Abacus Mining & Exploration Corporation TSXV:AME in joint venture with KGHM Polska Miedz SA announced the results of an NI 43-101 feasibility study on the Ajax project, located in southwest Kamloops, BC. The report found proven and probable mineral reserves of 3 billion pounds copper and 2.7 million ounces gold. The project is estimated to have a 23-mine life at a processing rate of 21.9 million tonnes of ore per year with initial capital costs of $795 million. At an 8% discount rate, Ajax is calculated to have a pre-tax net present value of $416 million and internal rate of return of 14.5% in the base-case scenario. The project is owned 49% by Abacus and 51% by KGHM.
Abacus President/CEO James D Excell stated, “The feasibility study confirms the economic viability of the Ajax Project at long-term copper and gold prices, and demonstrates the leverage to increases in metal prices. At recent market prices the project is very robust and the NPV nearly quadruples from the base case with an associated 2.2 year payback of initial capital. The delivery of the feasibility study is a pivotal milestone for Abacus and advances the Ajax Project along the critical path to production start-up targeted for 2015. The Ajax Mine economics compare very favorably to the leading copper projects being developed around the world given its long life, location, open-pit mining and conventional processing. The mine also represents a small portion of the 8,000-hectare copper-gold camp. We look forward to developing the Ajax Project with our world class partner, KGHM.”
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Abacaus Mining & Exploration Corporation
James D. Excell
or Donna Yoshimatsu
Director, Investor Relations
by Ted Niles