Vancouver, British Columbia - December 1, 2010. Abacus Mining & Exploration Corporation (TSXV: AME "Abacus") through the KGHM Ajax Joint Venture with KGHM Polska Miedz S.A. ("KGHM"), is pleased to provide an update on the Feasibility Study currently underway on the Ajax copper-gold project located 10 kilometres southwest of Kamloops, B.C.
The Feasibility Study commenced shortly after Abacus and KGHM announced the formation of the Joint Venture in May 2010, and is expected to be completed next year. The purpose of the Study is to determine updated estimates for the life of mine production schedule of the Ajax project, initial and sustaining capital, as well as operational costs.
The study is being managed by a team of highly recognized consultants:
Wardrop Engineering Inc. (Wardrop) - mineral processing, surface site infrastructure financial analysis and general QP for the 43-101 feasibility report
AMEC Americas Ltd. (AMEC) - geology, mineral resource estimate and mine design
Knight Piésold Ltd. (Knight Piésold) - environmental base line studies and facilitation of the permitting process
Golder Engineering Ltd. (Golder) - slurry transport, tailings design and water management
BGC Engineering Inc. (BGC) - pit slope design and pit hydrogeology
G&T Metallurgical Services Ltd. (G&T) - metallurgical test work
In its NI-43-101 compliant Preliminary Economic Assessment Report dated June 22, 2009, Wardrop contemplated a 60,000 tonne per day plant producing on average 110 million pounds of copper (approx. 50,000 tonnes) and 100,000 ounces of gold in concentrate annually. The report shows the Ajax deposit to be amenable to bulk mining with straight forward ore control and process. The Ajax Mine will benefit significantly from nearby infrastructure which, together with the significant gold content, should translate into a low cost copper operation. The Ajax extension remains open along strike and at depth.
Field work and engineering studies are underway to further define measured and indicated mineral resources, process plant milling circuit, mine haulage and in-pit crushing, and tailing deposition methods to increase project value.
An infill drill hole program is being completed in, around, and between the Ajax East and West pits where approximately 85% of the 502 million tonnes of 43-101 compliant estimated pit inventory resource is classified as measured and indicated. Continued drilling in the Ajax East Extension could provide additional tonnage to the Ajax deposit which will have a positive impact on the project's economics. This data will be incorporated into the Feasibility Study.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
President & CEO
Director, Investor Relations
For further information, please contact:
Tim Mikula, Investor Relations, [email protected]
Abacus Mining is an exploration and mine development company focused on the development of the Ajax copper-gold project located 10 kms southwest of Kamloops, B.C. with joint venture partner KGHM Polska Miedz SA. The project has a positive preliminary economic assessment report (June 22, 2009) that contemplates a 60,000 tonne per day operation producing an average of approximately 110 million pounds of copper (approx. 50,000 tonnes) and 100,000 ounces of gold in concentrate annually. Sensitivity analyses approximating metal prices (US$3.00 per pound copper and US$1,000 per ounce gold) in the assessment 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. 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.
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