BRITISH COLUMBIA – ABACUS MINING AND EXPLORATION and TECK COMINCO, both of Vancouver, have signed a letter of intent for Abacus to purchase the old Afton copper mill, processing facilities, tailings storage area, associated permits and other infrastructure. The property served the former Afton and Ajax pits run by the Afton Operating Corp. Abacus has also agreed to purchase Teck Cominco’s back-in rights on Abacus’ properties in the area. The cost of the deal is $10 million and 18.5 million shares issued to Teck Cominco over the next two years.
Abacus (www.AMEmining.com) has issued preliminary resource calculations for its Rainbow and DM/Audra/Crescent deposits. Using in all cases a copper cut-off grade of 0.25%, the Rainbow deposit has an indicated resource of 31.6 million tonnes grading 0.405% Cu and 0.094 g/t Au. It has a further inferred resource of 1.1 million tonnes at 0.288% Cu and 0.071 g/t Au. The DM/Audra resource model contains indicated resources of 16.2 million tonnes grading 0.350% Cu and 0.188 g/t Au plus an inferred resource of 9.4 million tonnes at 0.322% Cu and 0.153 g/t Au.
DRC RESOURCES (www.DRCresources.com) owns the former Afton mine and has the project on the fast track toward development. It has taken exploration underground as part of a $14.5-million feasibility study that is expected to be complete by mid-2006.