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Sector
NewswireTM
Sector: Mining - Metals and Minerals
:
News Release - July 13,
2012 4:40 PM ET
Abcourt Mines Inc. Advances Toward Gold Production at
Past-Producer in Quebec - Performs Rehab Work and Buys Equipment in
Preparation
NEW
YORK, NY, July 13, 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.
Currently trading under CDN$0.10 cents per share Abcourt has a
market cap under $17M CAD, is cashed-up to achieve near term goals,
and possesses resources of significance (~20 million ounces silver,
~610 million lbs zinc, ~405,000 oz gold) with large growth potential
that appear to position it as grossly undervalued.
Shares outstanding: 162,034,772 (~240K fully diluted (most warrants
will expire out of money)) -- The current share price is only
attributing minimal value to the in-ground zinc resources at the
Abcourt-Barvue project alone (currently trading at less than $0.03
per Zn lb found at the Abcourt-Barvue project alone, a level
generally attributed to earlier stage exploration companies with
resources), ignoring 1) its large ~20 million oz silver resources,
2) the 405,000+ oz gold resources at Elder, 3) large resource growth
potential, 4) its other properties, and 5) the significant
infrastructure the Company possesses from when it was a past
producer at the silver-zinc operation and the Elder Gold mine sites.
The full Precious Metals Review
with chart may be found at
http://sectornewswire.com/PMRabiJuly-2012.pdf online.
ABI.V recently released an updated
Gold resource calculation at the past producing Elder gold mine near Rouyn-Noranda,
Quebec. With 288,944 Measured and Indicated oz of gold (1,361,212 tonnes @ 6.60
g/T Au) + 116,827 Inferred (637,900 tonnes @ 5.70 g/T Au), Abcourt is advancing
toward taking back into production this advanced stage past producing
underground gold mine. From 1944 to 1964 the Elder Gold Mine produced 350,000
ounces of gold and is maintained with the equipment and infrastructure in place.
The Elder Gold Mine is one of two near term production scenarios in northwestern
Quebec that ABI possesses with its Elder mine as the priority due to its low
capex.
This week Abcourt Mines released an update on activities at its Elder Gold Mine
project (See related July 10, 2012
news release); in-short, the mine is
principally dewatered + rehabilitation of the shaft, work stations, and escape
ways is underway with ~50% of the work having already been performed and the
balance to be complete in the next two months. A PEA being prepared by Roche, Groupe-Conseil, is expected at the end of this August.
Elder is an advanced stage past producing underground gold mine project with
equipment and infrastructure in place. It is expected ABI.V 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 appears to be well
preserved and only nominal development costs to access the new ore at these
levels and begin cash flowing is expected to be required.
The upcoming changes and projected cash flow metrics will position shares of
Abcourt 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.
Abcourt Mines' other project is the Abcourt-Barvue Silver-Zinc Project which has
a sizeable economically recoverable resource deposit that Abcourt's two newest
directors (both of which were instrumental in the sale of Canadian Royalties
Inc. to Jilin Jien of China) will become helpful in advancing to fruition. The
Abcourt-Barvue project is an advanced past producing open pit silver-zinc mine
project with infrastructure in place and a resource of 19,644,354 ounces Silver,
278,820 Metric Tonnes Zinc. A feasibility study is in place on a 500 million lb.
Zn, 13+ million ounce Ag orebody over a 13 year minelife based on a 650,000 TPY
(tonnes per year) operation -- Abcourt has plans to improve on the this to 1
million TPY operation.
The full Precious Metals Review
with chart may be found at
http://sectornewswire.com/PMRabiJuly-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
editorial@SectorNewswire.com
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