VANCOUVER, B.C. July 13, 2009 -- Abacus Mining & Exploration Corporation (the "Company") (TSX.V:AME) is pleased to announce that it has signed Option to Purchase Agreements ("Option Agreements") with subsidiaries of Teck Resources Limited - Afton Operating Corporation and Surgarloaf Ranches Limited (collectively "Teck") to acquire approximately 6,000 acres of land around our Afton Ajax deposit.
Under the terms of the Option Agreements the Company will pay an aggregate of $100,000 to Teck for the options and will then have 2 years to elect to exercise the options, or have the right to extend the exercise period of the options by an additional 1 year by making further option payments to Teck of an additional $100,000. The exercise price of the options is $2,500 per acre, exercisable at any time during the two year period, less amounts paid to Teck for the options.
"We are extremely pleased to have secured options on the surface rights in and around our Ajax Deposit, states Doug Fulcher, President, CEO of Abacus. By completing this Option Agreements we have now secured an option on the surface rights in addition to our existing mineral rights to our Ajax copper/gold project. This is a key transaction as we move beyond our recently announced Preliminary Economic Assessment (PEA) and toward a prefeasibility and feasibility study."
The Company is a junior exploration and development company with a 43-101 compliant positive preliminary economic assessment report (announced June 22, 2009) for its Ajax property. 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 current metal prices (US$2.25 per pound copper and US$900 per ounce gold) in the assessment indicate a NPV of $622.3 million discounted 8% over a 23 year mine life, with an IRR of 20.9%, cash costs of $0.99 per pound copper, and payback of 4.3 years. The Ajax extension remains open along strike and at depth.
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.
You can view the Next News Releases item: August 5, 2009,Abacus Files Preliminary Economic Assessment Report on SEDAR Discussions with Strategic Partners Begins
You can view the Previous News Releases item: June 26, 2009,Abacus Grants Options
You can return to the main News Releases page, or press the Back button on your browser.