VANCOUVER, B.C. November 24, 2009 - Abacus Mining & Exploration Corporation (the "Company" or "Abacus") (TSX.V:AME) is pleased to announce the start of drill programs at the Ajax deposit and Ajax East Extension ("AEE") area, a near-surface copper-gold rich zone fault offset immediately east of the Ajax deposit. Three drill rigs have been assigned to the programs and are expected to be completed by mid-December. Both the Ajax deposit and the AEE are 100 per cent owned by Abacus.
The focus of the drill programs is two-fold: to convert approximately 80 million tonnes of inferred resources to a measured and indicated status (announced June 22, 2009) for Prefeasibility work, and to determine the viability of including the AEE in the Prefeasibility Study mine plan. Two drill rigs currently assigned to the Ajax deposit and the AEE plan to complete approximately 7,500 metres of drilling over 25 holes.
Doug Fulcher, President of Abacus states, "We are pleased that this phase of work is now underway as it upgrades the status of our deposit, estimated to contain approximately 3.0 billion pounds copper and 2.7 million ounces gold. In addition, drilling in the AEE could provide additional tonnage to the Ajax deposit, and could have a positive impact on our strip ratio, decrease the pay-back period, and increase the overall value of the project. This data will be incorporated into the Company's Prefeasibility Study, planned to commence shortly."
One drill rig assigned to geotechnical work at the Ajax deposit is based on recommendations from the Preliminary Economic Assessment ("PEA") for Prefeasibility Studies. The geotechnical drilling will provide an evaluation of the potential pore pressures of the pit walls along with associated groundwater inflows to define slope stability and dewatering cost estimates. Sub-surface structural geology data will also be collected to confirm that the orientations of the geologic structures mapped at surface are consistent with those at depth.
About the Company
Abacus Mining is an exploration and development company with a 43-101 compliant positive preliminary economic assessment report (announced June 22, 2009) for its Ajax copper/gold project located 10 kilometres southwest of Kamloops, British Columbia. The report contemplates a 60,000 tonne per day operation producing an average 106 million pounds of copper and 99,400 ounces of gold in concentrate annually. Sensitivity analyses approximating metal prices (US$2.75 per pound copper and US$1,000 per ounce gold) in the assessment indicate a NPV of $1.2 billion discounted 8% over a 23 year mine life, with an IRR of 31.3%, cash costs of $0.90 per pound copper, and payback of 2.3 years. The Ajax extension remains open along strike and at depth.
Eco Tech Laboratory Ltd. of Kamloops, B.C., will complete all of Abacus' analytical work on the project. A quality-control program, using specific standards and blank samples is in place. Robert G. Friesen, P.Geo., the Company's Senior Geologist, is the Qualified Person responsible for the design and conduct of the work performed.
On Behalf of the Board
ABACUS MINING & EXPLORATION CORPORATION
President and Chief Executive Officer
Contact: Director of Investor Relations - Donna Yoshimatsu, 416-722-2456
or Investor Relations - Tim Mikula, 866-834-0301
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 Corporation (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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