Hi Ed
***OFF TOPIC***
I've been liquidating most of my stocks for the past 2 months and doing some trading here and there. I came across one company that I've taking a huge position in at prices ranging from 27 to 31c CAN called Abacus Minerals AMC/VSE which will be my main holding in the junior markets. I bought the stock because they have 21c a share in cash and a huge portfolio of properties with Barrick and Teck Corp and plenty of cash.
I've listed some recos from some of the biggest brokerage firms in Canada that did a fantastic job with AMC.
RECOS...AMC
I have listed some recos from Yorkton, CM
Oliver, Research Capital and Kaiser.
Abacus Minerals Corporation -
Kaiser says net present value works out to $3.33
a share
Abacus Minerals Corporation AMCShares issued
178154051997-03-03 close $1.15Monday Mar 3
1997John Kaiser reports in his February 28,
Kaiser Bottom-Fishing Report that Abacus
Minerals' Niblack project should be viewed as a
base metals deposit with a gold kicker. Mr Kaiser
figures the mine could produce 1 million tons of
ore per year. Mr Kaiser crunches numbers then
estimates that Abacus could have annual after tax
cash flow of approximately $22 million. Doing a
present value calculation, he retrieves an annual
cash flow multiplier of 8.51 for a 20 year mine
life at a 10 per cent discount rate. The result is a
$187 million net present value, for which Abacus
gets 49 per cent, or $3.33 per share. By doubling
the production rate, Mr Kaiser arrives at a net
present value for Abacus of $5.73 a share. Mr
Kaiser says Abacus stock could creep up to $1.50
to $2.00 range before it releases new information
at which time investors are advised to take some
profit. (c) Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Yorkton says buy
Abacus Minerals Corporation AMCShares issued
180404051997-09-03 close $0.41Wednesday Sep
3 1997Doug Leishman says why For the past two
years, Abacus has been exploring the Niblack
mine area on Prince of Wales Island,
southeastern Alaska. This area has been explored
previously by Cominco Ltd, Anaconda, Noranda
Exploration Ltd and Lac Minerals. Diamond
drilling in the geologically complex Lookout zone
is beginning to show continuity of potentially ore
grade sulphide mineralization and has led to the
identification of a geologic resource of 1.8 M t
grading 0.117 oz/t Au, 1.37 oz/t Ag, 1.50% Cu
and 2.64% Zn. Mineralization occurs in three
distinct sulphide lenses hosted by a package of
felsic volcaniclastic rocks. Host rocks, gold
grades and the zinc-rich nature of the ore, make
the Lookout zone similar to VMS-style
mineralization found at Kennecott's Greens Creek
mine in southeastern Alaska and at Westmin's
Myra Fall's operation on Vancouver Island. These
producing mines contain 20 M tons grading 0.12
oz/t gold, 13.39 oz/t silver, 12.79% zinc, and
3.79% lead, and 30 M tons grading 0.06 oz/t
gold, 6% zinc and 1.4% copper, respectively.
Drilling will continue into September at Niblack,
after which the company will evaluate the
feasibility of driving an adit to explore the
Lookout zone from underground. During the
winter months, news can be expected from
Argentina as Abacus begins work on a land
package in the Cerro Vanguardia area recently
acquired from Barrick Gold Corp. The company
is well financed with $3.5 million in cash,
sufficient to complete exploration at Niblack as
well as initial exploration in Argentina. (c)
Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Abacus Minerals Corporation -
C.M. Oliver says buy
Abacus Minerals Corporation AMCShares issued
180404051997-10-17 close $0.48Friday Oct 17
1997Darcy Krohman says why Summary A 1.8
million ton resource grading 3.6 g/t gold, 42.5 g/t
silver, 1.50% copper and 2.64% zinc has been
outlined by 116 drill holes on the company's
Niblack property in southeast Alaska. A joint
venture agreement allows Teck Corp to earn a
51% interest by completing a bankable feasibility
study and by bringing the project into production.
Abacus is required to complete a pre-feasibility
study. A $4 to $6 million underground exploration
program, proposed for the spring of 1998, should
advance the project to pre-feasibility. The
company recently acquired six gold properties in
the southern Argentinean Province of Santa Cruz
from Barrick Gold Corp. Abacus may earn a
100% interest in the properties by spending an
initial US$2.7 million. All six properties host
epithermal type alteration and mineralization
similar to the nearby Cerro Vanguardia deposit
owned by Anglo American. Cerro Vanguardia
has a reserve of 3.8 million ounces of gold. The
company is well financed with over $2.2 million
in working capital. Introduction While Niblack
remains the company's focus, Abacus' venture
into Argentina should help maintain its share price
through the Alaskan winters when the flow of
information from Niblack is minimal. The
Argentinean projects cover some very prospective
geology and would likely become the company's
exploration focus should Teck exercise its option
to develop Niblack. The 1997 exploration and
diamond drill program at Niblack proved
successful, returning economic grades over
significant intervals. Once the information
acquired from the current field season is
consolidated, substantial tonnage should be added
to the project's current resource base of 1.8
million tons. In two years the economics of the
Niblack property have advanced considerably
with the completion of over 23,000m of drilling in
101 holes. The recently completed program
should add sufficient resources to justify an
underground exploration program in 1998. While
initial expenditures for the program could reach
$5 million, it appears to be an essential phase for
outlining the economic potential of the property
as it will provide a base for future exploration and
reserve definition. The following year should
prove to be interesting for Abacus Minerals.
Preliminary sample results from Argentina,
expected before year end, will hopefully support
a drill program planned for January, while
analysis of drill hole data from this summer's
program at Niblack should help advance the
project to prefeasibility. Niblack Project The
Niblack property, on Prince of Wales Island in
southeastern Alaska, hosts economic grades and
widths of precious-metal rich, volcanogenic
massive sulphide (VMS) type mineralization. The
project, a joint venture with Teck Corp, requires
AMC to carry the program to pre-feasibility.
Once at this stage, Teck has the opportunity to
earn a 51% interest by preparing a bankable
feasibility study and by subsequently bringing the
project into production. Should Teck decide to
back-in, Abacus will no longer be required to
make financial contributions in the mine
construction phase or in the continued exploration
of the the property. Flour Daniel Wright Ltd has
been engaged to prepare a pre-feasibility study on
behalf of Abacus. The property was originally
acquired from Barrick in 1995, for consideration
of 1 million shares of AMC and $200,000. A total
of 40,000m of diamond drilling has been
completed in 154 holes on the property. Abacus
has drilled over 23,000m during the last two field
seasons, while previous operators completed
approximately 17,000m. The mineralization
occurs in geological environments and structures
similar to those encountered at Westmin's Myra
Falls operation on Vancouver Island and
Kennecott's Greens Creek mine near Juneau,
Alaska. The Lookout zone has received the most
attention to date. Within this zone, ore grade
mineralization is found in felsic volcanic units
within the footwall of the Bluebell fault. While the
hanging wall remains unaltered, the
well-mineralized footwall hosts pervasive sericite
and chlorite alteration and pyrite. Significant
quantities of silica have also flooded the footwall.
The 1996 drill campaign outlined a drill indicated
resource of 1.8 million tons grading 3.6 g/t Au,
42.5 g/t Ag, 1.50% Cu and 2.64% Zn from
Lookout. The recently completed 1997 drill
program will certainly add to this total. Separate
resource calculations by Teck Corp verified
Abacus' 1996 estimates. A new discovery this
field season was the Trio zone. The area, 330m
east of Lookout, produced intersections up to
6.96% Cu and 8.18% Zn over 5m. The
exploration program proposed for 1998 will
probably address underground exploration of
both these zones. Management believes a
minimum 3 to 5 million ton resource is required
to bring the project to production. This is
presumably the minimum reserve Teck Corp
would require to justify a 1,000 to 2,000 ton per
day underground mine and processing facility.
Considering the encouraging drill intersections
encountered during the current field season and
with significant upside potential from the other
prospects, this is certainly a realistic goal. With
revised resource/reserve calculations expected
shortly the project is likely to proceed to the next
phase in 1998. This program will probably
include boring a 500m exploration edit from the
Trio zone through to the Lookout zone. Crosscuts
along Lookout would then be completed. An
alternative tunneling program would begin near
the present camp location and drift through the
Mammoth zone with the completion of a rise into
the Lookout zone. Tunneling would provide
insight's into the complexities of the local geology
and ore deposit mineralization while providing
underground drill stations for further exploratory
and definition drilling. The program would also
reduce the need for deeper, more expensive
surface drilling. Along with the Lookout and Trio
zones, the other prospects being actively explored
on Niblack include the Mammoth, Mine, Lindsay,
88 and Wascal zones. Argentinean Properties
Abacus' venture into Argentina was precipitated
by the limited field season in Alaska and by the
company's close relationship with Barrick Gold
Corp. A 100% interest in six properties was
acquired from Barrick by committing to spend
US$2.7 million on exploration and by issuing
400,000 common shares of AMC. Once Abacus'
commitment is fulfilled Barrick can back-in for
50% by spending the next US$3.7 million. All six
of the properties are epitherrnal gold targets
associated with Jurassic volcanism. The projects
are in the southern Argentinean province of Santa
Cruz, in close proximity to Anglo American's
Cerro Vanguardia gold deposit (3.8 million
ounces Au). While none of the properties have
seen significant work programs, trenching in 1996
by Barrick on the La Manchuria property
returned encouraging precious metal grades over
good widths. The first trench returned 1.45 g/t Au
and 57.5 g/t Ag over 110m while the second
trench returned 1.37 g/t Au and 14.8 g/t Ag over
180m. The trenches were located 125m apart and
cover stockwork zones hosted in rhyolitic units.
Abacus expects to drill this prospect in January
1998. A $750,000 million exploration program
has been launched with surface work including
continued trenching expected to be completed
before December. A 2,000m drill program is
proposed for early 1998. Conclusions Although
its economic potential remains to be determined,
the Niblack project has progressed considerably
in the last two years and provides a good
opportunity for both Abacus and Teck. Teck's
financial and technical support of the project
emphasize its merit. Teck has also assigned Bob
Friesen, a senior geologist with the company, to
provide technical support to management and
field crews. In order to justify the $100 million
capital investment required to construct a 1,000 to
2,000 ton per day underground mine and
processing facility, a minimum 3 to 5 million ton
deposit is required. We believe the market is
currently valuing Abacus on the basis of a
currently defined resource of 1.8 million tons, and
the company's interest in the project being
ultimately diluted to 49% by Teck. The
underground program proposed for 1998 should
provide important clues as to the continuity and
extent of the mineralization and the nature of the
structural controls affecting the Niblack property.
A notable impact on the share price of AMC may
also precipitate from the drill campaign proposed
for the La Manchuria property. Should this
program produce encouraging results, the
Argentinean projects could eventually
overshadow those received from Niblack. With a
current market capitalization of C$15 million fully
diluted (C$0.48 per share) there is little downside
in owning Abacus shares. We believe the
information to be obtained from the 1998
program on Niblack, along with the consolidation
of data from the 1997 program should have a
significant impact on the share price of the
company in the following 12 months. (c)
Copyright 1997 Canjex Publishing Ltd.
canada-stockwatch.com
Abacus Minerals Corporation -
Research Capital says buy
Abacus Minerals Corporation AMCShares issued
180404051997-07-15 close $0.49Tuesday Jul 15
1997Russ Cranswick says why On July 15 1997
(Stockwatch, July 16), Abacus released results
from another eight holes of an ongoing greater
than 10,000 metre diamond drilling program at its
Niblack gold-rich massive sulphide project in the
Alaskan panhandle. The release encompasses
four holes completed at the newly discovered
Trio zone, which lies 300 metres along strike to
the east of the Lookout zone, two holes drilled
down plunge on the Lookout zone, and two holes
drilled 600 metres north of Lookout at the
Mammoth zone. Of the four holes drilled at the
newly discovered Trio zone, holes LO-133 and
-134 stepped 30 metres west of the fence of three
discovery holes (LO-124, -125 and -127)
reported last week and yielded three significant
intersections. The 6.96% copper and 8.18% zinc
over 4.9 metres in LO-134 is particularly
interesting. Holes LO-131 and -130, drilled 40
and 80 metres east of the discovery fence,
intersected massive rhyolite with disseminated
sulphide mineralization. The fact that step-outs to
the west at Trio have hit, the farthest east hole
missed, and L0-131 intersected low gold and
precious metal grades, may indicate that the zone
plunges westerly, much like the nearby Lookout
zone. Two holes reported from the Lookout zone,
LO-132 and -132-W-1 (wedged from 350 metres
down LO-132), tested the zone on a fence 80
metres west of hole LO-126 previously reported.
Both holes intersected low grade zinc
mineralization above the target depth. Given the
erratic upper edge of the zone, and the known
occurrence of local low grade windows within the
zone, the lack of significant mineralization in
these particular holes is not a major worry. The
zone remains wide open at depth and is largely
open along strike. The two holes drilled at the
Mammoth zone to the north each intersected
wide zones of anomalous base metal
mineralization. The geology in these holes
continues to support the company's structural
interpretation that the Mammoth zone may occur
on the limb of a synclinal fold that links the
Mammoth horizon with the Lookout horizon. We
are highly encouraged that this year's drilling
continues to expand the resource at Niblack. The
program is now approximately 50% complete and
many more holes have yet to be drilled. Given the
company's working capital position, significant
expansion potential at lookout and other zones at
Niblack, plus the under-explored gold projects
that the company recently optioned from Barrick
Gold, Abacus remains undervalued. We reiterate
our speculative buy recommendation and have a
one year target price of $2.50. (c) Copyright
1997 Canjex Publishing Ltd.
canada-stockwatch.com
Good luck,
Mr Metals
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