Abitibi Royalties announces gold reserve and resource estimates

Stockhouse Editorial
0 Comments| March 6, 2013


Abitibi Royalties Inc. (TSX: V.RZZ, Stock Forum) announced the year-end 2012 gold reserve and resource estimate, completed by Osisko Mining Corp. (TSX: T.OSK, Stock Forum), on the Malartic CHL property in Quebec.

The Malartic CHL property is the object of a joint venture with Osisko in which Abitibi holds a 30% free carried interest; it hosts the Mammoth/Barnat, and Jeffrey zones.

According to the Abitibi Royalties press release, the proven and probable reserve estimate for the Mammoth/Barnat pit is 60,647 ounces of contained ore grading 0.94 grams per tonne and the proven and probable reserve estimate for the Jeffrey zone is 79,249 ounces of contained ore grading 0.73 grams per tonne .

Furthermore, the Charlie-Gouldie pit area has a proven and probale reserve of 34,472 contained ore ounces grading 0.92 grams per tonne.

The Charlie-Gouldie gold deposits, located within the single claim held by Osisko, is currently scheduled to begin production in November of 2013, thereby providing an expected initial cash flow distribution to Abitibi due to 2% net smelter return royalty.

A proven ore reserve is economically minable part of a measured mineral resource. It includes diluting materials and allowances for losses which occur when the material is mined.

A probable ore reserve is the economically minable part of indicated mineral resource. It includes diluting material and allowances for losses which may occur when the material is mined.

Abitibi is a royalty company that owns and manages royalties.

On Wednesday, Abitibi soared 110% and was trading at $1.05 a share. The company had a market cap of $9.1 million, based on 8.7 million shares outstanding. The 52-week high and low was $1.50 and $0.50 respectively.



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