Palisades Goldcorp Ltd. press release
The Update on the Abcourt-Barvue Feasibility Study is Positive. A Major Reduction in the Initial Capital Cost is Expected
TSXV - TSX Venture Exchange · Uranium · Rare Earth Elements · Gold · Canada
(via TheNewswire)
Rouyn-Noranda,Quebec,Canada / TheNewswire / February 8, 2019 - Abcourt Mines Inc. (TSX-V:ABI, Berlin: AML-BE and Frankfurt Stock Exchanges: AML-FF) ("Abcourt" or the"Companyis announcing positive results for the feasibility study update on the Abcourt-Barvue project and a major reduction in the initial capital cost.
The Abcourt-Barvue property was in production by an open pit and an underground mine during two different periods. The project consists of three open pits, namely Barvue, Abcourt East and Abcourt West, and the development of an underground mine to produce a zinc-silver concentrate
This National Instrument 43-101 Technical Report on the Abcourt-Barvue Project was prepared to present the findings of an update to the Technical Feasibility Study Report on the Abcourt-Barvue Deposit dated February 15, 2007, prepared by Genivar and Bumigene and filed on Sedar.
TheAbcourt-Barvue Projectislocated intheAbitibi area, northwesternQuebec,Canada, 60kmnorthofthetownofVald'Or. Theprojectislocatedonanexistingminesitewith several readily useable infrastructures, in a veryeasily accessible area whereall services maybe obtained at competitive prices.
Abcourt commissioned PRB MiningServices Inc. (PRB)and BumigemeInc. (Bumigeme) toupdatethe2007feasibilitystudyusingcurrenteconomicparameters,theGenivar 2007pitdesign,and modifyingtheprocessflowsheettoeliminate thesilvercyanidation circuitandto produce onlya zinc-silverconcentrate by flotation.
HISTORY
The zinc-silver mineralizationwasdiscoveredin1950.TheAbcourt-Barvuedepositwas inoperationduringtwoperiods:between1952and1957by BarvueMinesLimitedand between1985and1990byAbcourt.Inall5,002,190 metrictonnes grading38.74g/tAg and2.98%ZnwereminedfromtheBarvueopenpitand632,319metrictonnesgrading 131.65g/tAgand 5.04%Zn wereminedfromunderground production. The old Barvue tailingspond was recently rehabilitated by the Ministry of NaturalResources ofthe province of Quebec. Abcourt retainedtheminingconcessionsand surroundingcellstothisday.
MINERAL RESOURCES
AmineralresourceestimatewasproducedbyJean-PierreBerubein2014titledNI 43-101 MineralResourcesReportforthe Abcourt-BarvueProperty.The estimate returned measured and indicated resources (M&I) for the Abcourt-Barvue deposit totalling 8,086,000 tonnes grading 3.06% Zn and 55.38 g/t. These resources were used as a basis for the current update of the 2007 feasibility study.
Here is a comparative table of resources in all categories:
Resources of all categories
2006 Estimate 2014 Estimate
| CATEGORY | | TONNES | Ag (g/t) | Zn (%) | | TONNES | Ag (g/t) | Zn (%) | | Measured | | 6,516,000 | 58.32 | 3.33 | | 6,284,000 | 43.98 | 3.09 | | Indicated | | 503,000 | 98.35 | 3.44 | | 1,799,000 | 95.51 | 2.94 | | M + I | | 7,019,000 | 61.19 | 3.33 | | 8,083,000 | 55.45 | 3.06 | | Inferred | | 1,506,000 | 120.53 | 2.98 | | 2,037,000 | 114.16 | 2.89 |
The measured resources are generally extending from surface to a maximum depth of 165 meters. The indicated resources are generally located in the immediate extensions of the measured blocks from elevation -125 to -300 m.
The Berube report was filed on Sedar and is available for additional information.
MINERAL RESERVE ESTIMATE
The 2018 mineral reserve estimate including dilution is presented in the following table in comparison with the 2007 estimate.
Mineral Reserves
| | | 2007 Estimate | 2018 Estimate | | | | | | | | | | Tonnage | Grade | Tonnage | Grade | | | | | | Method of Mining | Classification | Ag | Zn | Zn EQ | Ag | Zn | Zn EQ | | | | | | (t) | (g/t) | (%) | (%) | (t) | (g/t) | (%) | (%) | | Open Pit | Proven Mineral Reserves | 5,338,731 | 44.79 | 3.15 | 4.03 | 6,180,510 | 39.72 | 2.83 | 3.61 | | Probable Mineral Reserves | 0 | 0.00 | 0.00 | 0.00 | 408,851 | 43.01 | 2.36 | 3.20 | | | Total Open Pit | 5,338,731 | 44.79 | 3.15 | 4.03 | 6,589,361 | 39.93 | 2.80 | 3.58 | | | Underground | Proven Mineral Reserves | 1,169,662 | 105.19 | 2.87 | 4.93 | 1,169,662 | 105.19 | 2.87 | 4.93 | | Probable Mineral Reserves | 315,139 | 101.61 | 3.23 | 5.22 | 315,139 | 101.61 | 3.23 | 5.22 | | | Total Underground | 1,484,801 | 104.43 | 2.95 | 5.00 | 1,484,801 | 104.43 | 2.95 | 4.99 | | | Open Pit and underground | Proven Mineral Reserves | 6,508,393 | 55.64 | 3.10 | 4.19 | 7,350,172 | 50.14 | 2.84 | 3.82 | | Probable Mineral Reserves | 315,139 | 101.61 | 3.23 | 5.22 | 723,990 | 68.52 | 2.74 | 4.08 | | | Total | 6,823,532 | 57.76 | 3.11 | 4.24 | 8,074,162 | 51.79 | 2.83 | 3.84 | |
Note: 1) Zn Eq grades are calculated with 2018 parameters for this table.
2) Silver zinc equivalence: 0,61% / Oz Ag
MINING PLAN
Amineplanwasdevelopedforthe2018mineralreserves usingthe Genivar (nowWSP Canada) 2007pit designandundergroundminedesign.The2014mineralresource dilutedandrecovered producedatotalof8,074,162tonnesofmillfeedgrading2.83%Znand51.79gptAg,ofwhich 6,589,361tonnes(81.6%)will be producedinopenpitoperationsand1,484,801tonnes(18.4%) will be producedinundergroundoperations.Thelifeofmineis13years.Thereare good possibilitiesofincreasingthe life ofmineby convertinginferred resources intoproven and probable reserves andbyfinding new reserveswith additional exploration.
Theopenpitoperationconsistsintheexpansion and deepeningoftheBarvuepitandtheexcavation oftheAbcourtEastandtheAbcourt Westpitsoveraperiodof13years.Thepitswill beexcavatedtoadepthof 166 m,72 m,and42 mrespectively.Theundergroundoperations consistin the mining ofstopesfromadepthvaryingfrom150 mto200 mbelowsurfaceto the pitbottomsusingtheAvoca method.Theunderground workareaswill beaccessed by excavatingdeclines.
MINERAL PROCESSING
Historicalmineralrecoveriesduring the Barvue production period wereover90%forzincand77%for silver.In2017,metallurgicaltestswereperformedinseverallaboratories.The cyclic flotation tests realized on the ore of Abcourt-Barvuehaveshown the possibility to recover97.5%ofthezincand77.8%ofthesilverinaZn-Agconcentrateassaying 53.4% Znand 740.6 g/tmAg.
The processingplantremainsatamill capacityof650,000 tonnesperyear but the circuit was modifiedbyeliminatingthecyanidationcircuitsto produceonlyazinc-silverconcentrate. Minorchangeswerebroughttothesurfaceinfrastructuresuchastheinstallationofnew 25kVpowerlineon the site andthe relocationofthewasterockstockpiles.
An average of 32,000 tonnes of zinc-silver concentrate grading 52.7% Zn and 768 gpt Ag will be produced annually.
ECONOMIC ANALYSIS
Theprojectpreproductioncapitalcostisestimatedto CA $41.3 M including a workingcapitalof CA $ 4.0 M,andthesustainingcapitalcostisestimatedto CA $18.1 M.The average operatingcostisestimatedto CA $ 39.94tonnemilled. Closure costs are estimated at CA $ 3.7 M.
A reduction in the initial capital cost including working capital, from CA $ 71.26 M in 2007 to CA $ 41.3 M in 2018 was possible after the purchase during the past few years of mill equipment, now on the site, and the rental of pit equipment in 2018 instead of the purchase in 2007.
Here is a table comparing the results of the 2018 with the 2007 economic analysis for the Abcourt-Barvue silver-zinc project:
| For 100% equity financing | 2007
$ | 2018
$ | | Operating profit | 234.3 M | 225.4 M | | Pre-tax cash flow | 138.7 M | 170.0 M | | After tax cash flow | 87,9 M | 106,7 M | | Pre-tax internal rate of return (IRR) | 27.1% | 26.1% | | After tax internal rate of return (IRR) | 21.4% | 20.5% | | Pre-tax net present value (NPV) 5% | 87.6M | 100.4 M | | After tax net present value (NPV) 5% | 53.2 M | 59.8 M |
In 2018, project revenues were estimated using US $ 1.10 per pound of zinc, US $ 16.50 per of ounce silver, an exchange rate of CA $ 1.25 per US $, and smelting & refining terms. The average net value of the ore is CA $ 67.86 per tonne.
In 2007, project revenues were estimated using US $ 1.15 per pound zinc, US $ 9.54 per ounce silver, an exchange rate of CA $ 1.15 per US $ 1.00. The average net value of the ore was CA $ 67.51 per tonne.
The 2018 economicanalysis,with metal prices and the rate of exchange indicated previously assuming100%equity financing,resultsinapre-taxcashflow of170.0millionCanadiandollars and $106.7 M $ after taxes. Thepre-taxrateofreturn (IRR)is26.1% and 20.5% after taxes. The pre-taxnetpresentvalue(NPV)is100.4 millionCanadiandollars, 59.9 M $ after taxes, using a 5%discount rate. The pre-taxpaybackperiodis4.9years.A sensitivityanalysisonrevenue,capitalcost,andoperatingcostshowstheproject is mostsensitive tototalrevenue,(price ofzinc and rate of exchange)followedbyoperatingcosts.
Incomparison,theGenivar2007study'seconomicanalysis, with metal prices and the rate of exchange indicated on the previous page, assuming100%equityfinancing,returnedapre-tax cash flowof138.7million Canadiandollars, 87.9 M $ after taxes. The pre-tax IRRis27.1%, 21,4% after taxes,anda pre-tax NPVat5%discountrateof87.6million Canadian dollars, 53.2 M $ after taxes.
This report will be filed on Sedar within 45 days of this press release.
STRATEGY AND OUTLOOK
Currently, the Company is focussing on stabilizing and increasing the Elder production. Our objective is to produce 12,500 tonnes per month of gold mineralization.
We wish to use the full capacity of the Sleeping Giant mill by treating custom ore, to reduce the operating cost per tonne treated.
For the long-term growth in the gold sector, the Company has started a drilling program on the Discovery and Flordin gold properties where substantial gold mineralization is found.
For the long-term in the zinc sector, various plans are being considered.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian exploration company with strategically located properties in northwestern Quebec, Canada. The Elder property has gold resources (2018) and a positive P.E.A. study (2012). Abcourt is focusing on the exploitation of the Elder mine.
The Abcourt-Barvue property has silver-zinc reserves (2019). A feasibility study was completed in 2007 by Roche / Genivar. An update was completed in January 2019.
In 2016, Abcourt acquired the Sleeping Giant mine and mill, located half-way between Amos and Matagami, in Abitibi, Quebec, in the territory covered by the Plan Nord of the Quebec government. The mill has a capacity of 700 to 750 tonnes per day. A NI 43-101 resource estimate was recently filed. Some custom milling is now being done.
To know more about Abcourt Mines Inc. (TSXV: ABI), please visit our web site at www.abcourt.com and consult our filings under Abcourt's profile on www.sedar.com.
This press release was prepared by Mr. Renaud Hinse, Engineer and President of Abcourt Mines Inc. Mr. Hinse is a "Qualified Persons" under the terms of Regulation 43-101. Mr. Hinse has approved the scientific and technical disclosure.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they are made. Except as may be required by law, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Abcourt' annual and periodic reports. The forward-looking information contained herein is made as of the date of this news release.
For more information, please contact:
| Renaud Hinse, President and CEO
T : 819 768-2857 450 446-5511
F : 819 768-5475 450 446-3550
Email:rhinse@abcourt.com | Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T:(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com |
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