Abitibi Royalties Files Technical Report on Initial Jeffrey Zone Gold Resource Estimate
VAL-D'OR, QUÉBEC-- March 2, 2012 - In furtherance to its news release of January 17, 2012 Abitibi Royalties Inc. (TSX VENTURE:RZZ)(hereinafter "Abitibi Royalties" or the "Company") is pleased to announce that it has received a NI 43-101 compliant technical report (the "Report") of the technical audit completed by Micon International Limited ("Micon") on the internal mineral resource estimate prepared by Osisko Mining Corp. ("Osisko"). A copy of the Report has been filed with the regulators and will be available for viewing by the public through the Internet by accessing the SEDAR website at www.sedar.com
This resource estimate covers the western portion of the Jeffrey Zone over a strike length of approximately 450 metres, where drilling has been conducted on a 25 metre by 25 metre grid (see figure 1). The resource estimate was prepared using 210 drill holes (45,090 metres) out of a database containing the results from 307 drill holes (66,576.4 metres), which were drilled between 2007 and 2011.
The Jeffrey Zone is the first gold mineralized zone drilled by Osisko on the Malartic CHL Property for which a gold resource has now been estimated. The Jeffrey Zone is situated approximately 550 metres to the east of the Canadian Malartic main pit (South Barnat Zone) currently under development by Osisko. The Jeffrey Zone is one of several zones of gold mineralization known to occur on the Malartic CHL Property, located near the Town of Val-d'Or and immediately east of the Town of Malartic, in the Abitibi Region of north-western Quebec.
The indicated mineral resource within a Whittle-optimized open pit shell using US $1,100 gold is 5,810,000 tonnes at an average grade of 0.70 g/t Au for 130,760 ounces of contained gold plus an additional inferred resource of 1,760,000 tonnes at an average grade of 0.58 g/t Au for 32,820 ounces of contained gold. The lower cut-off grade is 0.265 g/t gold. The Jeffrey Zone forms part of the Malartic CHL Property (the "JV Property") which is currently the object of a joint venture with Osisko, and pursuant to which Abitibi holds a 30% free carried interest to production.
Resource Estimate Details:
The table below summarizes the mineral resources for the Jeffrey Zone within an open pit Whittle optimized pit shell:
|Tonnes [t]||Grade [Au g/t]||Contained Ounces Au [oz]|
Mineral resources are not mineral reserves and do not have demonstrated economic viability.
The key optimization parameters used are:
|Gold Price [US$/oz]||$1,100|
|Oil Price [US$/bbl]||$100|
|Exchange Rate [C$/US$]||1.00|
|Metallurgical Recovery [%]||87%|
|Total Ore Based Cost [US$/t treated]||$7.51|
|Reference Mining Cost [US$/t mined]:
|Whittle Overall slope angle||43.8 degrees|
|Recovered Cut-Off Grade [g Au/t]||0.265|
|Waste/Ore Strip Ratio||2.9|
Messrs. B. Terrence Hennessey, P.Geo. and Alan J. San Martin, MAusIMM(CP), Mineral Resource Modeller of Micon are the Qualified Persons responsible for the technical information related to the mineral resources reported herein, including verification of the data disclosed.
About Abitibi Royalties Inc.: Abitibi Royalties Inc. holds title to interests in the Luc Bourdon and Bourdon West Prospects (also known as the McFaulds Lake Property) and a 30% carried interest to production in the Malartic CHL Property, plus a 2% net smelter royalty interest in one claim held by Osisko Mining Corporation, which was previously held by Golden Valley Mines Ltd. and vended to Osisko, and may acquire and generate other property and royalty interests.
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 Golden Valley 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 Golden Valley's management on the date the statements are made. Except as required by law, Golden Valley undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
A map is available at the following link: http://media3.marketwire.com/docs/abitibiroyalties0302.pdf
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.
Glenn J. Mullan
Chairman and CEO