Abcourt Mines Inc. (“Abcourt” or the
“Corporation”) (TSX Venture: ABI) is pleased to
announce the positive results of an independent Preliminary
Economic Assessment ("PEA") prepared in accordance with NI 43-101
for the Sleeping Giant Project, a wholly owned high-grade gold
deposit located in the greenstone belt of Abitibi, 80 km north of
the town of Amos, Quebec.
PEA Highlights*
Base Case Scenario : Gold Price : 1800 $ US/oz,
Exchange Rate : 1.00 USD = 1.30 CAD, Discount Rate : 5
% |
|
|
- NPV5% after taxes and mining duties
(M CAD)
|
54.4 |
- IRR after taxes and mining duties
(%)
|
33.3 |
- Initial Capital Costs
(preproduction) (M CAD)
|
42.0 |
- Average Annual Production (oz)
|
30,100 |
|
96.7 |
- Average Diluted Gold Grade (g/t
Au)
|
8.10 |
- Life of Mine (excluding
preproduction) (years)
|
5.8 |
- Mineralized Material Extracted
(t)
|
720,200 |
|
181,300 |
- All In Sustaining Cost
(USD/oz)
|
1,120 |
- Total Unit Operating Cost
(CAD/tonne milled)
|
321 |
|
424 |
- Operating Cashflow (M CAD)
|
178 |
- Pre-Production Period (Years)
|
1.5 |
Pascal Hamelin, President and CEO, comments:
“The PEA results released today are excellent with an NPV5% of 54 M
CAD and an IRR of 33%. The results of the PEA are based on a
mineral resource produced in accordance with current CIM standards
and guidelines. The PEA envisions a rapid start-up of operations
with minimal initial investment. This project could quickly become
the next gold producer in Quebec. Targeted drilling towards areas
with inferred mineral resources could potentially increase
resources and some project economics. The PEA is considering 50%
utilization of our ore processing plant. This new drilling could
potentially increase feed capacity and operate the plant at full
capacity. This capacity could also allow us to accept material from
other deposits such as Discovery and Flordin in the medium term,
and potentially increase the value of our assets. The next step is
to now target promising areas to convert inferred to indicated
resources for incorporation into a more detailed economic
assessment. With the potential to add other deposits to the
project, we anticipate strong economic potential for the region
around the Sleeping Giant plant in the future.”
*The reader is advised that the PEA summarized
in this press release is intended only to provide a high-level
initial review of the project's potential and design options. The
PEA's mine plan and economic model includes numerous assumptions
and the use of inferred mineral resources. Inferred Mineral
Resources are considered too speculative to be used in economic
analysis, except as permitted by NI 43-101 in PEA studies. There is
no guarantee that Inferred Mineral Resources can be converted to
Indicated or Measured Mineral Resources and, therefore, there is no
guarantee that the economics of the project described herein will
be realized.
Table 1 : PEA Summary
Total Tonnes Extracted (t) |
720,200 |
Average Extracted Grade (g/t) |
8.10 |
Total Gold Contained (oz) |
187,600 |
Total Gold Produced (oz) |
181,300 |
Total Payable Gold (oz) |
180,800 |
Net Mill Recovery (%) |
96.7 |
Average Annual Production (oz/an) |
30,100 |
Initial Capital (M CAD) |
42.0 |
Sustaining Capital (M CAD) |
31.8 |
Reclamation and Closure Cost1 (M CAD) |
6.7 |
|
|
Total
Unit Operating Cost (CAD/t milled) |
320.67 |
Cash
Cost per ounce (USD/oz) |
1 008.82 |
1 : Including the closure bond held by the
MRNF presently at 5.4 M$
Opportunities to increase Project
Value
The Sleeping Giant Project has strong potential
for mineral resource expansion based on more than 800 mineralized
structures remaining open at depth, down plunge and to the east.
Future modeling could offer an increase in the potential of the
project. In addition, with a utilization of nearly 50% of its
capacity, the current ore processing plant has excess capacity
which could offer the opportunity to accept material from deposits
surrounding the Sleeping Giant Project. The contribution of other
deposits could positively influence the economics of the PEA.
Moreover, Abcourt owns several deposits with mineral resources
within a radius of less than 200 km from the Sleeping Giant
project, including the Discovery, Flordin and Pershing-Manitou
deposits.
Table 2 : Summary of Economic Parameters
(1,800 USD/ounce of gold)
After-tax NPV5% (M
CAD) |
54.4 |
After-tax IRR (%) |
33.3 |
Payback Period after tax
(years) |
2.2 |
Operating Cashflow (M CAD) |
177.9 |
Cashflow before tax (M CAD) |
104.1 |
Yearly averaged Cashflow before tax (M CAD) |
26.6 |
Income tax (M CAD) |
29.0 |
Cashflow after tax (M CAD) |
75.0 |
Discount Rate (%) |
5.0 |
NPV5% before tax (M CAD) |
77.5 |
IRR before tax (%) |
41.1 |
Payback Period before tax (years) |
2.1 |
Summary of the Capital and Operating
Expenses
Table 3 : Summary of Capital
Expenses
Capital Expenses1
(M CAD) |
Initial Capital Costs |
Sustaining Capital Costs |
Total Capital Costs |
Capitalized Net Revenue2 |
(18.65) |
0.00 |
(18.65) |
Capitalized Operating Expenses |
27.12 |
0.00 |
27.12 |
Underground Development |
10.48 |
18.22 |
28.71 |
Infrastructures |
5.83 |
0.18 |
6.01 |
Equipments Upgrade |
6.67 |
0.00 |
6.67 |
Electrical Circuit |
6.40 |
0.00 |
6.40 |
Tailing Facilities |
4.15 |
6.74 |
10.89 |
Closure and Reclamation |
0.00 |
6.69 |
6.69 |
Total |
42.00 |
31.83 |
73.83 |
|
|
|
|
Capital Cost per ounce (USD/oz) |
111.60 |
Operating Cost per ounce (USD/oz) |
1 008.82 |
All-In Sustaining Cost (Capital and Operating)
(USD/oz) |
1 120.43 |
1 : The total can vary due to rounding. 2 : The
Corporation expects revenues during the preproduction
period.3 : Net amount including the closure bond currently
deposited with the MRNF for 5.4 M$.
Table 4 : Summary of the Operating
Expenses
Unit Operating Costs |
CAD/t milled |
Mining Extraction |
226.24 |
Technical Services |
28.90 |
Milling |
47.17 |
Environment |
1.76 |
Administration and
general Expenses |
17.01 |
Total Unit Operating cost |
320.67 |
A sensitivity analysis was performed to validate
the impact on NPV5% and IRR, before and after tax by varying the
gold price and capital costs. The results of the analysis are shown
in Tables 5 and 6 below; the base case is in bold in the tables.
Note that a sensitivity analysis was also carried out on revenues
and operating costs. The results of this evaluation can be found in
the PEA.
Table 5 : Sensitivity to Gold
Price
|
|
Before Taxes |
|
After Taxes |
(US$/oz) |
|
NPV5% (M
CAD) |
IRR (%) |
|
|
NPV5% (M
CAD) |
IRR (%) |
|
1 550 |
|
$30.1 |
21% |
|
|
$22.6 |
18% |
|
1 600 |
|
$39.6 |
25% |
|
|
$30.4 |
21% |
|
1 650 |
|
$49.1 |
29% |
|
|
$36.6 |
25% |
|
1 700 |
|
$58.6 |
33% |
|
|
$42.5 |
28% |
|
1 750 |
|
$68.1 |
37% |
|
|
$48.4 |
30% |
|
1 800 |
|
$77.5 |
41% |
|
|
$54.4 |
33% |
|
1 850 |
|
$87.0 |
45% |
|
|
$60.2 |
36% |
|
1 900 |
|
$96.5 |
48% |
|
|
$66.1 |
39% |
|
1 950 |
|
$106.0 |
52% |
|
|
$72.0 |
42% |
|
2 000 |
|
$115.5 |
55% |
|
|
$77.9 |
44% |
|
2 050 |
|
$124.9 |
59% |
|
|
$83.8 |
47% |
|
Table 6 : Sensitivity to Capital
Costs
|
|
Before Taxes |
|
After Taxes |
(%) |
|
NPV5% (M
CAD) |
IRR (%) |
|
|
NPV5% (M
CAD) |
IRR (%) |
|
-50 |
% |
|
$107.4 |
72% |
|
|
$75.4 |
60% |
|
-40 |
% |
|
$101.4 |
64% |
|
|
$71.2 |
53% |
|
-30 |
% |
|
$95.4 |
57% |
|
|
$67.0 |
47% |
|
-20 |
% |
|
$89.5 |
51% |
|
|
$62.8 |
42% |
|
-10 |
% |
|
$83.5 |
46% |
|
|
$58.6 |
37% |
|
0 |
% |
|
$77.5 |
41% |
|
|
$54.4 |
33% |
|
10 |
% |
|
$71.6 |
37% |
|
|
$50.1 |
30% |
|
20 |
% |
|
$65.6 |
33% |
|
|
$45.9 |
27% |
|
30 |
% |
|
$59.6 |
30% |
|
|
$41.7 |
24% |
|
40 |
% |
|
$53.7 |
27% |
|
|
$37.5 |
21% |
|
50 |
% |
|
$47.7 |
24% |
|
|
$33.3 |
19% |
|
Mineral Resources
Table 7 : Mineral Resources
Estimate
Mining Method (Cut-off Grade) |
Indicated Resources |
Inferred Resources |
MetricTonnes (t) |
Grade(g/t Au) |
Troy Ounces(oz Au) |
MetricTonnes (t) |
Grade(g/t Au) |
Troy Ounces(oz Au) |
Potential Long Hole(4.25 g/t Au) |
677,000 |
7.03 |
153,000 |
677,000 |
8.13 |
177,000 |
Potential Room & Pillar (5.0 g/t Au) |
78,000 |
7.98 |
20,000 |
207,000 |
10.67 |
71,000 |
Total |
755,000 |
7.14 |
173,300 |
884,000 |
8.74 |
248,300 |
Notes on Mineral Resource Estimates:
- The independent and qualified
persons, as defined by NI 43-101 are Olivier Vadnais-Leblanc, P.
Geo. and Eric Lecomte, ing, all from InnovExplo Inc. The effective
date is December 12, 2022.
- These mineral resources are not
mineral reserves because they do not have demonstrated economic
viability. The results are presented undiluted and are considered
to have reasonable prospects of economic viability. The 2022 MRE
follows the CIM Standards.
- The estimate encompasses 846
mineralized lenses that were modelled using a minimal geological
width of 0.5m using Genesis software.
- A density value of 2.85 g/cm3
(based on measurements and mine et mill reconciliation) was
assigned to all mineralized zones.
- High-grade capping supported by
statistical analysis was done on composites data and established at
95 g/t Au for all mineralized zones. Composites (0.5 m) were
calculated within the zones using the grade of the adjacent
material when assayed or a value of zero when not assayed.
- The exigence of a Reasonable
Prospect of Eventual Economical Extraction is fulfilled by the use
of cut-off grades based on reasonable mining parameters and locally
constrained within Deswik Stope Optimizer shapes using a minimal
mining width of 1.7 m for both potential methods. It is reported at
a rounded cut-off grade of 4.25 g/t Au using the long-holes (LH)
method, and 5.0 g/t Au, using the Room and Pillars (R&P)
method. The cut-off grades were calculated using the following
parameters: mining cost = C$213.96/t (LH) to C$261.56/t (R&P);
processing cost = C$35.10/t; G&A = C$22.09/t; gold price =
US$1,650.00/oz and USD:CAD exchange rate = 1.30. The cut-off grades
should be re-evaluated in light of future prevailing market
conditions (metal prices, exchange rates, mining costs etc.).
- The estimate was completed using a
sub-block model in Surpac 2022. A 4m x 4m x 4m parent block size
was used (1m x 1m x 1m sub-blocked). Grade interpolation was
obtained by Inverse Distance Squared (ID2) using hard
boundaries.
- The mineral resource estimate is
classified as Indicated and Inferred. The Inferred category is
defined with a minimum of three (3) drill holes within the areas
where the drill spacing is less than 75 m and shows reasonable
geological and grade continuity. The Indicated mineral resource
category is defined with a minimum of four (4) drill holes within
the areas where the drill spacing is less than 30 m and shows
reasonable geological and grade continuity.
- The number of metric tonnes was
rounded to the nearest hundred, following the recommendations in NI
43-101 and any discrepancies in the totals are due to rounding
effects. The metal contents are presented in troy ounces (tonnes x
grade / 31.10348) rounded to the nearest hundred.
- The independent and qualified
persons for the 2022 MRE are not aware of any known environmental,
permitting, legal, political, title-related, taxation,
socio-political, or marketing issues that could materially affect
the Mineral Resource Estimate.
PEA Detail
Mining Extraction
The Sleeping Giant project is an underground
mine that was operated until 2014. The operation extended from the
N-55 level to the N-1060 level. The mineralization consists of
numerous veins of gold. The mining plan consists of extracting
720,000 tonnes of ore, including new stopes that can be accessed
almost exclusively from existing levels. Production is split
between levels N-145 and N-1110 and will require rehabilitation of
the drifts, escapeway, shaft service compartment and existing
infrastructure. The stopes will be mined by the longhole,
Shrinkage, and room-and-pillar methods with a tonnage distribution
of 27%, 30% and 43%, respectively.
At full production, daily production will reach
350 tpd on 10-hour shifts on a continuous 7-day rotation. The
preproduction period will span a period of one and a half years.
The mining methods were established according to the geometry, in
particular the dip, of the various stopes. For the long hole
method, the sub-levels are distributed at an interval of 15
vertical meters. For the rooms and pillars method, the pillars left
in place have an area of 3 m x 3 m, while the rooms have a maximum
width of 6.0 m.
Abcourt currently owns the fleet of production
equipment needed to carry out the production plan (cavo, rail
loaders, various drills, etc.). A complete reconditioning of the
equipment was considered to ensure optimal operation at the start
of the work. Surface infrastructure remains unchanged; the ore
being processed on site with the existing plant.
Mineral Processing
The Sleeping Giant concentrator processed ore
from the Sleeping Giant mine from 1988 until 2014 and subsequently
processed ore from adjacent mines from 2016 until 2022.
The concentrator process consists of ore
crushing by a jaw crusher and two cone crushers in a closed circuit
with a screen, primary grinding by a rod mill followed by secondary
grinding by two ball mills in a closed circuit with cyclones.
Cyclone overflow feeds a thickener and subsequently a pre-aeration
tank, two leach tanks and four carbon-in-leach (CIL) tanks for a
leach time of 46 hours. Lead nitrate is added to the grinding
circuit to improve leaching. Once loaded with gold, the carbon is
pumped from the CIL to be screened and eluted. The stock solution
is directed to the gold room for electrolysis, sludge drying and
ingot casting.
The concentrator has a capacity between 700 and
750 tpd. It will be operated 12 hours a day for a daily production
of 350 t/d.
Surface Infrastructures and Tailing
Facility
A site visit was carried out in order to
validate the condition of the various surface and underground
equipment as well as the surface infrastructures. This made it
possible to estimate all the repair needed for a return to
production of the site. Overall, the process plant, headframe,
hoist buildings and other surface infrastructure were found to be
in good condition. However, at the processing plant, an upgrade
will be necessary for conveyors, crushing units, tanks and silos.
Existing buildings and access roads are well maintained and capable
of supporting activities related to a resumption of mining
operations.
To facilitate an effective workforce management
system, on-site accommodation and catering facilities have been
provided for workers on rotation. These will constitute the main
infrastructure investment required for the project. In total, an
investment of $4.6 million is planned for the repair and
construction of surface infrastructure, including drinking water
and wastewater services.
An amount of $6.4 million is planned for the
project for the reconditioning of the entire electrical network,
including the modification of the arrival of the 25 kV electrical
line from Hydro-Québec in order to include the various modules
associated with the accommodation.
Underground, the mine dewatering system is
currently in operation and all levels are accessible. Investments
in piping will have to be made over time to ensure the continuity
of operations. The emergency generator, which is mainly used for
dewatering, must be upgraded. Communication systems are functional.
In total, the reconditioning of surface and underground equipment
is estimated at $6,7 million, including an amount of $4.3 million
for process plant equipment.
For the mine tailing facility, certain work will
have to be carried out in order to be able to store the mine
tailings generated by the 720,000 t of ore milled in the
concentrator. It is expected that cells 1 and 2A currently in place
will be able to accommodate the tailings generated by the
concentrator following dike raising and dredging work during the
project. Cell 2 will continue to serve as a water recirculation
basin towards the processing plant, while Cell 3 will serve as a
polishing basin. The treatment of the tailing's mine waters before
their discharge into the environment will be carried out in a
manner similar to that of the last years of operation of the site.
In total, an amount of $10.9 million is planned for the development
of the tailing facility.
Environment and Restoration
Plan
The project is located in the southern part of
the territory of the Regional Government of Eeyou Istchee James
Bay. The regional government is responsible for the management of
these lands, which are public lands in the domain of the State.
The current project is considered an existing
mine, and not subject to the environmental and social impact
assessment and review procedure. The activities that will be
carried out fall within the framework of the Environment Quality
Act and the Regulation respecting the regulatory scheme applying to
activities on the basis of their environmental impact.
Abcourt currently has most of the certificates
of authorization allowing it to mine and process the ore. However,
a request for modification of certain existing authorizations will
have to be presented concerning work related to drinking water,
wastewater treatment and the tailing facility.
Restoration costs for the Sleeping Giant Mine
have been estimated at $12.1 million, taking into account the
dismantling of surface facilities, including new accommodation
facilities, water management infrastructure and the restoration of
the tailing facility. The restoration work is planned to take place
over 2 years.
Royalties
A 2.0% royalty was applied to the Sleeping Giant
project on all ounces of gold produced.
Qualified Persons
This PEA was prepared for Abcourt Mines Inc. by
InnovExplo Inc. and other industry consultants, all Qualified
Persons (QPs) under NI 43-101. The QPs have reviewed and approved
the contents of this press release. The affiliation and areas of
responsibility of each qualified person involved in the preparation
of the Sleeping Giant PEA are listed below.
Mr. Olivier Vadnais-Leblanc, géo |
(InnovExplo Inc.) |
Mr.
Eric Lecomte, ing. |
(InnovExplo Inc.) |
Mr.
Guy Comeau, ing. |
(Soutex) |
Mr.
Luc Boutin, ing. |
(WSP) |
Mr.
Marc L’Écuyer, ing. |
(Englobe) |
Mr.
Jacques Blanchet, ing., M.Sc. |
(Englobe) |
InnovExplo Inc. |
-
Mineral Resource estimate
-
Mine planning and design
-
Operating and capital costs estimate
-
G&A costs estimate
-
Financial analysis
|
Soutex |
-
Validation of the treatment process
-
Estimation of metallurgical performance
-
Estimation of the operating costs of the mineral treatment
plant
|
WSP |
-
Capital cost estimates for processing plant equipment and
infrastructure, surface and underground loading facilities.
-
Capital cost estimates for surface and underground power grid
|
Englobe |
- Authorizations and environmental
studies
-
Tailings facility design and costing
-
Environmental cost estimate and closure plan
|
Mr. Pascal Hamelin, ing, President and Chief
Executive Officer of Abcourt, has verified and approved the
technical information contained in this press release.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a Canadian exploration
corporation with strategically located properties in northwestern
Québec, Canada. Abcourt owns the Sleeping Giant mill and mine where
it concentrates its development activities.
ABOUT INNOVEXPLO INC.
InnovExplo Inc. is a consulting firm offering
services in mining exploration, mining geology, mineral resources,
mining engineering, environment, and sustainable development. Since
its founding in 2003, InnovExplo Inc. has worked on 450 different
mandates for 170 junior mining exploration and producing companies.
The firm has produced more than 300 geological or engineering
reports for projects affecting almost all the spheres of activity
of a mining project, from exploration to operation, including
mainly the drafting of technical reports in accordance with the
Regulation 43-101.
ABOUT WSP
One of the largest professional services firms
in the world, WSP mission is to shape the future of our cities and
our environment. To this end, we provide strategic consulting,
engineering and design services to our clients in the transport,
infrastructure, environment, building, energy, water and utilities
sectors. mines. Our 66,000 trusted professionals share the common
goal of having a positive and lasting impact on the communities we
serve, through a culture of innovation, integrity and inclusion.
Science and sustainability guide all of our work. In 2022, WSP
derived more than half of its CA$11.9 billion in revenue from
services that positively impact the environment and support the
United Nations Sustainable Development Goals (SDGs). The Company's
shares are listed on the Toronto Stock Exchange (TSX: WSP). To
learn more, visit https://www.wsp.com/en-GL
ABOUT SOUTEX
Soutex is a mineral processing and metallurgy
consulting firm that offers specialized process services. Founded
in 2000 and with offices in Canada (Quebec and Longueuil) and
Germany (Munich), Soutex includes more than 35 metallurgists,
process engineers and technicians. Soutex offers an excellent
combination of specialists with experience in plant operations,
engineering, technical services, and training.
ABOUT ENGLOBE
Englobe is a Canadian leader in the fields of
geotechnics, environment, engineering, soil and biomass treatment,
as well as in asset quality and integrity management. As a provider
of specialized services in these different spheres, Englobe
develops infrastructures for multiple clients in the private
(industrial, mining sectors) and public sectors in Canada and
elsewhere in the world.
For further information, please visit our
website at www.abcourt.com and consult our filings under Abcourt's
profile on www.sedar.com, or contact:
Pascal HamelinPresident and CEOT:
(819) 768-2857E: phamelin@abcourt.com |
Dany Cenac Robert, Investor
RelationsReseau ProMarket Inc.,T: (514)
722-2276, post 456E: dany.cenac-robert@reseaupromarket.com |
FORWARD-LOOKING INFORMATION
Certain information contained herein may
constitute “forward-looking information” under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
“plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”,
“believes”, “could”, “might”, “likely” or variations of such words,
or statements that certain actions, events or results “may”,
“will”, “could”, “would”, “might”, “will be taken”, “occur”, “be
achieved” or other similar expressions. Forward-looking statements
are based on Abcourt’s estimates and are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Abcourt to be materially different from those expressed or implied
by such forward-looking statements or forward-looking information.
Forward-looking statements are subject to business and economic
factors and uncertainties, and other factors that could cause
actual results to differ materially from these forward-looking
statements, including the relevant assumptions and risks factors
set out in Abcourt’s public documents, available on SEDAR at
www.sedar.com. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Although Abcourt believes that the assumptions and factors used in
preparing the forward-looking statements are reasonable, undue
reliance should not be placed on these statements and
forward-looking information. Except where required by applicable
law, Abcourt disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
The TSX Venture Exchange and its regulatory
service provider (as defined in the policies of the TSX Venture
Exchange) assume no responsibility for the adequacy or accuracy of
this press release.
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