Abitibi Royalties Provides Canadian Malartic Mine Royalties Update
TSX VENTURE: RZZ
VAL-D'OR, QUÉBEC--(Marketwired - Sept. 26, 2017) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to provide an update on the Company's various net smelter royalties ("NSR") at the Canadian Malartic Mine, near Val-d'Or, Québec. The Canadian Malartic Mine is jointly operated by Agnico Eagle Mines Limited ("Agnico Eagle") and Yamana Gold Inc. ("Yamana").
Odyssey Project Exploration (3% NSR)
Abitibi Royalties holds a 3% NSR on the portions of the Odyssey Project (Odyssey North, Odyssey South, Internal Zone), within the Malartic CHL Property, which is located east of the Canadian Malartic open pit (Fig. 1).
A total of 65,102 metres of core in 96 holes have been completed as of September 1, 2017. Drilling has focused on discovery and definition of mineralized zones internal to Porphyry 12, which hosts the Odyssey North and Odyssey South deposits. Drilling has primarily targeted a block approximately 500 metres long and 300 metres wide, extending from 400 to 1100 metres below the surface.
Drilling has identified multiple gold-bearing structural corridors in a variety of complex and intersecting structural orientations within Porphyry 12. These mineralized corridors have been defined using a combination of geology, alteration envelopes, oriented core structural data and assay data. Internal Zone intercepts typically range from 5.0-30.0 metres drill width at 1.5 - 3.0 g/t Au, commonly with multiple intercepts per hole. Significantly higher grade zones have been intersected locally, ranging from 1.0-12.0 metres drill widths at 4.0 to +50.0 g/t Au (uncut) and additional work is underway to evaluate the continuity of these zones. An Inferred Mineral Resource estimation for the Internal Zone is to be completed by the end of 2017.
As of December 31, 2016 all of Odyssey North and the extreme northwest area of Odyssey South was contained within the Company's 3% NSR (Please see Company news release March 10, 2017 for the Odyssey Project resource estimate attributable to Abitibi Royalties 3% NSR). The Company believes based on publicly available information, that the Internal North Zones and the majority of the Jupiter Zones fall within Abitibi Royalties 3% NSR as shown on Yamana's Figure 10 cross section contained in its September 25, 2017 news release.
Historic East Malartic Mine Exploration (3% NSR)
Exploration efforts have focused on exploration and confirmation drilling at the East Malartic historic mine area. A total of 38,300 metres in 40 holes have been completed through September 1, 2017. Drilling is on-going with five drills, with a planned 2017 total program of 47,000 metres of core.
Abitibi Royalties believes that the areas at the East Malartic Mine covered by its 3% NSR include the deeper portions of the Main/East Zones, Porphyry Swarm, East Porphyry and the Chert/Wedge Zone (Fig. 2). The latter three zones may straddle the southern property boundary of the Company's NSR at depth and the Chert/Wedge Zone along strike to the east. These zones are in addition to the Norrie Zone (for more information on Norrie please see news release - August 19, 2014).
To view a long section of the underground ("UG") exploration targets at East Malartic and Odyssey, please see Figure 9 contained in Yamana's September 25, 2017 news release.
Abitibi Royalties has not received any of the 2017 drill hole data from the Internal Zone or from the historic East Malartic Mine that is otherwise not publicly available. The Company cannot make any assurances that all or any of the drilling completed at the Internal Zone or the East Malartic Mine referenced in the Yamana news release dated September 25, 2017 encountered mineralization where Abitibi Royalties holds an NSR. Although the Company believes the drill results from the Internal Zones could have a positive impact on its 3% NSR, the Company has not independently verified the drill hole data and cannot confirm, nor can there be any assurance, that all or any of the previous or current drilling from the Internal Zones encountered mineralization on the Malartic CHL Property where the Company holds a 3% NSR. Additionally, the Company has not been informed of the drilling locations for the historic East Malartic Mine or if the drilling encountered mineralization where Abitibi Royalties holds a 3% NSR. The full impact of the additional drilling will not be known until the mine operators calculate an updated reserve and resource estimate for the portions that are attributable to the Company's NSR interest. Abitibi Royalties anticipates this would occur in early 2018.
Glenn Mullan, Chairman, is the Qualified Person (as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) who has reviewed this news release based on the data provided and is responsible for the technical information reported herein. Information contained in this news release (Excluding Figures or as otherwise stated) is derived from Yamana's news release dated September 25, 2017 and without independent verification.
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on the Odyssey North and other portions of the Odyssey Project, Jeffrey Zone, eastern portion of the Barnat Extension and parts of the historic East Malartic Mine, where the mineralization is located inside the Malartic CHL Property and a 2% NSR on portions of the Gouldie and Charlie zones, all at the Canadian Malartic Mine near Val-d'Or, Québec. In addition, the Company is building a portfolio of royalties on early stage properties near producing mines. The Company owns common shares in Yamana Gold and Agnico Eagle Mines (Market value CDN$32.2 million - September 25, 2017), plus cash (Cash balance CDN$7.3 million - June 30, 2017) of approximately CDN$39.4 million. The Company is debt free.
Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.2% and 12.2% interest in Abitibi Royalties, respectively.