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Special Advisory/Update: Abcourt set for significant silver-zinc Production

With Abcourt's news of the purchase of mill equipment coupled with their existing infrastructure & equipment from their once producing silver-zinc mine, it appears near-term production is imminent and with significantly improved metrics. Now is the time to pay attention to ABI.V shares as the current valuation should make upward adjustments to reflect forward discounted future revenues of Abcourt as a gold producer with the Elder Mine and as silver-zinc producer at Abcourt-Barvue Mine with a solid expandable resource base in a mining friendly region.

ABI.V's latest purchase of equipment once owned and used by Barrick Gold Corp. eliminates a 24 month wait for new equipment and is a major savings. The latest equipment purchase is only 10-12 yrs old and includes flotation and grinding mill equipment plus all accessories including bins, conveyors, cyclones, pumps, tanks, overhead cranes, lime and reagents circuits, electrical circuits, a gravity circuit with two 30" Knelson separators, spare parts. This with the two ball mills, crusher and lime plant already purchased and the existing facilities on the mine site covers close to 90% of all the material needed for the construction of an 1800-tonne per day mill at their silver-zinc Abcourt-Barvue project. The purchase of mill equipment is described by Abcourt's management as "a major step towards a production decision". For the Elder gold project nearby milling is available. ##

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Abcourt Mines Inc. (TSX-V: ABI)

(Frankfurt & Berlin ISIN: CA00288E3005), (U.S. Pink sheets otc: ABMBF)
   

Opportunity Presents Itself in Abcourt Mines

"With large gold, silver, and zinc resources, a 13 year mine life, ~55M shares outstanding and trading well under US$0.20/share - Abcourt offers an exceptional risk-reward scenario for investors. A recent qualified Analyst initiated coverage on Abcourt Mines Inc. with a Buy Recommendation and forecasts a 50% to 100% near term upside target investment opinion (copy of analysts report is available here [PDF])"

Article by James O'Rourke

       Abcourt Mines Inc. is a TSX Venture Exchange listed advanced stage development and exploration mining company (ticker symbol ABI.V, also listed in Frankfurt). Abcourt is extremely undervalued at its current market cap as they have the resources to put into production and are currently forging ahead with progress towards open-pitting the once producing Abcourt-Barvue Silver-Zinc Project back into production. Production was put on hold in 1990 when silver prices were falling and there was an anticipated drop in the price of zinc. Some equipment was sold and some was mothballed. It now appears that conditions are now in place for a highly profitable operation. The company is debt free and has managed to maintain and upgrade its properties, equipment, and resources during the hiatus all without diluting the share structure.

       A recent analyst report (copy available here [PDF]) has identified Abcourt Mines Inc as significantly undervalued with five projects of significance in Northwestern Quebec and is heavily discounted at its current share price. The Abcourt-Barveau silver-zinc deposit alone has significant resources which the Company's independent feasibility report indicates as economically mineable. This one project alone is significantly discounted with the market capitalization of Abcourt Mines Inc. under CDN$10M; Abcourt has well in excess of 500 million US dollars of zinc resources at current market prices. Abcourt Mines also has 19,644,354 ounces of silvers at the Abcourt-Barvue project and 198,744 ounces of gold at it's Elder Gold Project. The Analyst report is recommended reading for astute investors as various methods of valuation are employed by the Analyst using different scenarios/catalysts and provides a compelling risk-reward picture for inventors. Abcourt Mines Inc. (ABI.V) appears grossly undervalued with current disproportionate multiples as inherent resource and infrastructure value per share is well in excess of the current trading price. ABI presents tremendous upside potential. The Analyst report provides insight about how ABI.V presents tremendous opportunity of doubling their current large resource base. Area miners such as Agnico Eagle, IAMGold, Richmont, Breakwater and Xstrata share the same geological model and are currently mining at much greater depths than what Abcourt currently is at.

       The Company has optimized their feasibility report, improving upon their previous numbers, and managed to lower capitalization costs to reopen mine by significantly, they managed to buy some key items; ABI.V's latest purchase of equipment once owned and used by Barrick Gold Corp. eliminates a 24-month wait for new equipment and is a major savings. The latest equipment purchase is only 10-12 yrs old and includes flotation and grinding mill equipment plus all accessories including bins, conveyors, cyclones, pumps, tanks, overhead cranes, lime and reagents circuits, electrical circuits, a gravity circuit with two 30" Knelson separators, spare parts. This with the two ball mills, crusher and lime plant already purchased and the existing facilities on the mine site covers close to 90% of all the material needed for the construction of an 1800-tonne per day mill at their silver-zinc Abcourt-Barvue project.

      Abcourt's other prize asset is their 100% interest in the past producing (1947 - 1966) Elder gold mine located 100 miles from their silver zinc project in Northwestern Quebec. Abcourt recently completed a 7000-meter, 40-hole drill program on this Elder gold property that will increase existing resources. Initial results are extremely encouraging. Similarly to the Abcourt-Barvue mine, Elder gold mine has a substantial amount of well maintained and upgraded infrastructure in place. The geological model the Company believes in for the Elder gold property, holds the potential for 1.5M tonnes of ore grading approx. 0.2 oz of gold per ton. Abcourt expects to raise funds soon for the reopening of the Elder gold mine. Additionally Abcourt has exercised an Option to acquire 100% of the Aldermac deposit near Rouyn-Noranda, Quebec. The Aldermac is a past producing mine (1936-1943) and offers great potential for future exploration.

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Comments on Oct 23/07 Analysts Report: Approaching one billion US dollars zinc resource and a 13-year mine life Abcourt is identified in newly issued analysts report with 100%+ near term upside valuation from numerous potential project scenarios/catalysts.

The qualified Analyst has identified Abcourt Mines Inc as significantly undervalued with its five projects being heavily discounted at current share price valuation of under CDN$0.20. The Abcourt-Barveau silver-zinc deposit alone has significant resources which the Company's independent feasibility report indicates as economically mineable with a 13-year mine life and this one project alone is significantly discounted with the market capitalization of Abcourt Mines Inc. under CDN$20M; Abcourt has well in excess of 500 million US dollars of zinc resources at current market prices. Abcourt Mines also has 19,644,354 ounces of silver at the Abcourt-Barvue project and 198,744 ounces of gold at it's Elder Gold Project.

The Analyst provides a compelling risk-reward picture for inventors as Abcourt is currently undervalued at between a mere $0.01 - $0.02 per Zn-equivalent lb found at the Abcourt-Barvue project alone, a level at the low end generally attributed to earlier stage exploration companies with resources. The currently share price is only attributing value to the in-ground zinc resources at the Abcourt-Barvue project - ignoring its large silver resources, other properties and the significant infrastructure the Company possesses from when it was a past producer at the silver-zinc operation and the Elder Gold mine sites.

Abcourt now has active programs at several base metal properties and a gold property (4 of 5 are 100% owned), all located in Quebec’s prolific Abitibi Greenstone Belt:

 
1. The Abcourt-Barvue Zinc-Silver property unifies two past producers with significant exploration/development work. It has been the subject of a recent optimized feasibility study on a 500 million lb. Zn, 13+ million ounce Ag orebody over a 13-year minelife. Additional inferred resources and clear exploration potential could result in a long life asset. Abcourt is continuing with a development program at Abcourt-Barvue (permitting, raising financing, etc.).

 
2. Elder Gold Property. Plans are to re-open the 43-101 compliant 200,000 ounce gold resource following a successful drill program in2005/06.

 
3. The Jonpol Copper-Zinc-Silver property has historic resources and short term exploration potential to add more. Jonpol also represents a historic target for a large massive sulphide deposit. A $300,000, 2500 meter drill program has been performed.... SEE NOV 15, 2007 RELEASE of DRILL RESULTS/SILVER VALUES.

  
4. The Aldermac Zinc-Copper property, with historic resources at the previous mine and undeveloped high grade discovery/resource in 1987/88. There is considerable valuable underground development.

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Abcourt Mines Inc.'s Mineral Reserves and Resources as of June 30, 2008:

SEDAR Filings: URL