|
Sector NewswireTM Sector: Mining - Metals and Minerals :
News Release - April 20, 2012 4:40 PM ET
Abcourt Mines Inc. Advances Toward Gold Production at Past-Producer in Quebec
NEW
YORK, NY, April 20, 2012 /Sector Newswire/ -
Abcourt Mines Inc. (TSX-V:
ABI) (Pink Sheets: ABMBF) (Frankfurt: AML) is the subject of a Precious Metals
Review;
ABI.V appears
dramatically undervalued as it advances towards taking back into
production two past producing mines in mining-friendly Quebec. ABI.V
has a market cap under $17M CAD, ~$6M in the bank (as of March 18,
2012), and possesses resources of significance with large growth
potential that appear to position it as grossly undervalued. The full Precious Metals review with chart may be found at http://sectornewswire.com/PMRabiQ2-2012.pdf online.
ABI.V this week provided an update
on its efforts to ready the Elder Gold Mine for reopening (see related April 17,
2012 news release entitled “Abcourt Mines: Update on Elder”); this Q2 2012 both
dewatering of the mine and a new resource calculation are expected to be
complete and within ~1 month thereafter a Preliminary Economic Assessment (PAE)
is expected. Subject to favorable PAE findings it is conceivable that by year
end ABI.V could begin stockpiling ore destined for local custom milling
(~135,000 tonnes per year with an average grade around 6+ g/T). Elder is an
advanced stage past producing underground gold mine project with equipment and
infrastructure in place, from 1944 to 1964 the Elder Gold Mine produced 350,000
ounces of gold.
Currently the established resource
at Elder is 215,758 ounces gold in all categories (Measured and Indicated
resources of 805,028 tonnes @ 6.5 g/T. Au with a 3.8 g/T Au cut off grade, and
Inferred resources of 237,289 tonnes @ 6.1 g/T). The upcoming resource
calculation should be noticeably higher as it will incorporate a lower cut-off
grade and include recent drilling, including 36 holes drilled on the
north-eastern half of the West gold zone which indicates a potential of 225,000
tonnes with a grade of 8.12 grams of gold per tonne above a depth of 150 meters.
It is expected Abcourt will begin first by extracting ore from the limit of the
old 5th, 6th, 7th, 8th and 9th levels of the mine where the bulk of the ore is.
Infrastructure is assumed to be well preserved and only nominal development
costs (~$10M possibly) to access the new ore at these levels and begin cash
flowing may be required. The soon to be complete dewatering, new resource calc.,
and PEA costs are pegged at $1.6M. The upcoming changes and projected cash flow
metrics will position shares of ABI.V as an improved quality of equity for
investors; the PEA is expected to affirm 22,500+ oz gold per annum for close to
a decade with a cash cost of ~US$650 per oz. Elder is currently developed to
~2000 feet and has large resource expansion potential; it is open at depth and
along strike, plus 2011 drilling revealed a new gold zone just under the old
one. Greenstone belts run deep, there are mines at 8,000 – 10,000+ feet and
statistically over the life of the mine the average produces ~8+ times the
original estimates. The full Precious Metals review with chart may be found at http://sectornewswire.com/PMRabiQ2-2012.pdf online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.
SOURCE: Sector Newswire editorial
Additional Disclaimer and Disclosure I Contact I Terms and Conditions I Copyright I Privacy Policy |