Vancouver, British Columbia - January 24, 2011. Abacus Mining & Exploration Corporation ("Abacus" or the "Company") (TSXV: AME) is pleased to announce highlights from a major program of delineation and infill diamond drilling on the Ajax copper-gold project located 10 km southwest of Kamloops, British Columbia.
The drill program was carried out as part of the Feasibility Study currently underway on the Ajax copper-gold project being developed by KGHM Ajax Mining Inc., a joint venture between Abacus and KGHM Polska Miedz S.A. ("KGHM"). The objective of the drilling was to upgrade a portion of the near-surface copper-gold mineralization in the existing NI 43-101 compliant inferred resource (See Ajax Copper/Gold Project, Kamloops, BC Preliminary Assessment Technical Report by Wardrop Engineering Inc., July 22, 2009) to the measured and indicated categories.
A total of 27,332 meters of drilling was completed between July and December 2010 with up to five drills operating on the property. Drill hole spacings were based on criteria defined in the NI 43-101 report on the project by AMEC in October 2008. The program confirmed key aspects of the understanding of the Ajax deposit, further increasing confidence in the geological and economic models.
Jim Excell, President & CEO of Abacus stated, "We are very pleased with the results of this major drill program, having positive implications to upgrade a significant percentage of inferred resources to measured and indicated categories. With the Feasibility Study well underway, these results together with our other initiatives provide an encouraging outlook for the robustness of the Ajax project."
Abacus is currently updating the geological model with data from this drill program in preparation for an updated resource estimate which will commence in February.
Highlights of the drill program results are presented in the following table:
|Section||Hole Number||Dip||Azimuth||From||To||Length||Cu %||Au g/t||Purpose/Area|
|1800N||AM-10-075||-54.3||301.1||264||297||33||0.42||0.29||East Ajax Ext.|
|1800N||AM-10-076||-69.7||301.6||230||432||202||0.51||0.35||East Ajax Ext.|
|2100E||AE-10-070||-90.0||0.0||12.19||60.04||47.85||0.39||0.32||In East Ajax pit|
|2100E||AE-10-072||-90.0||0.0||12.19||45||32.81||0.67||0.46||In East Ajax pit|
|2000E||AE-10-073||-60.3||27.0||33||51||18||0.57||0.47||In East Ajax pit|
|2000E||AE-10-075||-44.6||208.7||27||78||51||0.59||0.41||In East Ajax pit|
|2025E||AE-10-077||-47.0||26.1||62||101||39||0.77||0.57||In East Ajax pit|
|1225E||AW-10-111||-74.4||27.5||57||132||75||0.61||0.51||In West pit|
|1225E||AW-10-113||-59.9||28.7||74.93||140||65.07||0.68||0.63||In West pit|
|1200E||AW-10-117||-82.3||28.1||59||142.34||80.34||0.47||0.45||In West pit|
|1175E||AW-10-120||-56.4||28.1||44||131||87||0.53||0.36||In West pit|
|750N||AW-10-124||-49.9||118.0||36||151.49||115.49||0.46||0.39||In West pit|
Based on the existing NI-43-101 compliant Preliminary Economic Assessment, the Ajax deposit is estimated to contain an in-pit measured and indicated resource of 442 million tonnes at an average grade of 0.30% copper and 0.19 g/t gold (2.6 billion pounds copper and 2.4 million ounces gold), with an additional 80.6 million tonnes of inferred resource at 0.22% copper and 0.16 g/t gold (0.3 billion pounds of copper and 0.3 million ounces of gold). This is sufficient to support a 60,000 tonne per day mining operation producing an average of 110 million pounds of copper and 100,000 ounces of gold in concentrate annually over a 23 year mine life.
The technical information in this news release has been reviewed and approved by Dave Laudrum, P.Geo., the Company's Chief Geologist who is a Qualified Person within the meaning of National Instrument 43-101.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
James D. Excell
President & CEO
Director, Investor Relations
For further information, please contact:
Tim Mikula, Investor Relations, [email protected] 866-834-0301
Abacus is an exploration and mine development company with a 43‐101 compliant positive preliminary economic assessment report (June 22, 2009) for its Ajax copper-gold project located 10 km southwest of Kamloops, British Columbia. Sensitivity analyses therein 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 using metal prices approximating US$3.00 per pound copper and US$1,000 per ounce gold. The Ajax extension remains open along strike and at depth. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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.
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