The Update ON the Abcourt-Barvue Feasibility Study is Positive a Major Reduction IN the Initial Capital Cost is Expected _____________________________________________________________
FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
February 8, 2019
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: AML -
FF) (“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 W est, and the deve lopment of an underground mine to produce a zin c-silver
concentrate
This National Instrument 43-101 Technical Report on the Abcourt -Barvue Project was prepared
to present the findings of an update to the Techn ical Feasibility Study Repor t on the Abcourt-
Barvue Deposit dated February 15, 200 7, prepared by Genivar and Bumigene and filed on
Sedar.
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
competitive prices.
Abcourt co mmissioned 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 c ircuit and to
produce only a zinc-silver concentrate by flotation.
HISTORY
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.
MINERAL RESOURCES
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 stud y.
Here is a comparative table of resources in all categories:
Resources of all categories
2006 Estimate 2014 Estimate
CATEGORY TONNES Ag (g/t) Zn (%) TONNES Ag (g/t) Zn (%)
Measured 6,516,000 58.32 3.33 6,284,000 43.98 3.09
Indicated 503,000 98.35 3.44 1,799,000 95.51 2.94
M + I 7,019,000 61.19 3.33 8,083,000 55.45 3.06
Inferred 1,506,000 120.53 2.98 2,037,000 114.16 2.89
The measured resources are generally extending from surface to a maximum depth of 1 65
meters. The indicated re sources are generally located in the immed iate 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 ta ble in
comparison with the 2007 estimate.
Mineral Reserves
2007 Estimate 2018 Estimate
Tonnage
Grade
Tonnage
Grade
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
Underground
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
Note: 1) Zn Eq grades are calculated with 2018 parameters for this table.
2) Silver zinc equivalence: 0,61% / 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 p ossibilities of increasing the life of mine by converting inferred
resources into proven and probable reserves and by finding n ew reserves with add itional
exploration.
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 1 66 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 p it bottoms using the Avoca method. The underground work areas will be
accessed by excavating declines.
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 pr oduce 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.
ECONOMIC ANALYSIS
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 CA $ 18.1 M. The
average op erating 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 purchas e during the past few years of mill
equipment, now on the site, and the rental of pit equipment in 2018 instead of the purchase
in 2007.
Here is a table compar ing the results of the 2018 with the 2007 economic analysis for the
Abcourt-Barvue silver-zinc project:
For 100% equity financing 2007
$
2018
$
Operating profit 234.3 M 225.4 M
Pre-tax cash flow 138.7 M 170.0 M
After tax cash flow 87,9 M 106,7 M
Pre-tax internal rate of return (IRR) 27.1% 26.1%
After tax internal rate of return (IRR) 21.4% 20.5%
Pre-tax net present value (NPV) 5% 87.6M 100.4 M
After tax net present value (NPV) 5% 53.2 M 59.8 M
In 2018, p roject revenues were e stimated 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 w ere 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 pric es and the rate of exchange in dicated
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 capaci ty of the Sleeping Giant m ill by t reating 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 w here s ubstantial go ld mineralization is
found.
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
Elder mine.
The Abcourt -Barvue property has silver –zinc res erves (2019). A fe asibility stu dy 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 territ ory covered by th e Plan Nord o f the Quebec
government. The mill has a capa city 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 Ab court Mines Inc. (TSXV: ABI), pleas e visit our web s ite at
www.abcourt.com and consult our filings under Abcourt’s profile on www.sedar.com.
This press release was prepared by Mr. Renaud Hin se, Engineer and President of Abcourt
Mines Inc. Mr. Hinse is a “Qualified Person s” under the terms of Regulat ion 43 -101. Mr.
Hinse has approved the scientific and technical disclosure.
FORWARD LOOKING STATEMENTS
This news release contains forward -looking statements that include ri sks and uncertainties.
When used in this news releas e, the words "estimate", "pro ject", "anticipate", "expect" ,
"intend", "believe", "hope", "may" and similar expressions, as well as "will", " shall" and other
indications of future tense, are intended to id entify forward-looking statements. The forward-
looking 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 responsib ility 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 resul ts to differ materially from those indicated in such
forward-looking sta tements include changes in the prevailing pr ice of gold, the Canadian-
United States exchange rate, gra de o f ore mined and unforeseen difficulties in mining
operations that could affect revenue and production costs. Othe r 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
Email: [email protected]
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276 x456
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policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.