VANCOUVER, B.C. August 5th, 2009 -- Abacus Mining & Exploration Corporation (the "Company") (TSX.V:AME) is pleased to announce that the independent Preliminary Economic Assessment report ("PEA") for the Company's copper-gold Ajax property has now been filed on SEDAR. The report is also available on the Company's website at www.amemining.com.
The National Instrument 43-101 ("NI 43-101") compliant study was completed by Wardrop, a Tetra Tech Company as the project QP, and supported by AMEC Americas LTD as the QP for mine planning, GBC Engineering as the QP for geotechnical pit slope stability, Knight Piesold as QP for environmental baseline studies and tailing impoundment design, and G&T Labs who conducted the metallurgical test work. The report contains production parameters, capital costs, operating costs, and other financial projections for an open pit mine processing 60,000 tonnes of mill feed per day. The metal prices used for the base case are US $2.00 per pound copper and US $700 per ounce gold (announced June 22, 2009).
Tom McKeever, Executive Chairman of Abacus, states, "Over the past two years our team has worked diligently to define a sizeable, high quality resource that will support a large-scale, long-life copper/gold mine at Ajax. This PEA, which in many areas is as advanced as a prefeasibility study, clearly demonstrates the long term viability of this brownfield project. While the base case economics are themselves attractive, the significant economic value of this deposit is clearly demonstrated when using today's commodity market prices (approximately US $2.50 per pound copper; approximately US $940 per ounce gold), which generate a pre-tax NPV at 8% discount of US $944 million, an IRR of 26.7%, and payback of all initial capital in less than 3 years. Furthermore, we are confident that as we move through prefeasibility and full feasibility studies, the economics of the Ajax property will improve due to higher metal grades and engineering improvements currently being evaluated.
With this well engineered report, and assisted by our outside advisor, we have begun discussions with potential strategic partners to join with us in bringing the Ajax mine into production as soon as possible."
On Behalf of the Board
ABACUS MINING & EXPLORATION CORPORATION
President and Chief Executive Officer
Contact: Tim Mikula, Investor Relations 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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