Abcourt releases a Positive Preliminary Economic Assessment for its Sleeping Giant Gold Project

Rouyn-Noranda, Canada, June 07, 2023 – Abcourt Mines Inc. (“Abcourt” or the “Corporation”) (TSX Venture: ABI) is pleased to announce the positive results of an independent Preliminary Economic Assessment (“PEA”) prepared in accordance with NI 43-101 for the Sleeping Giant Project, a wholly owned high-grade gold deposit located in the greenstone belt of Abitibi, 80 km north of the town of Amos, Quebec.



Pascal Hamelin, President and CEO, comments: “The PEA results released today are excellent with an NPV5% of 54 M CAD and an IRR of 33%. The results of the PEA are based on a mineral resource produced in accordance with current CIM standards and guidelines. The PEA envisions a rapid start-up of operations with minimal initial investment. This project could quickly become the next gold producer in Quebec. Targeted drilling towards areas with inferred mineral resources could potentially increase resources and some project economics. The PEA is considering 50% utilization of our ore processing plant. This new drilling could potentially increase feed capacity and operate the plant at full capacity.  This capacity could also allow us to accept material from other deposits such as Discovery and Flordin in the medium term, and potentially increase the value of our assets. The next step is to now target promising areas to convert inferred to indicated resources for incorporation into a more detailed economic assessment. With the potential to add other deposits to the project, we anticipate strong economic potential for the region around the Sleeping Giant plant in the future. »


*The reader is advised that the PEA summarized in this press release is intended only to provide a high-level initial review of the project’s potential and design options. The PEA’s mine plan and economic model includes numerous assumptions and the use of inferred mineral resources. Inferred Mineral Resources are considered too speculative to be used in economic analysis, except as permitted by NI 43-101 in PEA studies. There is no guarantee that Inferred Mineral Resources can be converted to Indicated or Measured Mineral Resources and, therefore, there is no guarantee that the economics of the project described herein will be realized.



Opportunities to increase Project Value


The Sleeping Giant Project has strong potential for mineral resource expansion based on more than 800 mineralized structures remaining open at depth, down plunge and to the east. Future modeling could offer an increase in the potential of the project. In addition, with a utilization of nearly 50% of its capacity, the current ore processing plant has excess capacity which could offer the opportunity to accept material from deposits surrounding the Sleeping Giant Project. The contribution of other deposits could positively influence the economics of the PEA.  Moreover, Abcourt owns several deposits with mineral resources within a radius of less than 200 km from the Sleeping Giant project, including the Discovery, Flordin and Pershing-Manitou deposits.





A sensitivity analysis was performed to validate the impact on NPV5% and IRR, before and after tax by varying the gold price and capital costs.  The results of the analysis are shown in Tables 5 and 6 below; the base case is in bold in the tables.  Note that a sensitivity analysis was also carried out on revenues and operating costs.  The results of this evaluation can be found in the PEA.





PEA Detail


Mining Extraction


The Sleeping Giant project is an underground mine that was operated until 2014.  The operation extended from the N-55 level to the N-1060 level. The mineralization consists of numerous veins of gold.  The mining plan consists of extracting 720,000 tonnes of ore, including new stopes that can be accessed almost exclusively from existing levels.  Production is split between levels N-145 and N-1110 and will require rehabilitation of the drifts, escapeway, shaft service compartment and existing infrastructure.  The stopes will be mined by the longhole, Shrinkage, and room-and-pillar methods with a tonnage distribution of 27%, 30% and 43%, respectively.


At full production, daily production will reach 350 tpd on 10-hour shifts on a continuous 7-day rotation. The preproduction period will span a period of one and a half years. The mining methods were established according to the geometry, in particular the dip, of the various stopes. For the long hole method, the sub-levels are distributed at an interval of 15 vertical meters. For the rooms and pillars method, the pillars left in place have an area of 3 m x 3 m, while the rooms have a maximum width of 6.0 m.


Abcourt currently owns the fleet of production equipment needed to carry out the production plan (cavo, rail loaders, various drills, etc.). A complete reconditioning of the equipment was considered to ensure optimal operation at the start of the work. Surface infrastructure remains unchanged; the ore being processed on site with the existing plant.


Mineral Processing


The Sleeping Giant concentrator processed ore from the Sleeping Giant mine from 1988 until 2014 and subsequently processed ore from adjacent mines from 2016 until 2022.


The concentrator process consists of ore crushing by a jaw crusher and two cone crushers in a closed circuit with a screen, primary grinding by a rod mill followed by secondary grinding by two ball mills in a closed circuit with cyclones. Cyclone overflow feeds a thickener and subsequently a pre-aeration tank, two leach tanks and four carbon-in-leach (CIL) tanks for a leach time of 46 hours. Lead nitrate is added to the grinding circuit to improve leaching. Once loaded with gold, the carbon is pumped from the CIL to be screened and eluted. The stock solution is directed to the gold room for electrolysis, sludge drying and ingot casting.


The concentrator has a capacity between 700 and 750 tpd.  It will be operated 12 hours a day for a daily production of 350 t/d.


Surface Infrastructures and Tailing Facility


A site visit was carried out in order to validate the condition of the various surface and underground equipment as well as the surface infrastructures.  This made it possible to estimate all the repair needed for a return to production of the site.  Overall, the process plant, headframe, hoist buildings and other surface infrastructure were found to be in good condition.  However, at the processing plant, an upgrade will be necessary for conveyors, crushing units, tanks and silos.  Existing buildings and access roads are well maintained and capable of supporting activities related to a resumption of mining operations.


To facilitate an effective workforce management system, on-site accommodation and catering facilities have been provided for workers on rotation.  These will constitute the main infrastructure investment required for the project.  In total, an investment of $4.6 million is planned for the repair and construction of surface infrastructure, including drinking water and wastewater services.


An amount of $6.4 million is planned for the project for the reconditioning of the entire electrical network, including the modification of the arrival of the 25 kV electrical line from Hydro-Québec in order to include the various modules associated with the accommodation.


Underground, the mine dewatering system is currently in operation and all levels are accessible. Investments in piping will have to be made over time to ensure the continuity of operations. The emergency generator, which is mainly used for dewatering, must be upgraded. Communication systems are functional. In total, the reconditioning of surface and underground equipment is estimated at $6,7 million, including an amount of $4.3 million for process plant equipment.


For the mine tailing facility, certain work will have to be carried out in order to be able to store the mine tailings generated by the 720,000 t of ore milled in the concentrator. It is expected that cells 1 and 2A currently in place will be able to accommodate the tailings generated by the concentrator following dike raising and dredging work during the project. Cell 2 will continue to serve as a water recirculation basin towards the processing plant, while Cell 3 will serve as a polishing basin. The treatment of the tailing’s mine waters before their discharge into the environment will be carried out in a manner similar to that of the last years of operation of the site. In total, an amount of $10.9 million is planned for the development of the tailing facility.


Environment and Restoration Plan


The project is located in the southern part of the territory of the Regional Government of Eeyou Istchee James Bay. The regional government is responsible for the management of these lands, which are public lands in the domain of the State.


The current project is considered an existing mine, and not subject to the environmental and social impact assessment and review procedure. The activities that will be carried out fall within the framework of the Environment Quality Act and the Regulation respecting the regulatory scheme applying to activities on the basis of their environmental impact.


Abcourt currently has most of the certificates of authorization allowing it to mine and process the ore. However, a request for modification of certain existing authorizations will have to be presented concerning work related to drinking water, wastewater treatment and the tailing facility.


Restoration costs for the Sleeping Giant Mine have been estimated at $12.1 million, taking into account the dismantling of surface facilities, including new accommodation facilities, water management infrastructure and the restoration of the tailing facility.  The restoration work is planned to take place over 2 years.




A 2.0% royalty was applied to the Sleeping Giant project on all ounces of gold produced.


Qualified Persons


This PEA was prepared for Abcourt Mines Inc. by InnovExplo Inc. and other industry consultants, all Qualified Persons (QPs) under NI 43-101.  The QPs have reviewed and approved the contents of this press release. The affiliation and areas of responsibility of each qualified person involved in the preparation of the Sleeping Giant PEA are listed below.



Mr. Pascal Hamelin, ing, President and Chief Executive Officer of Abcourt, has verified and approved the technical information contained in this press release.


About Abcourt Mines Inc.


Abcourt Mines Inc. is a Canadian exploration corporation with strategically located properties in northwestern Québec, Canada. Abcourt owns the Sleeping Giant mill and mine where it concentrates its development activities.


About Innovexplo inc.


InnovExplo Inc. is a consulting firm offering services in mining exploration, mining geology, mineral resources, mining engineering, environment, and sustainable development. Since its founding in 2003, InnovExplo Inc. has worked on 450 different mandates for 170 junior mining exploration and producing companies. The firm has produced more than 300 geological or engineering reports for projects affecting almost all the spheres of activity of a mining project, from exploration to operation, including mainly the drafting of technical reports in accordance with the Regulation 43-101.


About WSP


One of the largest professional services firms in the world, WSP mission is to shape the future of our cities and our environment. To this end, we provide strategic consulting, engineering and design services to our clients in the transport, infrastructure, environment, building, energy, water and utilities sectors. mines. Our 66,000 trusted professionals share the common goal of having a positive and lasting impact on the communities we serve, through a culture of innovation, integrity and inclusion. Science and sustainability guide all of our work. In 2022, WSP derived more than half of its CA$11.9 billion in revenue from services that positively impact the environment and support the United Nations Sustainable Development Goals (SDGs). The Company’s shares are listed on the Toronto Stock Exchange (TSX: WSP). To learn more, visit


About Soutex


Soutex is a mineral processing and metallurgy consulting firm that offers specialized process services. Founded in 2000 and with offices in Canada (Quebec and Longueuil) and Germany (Munich), Soutex includes more than 35 metallurgists, process engineers and technicians. Soutex offers an excellent combination of specialists with experience in plant operations, engineering, technical services, and training.


About Englobe


Englobe is a Canadian leader in the fields of geotechnics, environment, engineering, soil and biomass treatment, as well as in asset quality and integrity management. As a provider of specialized services in these different spheres, Englobe develops infrastructures for multiple clients in the private (industrial, mining sectors) and public sectors in Canada and elsewhere in the world.


For further information, please visit our website at and consult our filings under Abcourt’s profile on, or contact:


Pascal Hamelin

President and CEO

T: (819) 768-2857

E: [email protected]


Dany Cenac Robert, Investor Relations

Reseau ProMarket Inc.,

T: (514) 722-2276, post 456

E: [email protected]


Forward-Looking information


Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other similar expressions. Forward-looking statements are based on Abcourt’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Abcourt to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements are subject to business and economic factors and uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in Abcourt’s public documents, available on SEDAR at There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although Abcourt believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements and forward-looking information. Except where required by applicable law, Abcourt disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


The TSX Venture Exchange and its regulatory service provider (as defined in the policies of the TSX Venture Exchange) assume no responsibility for the adequacy or accuracy of this press release.

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