Abitibi Royalties Inc.: Update on Royalties at Canadian Malartic Mine
VAL-D'OR, QUEBEC--(Marketwired - Jan 18, 2016) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to provide an update on the Company's net smelter royalties (the "NSR") at the Canadian Malartic Mine near Val-d'Or, Québec. The information contained in this news release is derived from and based on, without independent verification, disclosure made by Yamana Gold Inc. ("Yamana") during its Investor Day presentation dated January 14, 2016.
Odyssey North Zone (3% NSR)
Abitibi Royalties holds a 3% NSR on the Odyssey North Zone located inside the Malartic CHL property (the "Property"). Odyssey North is proximate to the Odyssey South Zone and together they comprise the "Odyssey Zones" or "Odyssey" that is east of the main Canadian Malartic Mine open pit. The Canadian Malartic mine and Malartic CHL property are jointly operated by Agnico Eagle Mines Ltd. ("Agnico Eagle") and Yamana.
Yamana's presentation suggests the exploration budget for the Odyssey Zones has been increased from Cdn$3.5 million (25,500 metres of drilling) in 2015 to approximately Cdn$8.5 million (60,000 metres of drilling) in 2016. (USD:CDN exchange ratio: 1.435)
Since last reported by Abitibi Royalties on February 23, 2015, Yamana's presentation also notes that the strike length and vertical extent of the Odyssey North Zone have both increased. The strike length of Odyssey North has increased to approximately 1,500 metres from the previously reported 600 metres. The vertical extent of Odyssey North has increased to 850 vertical metres (from 550 metres to 1,400 metres below surface) from the previously reported 600 vertical metres (from 650 metres to 1,250 metres below surface).
Abitibi Royalties is encouraged by these developments at Odyssey North. Previously all of Odyssey North was covered by the Company's 3% NSR (as last reported by the Company on February 23, 2015). However, the Company has not received any additional exploration results, including assays or drill hole locations, since then. Although there appeared to be potential to expand Odyssey North's vertical extent and in particular, its strike length on the Property as last reported by the Company, there are no assurances that all or any of the recent expansion at Odyssey North has occurred on Malartic CHL where Abitibi Royalties holds a 3% NSR.
Additional information regarding the Odyssey South Zone was contained in Yamana's Investor Day presentation but the Company does not have enough information at this point to determine whether this information is relevant to the Malartic CHL property.
Barnat Extension and Sheehan Zone (3% NSR)
Further, the Yamana presentation notes that an additional Cdn$1.6 million is being budgeted to examine and quantify the economics at a number of areas around the Canadian Malartic open pit that may represent near mine upside potential. Two of the target areas, eastern portion of the Barnat Extension and the Sheehan Zone, appear to be partially covered by Abitibi Royalties 3% NSR.
The Investor Day presentation where information was obtained for this news release, which includes property maps showing the location of Odyssey and the Malartic CHL property, can be found on Yamana's website at www.yamana.com.
QUALIFIED PERSON
Glenn Mullan, Chairman of Abitibi Royalties, is the Qualified Person (as that term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) who has reviewed this news release. The information in this news release was obtained from Yamana's Investor Day presentation dated January 14, 2016. The presentation can be found on Yamana's website at www.yamana.com.
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension 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 and it holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario. The Company owns 3,549,695 shares of Yamana Gold and 444,197 shares of Agnico Eagle Mines.
Golden Valley Mines and Rob McEwen hold approximately 51.3% and 8.7% interest in Abitibi Royalties, respectively.
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.
Contact
Abitibi Royalties Inc.
Ian J. Ball
President and CEO
416-346-4680
ian.ball@abitibiroyalties.com