Abitibi Royalties Inc.

TSX VENTURE : RZZ


Abitibi Royalties Inc.

August 19, 2014 09:00 ET

Abitibi Royalties Highlights the "Norrie Zone" a Previously Reported Bulk Tonnage Underground Target on the Malartic CHL Property

VAL-D'OR, QUÉBEC--(Marketwired - Aug. 19, 2014) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to highlight a previously reported bulk tonnage mineralized target area known as the Norrie Zone that is in addition to the North Odyssey Zone, where exploration recently intersected 2.85 gpt over 110.2 meters on the Malartic CHL property (in which the Company holds a 30% free carried interest to production with Agnico-Eagle Mines Limited and Yamana Gold Inc.). The Malartic CHL property is located next to Agnico-Eagle's and Yamana's Canadian Malartic mine, currently the largest producing gold mine in Canada. Highlights from the previously reported drilling (reported by Golden Valley Mines prior to the Abitibi Royalties spinout) at Norrie Zone included 1.71 gpt over 236.2 meters, 1.41 gpt over 234.7 meters, 1.86 gpt over 120.7 meters and 1.47 gpt over 107.0 meters. Further details of the drilling are in Table 1. below:

Table 1.

Norrie Zone Drill Results (Previously Released by Golden Valley Mines on March 18, 2008)

Hole No. Section From
(Meters)
To
(Meters)
Length
(Meters)
Gold Grade
(gpt)
East Malartic mine 1960's Historic Underground Drilling*
UM31-01 6786E 0.0 120.7 120.7 1.86
UM31-42 6588E 0.0 234.7 234.7 1.41
UM31-52 6528E 0.0 236.2 236.2 1.71
UM31-54 6466E 0.0 260.6 260.6 1.32
UM31-58 6405E 48.8 128.0 79.2 0.89
Osisko 2008 Modern Surface Drilling
CHL07-2000 6530E 1483.0 1590.0 107.0 1.47
* East Malartic Gold Mines internal drill hole database

Although the historic and modern Osisko drill results from the Norrie Zone were previously released in 2008, the Company believes it is important to highlight them again due to the following factors:

1) No follow-up drilling by Osisko as the Company believes their focus turned to open pit resources for the Canadian Malartic mill.

2) Norrie has not been included in any prior resource estimates due to the limited and mainly historical nature of the drilling.

3) The largely untested deep exploration potential between the Norrie and North Odyssey zones, where a 1,250 meter "gap" could potentially lead to additional bulk tonnage discoveries.

4) The Norrie Zone being located just 200 meters southeast of the ultimate Canadian Malartic open pit and near infrastructure.

"Although it is a bit unorthodox to release past results, we thought it was important to draw attention to the Norrie Zone, since it seems to have been overlooked during the past 6.5 years with the construction and subsequent optimization of the near surface resources at the Canadian Malartic mine. However, we believe the overall grades and intercept lengths are comparable to North Odyssey. We are very excited about the upside potential at the Malartic CHL property due to the significant drill intercepts at both North Odyssey/Norrie and the limited deep exploration that has been completed to date," stated Ian Ball, President.

Drilling at the Norrie Zone indicates a mineralized zone measuring at least 380 metres long, up to 260 metres wide, and approximately 100 m thick. The Norrie Zone straddles the boundary between the Malartic CHL property and the Canadian Malartic mine. These deep intersections appear to indicate the presence of a very large system of Canadian Malartic-style disseminated gold mineralization. The five historic horizontal diamond drill holes were collard from the 31st level of the former producing East Malartic Gold Mine at a depth of 1,485 meters. The Osisko diamond drill hole was drilled vertically from surface.

A plan map showing the different mineralized zones on the Malartic CHL property can be found: http://www.abitibiroyalties.com/en/content/map

The Company has commenced litigation against Agnico-Eagle and Yamana in order execute a Right of First Refusal on the Malartic CHL property as stated in the option agreement. Additional details of Abitibi Royalties litigation can be found on the Company's website www.abitibiroyalties.com.

Abitibi Royalties will continue to enforce and protect its contractual rights, and looks forward to resolving this matter to expedite exploration and development of the Malartic CHL property.

Historical assays reported above are believed to be reliable but no details of analytical or quality assurance/quality control procedures are available for review. All NQ core assays for the Osisko drilling reported above (including the results from North Odyssey) were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec, an ISO/IEC guideline 17025-accredited facility. Results from North Odyssey were capped at 15 gpt for the cut results. True widths for North Odyssey result are believed to be 70 meters.

Mr. Glenn Mullan, CEO of Abitibi Royalties, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein.

About Abitibi Royalties Inc.

Abitibi Royalties holds a 30% free-carried interest on the Malartic CHL Property near Val-d'Or, Québec, located beside the Canadian Malartic mine. In addition, the Company holds a 2% NSR on portions of the Gouldie and Charlie zones at the Canadian Malartic mine and 100% title to the Luc Bourdon and Bourdon West Prospects in McFauld's Lake, Ontario.

Golden Valley Mines and Rob McEwen hold approximately 58.8% and 9.3% 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.

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