VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/02/10 -- Abacus Mining & Exploration Corporation ('Abacus' or the 'Company') (TSX VENTURE: AME) reports on the status of its 18,000 metre, 65 hole diamond drill program currently underway at the Company's joint venture Afton-Ajax project located 10 kms southwest of Kamloops, B.C.
Since the program commenced during the summer, Abacus has completed 15 holes of exploration drilling, targeting the eastern contact of the host Sugarloaf Diorite beyond the Ajax East pit (the Ajax East Extension area). This is in follow-up to last winter's drill campaign which successfully outlined new zones of near-surface, higher grade copper-gold mineralization, while deeper drilling confirmed the existence of continuous, down-dip mineralization to depths of at least 500 metres below surface - similar to the main Ajax deposit which remains open at depth. Highlights of exploration drilling from the current program indicate that several holes intercepted significant mineralization.
In addition, seven infill drill holes were completed near the perimeter of the main Ajax deposit area where previous drilling has identified inferred resources. Drilling for the remainder of this program will concentrate on infill drilling in, around, and between the Ajax East and West pits where approximately 85% of the 502 million tonnes of current 43-101 compliant estimated pit inventory resource is classified as measured and indicated. The infill drilling program has as its objective to convert what is now classified as inferred resources to measured and indicated status. In total, five diamond drills will be utilized towards the program's completion prior to year end.
Highlights of significant exploration drill results available to date:
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AJAX EAST EXTENSION EXPLORATION DRILLING
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From Length Length
Section Hole No. Dip Deg Az. Deg (m) To (m) (metres) (feet) Cu % Au g/t
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1700N AM-10-066 -90 0 27 99 72 236.2 0.61 0.35
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1700N AM-10-068 -75.5 301.1 28 94 66 216.5 0.36 0.24
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incl 28 79 51 167.3 0.43 0.29
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1700N AM-10-069 -75.3 120.7 107 115 8 26.2 0.49 0.28
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and 216 242 27 88.6 0.32 0.14
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1500N AM-10-067 -73 137.1 125 138 13 42.7 0.24 0.04
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1175N AM-10-054 -63.7 356.7 116 125 9 29.5 0.40 0.16
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and 235.17 250 14.83 48.7 0.38 0.40
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2400E AM-10-061 -60.8 74.5 284.5 344 59.5 195.2 0.32 0.19
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incl 284.5 317 32.5 106.6 0.43 0.24
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and 129 159 30 98.4 0.24 0.31
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Highlights of significant infill drill results available to date:
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AJAX EAST PIT AREA INFILL DRILLING
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From Length Length
Section Hole No. Dip Deg Az. Deg (m) To (m) (metres) (feet) Cu % Au g/t
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1275N AE-10-065 -70.3 297.8 27 409 382 1253.3 0.36 0.30
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incl 27 164 137 449.5 0.52 0.48
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incl 47.45 59.5 12.05 39.5 0.85 0.90
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incl 80 131 51 167.3 0.88 0.74
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incl 255 276 21 68.9 0.69 0.40
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1525N AE-10-064 -70.7 001 104.25 141 36.75 120.6 0.28 0.30
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incl 132 141 9 29.5 0.52 0.85
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462 496.95 34.94 114.6 0.27 0.26
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Previous drilling indicating the presence of extensions of the mineralized Sugarloaf Diorite within an offset block immediately north of the east-southeast trending East Pit Fault (EPF) demonstrated the Diorite to be at least 200-300 metres thick. About 200 metres along strike to the northeast, it is believed that a second parallel fault may be encountered and further offset the Diorite in a similar fashion to the EPF. More drilling is planned to continue to define and test the intrusive/volcanic contact area to the north.
Continued drilling in the Ajax East Extension could provide additional tonnage to the Ajax deposit which will have a positive impact on the project's economics. This data will be incorporated into the Company's Feasibility Study currently underway.
As per the existing NI-43-101 compliant Preliminary Economic Assessment, the Ajax deposit is currently estimated to contain an in-pit measured and indicated resource of 2.6 billion pounds copper and 2.4 million ounces gold; plus an inferred resource of 0.3 billion pounds of copper and 0.3 million ounces of gold, sufficient to support a 60,000 ton per day mining operation producing an average of 110 million pounds of copper and 100,000 ounces of gold in concentrate annually over a 23 year mine life. (See 43-101 compliant Ajax Copper/Gold Project, Kamloops, BC Preliminary Assessment Technical Report by Wardrop Engineering Inc., July 22, 2009).
The exploration program is being managed by Robert G. Friesen, P.Geo., the Company's Senior Exploration Manager, who is a Qualified Person within the meaning of National Instrument 43-101.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
Jim Excell, President & CEO
Donna Yoshimatsu, Director, Investor Relations
dyoshimatsu@amemining.com
About Abacus
Abacus is an exploration and mine development company with a 43-101 compliant positive preliminary economic assessment report (June 22, 2009) for its Ajax copper/gold project located 10 kms southwest of Kamloops, British Columbia. The report contemplates a 60,000 tonne per day operation producing an average of approximately 110 million pounds of copper (approx. 50,000 tonnes) and 100,000 ounces of gold in concentrate annually. Sensitivity analyses approximating metal prices (US$3.00 per pound copper and US$1,000 per ounce gold) in the assessment indicate a NPV of $1.46 billion discounted 8% over a 23 year mine life, with an IRR of 35.4%, cash costs of $0.90 per pound copper, and payback of 2.0 years. The Ajax extension remains open along strike and at depth. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Forward-Looking Information
This release includes certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corp. (the 'Company') expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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.
Contacts:
Abacus Mining and Exploration Corp.
Tim Mikula
Investor Relations
866-834-0301 or 604-682-0301
604-682-0307 (FAX)
tmikula@amemining.com
www.amemining.com
