Abitibi Royalties Malartic CHL Joint Venture Project Summary: 2012 Drill Results
VAL-D'OR, QUÉBEC -- May 6, 2013 - Abitibi Royalties Inc. (TSX VENTURE:RZZ) (the "Company" or "Abitibi Royalties") is pleased to report on exploration and development activities completed by project operator, Osisko Mining Corporation ("Osisko") during 2012 on the Malartic CHL Prospect joint venture property (the "Property"). Drilling summary and statistics exclude the single "NSR-claim" covering the Charlie Zone and part of the Gouldie Zone both situated southeast of the Canadian Malartic deposit. The information herein with respect to the 2012 Drill Program and the 2012 drill holes and targets tested on the Property has been provided to Abitibi Royalties by Osisko.
2012 Drill Program on Malartic CHL Project:
In 2012, joint venture partner Osisko drilled thirty-one (31) new drillholes in addition to two (2) drillhole extensions, totalling 5,660.2 metres on the Property. Please refer to Table 1 at the end of this news release for the complete list of drillhole information and targets tested and Figures 1 and 2 for the drillhole locations.
A total of six (6) separate targets were tested during the 2012 drill program. Total metres drilled amounted to 5660.2 metres, as follows:
- Mammoth Ext. Area: 14 ddh's, 2,699-metres
- Jeffrey Zone (HAL) Area: 7 ddh's & 2 ddh extensions, 954.2-metres
- GEO Target Area: 4 ddh's, 663-metres
- North GEO Target Area: 3 ddh's, 675-metres
- Eastern CHL target: 1 ddh, 246-metres
- Cadillac Sediments area; 2 ddh's, 423-metres
Assay results for the individual zones tested in the 2012 drill program will follow in a series of separate news releases over the coming weeks.
Furthermore, since the grant of the option to Osisko, Osisko has devoted considerable efforts and project expenditures to the Property. Drilling statistics and property assessment work credits, as extracted from Osisko's two public domain assessment report filings, namely: (i) Technical Report on the 2007 - 2009 Diamond Drilling Program, Malartic CHL, Property Malartic, Québec, Kiddie, 2011; and (ii) Rapport technique - Rapport des campagnes de forages 2010-2011 et 2012 sur la propriété CHL, are summarized below:
- From May 2007 to December 2009: 155 diamond drillholes for a total of 36,530m completed with a value of $3,972,403 in assessment work expenses filed; and
- From January 2010 to April 2012: 203 diamond diamond drillholes for a total of 39,574m with a value of $3,974,864 in assessment work expense filed.
Mineral Reserves & Resources:
For the latest details on the mineral resource update and mineral reserve estimate for Abitibi Royalties' two mineralized zones (Jeffrey and Mammoth/Barnat) located on the Property, and the 2% net smelter return royalty on the claim hosting part of the Gouldie zone, please refer to the Company's March 6, 2013 and April 19, 2013 news releases. Please refer to Figure 3 herein for the details on the Reserves and Resources contained in the various zones. Additional details can also be retrieved from the technical report entitled: "A Mineral Resource Update And Mineral Reserve Estimate For Abitibi Royalties Inc.'s Malartic CHL Property Joint-Venture", dated April 17, 2013 by accessing Abitibi Royalties' issuer profile at www.sedar.com.
Brief History of the Malartic CHL Prospect and the Joint Venture Formation:
The claims comprising the Property were originally staked by Golden Valley Mines Ltd. ("Golden Valley", please refer to news release dated January 31, 2006), followed by the grant of an option to Osisko (please refer to news release dated February 3, 2006). The general terms of the option were the following: Osisko had the right to acquire a 70% interest in the Property in consideration for $150,000 in cash payments over a four year period and by completing a minimum $2,000,000 in exploration expenditures over a four year period. Osisko is the operator during both the option and joint venture phases. The agreement further provided that upon Osisko earning a 70% interest in the Property, Golden Valley would retain a 30% free-carried interest therein to production.
The agreement and the option were later assigned to Abitibi Royalties in contemplation of the completion of an arrangement between Golden Valley, the Company, and two other of Golden Valley's subsidiaries. Osisko has exercised the option to acquire a 70% interest in the Property and a joint venture is currently in effect thereon. Abitibi Royalties owns a 30% free-carried interest in the Property.
Glenn J. Mullan, Chief Executive Officer of Abitibi Royalties, is the Qualified Person (as such term is defined in National Instrument 43-101 - Standards of Mineral Disclosure) who has reviewed this news release and is responsible for the technical information reported herein.
Table 1: List of 2012 Drillholes and Targets Tested
|CHL12-2450||6450E||716450||5334741||2||-45||114||Mammoth Ext. Area|
|CHL12-2451||6450E||716450||5334741||182||-63||201||Mammoth Ext. Area|
|CHL12-2462||6500E||716500||5334542||182||-45||240||Mammoth Ext. Area|
|CHL12-2460||6500E||716500||5334643||182||-45||150||Mammoth Ext. Area|
|CHL12-2452||6500E||716500||5334729||182||-62||222||Mammoth Ext. Area|
|CHL12-2453||6500E||716500||5334729||182||-71||282||Mammoth Ext. Area|
|CHL12-2459||6525E||716525||5334625||182||-45||141||Mammoth Ext. Area|
|CHL12-2458||6525E||716525||5334660||2||-45||195||Mammoth Ext. Area|
|CHL12-2461||6550E||716550||5334563||182||-45||126||Mammoth Ext. Area|
|CHL12-2454||6550E||716550||5334670||2||-45||177||Mammoth Ext. Area|
|CHL12-2455||6550E||716550||5334670||182||-70||261||Mammoth Ext. Area|
|CHL12-2426||6575E||716575||5334717||182||-71||263||Mammoth Ext. Area|
|CHL12-2457||6625E||716625||5334598||182||-48||141||Mammoth Ext. Area|
|CHL12-2456||6625E||716625||5334657||182||-50||186||Mammoth Ext. Area|
|CHL12-2443||7250E||717250||5334487||182||-45||105||Jeffrey Zone (HAL)|
|CHL12-2444||7275E||717275||5334474||182||-45||102||Jeffrey Zone (HAL)|
|CHL12-2445||7300E||717300||5334470||182||-45||225.2||Jeffrey Zone (HAL)|
|CHL12-2446||7325E||717325||5334477||182||-45||102||Jeffrey Zone (HAL)|
|CHL12-2447||7325E||717325||5334477||182||-64||111||Jeffrey Zone (HAL)|
|CHL12-2448||7350E||717350||5334462||182||-57||102||Jeffrey Zone (HAL)|
|CHL12-2449||7350E||717350||5334490||182||-57||102||Jeffrey Zone (Ext targeting HAL)|
|CHL10-2266||7350E||717350||5334546||182||-45||66||Jeffrey Zone (Ext targeting HAL)|
|CHL10-2259||7375E||717375||5334546||182||-45||39||Jeffrey Zone (Ext targeting HAL)|
|CHL12-2415||N/A||717760||5334704||189||-45||246||North GEO Target|
|CHL12-2432||N/A||717795||5334578||9||-45||195||North GEO Target|
|CHL12-2414||N/A||718888||5334530||194||-46||246||Eastern CHL (never drilled area)|
About Abitibi Royalties Inc.: Abitibi Royalties holds 100% title to the Luc Bourdon and Bourdon West Prospects (also known as the McFaulds Lake Property) in Ontario and a 30% free-carried interest on the Malartic CHL Property near Val-d'Or, Quebec which is the object of a joint venture with Osisko Mining Corp. ("Osisko"). In addition, the Company holds a 2% net smelter royalty interest in one additional claim held by Osisko, 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.
Figures 1, 2 and 3 (Project Malartic CHL prospect) are available at the following address: http://media3.marketwire.com/docs/RZZ_2013-05-06_Project-Summary_FIG-01_02_03EN.pdf
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.
Abitibi Royalties Inc.
Glenn J. Mullan
819-824-2808, x 204