"NEWS"
Subject:
Stockwatch: Abacus Minerals Corporation - News Release
Date:
Thu, 21 Jan 1999 06:48:25 -0800
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Abacus reports on Ferragudo project
Abacus Minerals Corporation AMC
Shares issued 21,590,405 Jan 19 close $0.31
Thu 21 Jan 99 News Release
Mr. Steve Todoruk reports
Abacus Minerals Corporation has received its first report by Phelps Dodge
Exploration Corporation on its assessment and a proposed 1999 exploration
program of the Ferragudo and Castro Verde concessions "the Ferragudo
project" in Portugal.
Ferragudo Mining of Portugal (L.L.C.), a fully owned subsidiary of Abacus
Minerals Corporation (30 per cent) and Phelps Dodge Exploration Corporation
(70 per cent), was granted the concessions by the ministry of economy,
secretary of State for industry and energy of Portugal on Oct. 7, 1998.
Phelps Dodge may earn a 70 per cent interest in the project by expending
$7,000,000 (U.S.) in exploration and development expenditures under the
terms of a joint venture agreement between Abacus Minerals and Phelps
Dodge.
The concessions are approximately 200 square kilometres in size and adjoin
the Neves Corvo mine property in the Iberian sulphide belt in southeast
Portugal. The Neves Corvo mine is a major volcanogenic massive sulphide
deposit discovered in the 1970s and placed into production in 1988 as a
joint venture between the government of Portugal and Rio Tinto Zinc Ltd.
>From late 1988 through 1996, Neves Corvo produced approximately 13 million
tonnes of ore. During this period, diluted feed grade averaged 9.14 per
cent copper to the copper recovery circuit, and 1.88 per cent tin to the
tin recovery circuit. It is presently producing at a rate of 2.1 million
tonnes of ore per year.
Published remaining proven and probable reserves for Neves Corvo at the end
of 1996 net after dilution and mining losses were 22.5 million tonnes of
copper ore grading 6.25 per cent copper and 50.0 grams per tonne silver,
and 1.79 million tonnes of copper-tin ore grading 9.95 per cent copper,
2.46 per cent tin and 41.0 grams per tonne silver. Exploration of the
property and delineation of inferred reserves is continuing. In addition,
the Neves Corvo hosts a zinc deposit estimated at 47 million tonnes grading
6.2 per cent zinc. Reserves are contained in six deposits clustered within
an area of less than four square kilometres. The southeast boundary of the
Ferragudo project is within four kilometres of the nearest Neves Corvo
deposits discovered to date.
During its assessment of the Ferragudo project, Phelps Dodge compiled all
available information on the project area and published data on the Neves
Corvo mine area. Historical information on geology, geophysics (gravity and
electromagnetic), and drill hole data on individual portions of the area
was available. However, Phelps Dodge's work appears to be the first time
that all information has been merged. Gravity information is now available
for in excess of 90 per cent of the concessions and extends over the Neves
Corvo deposits.
Both geology and gravity maps clearly show that geological units and
gravity anomalies similar to those associated with the Neves Corvo deposits
extend through the Ferragudo project for approximately 25 kilometres in a
northwest direction, and approximately eight kilometres in a northeast
direction.
The large size of the concessions and extensive number of gravity anomalies
suggests that priority areas be chosen for the 1999 program. A number of
criteria were used in the selection process and included, but were not
restricted to, gravity responses, favourable geology and similarity to
Neves Corvo characteristics. This resulted in defining seven areas
totalling approximately 19 square kilometres in size. Other anomalies on
the property that are not on the 1999 priority list may be included in
future work.
The 1999 exploration program will consist of UTEM electromagnetic
surveying, test work of enzyme leach geochemical and lithogeochemical
techniques, and continued compilation of geologic and geophysical data
including radiometrics, airborne magnetics and historical electromagnetic
data. To ensure adequate coverage of the seven priority areas, thirteen
1,200 metre by 1,200 metre loops of UTEM are proposed. Conductive responses
to a depth of approximately 500 metres are anticipated from loops of this
size. According to published information, some of the Neves Corvo deposits
occur at depths of 250 metres to 350 metres below surface and show
excellent response to electromagnetic (EM) surveys, similar to those which
are planned for the Ferragudo program. Upon completion of this work
drilling will be started.
Further to Abacus Minerals Corporation's news release on Oct. 16, 1998, the
deadline to file final materials for the private placement with the VSE has
been extended until Feb. 1, 1999. It is anticipated that the final
documents will be received from the agent shortly, and the $1,000,000
private placement financing will close shortly thereafter.
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