|ABACUS MINING & EXPLORATION CORP. : http://www.amemining.com/ : QwikReport|
Open Pit Ajax Mining Camp
Mineral exploration began in the Thompson Nicola region in the 1880's with the discovery of copper, gold and iron mineralization at the Iron Mask Mine near Kamloops. During this time, several claims were also staked around the Ajax property, with placer miners surveying the area during the early years of the Gold Rush in British Columbia.
Underground exploration began on the Ajax claim in 1906 and continued until 1914 when exploration in the area became sporadic during the First World War. In 1928, the Consolidated Mining and Smelting Company of Canada completed several surface drilling programs on the Ajax property.
The original Afton copper deposit was found by Chester F. Millar in the mid-1960s and was operated as the Afton Mine following Teck's acquisition of Millar's company. Teck operated the Afton mine -- including two satellite pits, Crescent and Pothook -- and the East and West Ajax pits intermittently from 1987 until 1997. During the periods of production, it is estimated that 17 Mt were mined, and 13 Mt were milled.
Abacus acquired holdings in the Ajax area in 2002 from Teck and explored the Ajax property from 2005 to 2010. The Ajax property comprises eight Crown grants including the historic Ajax East and West pits. The Ajax project site is located at the southern extremity of the boundaries of the City of Kamloops and southeast along an existing haul road from the Afton mill, and it includes shop facilities, a tailings area, and water rights which Abacus purchased in 2005 from Teck-Cominco.
On July 31, 2009 Abacus filed a compliant positive preliminary economic analysis (PEA) on the Ajax property, after a series of successful drill programs from 2005-2008, and based upon an initial resource estimate released earlier that same year. The preliminary analysis on Ajax underscored the potential for a robust mining operation.
In May 2010, the Company announced the signing of a significant strategic investment agreement with KGHM Polska Miedz SA ("KGHM") to form a joint venture to advance the Ajax Project through the Bankable Feasibility Study and into production. KGHM is one of the world's largest copper and silver producers. On October 12, 2010 the parties executed the definitive joint venture shareholders' agreement. The property is now 100% owned by KGHM Ajax Mining Inc., a joint venture company owned 80% by KGHM and 20% by Abacus Mining & Exploration Corp.
Also in May 2010, Abacus commissioned an independent Feasibility Study (FS) Technical Report on the Ajax Project prepared in accordance with National Instrument 43-101. The FS was led by Tetra Tech as the project's lead consultant, in conjunction with a team of globally recognized consultants comprising AMEC Americas Limited, Knight Piésold Ltd., Golder Associates Ltd. and BGC Engineering Inc., with test work by G&T Metallurgical Services Ltd. (G&T) and Krupp Polysius. This report was dated January 12, 2012.
On January 13, 2016, Abacus announced a positive Feasibility Study Update superseding the FS of 2012 and incorporating 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. This report is dated February 19, 2016 and is available in the dropdown menu to the left,
Please also refer to the section on Environmental & Permitting on this website for latest decisions on the Ajax Mine project.
|Ajax Copper/Gold Project - Feasibility Study Update, February 19, 2016|
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|
|Financial Indicators after Taxes|
|NPV @ 5%||$543.0 M|
|NPV @ 8%||$215.6 M|
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.
|Capitalized Mill Turnover||$32.4|
The LOM mine operations costs were calculated to average $1.50 per tonne mined.
|Area||Unit Cost ($/t mined)|
The process operating costs were calculated to average $4.31 per tonne ore.
|Salaries & Wages||0.64|
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).
|Ajax Copper/Gold Project - Feasibility Study, February 19, 2016|
|Classification||Tonnage (Mt)||Cu (%)||Au (g/t)||Ag (g/t)|
|M + I||568||0.26||0.18||0.35|
|Average ROM Grades||Contained Metal|
|Proven Mineral Reserves||130||0.30||0.19||0.40||875||791||1,677|
|Probable Mineral Reserves||296||0.28||0.19||0.38||1,818||1,813||3,615|
|Proven & Probable Mineral Reserves||426||0.29||0.19||0.39||2,693||2,605||5,292|
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