Vancouver, British Columbia. (December 15th, 2010) Abacus Mining & Exploration Corporation (TSXV: AME “Abacus”) is pleased to announce the signing of an advanced exploration agreement between KGHM Ajax Mining Inc. (“KGHM Ajax”) and Stk’emlupsemc te Secwepemc (“STS”), represented by the Tk’emlups and Skeetchestn Bands.
The agreement confirms the intention of both parties to work together through all mineral exploration and related activities in a spirit of partnership and collaboration to build a positive and mutually beneficial relationship in facilitating exploration work and advancing the Ajax copper-gold project (the “Project”). KGHM Ajax will ensure that the exploration work is carried out so as to minimize the disturbance of the natural environment with assistance of individuals from STS, and providing sufficient opportunity for STS to comment on proposed activities prior to the submission of permit or like applications. STS for its part, agrees not to oppose any application by or on behalf of KGHM Ajax in connection with the exploration work or permits associated with the Project.
Prior to the completion of the Feasibility Study, the parties agree to negotiate in good faith towards commercially reasonable service agreements, including the participation of individuals from STS during performance of archaeological work and cultural heritage review. This will be followed by a long-term definitive “Working Interest Agreement” upon determination of the Project’s economic viability at the completion of the Feasibility Study expected to be completed in 2011.
Chief Shane Gottfriedson of the Tk’emlups Band commented, “We look forward to supporting the advancement of the Ajax mining project through a positive and mutually beneficial relationship with KGHM Ajax represented by Abacus and KGHM Polska Miedz S.A. Our participation in the growth of mining through employment and training will ensure that our people benefit from the development of our traditional territory.” Chief Rick Deneault of the Skeetchestn Band added “We look forward to the negotiations on the final agreement which will be more comprehensive than other agreements already in place with other mining interests in our Territory.”
Jim Excell, President and CEO of Abacus Mining added, “Abacus recognizes the rights, culture and aspirations of our First Nation partners, at all times respecting the environment and traditional knowledge. Engaging the local communities early in this process ensures that we move forward in a spirit of mutual respect, creating the foundation for a positive long term partnership for the benefit of all parties.”
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
James D. Excell
President & CEO
Director, Investor Relations
For further information, please contact:
Tim Mikula, Investor Relations, firstname.lastname@example.org 866-834-0301
Abacus Mining is an exploration and mine development company focused on the development of the Ajax copper-gold project located 10 kms southwest of Kamloops, B.C. with joint venture partner KGHM Polska Miedz SA. The project has a positive preliminary economic assessment report (June 22, 2009) that 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.
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.