VANCOUVER, BC January 14, 2010 Abacus Mining & Exploration Corp. ("Abacus" or the "Company") (TSX.V:AME) is pleased to announce the results of a 19 hole drill program completed in December 2009 on the Ajax East Extension ("AEE") area, a near-surface copper-gold rich zone identified by Abacus geologists in 2008. The AEE area is fault offset of the main Ajax deposit, approximately 200 metres east of the Ajax East pit. Both the Ajax deposit and the AEE are 100 per cent owned by Abacus.
The focus of the recent drill program is to convert approximately 80 million tonnes of inferred resources in the AEE to a measured and/or indicated status (announced June 22, 2009), for inclusion into the 503 million tonne resource containing approximately 3.0 billion pounds of copper and 2.7 million ounces of gold. In addition, the program is designed to outline a near-surface higher-grade resource that could be an initial starter pit for the Prefeasibility Study mine plan.
Doug Fulcher, President of Abacus states, "We are very pleased with the excellent results from this phase of the drill program. It definitely demonstrates that the Ajax East extension has the potential for a higher grade starter pit that potentially supplies the initial years' production of higher grade feed than the current "in-pit" resource, as well as for converting the inferred resource into a measured or indicated category for the Prefeasibility study. The Ajax deposit is currently estimated to contain over 500 million tonnes that could feed a 60,000 tonne per day operation yielding an average of 110 million pounds of copper and 100,000 ounces of gold in concentrate annually over a 23 year mine life."
Drilling at Ajax has now resumed and is expected to run through the middle of February. The focus of this phase is to follow up on recent near surface results with a program of grid drilling in the area of the potential starter pit mineralization with an additional 20 vertical holes.
Please visit www.amemining.com for a drill plan map of this area, and other Company information.
|ABACUS DRILL RESULTS FROM AJAX EAST EXTENSION PROGRAM - NOV-DEC 2009|
|Section||Hole No.||Dip Deg||Az. Deg||From (m)||To (m)||Length
|Cu %||Au g/t|
|AM-09-019||-90||-||Scattered Low Grade Mineralization -- NSV|
|AM-09-020||-45||120.3||Not Sampled; Hole Abandoned @ 90.5m|
|AM-09-021||-60.5||118||Scattered Low Grade Mineralization in Picrite - NSV|
|AM-09-025||-47.9||117.1||Scattered Low Grade Mineralization in Picrite - NSV|
|AM-09-029||-48.5||30||Not Sampled; Hole Abandoned @ 38.71m|
*NOTE: Intercept lengths are core lengths, which do not necessarily reflect true width
Discussion of Results
The above results are considered to be very positive in that Abacus has made significant progress by converting inferred "in-pit" resources to indicated and/or measured resource category; and successfully identifying a near-surface zone(s) of mineralization that may be the source of a "starter pit" that could supply early production of higher grade feed than the current "in-pit" resource.
The drilling in 2009 successfully extended the mineralization in the AEE along strike for about 150 metres to the northeast from the main offsetting fault. It covers an area that is generally within the current pit design, but consists mainly of inferred category resources; although some new tonnage is also expected as a result. More exploration work needs to be done to the northeast due to additional fault offsets complicating the mineralized horizon and the occurrence of an expanding volume of picrite in this direction relative to Sugarloaf diorite, the main host unit for copper-gold mineralization. The mineralization immediately north of the main offsetting fault can be continuous from surface to depths of more than 600 metres, as evidenced by hole AM-09-018 which is still in the mineralized zone at the end of the hole at 678 metres. This hole, as well as hole AM-09-034, will be deepened at the earliest opportunity.
Most of the shallow mineralization that is being considered for a "starter pit" occurs south of the main offsetting fault that produced the AEE zone; and actually appears to lie within a splay of faults associated with the main offset that form a zone of from 20-30 metres wide in the Ajax East pit area to possibly 200 metres wide or more, as it traverses the property to the east southeast. It is in this fault splay area that current drilling for the starter pit is concentrating.
It should also be noted that many of the assay results have shown a significant increase in gold content relative to the copper assay than has been seen in the main Ajax deposit.
About the Ajax Project
Abacus 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 of approximately 110 million pounds of copper and 100,000 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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 AND EXPLORATION CORPORATION
President and Chief Executive Officer
Contact: Donna Yoshimatsu, Director of Investor Relations firstname.lastname@example.org or Tim Mikula, Investor Relations 866-834-0301 email@example.com
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. 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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