Ticker: ABI Abcourt Mines Inc is a emerging gold producer with 2 gold mines, 1 zinc-silver mine and several gold and zinc projects in Quebec, Canada.

The company has two operating segments, being the producing of a gold mine segment ( Shortly a second will be in active production) , and the acquisition, exploration and evaluation of mining properties.

All of the company’s activities are conducted in Canada, and generates majority of the revenue from producing of a gold mine segment.

Here is company info and share structure from their business presentation.

  • Shares outstanding 290.9 Million
  • Options 7.8 Million
  • Warrants 290.9 Million
  • Fully diluted 292.3 Million
  • Market Cap 15 Million
  • Actuel Share price $0.085
  • 52 Weeks hight/low$0.05 – $0.10
  • Actual gold production 18 000 Oz /year

    The Elder Mine and Tagami Property

    The Elder mine and Tagami Property is conveniently located 10 kilometres northwest of the mining community of Rouyn-Noranda, Quebec, and is 100% owned by Abcourt.  The Property comprises 36 contiguous claims, a mining concession and two mining leases.  There are royalties of 2% to 3% NSR payable on different parts of the Property.

    The surface plant includes an office, a service building, a hoist room and a shaft building. The mine is serviced to a depth of 794 meters (2,606 feet) by two shafts and several drifts on 16 levels. All mining equipment and required facilities are in place.

    Between 1984 and 1989, a total of $23 M was spent on this property by the Aunore Resources Inc – Nova Beaucage Mines Limited joint venture. The surface plant was installed and the necessary equipments were purchased. The mine was dewatered, 4,268 meters (14,000 feet) of old drifts were rehabilitated, the shaft was deepened 15 meters (50 feet), new stations were established on three upper levels, in no 2 shaft, that is the 4th, 5th and 6th levels, an ore pass and a waste pass system with loading pockets was established, 142 surface and 75 underground diamond drill holes were drilled, approximately 2,134 meters (7,000 feet) of new drifts were excavated, ventilation raises were driven and a few stopes were started. Approximately 13,200 metric tonnes of ore with a grade of 0.198 oz/mt of gold were extracted. Following a drop in the price of gold, the mine was closed and almost all mining equipment was sold, except important pieces of equipment like the hoist, compressors and the electrical distribution system.

    From 1995 to 2013, several surface drilling programs were completed and results obtained were used to revise the 43-101 resources. The revision of resources was completed by Mr. Jean-Pierre Bérubé, P. Eng. Mr. Bérubé is a Qualified Person under Regulation 43-101.  Based on these resources, a preliminary economic assessment report (PEA) was prepared to determine if additional exploration work was needed to increase resources before considering mine development before production.  The PEA prepared by Roche Ltd., Consulting Group (Roche) and independent consultants indicated that enough resources were available to continue with our exploration and valuation work.

    Commercial operations at the Elder mine started in January 2016. For results obtained since the start of commercial operations, please refer to the Company’s management’s discussion and analysis and financial reports filed on SEDAR and available on the Investors Relations section.

    On October 31, 2018, Abcourt filed on SEDAR an Update Report of Resources on the Elder Mine and Tagami Property prepared by Mr. Jean-Pierre Bérubé according to Regulation 43-101.

    Cross-section of the Elder mine.

    The ore in vein no. 1 is found in several quartz veins generally striking N-40o–E on surface but east-west at a depth of 305 meters (1,000 feet) in the mine and dipping on the average at 22o to the south-east, with the exception of the vein no 4 which is striking north-south and dipping 22o to the east. The CDR vein is located 4,500 feet (1,377 m) south of vein no. 1.

    Table of Resources and Parameters Used

    As of May 31, 2018, mineral resources in the measured and indicated categories were as follows:

    (metric) (g/t Au) (metric) (g/t Au) (metric) (g/t Au) (Oz)
       VEIN 1 32,607 5.09 159,502 6.91 192,109 6.60 40,755
       VEIN 2 5,343 5.36 75,957 6.39 81,300 6.32 16,516
       VEIN 3 0 0.00 15,321 6.27 15,321 6.27 3,088
       VEIN 4 18,181 6.35 104,176 6.26 122,357 6.28 24,691
       VEIN 6 0 0.00 52,739 6.53 52,739 6.53 11,077
       SUB-TOTAL 56,131 5.52 409,695 6.57 463,826 6.45 96,126
    TAGAMI 0 0.00 174,258 6.22 174,258 6.22 34,848
    TOTAL 56,131 5.52 581,952 6.47 638,083 6.38 130,974

    The total measured and indicated resources for Elder and Tagami is 638,083 tonnes with a grade of 6,38 g/t.

    In addition, the inferred resources total 547,746 tonnes with a grade of 5.48 g/t Au.

    (metric) (g/t Au) (Oz)
       VEIN 1 119,276 5.41 20,749
       VEIN 2 75,051 5.70 13,755
       VEIN 3 43,847 5.37 7,571
       VEIN 4 102,169 7.89 25,920
       VEIN 6 39,808 5.36 6,877
    SUB-TOTAL 380,251 6.12 74,872
    TAGAMI 167,495 5.48 29,510
    TOTAL 547,746 5.93 104,382

    The technical parameters used for the calculation of the measured and indicated resources and the inferred resources were:

    • Density: 2.70 t/m3, minimum thickness: 1.8 m
    • Lower cutting grade  = 3.45 g/t Au
    • Higher cutting grade = 31.1 g/t Au


    Resources with a reasonable prospect for eventual economic extraction

    (metric) (g/t Au) (metric) (g/t Au) (metric) (g/t Au) (metric) (g/t Au)
    MEASURED 56,131 5.52 47,711 5.52 19,084 0.00 66,795 3.94
    INDICATED 407,695 6.57 346,541 6.57 138,616 0.00 485,157 4.69
    TOTAL 463,826 6.45 394,252 6.32 157,700 0.00 551,952 4.51

    Here is the CIM definition of resources:

    A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.”


    A preliminary economical analysis was prepared according to the net present value method. This method is built on the basis of a constant dollar. There is no provision for inflation nor for taxes to pay. The mine is presently in exploitation, without debt. The internal rate of return was not used as the mine is operating and there is no initial investment. This update was prepared by Renaud Hinse, mining engineer. As resources did not increase by 100% or more, it was not necessary to have an independent person.


    The hypothesis used are indicated in the table below. The sensitivity analysis is made for variations in the price of gold of plus and minus 10%.

    Price $US / ounce 1,230
    Exchange Rate Cdn / US 1.30
    Discount Rate Annual % 8

    The cost of royalties is already incorporated into operating costs.

    Technical Hypothesis

    Recoverable measured and indicated resources Tonnes 551,953
    Annual rate of extraction Tonnes / year 130,000
    Life of mine Years 4.25
    Grade of mineralization g/t Au 4.51
    Gold recovery in mill % 97
    Net recoverable value $ Cdn/t 224.74
    Annual gold production Ounces 18,300
    Ongoing capital costs $ Cdn/t 19.19
    Total operating costs per tonne $ Cdn/t 191.24
    Gold refining $ Cdn/oz 1.31

    Financial model and results

    A summary of the technical hypothesis is given in the table above. A total revenue at the mine of $124 M is expected, that is $224.74 per tonne. Ongoing capital expenditures, necessary in the course of mining, is estimated at $10.6 M, that is $19.19 per tonne of recoverable measured and indicated resources.

    Operating costs are $191.24 per tonne for a total of $105.4 M, including $6.89 per tonne of royalties for a total of $3.8 M. A working capital of about $2.5 M is necessary to cover about one month of operation costs, but this amount was already available on June 30, 2018.

    The financial analysis shows a net cash flow of $7.9 M before taxes and $4.1 M after taxes. The net present value, discounted at 8%, is $6.5 M before taxes and $3.5 M after taxes.

    Summary of project evaluation

    Total mine revenue 124,000,000
    Ongoing capital expenditures 10,600,000
    Total operating expenses including royalties 105,600,000
    Net cash flow before taxes 7,900,000
    Net cash flow after taxes 4,200,000

    Quality Control and Assurance

    In its operations, Abcourt applies a procedure for the three methods of sampling used: drill core (series D), chips (series F) and broken muck (series M), to reconcile grade with the ounces produced at the Sleeping Giant mill. The lab is directed by a chief analyst with adequate experience in this domain. This lab maintains an internal quality control program. Assay results of blanks, duplicates and standards appear regularly (3/24) on assay reports.

    Check assays done for 15 chip samples (F) and 10 muck samples (M) done by an accredited laboratory (ALS-Chemex) indicate that the assay results from both laboratories have a very good coefficient of correlation (R2=0.975) for sample M18465.

    The Sleeping Giant Mine (gold)

    The Sleeping Giant Mine

    In June 2016, Abcourt completed the acquisition of the Sleeping Giant mine and mill and several other properties with excellent showings of gold.

    The Sleepy Giant property is 100% owned by Abcourt since its purchase in June 2016.  The property is located half-way between Amos and Matagami, in Abitibi, Quebec, in the territory covered by the Plan Nord of the Quebec government. It comprises four (4) mining leases covering an area of approximatively 458 hectares and 69 mining claims.  A royalty of $5.00/ton on the first 350,000 tons of ore extracted from the Sleepy Giant property is payable.

    Among the assets that Abcourt has acquired, there is a mill with a capacity of 700 to 750 tonnes of ore per day, or 250,000 tonnes per year. This capacity is adequate to treat the Elder and the future Sleeping Giant production. The process is carbon in pulp. There are also installations to deposit the mill tailings, underground infrastructures including two shafts and drifts, a mechanical shop, offices, a store, dries and mining equipment, surface installations, an important inventory of parts, five (5) mining leases and forty (40) adjacent cells and several other exploration properties.

    The treatment plant was restarted by Abcourt in August 2016 to process ore from the Elder Mine and custom milling to utilize the full capacity of the mill.

    In September 2018, a NI 43-101 resource calculation has been prepared by Jean-Pierre Bérubé, geological engineer. Mr. Bérubé is a qualified and independent person under National Instrument 43-101 and has relevant experience in this area.

    A summary of Measured, Indicated and Inferred Resources is presented in the following table:

    Tonnes Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t)
    J 46,802 9.88 46,802 9.88 13,806 5.70
    D 37,920 8.64 37,920 8.64 10,948 9.60
    2 5,447 13.28 5,447 13.28 1,280 7.80
    3 40,510 9.54 40,510 9.54
    6 15,434 8.60 15,434 8.60 18,483 16.64
    7 31,199 10.42 31,199 10.42
    8 3,350 6.26 3,350 6.26 3,627 9.87
    8 Sig 18,434 9.59 18,434 9.59
    8N 2,993 15.50 11,368 10.44 14,361 11.49
    9 12,297 7.08 12,297 7.08
    15 15,664 13.86 15,664 13.86 13,619 8.07
    16 15,816 11.10 15,816 11.10 22,165 15.36
    18 9,497 14.33 9,497 14.33 2,096 10.80
    20 9,763 10.79 9,763 10.79
    30 8,418 10.09 8,418 10.09
    30 Parc 4,981 10.70 4,981 10.70
    30FW 6,155 8.43 6,155 8.43
    30HW 2,303 6.46 2,303 6.46
    30W 31,532 13.29 31,532 13.29 4,324 14.50
    30 Shadow 26,120 8.89 26,120 8.89
    50 2,020 6.93 10,182 10.67 12,202 10.05 1,434 13.40
    78H 5,902 12.28 5,902 12.28 1,290 7.00
    785N 112,440 14.27 112,440 14.27
    Total 10,915 12.17 475,633 11.17 486,548 11.20 93,073 0.00
    Rounded 10,900 12.20 475,625 11.20 486,500 11.20 93,100 11.85

    Calculation Criteria Used:

      • Cut-off grade of 6.5 g/t Au. Some polygons under this cut-off grade were included to ensure the continuity of the zones.
      • Price per ounce of gold at US $1,225 (3 years average) and an exchange rate of US $1 = Can $1.20.
      • Maximum content: 60 g/t Au for core samples and 55 g/t Au for chip samples.  A grade of 32 g/t Au was applied for the polygons generated by the 2013-2014 drilling.
      • Specific Gravity: 2.85 g/cm3 as used in previous resource estimates.
      • Resources were evaluated from diamond drill samples and face samples using the polygon method applied to inclined longitudinal sections.
      • The minimum true thickness of the veins is calculated from its dip; 1.6 metre for veins having more than 50° and 1.8 metre for those having less than 50°.
      • The vein content is determined by the drilling intersection and the content of the adjacent material to meet a minimum thickness of 1.6 or 1.8 metre.
      • One Troy ounce = 31.1035 grams. The metric system was used for these calculations (metres, tonnes and grams/tonne).
      • Calculated tonnes have been rounded to the nearest hundred.  Differences in the calculation total are due to rounded figures as recommended by NI 43-101.
      • ICM definitions and guidelines were used for this resource calculation.

    Plan view of level 665 showing drifts and cross-cuts in known mineralized areas and the geological context


    Considering the potential sources of errors that a laboratory may encounter in the context of large-scale sampling.  Previous owner, Aurbec Mines Inc. (“Aurbec”), introduced a Quality Assurance and Quality Control (QA/QC) program in 2013-2014. This program consisted of; 1) the use of a control laboratory (Agat) to verify the accuracy of pulps and rejects results; 2) the insertion of blanks to control the sources of contamination; 3) the insertion of pulps in renumbered core sample rejects whose gold content was known to evaluate the reproducibility of the results; and 4) insertion of Rocklabs certified referenced material.

    Core samples taken from diamond drill holes were split in two equal parts with a core splitter by Aurbec’s employees. One half of the carrot was prepared to determine its gold content while the other half was kept in the core box. The whole core from definition drilling samples was analyzed at the mine’s laboratory.

    The reception and preparation of samples at the mine’s laboratory was done according to the accepted standards of the industry. The steps of drying, grinding (80% passing 10 mesh), splitting and pulverization were followed to produce 200 grams of pulp of which 80% passes a 200-mesh screen. A pulp fraction weighing just under 15 grams (half assay-ton) was used to determine the gold content of each sample.  Although this quantity of pulp is one-half that used in the industry (one assay-ton) for gold determination made during exploration programs, it is considered sufficient when used for mining sites given the large number of samples taken by producing mines. The analytical method consisted of pyro-analysis with an atomic absorption finish. The method has a detection limit of less than 0.01 g/t Au.

    After having examined Aurbec’s internal protocol for controlling analytical results and compared 588 pulps and rejects made by an accredited external laboratory (Agat), the author is of the opinion that the manipulation, sampling and analysis of core samples, as performed at the mine’s laboratory, are consistent with current industry standards.

    Moreover, considering that:

      • the gold mineralization of the VMS-type vein deposits (which includes the Sleeping Giant gold deposit) is, by its nature, distributed more homogeneously than the gold contained in the classical vein deposits;
      • the validation work done by InnovExplo in 2013 from drillings carried out prior to 2013, in areas also targeted by the 2013-2014 drilling program, concluded that the drilling database was adequate and reliable; and
      • the update of the diamond drillhole database was done by a qualified geologist having an extensive experience of the Sleeping Giant geology.

    The author’s report is of the opinion that the analytical results of the Sleeping Giant mine’s laboratory can be used safely for this mineral resource estimate.


Abcourt-Barvue Property (silver and zinc)


The Abcourt-Barvue property is conveniently located at Barraute, 60 kilometers (35 miles) north the mining community of Val-d’Or, Quebec. It covers 4,755 hectares with 103 claims and two (2) mining concessions held 100% by Abcourt.




In 1950, zinc was discovered on surface on the Barvue claims. The mine was operated from 1952 to 1957 with an open pit by Barvue Mines Limited and from 1985 to 1990 with an underground operation by Abcourt Mines.

Historical picture of Barvue mine (1952-1957)

From 2002 to 2007, several drilling programs, technical and environmental studies were completed or were done to provide data for a feasibility study and to support our applications for permits. Subsequently, various alternatives were considered to improve the profitability of this project.

In May 2006, a revision of the Abcourt-Barvue resources was completed by an independent qualified person, Mr. Jean-Pierre Bérubé, P.Eng., consultant for MRB & Associates of Val-d’Or, Québec, Canada. This revision was made according to NI 43-101 Standards.

Genivar, Limited Partnership of Quebec City and Bumigeme of Montréal, completed a feasibility study, which was published in February 2007 and amended in November 2010. With this feasibility study, almost all the resources were converted into proven and probable ore reserves.

Update of the feasibility study

An update of the feasibility study of 2007 was prepared by Mining Services PRB inc and Bumigene Inc over the last few months 2018, in a report complying with NI 43-101. This report was filed on Sedar on February 2019 (french only).

Mineral reserves

The 2018 mineral reserves estimate, including dilution, are presented in the following table in comparison with the 2007 estimate.

  2007 Estimate 2018 Estimate




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


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


1)  Zn Eq grades are calculated with 2018 parameters for this table.

2)  Silver zinc equivalence:   0,61% Zn = 1 oz Ag

Mining Plan

A mine plan was developed for the 2018 mineral reserves using the Genivar (now WSP Canada) 2007 pit design and underground mine design. The 2014 mineral resource diluted and recovered produced a total of 8,074,162 tonnes of mill feed grading 2.83% Zn and 51.79 gpt Ag, of which 6,589,361 tonnes (81.6%) will be produced in open pit operations and 1,484,801 tonnes (18.4%) will be produced in underground operations. The life of mine is 13 years. There are good possibilities of increasing the life of mine by converting inferred resources into proven and probable reserves and by finding new reserves with additional exploration.

Mineral processing

Historical mineral recoveries during the Barvue production period were over 90% for zinc and 77% for silver. In 2017, metallurgical tests were performed in several laboratories. The cyclic flotation tests realized on the ore of Abcourt-Barvue have shown the possibility to recover 97.5% of the zinc and 77.8% of the silver in a Zn-Ag concentrate assaying 53.4% Zn and 740.6 g/tm Ag.

The processing plant remains at a mill capacity of 650,000 tonnes per year but the circuit was modified by eliminating the cyanidation circuits to produce only a zinc-silver concentrate.

Minor changes were brought to the surface infrastructure such as the installation of new 25kV power line on the site and the relocation of the waste rock stockpiles.

An average of 32,000 tonnes of zinc-silver concentrate grading 52.7% Zn and 768 gpt Ag will be produced annually.

The analysis and results of the 2018 economic study are available in the report tabled in February 2019 (french only).