During these times, it is quite difficult to invest. So, I read about this content regarding Abcourt's positive feasibility study on a project. Does this really guarantee a good return of investment? Or are there any instances that the opposite happened?


Positive feasibility study for sleeping giant mine modest investment of only $5M high yield rate

Rouyn-Noranda, Quebec, Canada, August 7, 2019Abcourt Mines Inc. (TSX-V: ABI, Berlin: AML-BE and Frankfurt Stock Exchanges: AML-FF)(“Abcourt” or the “Mines Abcourt Inc.) announces that a technical report NI 43-101 entitledFeasibility Study on the Sleeping Giant Project was prepared by PRB Mining Services Inc. of Vald’Or, Quebec, Canada.Here is a summary of this technical report(1):General and HistoryThe Sleeping Giant mine is located 80 km north of Amos in north-western Quebec, Canada. It isaccessible via road 109 that connects Amos to Matagami. This is a paved road and it passes lessthan 1 km from the mine site. Material and services are available at competitive prices.The mine was exploited from 1988 to 2014. It has been maintained dry since its temporary closingin 2014 and no infrastructure has been taken out or added. Currently, the Sleeping Giant mill treatsore from the Elder mine owned by Abcourt Mines Inc. and occasionally, some custom ore. The millcapacity is 700 to 750 tonnes per day. The activated carbon process is used to recover gold.Historically, the gold recovery on the Sleeping Giant ore, at that mill is 97.5%.The tailings pond complies with all governmental regulations and the dykes and the quality of waterare checked every year by an external expert. The tailings pond has enough capacity to receivethe tailings from Elder and those from the Sleeping Giant mine as indicated in section 16 of thetechnical report. The setting pond at the discharge of the tailings pond is used to treat thedischarged water according to the rules and to control the quality of the water.Geology and MineralizationThe Sleeping Giant property is located in the central part of the north volcanic zone affected bymajor E-W and NW-SE corridors of deformation. The geological units in the mine area consist ofbasalt, andesite and volcano-sedimentary rocks. Mineralization is in disseminated sulfides, inveinlets or in small massive bands parallel to bedding. The best veins contain four types ofsulfides: pyrite, pyrrhotite, chalcopyrite and sphalerite, which make up from 5 to 60% of the veinfillings. Beside gold, the veins contain silver and small amounts of copper and zinc.Note 1: For more information, see Sedar. Mineral ResourcesThe mineral resources used in the feasibility study are extracted from a technical report preparedby Mr. Valère Larouche entitled “Estimation des ressources minérales de la propriété GéantDormant”, May 2019. The Sleeping Giant ore body contains 10,900 tonnes of measured resourcesgrading 12.20 g/t of gold (4,300 ounces of gold) and 475,625 tonnes of indicated resources with agrade of 11,20 g/t of gold (171,275 ounces of gold) and 93,100 tonnes of inferred resourcesgrading 11.85 g/t of gold (35,400 ounces of gold). Abcourt Mines inc. has identified somesubstantial exploration targets on existing levels of the mine, ignored in the past. The company isplanning an important exploration program and hopes to increase considerably its resources andreserves.Mineral ReservesThe mineral reserves are estimated at 339,221 tonnes grading 7.9 g/t of gold (85,690 ounces).These mineral reserves are probable.Mining MethodA mining plan has been prepared to extract 325,000 tonnes of reserves over a 4-year periodincluding one year of pre-production (25,000 tonnes) followed by the three years with an annualproduction of 100,000 tonnes per year. The remaining 14,221 tonnes of reserves, not extracted bythis mining plan, will be extracted later in subsequent operations following additional explorationand development work. There are good possibilities of extending the production period by doingadditional exploration work on the indicated resources excluded from the mining plan and on theinferred resources and converting the latter into measured or indicated resources and eventuallyinto reserves.The mineralization is typically in narrow veins. The dip varies between 30o and 80o. The miningmethods will be shrinkage and room and pillars. The long-hole method is not favored but will beused where the other methods are not adequate.Project InfrastructuresThe access to the Sleeping Giant is facilitated by road 109 that passes through the property at lessthan 1 km from the mine site. All surface installation necessary for the opening of the mine areavailable on the site. The mill and tailings pond are functional. Electricity is provided by HydroQuebec. Mine water is used for the mine and mill. Water from a well is used in lunch rooms, toiletsand showers. Telephone and internet services are provided by Telebec.MillThe process used in the mill to treat the gold ore is carbon in pulp. The mill capacity is 700 to 750tonnes per day. This capacity is sufficient to treat the Elder and the Sleeping Giant ores.Historically, the gold recovery in this mill has been 97,5%.Environment, Permits, Social Impacts and Closing PlanMining leases and certificates of authorization are valid. Studies are done regularly to comply withexigencies of the provincial and federal environmental laws and regulations. The waste rock is notacid generating and do not leach heavy metals. The re-start of the Sleeping Giant mine will have apositive economic impact on the region by creating about 100 jobs and by the local purchase ofmaterial and services. A closing plan was updated and filed with the ministry of “Energie et Richesses Naturelles duQuébec” in October 2018. The estimated cost of restoration and closing by Abcourt is $3.6M. Anamount of $4M has already been deposited in trust with the ministry of “Energie et RichessesNaturelles du Québec”. Hence, no additional amount is needed and it is not necessary to includethis amount in the financial analysis.Capital and Operating CostsThe capital cost for the pre-production of the Sleeping Giant mine is estimated at $4.6M, includingoperating costs of $8.5M, royalties for $0.125M, capital expenditures of $3.4M, a working capital of$1.3M and revenues of $8.7M. The pre-production period is 12 months. During the productionperiod, the sustaining costs are $2.7M including on going capital expenditures of $4.0M and arefund of $1.3M in working capital.Total operating costs during the production period are $52.4M for an average of $174.84 per tonnetreated. Royalty payment of $1.375M are not included in this amount.Enable GingerCannot connect to Ginger Check your internet connection
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