Abcourt Mines Inc V.ABI

Analyst Report - Some May Not Have Seen This

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Analyst Research Report on Abcourt Mines Inc.with Upside Valuation Investment Opinion
03/30/2011[ACCESSWIRE]
AbcourtMines Inc. (TSX VENTURE: ABI) (Pink Sheets: ABMBF) is identified in newlyissued analysts report by Howlett Research with justification of upsidemarket valuation. The analyst has initiated coverage with significant upsidere-rating based on repositioning of assets with emphasis on productionpotential.? ?The full Analyst report may be found at https://www.sectornewswire.com/HowlettResearchABImarch28-2011.pdfonline.? ?The qualified analyst has identified Abcourt Mines Inc assignificantly undervalued with several base metal properties and a goldproperty (all 100% owned) in Quebec's prolific Abitibi Greenstone Beltheavily discounted at current share price valuation of under CDN
.25:? ?1.Elder Gold Property; A joint venture spent $23 million in the 1980s to putthis 100,000 – 200,000 oz. property into production, but the plan vaporizedwhen Noranda decided to process material from its own Silidor Mine andadditional capital could not be raised for a mill. Internal updates to the(non 43-101 compliant) feasibility study call for very modest capx and $550 -$600 cash costs/oz. The argument for attracting a financial / jv partner andmoving forward to develop a mine is very compelling.? ?SpeculativePotential at Elder Au Property: Assuming 135,000 oz Au (current M&I @higher 0.15 opt Au cutoff), capx of $20 million, cash costs of $600 / oz andAu price of $1400, this project would generate a net pretax value of $88million, along with a 1 year payback @ 25,000 oz / yr.? ?2.Abcourt-Barvue Silver-Zinc Property; The property unifies two past producerswith significant exploration / development work. It has been the subject of a2007 optimized feasibility study for a 500 million lb. Zn, 13+ million ounceAg orebody over a 10 year minelife. New simulations incorporating known(incl. some non 43-101) resources, increasing the mining rate, and increasingAg recovery show robust economics (~25+ after tax IRR, ~$60 million NPV(8%),ZnEq
.50/lb cash op. costs @
.90 Zn, $25 Ag). Note – the “simulation” isnot an updated feasibility study and should be considered speculative.? ?SpeculativePotential at Abcourt-Barvue Zn-Ag Property: At $1.00 Zn and $25 Ag, Agcontributes over 40% of NSR value and in today's environment, this should beconsidered a two product property. According to our calculations, anyreasonable pricing scenario with either Zn or Ag holding up shows very goodresults. The long term outlook for Zn is excellent post-2012 as significanthistoric producers begin to go out or production. Low zinc and (necessary)new projects appear inconsistent.? ?3. Vendome-Barvallee Zn-Cu-Ag-AuProperty; A satellite property to the Abcourt Barvue property, with a 900,000ton historic (non-43-101) resource. Ownership has recently been rationalized,with Xstrata selling the JV claims to Abcourt. There is potential to includesome of these resources into the Abcourt-Barvue production schedule.? ?4.The Aldermac Zinc-Copper Property; The property has known resources at theprevious mine and undeveloped high grade discovery in 1987 / 88. Based onhistoric reports (Wright Engineers, prior to 43-101 standards) the in situvalue of the 1987/88 discovery is $200+ million. There is considerable valuableunderground development. Drilling since acquisition in 2007 has been verypositive in confirming resources and outlining new potential.? ?InvestmentConsiderations:?"It seems abundantly clear to us that the marketperceives Abcourt as a company with some insitu resources but focused onexploration and resource development. These resources have been given atypical low value per lb (or oz as the case may be). The fact is that Abcourthas two advanced properties with considerable development. Today's commodityprices may well make these projects viable. As prices firm up, financing / JVpossibilities for these projects may open up. With a market cap of under Cdn$25 million, there is a wide value gap that we believe can be narrowed shouldAbcourt reposition its assets and link programs more directly with potentialto monetize properties as producers."?
Thefull Analyst report may be found at https://www.sectornewswire.com/HowlettResearchABImarch28-2011.pdfonline.
?Thisrelease may contain forward-looking statements regarding future events thatinvolve risk and uncertainties. Readers are cautioned that theseforward-looking statements are only predictions and may differ materiallyfrom actual events or results. Articles, excerpts, commentary and reviewsherein are not advice, are for information purposes only and are notsolicitations to buy or sell any of the securities mentioned. Readers arereferred to the terms of use, disclaimer and disclosure located at the abovereferenced URLs.? ?Contact Information:?Fredrick William BA Ec.,Managing Director?Market Equities Research Group?[e-mail]