BRITISH COLUMBIA - ABACUS MINING and NEW GOLD, both of Vancouver, have signed letters of intent to ensure co-operation for property development around the former Afton and Ajax copper-gold mines. The agreement will be seen by some as a means of moving redevelopment of the former mines forward. New Gold controls the former mines themselves, and Abacus holds the land between them, including the old mill building, plus the former tailings facility.
The two companies have agreed that Abacus may explore the areas surrounding the historic Ajax pits with the intent to design a large-scale open pit operation. Abacus has agreed to spend $2.5 million on exploration over the next two years and produce a prefeasibility study within six months of the end of the period.
A second agreement covering land between the mill and the tailings area has been signed by Abacus, New Gold and former owner TECK COMINCO. This deal ensures Abacus the rights previously granted by Teck Cominco and provides for the shared use of New Gold's water pipeline.
Follow progress at the Afton and Ajax projects at www.NewGoldInc.com and www.AMEmining.com.