Abitibi Royalties Announces Reserve And Resource Updates At Malartic CHL Property And 2% NSR Claim, Québec

VAL-D'OR, QUÉBEC - March 28, 2014 - Abitibi Royalties Inc. (RZZ-TSX-V: the "Company" or "Abitibi") is pleased to announce the receipt of the year-end 2013 gold reserve and resource estimate completed by Osisko Mining Corporation ("Osisko") in respect of the Company's interests in the Malartic CHL property and the 2% net smelter return royalty claim (the "Royalty").

The Malartic CHL property is the object of a joint venture with Osisko in which Abitibi holds a 30% free carried interest. Presently, the property hosts the Barnat (Mammoth), and Jeffrey gold zones. The Gouldie and Charlie gold zones lie within the single claim held by Osisko in respect of which Abitibi holds the Royalty and located south of the Canadian Malartic main pit area.

Information regarding the updated reserves and resource estimates for the Canadian Malartic Property and the Royalty was provided by Osisko by way of a "Surface Reserve and Resources Letter to Abitibi Royalties" received by the Company in late March 2014 and the following information was extracted directly from such letter. This estimate was calculated at a gold price of US1,300 per ounce.

Reserve Estimations for the Gouldie - Barnat (Mammoth) - Jeffrey Deposits

Reserves and resources presented herein represent only those areas at the Canadian Malartic mine subject to a 2% net smelter return royalty interest to Abitibi. These reserves are as follows:

Table 1 - Gouldie Proven & Probable Reserves Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Proven Reserves Gouldie 914,362 1.09 32,167
Probable Reserves Gouldie 224,701 0.67 4,811
Proven & Probable Reserves Gouldie 1,139,063 1.01 36,978

Furthermore some reserves in the Barnat Pit area are subject to a 30% free carried interest to Abitibi. These reserves are as follows:

Table 2 - Barnat (Mammoth) Pit Proven & Probable Reserves Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Proven Reserve Barnat (Mammoth) 422,299 0.94 12,712
Probable Reserve Barnat (Mammoth) 1,703,725 0.98 53,738
Proven & Probable Reserve Barnat (Mammoth) 2,126,024 0.97 66,450

Furthermore some reserves in the Jeffrey area are subject to a 30% free carried interest to Abitibi. These reserves are as follows:

Table 3 - Jeffrey Proven & Probable Reserves Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Proven Reserve Jeffrey - - -
Probable Reserve Jeffrey 4,737,199 0.68 103,260
Proven & Probably Reserve Jeffrey 4,737,199 0.68 103,260

Resource Estimations for the Gouldie - Barnat (Mammoth) - Jeffrey Deposits

Measured and Indicated resources subject to 2% net smelter return royalty interest to Abitibi outside the Gouldie pit area. These resources are as follows:

Table 4 - Gouldie Mineral Resource Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Measured Resources Gouldie 1,033,226 1.11 36,900
Indicated Resources Gouldie 5,199,310 0.90 149,865
Total Measured & Indicated Resources Gouldie 6,232,536 0.93 186,765

In-situ Inferred resources (not constrained in pit) subject to a 2% net smelter return royalty interest to Abitibi in the Gouldie area. These resources are as follows:

Table 5 - Gouldie Mineral Resource Estimate - Inferred Resources

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Inferred Resources Exclusive of Measured and Indicated Resources Gouldie 1,094,300 0.72 25,180

Measured and Indicated resources outside the Barnat pit area subject to a 30% free carried interest to Abitibi. These resources are as follows:

Table 6 - Barnat (Mammoth) Pit Resource Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Measured Resources Barnat (Mammoth) 174,482 1.07 5,978
Indicated Resources Barnat (Mammoth) 1,722,404 0.76 42,023
Total Measured and Indicated Resources Barnat (Mammoth) 1,896,886 0.79 48,001

In-situ Inferred resources (not constrained by pit) in the Barnat pit area is subject to a 30% free carried interest to Abitibi. These resources are as follows:

Table 7 - Barnat (Mammoth) Pit Resource Estimate - Inferred Resources

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Inferred Resources Exclusive of Measured and Indicated Resources Barnat (Mammoth) 1,580,054 1.03 52,532

Measured and Indicated resources outside the Jeffrey pit area subject to a 30% free carried interest to Abitibi. These resources are as follows:

Table 8 - Jeffrey Pit Resource Estimate

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Measured Resources Jeffrey - - -
Indicated Resources Jeffrey 4,792,778 0.61 94,593
Total Measured and Indicated Resources Jeffrey 4,792,778 0.61 94,593

In-situ Inferred resources (not constrained by pit) in Jeffrey area subject to a 30% free carried interest to Abitibi. These resources are as follows:

Table 9 - Jeffrey Pit Resource Estimate - Inferred Resources

CategoryAreaTons (metric)Ore Grade (g/t)Contained Ounces
Inferred Resources Exclusive of Measured and Indicated Resources Jeffrey 381,520 0.90 10,991

Details on the parameters of the resource estimates are as follows:

  • The database comprised a total of 1,030,888 metres of drilling completed and assayed by Osisko as of the end of December 2013 (core and in-pit RC drilling) on a maximum 30m x 30m grid, as well as 338,927 metres of historical drilling validated and retained from a larger database of historical drilling (Canadian Malartic Mines and Lac Minerals). All NQ or HQ core assays reported by Osisko were obtained by standard 50g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val-d'Or, Québec;
  • The database also comprised a total of 729,405 assays with an average of 1.40 metre per sample for a total of 1,020,919 assayed metres;
  • The estimates were done using Ordinary Kriging (OK) as the geostatistical interpolation method based on 5.0 metre analytical composites. Resources were also estimated using Inverse Distance Squared (ID2) interpolation for testing and comparative purposes, which produced similar results, i.e. less than 2 percent difference in total ounces at all cut-offs:
  • Calculations were based on original samples cut to a maximum of 5 g/t to 70 g/t Au depending on the domain. The apparent reduction in the gold content varies from 0 to 14.5% depending of the domains. All five metre composites were calculated based on cut original data;
  • All estimates were based on a Parent Cell dimension of 20 metres E, 10 metres N and 10 metres height with estimation parameters determined by variography;
  • Geological interpretation identified fifty-one different domains (sixteen in Canadian Malartic, fifteen in Barnat, eight in Gouldie, five in Jeffrey and seven in Western porphyry);
  • Underground voids were modeled from historical mine plans and adjusted according to positions of drill intersections in stopes and drifts. Void volumes of stopes were increased by one metre along all edges to compensate for uncertainties. Some stopes have been investigated in detail during mining activities and re-modelled to replace the older voids. The void models were then used to deplete the resource estimate. All samples located within the voids were also removed from the estimate;
  • Tonnage estimates in Canadian Malartic and Barnat area were based on rock densities of 2.69 tonnes/cubic metre for the porphyry, 2.75 for altered sediments and 2.83 for altered ultramafic rocks. Rock densities vary from 2.65 to 2.88 tonnes/cubic metre for other sector as Jeffrey, Gouldie and Western Porphyry;
  • The US$1,300 engineered pit has approximate maximum dimensions of 3,560 metres in length,1,265 metres in width and a vertical depth of 410 metres;
  • 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 Proven Ore Reserve represents the highest confidence category of reserve estimate;
  • 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. A Probable Ore Reserve has a lower level of confidence than a Proven Ore Reserve but is of sufficient quality to serve as the basis for decision on the development of deposit;
  • Measured resources are indicated resources that have undergone enough further sampling that a 'competent person' defined by National Instrument 43-101 ("NI 43-101") has declared them to be an acceptable estimate, at a high degree of confidence, of the grade, tonnage, shape, densities, physical characteristics and mineral content of the mineral occurrence;
  • Indicated resources are simply economic mineral occurrences that have been sampled (from locations such as drillholes) to a point where an estimate has been made, at a reasonable level of confidence, of their contained metal, grade, tonnage, shape, densities and physical characteristic;
  • Inferred Mineral Resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological/or grade continuity. It is based on information gathered through appropriate techniques from location such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability.
    • Qualified Person

      Mr. Donald Gervais, P.Geo., Technical Services Manager at Canadian Malartic is the Qualified Person, as defined in NI 43-101, who has reviewed and is responsible for the technical information in this new release, including verification of the data disclosed, the sampling, and the analytical QA-QC data underlying the technical information. Resources and Reserves have been classified following the standards and definitions of the CIM.

      About Abitibi Royalties Inc.:

      Abitibi Royalties holds 100% title to the Luc Bourdon and Bourdon West Prospects in Ontario and a 30% free-carried interest on the Malartic CHL Property near Val-d'Or, Québec which is the object of a joint venture with Osisko. In addition, the Company holds a 2% net smelter royalty interest in one additional claim held by Osisko, and may acquire and generate other property and royalty interests.

      Golden Valley Mines Ltd. holds an approximate 62.3% interest in Abitibi Royalties Inc.

      For additional information, please contact:

      Glenn J. Mullan
      President
      2864 chemin Sullivan
      Val-d'Or, Québec J9P 0B9
      Tel.: 819-824-2808, x 204
      Email: glenn.mullan@goldenvalleymines.com

      Forward-Looking Statements:

      This news release contains certain statements that may be deemed "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 or realities may differ materially from those in 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 law, 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 the 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 news release.