ABI – THE UPDATE ON THE ABCOURT-BARVUE FEASIBILITY STUDY IS POSITIVE A MAJOR REDUCTION IN THE INITIAL CAPITAL COST IS EXPECTED
Rouyn-Noranda, Québec, Canada, February 8, 2019
Abcourt Mines Inc. (TSX-V: ABI, Berlin: AML-BE and Frankfurt Stock Exchanges: AMLFF) (“Abcourt” or the “Company is 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
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 AbcourtBarvue Deposit dated February 15, 2007, prepared by Genivar and Bumigene and filed on
The Abcourt-Barvue Project is located in the Abitibi area, northwestern Quebec, Canada, 60 km
north of the town of Val d’Or. The project is located on an existing mine site with several readily
useable infrastructures, in a very easily accessible area where all services may be obtained at
Abcourt commissioned PRB Mining Services Inc. (PRB) and Bumigeme Inc. (Bumigeme) to
update the 2007 feasibility study using current economic parameters, the Genivar 2007 pit
design, and modifying the process flowsheet to eliminate the silver cyanidation circuit and to
produce only a zinc-silver concentrate by flotation.
The zinc-silver mineralization was discovered in 1950. The Abcourt-Barvue deposit was in
operation during two periods: between 1952 and 1957 by Barvue Mines Limited and between
1985 and 1990 by Abcourt. In all 5,002,190 metric tonnes grading 38.74 g/t Ag and 2.98% Zn
were mined from the Barvue open pit and 632,319 metric tonnes grading 131.65 g/t Ag and
5.04% Zn were mined from underground production. The old Barvue tailings pond was recently
rehabilitated by the Ministry of Natural Resources of the province of Quebec. Abcourt retained
the mining concessions and surrounding cells to this day.
A mineral resource estimate was produced by Jean-Pierre Bérubé in 2014 titled NI 43-
101 Mineral Resources Report for the Abcourt-Barvue Property. 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:
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 Bérubé 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.
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
The open pit operation consists in the expansion and deepening of the Barvue pit and the
excavation of the Abcourt East and the Abcourt West pits over a period of 13 years. The pits
will be excavated to a depth of 166 m, 72 m, and 42 m respectively. The underground
operations consist in the mining of stopes from a depth varying from 150 m to 200 m below
surface to the pit bottoms using the Avoca method. The underground work areas will be
accessed by excavating declines.
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
An average of 32,000 tonnes of zinc-silver concentrate grading 52.7% Zn and 768 gpt Ag
will be produced annually.
The project preproduction capital cost is estimated to CA $ 41.3 M including a working
capital of CA $ 4.0 M, and the sustaining capital cost is estimated to C A $ 18.1 M. The
average operating cost is estimated to CA $ 39.94 tonne milled. 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
Here is a table comparing the results of the 2018 with the 2007 economic analysis for the
Abcourt-Barvue silver-zinc project:
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 economic analysis, with metal prices and the rate of exchange indicated
previously assuming 100% equity financing, results in a pre-tax cash flow of 170.0 million
Canadian dollars and $106.7 M $ after taxes. The pre-tax rate of return (IRR) is 26.1% and
20.5% after taxes. The pre-tax net present value (NPV) is 100.4 million Canadian dollars,
59.9 M $ after taxes, using a 5% discount rate. The pre-tax payback period is 4.9 years. A
sensitivity analysis on revenue, capital cost, and operating cost shows the project is most
sensitive to total revenue, (price of zinc and rate of exchange) followed by operating costs.
In comparison, the Genivar 2007 study’s economic analysis, with metal prices and the rate
of exchange indicated on the previous page, assuming 100% equity financing, returned a
pre-tax cash flow of 138.7 million Canadian dollars, 87.9 M $ after taxes. The pre-tax IRR is
27.1%, 21,4% after taxes, and a pre-tax NPV at 5% discount rate of 87.6 million 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
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
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 forwardlooking 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 CanadianUnited 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
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276 x456
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.