Abacus Mining and Exploration Corp.
TSX VENTURE : AME

Abacus Mining and Exploration Corp.

July 06, 2005 13:09 ET

Abacus Mining and Exploration Corp.: Afton Area Properties-Rainbow and DM/Audra/Crescent Resource Summary

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 6, 2005) - The Directors of Abacus Mining and Exploration Corp. (TSX VENTURE:AME) (the "Company") are pleased to report that two 43-101 summary reports on the Rainbow and DM/Audra/Crescent resource estimate and the 2004 exploration program are complete and have been filed on SEDAR. The Company also announces that field crews have mobilized to its Afton area properties to conduct fill-in sampling work recommended in both reports.

The Rainbow zone is a copper gold resource favourably situated 3.5 kilometres southeast from the Afton mill site, along the same structural trend that hosts the previously mined Afton, Pothook, and Ajax ore bodies. The resource calculated on the Rainbow zone has a current strike length of 500 metres, a thickness range of 50-150 metres, and a steep southwest dip that has been traced for up to 500 metres below surface. The geometry of the resource is roughly tabular with an east-west to eastsoutheast orientation. There is excellent potential for expansion, along strike, down dip and at depth. The 3D-IP geophysical survey completed in 2003, which demonstrates good correlation with the known mineralization, extends virtually untested 400 metres northwest of the Rainbow resource model. The recommended program includes re-sampling of historically drilled holes and 30 diamond drill holes totaling 9,000 metres, which will test the extensions of the Rainbow zone and in-fill areas within the zone.

The DM/Audra/Crescent copper-gold resource lies along an east-west trending structure approximately 1.0 kilometre from the Afton mill site and extends for 1.5 kilometres along strike. The thickness of the resource ranges from 50 to 250 metres and extends to a depth of 300 metres. Like the Rainbow zone, there is excellent potential for expansion. Throughout the defined mineralized resource, the mineralization is still present in the deepest holes and is open along strike to the west. The structural zone that hosts the DM/Audra/Crescent resource is approximately 5.0 kilometres long and extends from the Afton pit eastwards to the Big Onion deposit. Approximately 8,000 metres of diamond drilling are recommended to expand the zone of mineralization at the DM/Audra/Crescent zone as well as in-fill drilling within the resource area.

The resource models for both the Rainbow and DM/Audra/Crescent areas are summarized below:



RAINBOW RESOURCE MODEL
Indicated Resource

---------------------------------------------------------------
Tonnes Million Million
Cut off greater than Copper Gold pounds of ounces of
(% copper) cutoff (%) (g/t) copper gold
---------------------------------------------------------------
0.10 100,600,000 0.237 0.066 525.721 0.2135
---------------------------------------------------------------
0.20 47,100,000 0.345 0.084 358.301 0.1272
---------------------------------------------------------------
0.25 31,600,000 0.405 0.094 282.196 0.0955
---------------------------------------------------------------
0.30 21,900,000 0.464 0.106 224.063 0.0746
---------------------------------------------------------------
0.35 14,800,000 0.532 0.119 173.613 0.0566
---------------------------------------------------------------


Inferred Resource

---------------------------------------------------------------
Tonnes Million Million
Cut off greater than Copper Gold pounds of ounces of
(% copper) cutoff (%) (g/t) copper gold
---------------------------------------------------------------
0.10 10,600,000 0.176 0.051 41.136 0.0174
---------------------------------------------------------------
0.20 3,000,000 0.245 0.064 16.207 0.0062
---------------------------------------------------------------
0.25 1,100,000 0.288 0.071 6.985 0.0025
---------------------------------------------------------------
0.30 300,000 0.335 0.096 2.216 0.0009
---------------------------------------------------------------
0.35 100,000 0.374 0.104 0.825 0.0003
---------------------------------------------------------------


DM/AUDRA RESOURCE MODEL
Drill Indicated Resource

---------------------------------------------------------------
Tonnes Million Million
Cut off greater than Copper Gold pounds of ounces of
(% copper) cutoff (%) (g/t) copper gold
---------------------------------------------------------------
0.10 59,900,000 0.217 0.116 286.613 0.2234
---------------------------------------------------------------
0.20 28,500,000 0.295 0.153 185.385 0.1402
---------------------------------------------------------------
0.25 16,200,000 0.350 0.188 125.024 0.0979
---------------------------------------------------------------
0.30 10,100,000 0.396 0.219 88.191 0.0711
---------------------------------------------------------------
0.35 6,300,000 0.437 0.246 60.706 0.0498
---------------------------------------------------------------


Inferred Resource

---------------------------------------------------------------
Tonnes Million Million
Cut off greater than Copper Gold pounds of ounces of
(% copper) cutoff (%) (g/t) copper gold
---------------------------------------------------------------
0.10 48,900,000 0.186 0.081 200.554 0.1273
---------------------------------------------------------------
0.20 15,800,000 0.281 0.124 97.898 0.0630
---------------------------------------------------------------
0.25 9,400,000 0.322 0.153 66.741 0.0462
---------------------------------------------------------------
0.30 5,400,000 0.359 0.174 42.746 0.0302
---------------------------------------------------------------
0.35 2,789,000 0.393 0.180 24.168 0.0161
---------------------------------------------------------------


As previously announced June 16, 2005, the due diligence and valuation of the Afton mill building, shop facilities, tailings storage areas, various permits and other infrastructure near Kamloops, British Columbia is ongoing. Knight Piesold Ltd. and Beacon Hill Consultants Ltd. are conducting the review and it is expected to be completed by the middle of July.

The Company owns a 100% interest in certain mineral properties in the Afton area and has signed a Letter of Intent with Teck Cominco Limited (TSX:TEK.MV.A)(TSX:TEK.SV.B) ("Teck Cominco") for the purchase of Afton Operating Corporation's milling and processing buildings, tailings storage areas, associated permits and other infrastructure. The Company will issue 18.5 million shares in various stages over a two year period and pay two $5 million cash payments to Teck Cominco. The first payment of $5 million is due and payable on the first anniversary after signing the formal agreement and the second $5 million is due on the second anniversary. When the foregoing payments have been made, Teck Cominco will relinquish its back-in rights in respect of the Company's mineral properties. Completion of the transaction is subject to due diligence, definitive documentation, receipt of necessary regulatory approvals and customary conditions of closing. Upon completion of closing, Teck Cominco will become a significant shareholder of the Company.

On Behalf of the Board,

ABACUS MINING AND EXPLORATION CORPORATION

Doug Fulcher, President

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Abacus Mining and Exploration Corp.
    Doug Fulcher
    President
    (604) 682-0301
    or
    Abacus Mining and Exploration Corp.
    Paddy Nicol
    (604) 682-0301
    (604) 682-0307 (FAX)
    info@amemining.com
    www.amemining.com