008 on the northern Monte Carlo area, where there is an offset extension of the Ajax deposit which has the potential to expand the Ajax resource. Results from this drilling will be released when received."
The resource estimate is based on 621 exploration drill holes totalling over 160,000 metres completed in the Ajax West, Ajax East area and the New Gold joint venture ground in between. Approximately 20 percent of the resource is located within the ground covered by the joint venture. As previously announced, interests in the joint venture down to 500 metres below surface are 60% Abacus and 40% New Gold. AMEC created a block model from the drill data and generated conceptual pit shell envelopes using the Lerchs-Grossmann algorithm. The resource was summarized within the pit shells. The mining and milling costs were those deemed reasonable for a conceptual 60,000 tonnes per day project. Metallurgical recovery equations were based on a series of lock-cycle recovery tests performed by G&T Labs of Kamloops BC.
Abacus now plans to complete a PEA that contemplates a 60,000 tonnes per day operation, followed by feasibility studies. The resource coupled with the infrastructure purchased from Teck Cominco Ltd. in 2005 will allow Abacus to continue to move forward quickly in the Afton camp. The infrastructure purchased from Teck Cominco includes a tailings impoundment, water rights, mill and shop buildings, rights of way and surface rights.
Eco Tech Laboratory Ltd. of Kamloops, B.C., has completed 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. is Abacus' represented qualified person.
Cross sections showing the block model and conceptual pit outline can be viewed at www.amemining.com.
On Behalf of the Board, ABACUS MINING AND EXPLORATION CORP.
Doug Fulcher, President and Chief Executive Officer
Contact: Tim Mikula, Investor Relations 866-834-0301
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.
Cross sections showing the block model and conceptual pit