Receives Initial Gold Resource Estimates on Charlie and Gouldie Gold Deposits, Quebec
VAL-D'OR, QUEBEC -- Sept. 20, 2012 - Abitibi Royalties (TSX VENTURE:RZZ) (the "Company" or "Abitibi Royalties") is pleased to provide an update to its shareholders and announces that it has received initial gold mineral reserve and resource estimates from Osisko Mining Corporation ("Osisko") on the portion of the Charlie and Gouldie gold deposits that lie within the single claim (the "Royalty Claim") held by Osisko and on which Abitibi holds a 2% Net-Smelter-Return ("NSR"). The Royalty Claim is located in Malartic, Quebec and is contiguous to the Canadian Malartic Mine, currently being mined for gold by Osisko.
The information received from Osisko is summarized as follows:
|Category||Area||Ore Tons||Ore Gold Grade (g/t)||Contained Gold (ounces)|
|Proven & Probable Reserves||Gouldie-Charlie||3,651,736||1.00||117,863|
The following resources, which have also been provided to Abitibi by Osisko, are in addition to the reserves noted above:
|Category||Area||Tons||Gold Grade (g/t)||Contained Gold (ounces)|
|Measured & Indicated Resources||Gouldie-Charlie||3,484,534||0.842||94,290|
If all required authorizations are received in a timely manner from the Quebec government allowing mining of the Gouldie and Charlie deposits, and if the Royalty Claim achieves commercial production, Abitibi is to receive a royalty equal to 2% of the net smelter returns derived from the Royalty Claim. Osisko is solely responsible for all of the costs required to bring the Royalty Claim to commercial production.
Glenn J. Mullan has said: "As operator, Osisko has provided us with their estimate of the gold reserves, and resources, on the portion of the Charlie and Gouldie gold deposits that lie completely within the Royalty Claim and which we believe to be potentially beneficial to our shareholders. The Company also announced indicated and inferred resources on January 17th, 2012 and March 2, 2012 on the Jeffrey Zone which forms part of the Malartic CHL Property."
Glenn J. Mullan, P. Geo (OGQ and APGO (Temporary)) and Chief Executive Officer of Abitibi Royalties, is the Qualified Person (as such term is defined in National Instrument 43-101) who has reviewed this news release and is responsible for the technical information reported herein.
About Abitibi Royalties Inc.: Abitibi Royalties Inc. holds title to interests in the Luc Bourdon and Bourdon West Prospects (also known as the McFaulds Lake Property) and a 30% free carried interest on the Malartic CHL Property which is the object of a joint venture with Osisko Mining Corporation. In addition, the Company holds a 2% net smelter royalty interest in one claim held by Osisko Mining Corporation, and may acquire and generate other property and royalty interests.
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.
Glenn J. Mullan,