RE: AGM December 9, does anyone understand the vot
Looks to me like the Co. is stepping up to protect the shareholders and assure them that they will be well rewarded if a friendly or hostile takeover is looming. I have looked over the info and I am assuming that because this is a special AGM, that there is a sense of urgency to all this. I am also assuming that the principal Hinse has spent a considerable time and effort to position the Co. and himself for a payday....since he is not young and has a very valueable property and underground resources. I suspect that there is a larger entity in the province (the Abitibi area is prime, as is Quebec) that may be eyeing ABI as a perfect addition for both resource and new potential resource...with all the goodies in place....paint by number, if you will. In the present market grossly undervalued juniors like ABI are bargains considering that they will soon rise significantly in price. Gld ans silver are gong to well over $2000 and $60 in the next few months according to experts like John Embry and a crowd of others.
I believe that is just a protective clause for the shareholders because it can only be approved by the shareholders...I suppose as a legal option of sorts. From the Management discussion (off SEDAR):
"
In 2011, drill holes were located on different properties as follows:
Properties Number of holes Number of meters
Vendome 4 658
Vezza 2 573
Elder-Tagami 103 15,642
Abcourt-Barvue 52 12,246
161 29,119
At Vendome, four holes were drilled to confirm some historical information.
At Vezza, two holes were drilled along a sediments/volcanics contact, generally mineralized
with gold-bearing pyrite. No significant values were intersected. This work was done to renew
the claims.
At Elder-Tagami, 103 holes, for a total of 15,642 meters, were drilled to augment and to
upgrade the resources. Excellent results were obtained and reported in several press releases
during the year. A revision of the 43-101 calculations is currently being done.
At Abcourt-Barvue, 52 holes were drilled, for a total of 12,246 meters, in the western part of
the Abcourt-Barvue ore body to augment the quantity and the quality of the ore re
The following table summarizes the information relating to the warrants.
Warrants Outstanding Price
$
Expiry Date
4,313,462 0.17 December 2011
5,084,917 0.19 December 2011
24,245,787 (1) December 2012
3,986,821 (2) December 2012
35,138,888 (3) April 2013
72,769,875
(1) These warrants entitle their owners to acquire one class “B” share at a price of
.175 during a
twelve-month period ending in December 2011 and at
.195 for an another twelve-month
period ending in December 2012.
(2) These warrants entitle their owners to acquire one class “B” share at a price of
.25 during a
twelve-month period ending in December 2011 and at
.30 for an another twelve-month
period ending in December 2012.
(3) These warrants entitle their owners to acquire one class “B” share at a price of
.23 during a
twelve-month period ending in April 2012 and at
.26 for an another twelve-month period
Options granted to brokers and intermediaries
Changes in Company’s options to brokers and intermediaries were as follows:
2011 2010
Number Weighted average
exercise price
Number Weighted average
exercise price
$ $
Balance, beginning
of year 1,119,833 0.14 212,400 0.44
Granted 4,689,907 0.18 1,062,833 0.13
Expired (57,000) 0.26 155,400 0.50
Exerced (714,807) 0.13 0
Balance, end of year 5,037,933 0.17 1,119,833 0,14
The weighted average
fair value of options
granted to brokers and
intermediaries
2011 0.07 2010 0.06
MINING PROPERTIES
Abcourt Mines Inc. (the “Company”) has two mining projects at an advance stage of
development in :
· A silver/zinc project with the Abcourt-Barvue and Vendome properties north of Vald’Or
.
· A gold project with the Elder and Tagami properties near ,
.
and two advanced exploration projects, also in :
· The Aldermac property located near with historical
resources in copper, zinc, silver and gold.
· The Jonpol property located near with historical resources in
copper, zinc, silver and gold.
Here is some information on each property:
20
ABCOURT-BARVUE PROPERTY
The Abcourt-Barvue property is conveniently located at Barraute, 60 kilometers (35 miles)
north the mining community of Val-d’Or, . It covers 2,504 hectares with 59 claims
and two (2) mining concessions held 100% by Abcourt.
In 1950, zinc was discovered on surface on the Barvue claims. The mine was operated from
1952 to 1957 with an open pit by Barvue Mines Limited and from 1985 to 1990 with an
underground operation by Abcourt Mines Inc.
Our objective is to place this property into production. From 2002 to 2007, several drilling
programs, technical and environmental studies were completed or were done to provide data
for a feasibility study and to support our applications for permits. The feasibility study is now
completed but various alternatives are considered to improve the profitability of this project.
In February 2011, Abcourt purchased the Xstrata Zinc Canada Division interest in fifteen half
claims being part of the Vendome property. The purchase of these claims will allow us to add
Vendome to the Abcourt-Barvue project.
In May 2006, a revision of the Abcourt-Barvue resources was completed by an independent
qualified person, Mr. Jean-Pierre Bérubé, P.Eng., consultant for MRB & Associates of
Val-d’Or, . This revision was made according to NI 43-101 Standards. This
report is available on SEDAR.
Genivar, Limited Partnership of Quebec City and Bumigeme of Montréal, completed a
feasibility study, which was published in February 2007. With this feasibility study, almost all
the resources were converted into proven and probable ore reserves. This report is available
on SEDAR.
The mining plan involves the extraction of 85% of the ore from an open pit and 15% from
underground stopes followed by the treatment of this ore in a mill built on the mine site with a
capacity of 1,800 tonnes per day for a total of 650,000 tonnes per year. We are also evaluating
the possibility of increasing the mill capacity to 2,740 tonnes per day, for a total of 1,000,000
tonnes per year. To reach this objective, it is necessary to upgrade some inferred resources at
Abcourt-Barvue to indicated ore reserves and to add to the project historical resources at
Vendôme. At Abcourt-Barvue, we have started a surface drilling program in the western part
of the ore body at depths of 150 to 180 meters from surface to upgrade inferred resources to
indicated ore reserves. The next step will consist in a NI 43-101 revision of the Abcourt-
Barvue resources and ore reserves.
Also, a 43-101 resource report is currently being prepared for Vendome. Four holes drilled to
confirm previous drilling gave excellent results. See our Press Release dated August 19 last.
THE VENDÔME PROPERTY
The Vendome property is located 11 kilometres (seven miles) south of the Abcourt-Barvue
property. It comprises 59 full claims for a total of 2,546 hectares owned 100% by Abcourt.
21
In the 1950’s, a small ore body was discovered and a three-compartment shaft was sunk to a
depth of 160 meters (525 feet). Three levels were established at depths of 76 meters (250
feet), 114 meters (375 feet) and 152 meters (500 feet). A total of 2,134 meters (7,000 feet) of
drifts and raises were excavated and 351 holes were drilled underground for a total of 19,595
meters (64,600 feet). At the same time, two deposits, the Barvallee and the were
found on strike to the west by surface drilling. In addition, some holes drilled in the Magador
batholith found some gold values.
In 1987, a surface plant was installed and a short (76 meters) ramp was excavated on the
Barvallee part of the property.
In 1998, the Company drilled nine holes for a total of 1,505 meters (4,936 feet) in the
Barvallee sector of the zone. Results were very encouraging.
As indicated previously, four holes were drilled in 2011 to confirm historical resources and
excellent results were obtained. See our Press Release dated August 9 last. An evaluation of
resources according to NI 43-101 is currently being done.
THE ELDER-TAGAMI MINE
The Elder mine is owned 100% by Abcourt. The mine is conveniently located just six miles
(ten km) northwest from the mining community of . The property
comprises 34 contiguous claims and a mining concession covering an area of 876 hectares.
There are several small royalties to pay on different parts of the property.
The surface plant includes an office, a service building, a hoist room and a shaft building. The
mine is serviced to a depth of 762 meters (2,500 feet) by two shafts and several drifts on 14
levels. Most of the mining equipment is available and all the facilities are in place. The mine
could be re-opened rapidly at a minimal cost.
The ore is found in several quartz veins generally striking N-40o–E on surface but east-west at
a depth of 305 meters (1,000 feet) down the mine and dipping on the average at 22o to the
south-east, with the exception of the no 4 vein which is striking north-south and dipping 22o
to the east.
Between 1984 and 1989, a total of $23 M was spent on this property by the Aunore Resources
Inc – Nova Beaucage Mines Limited joint venture. The surface plant was installed and the
necessary equipments were purchased. The mine was dewatered, 4,268 meters (14,000 feet)
of old drifts were rehabilitated, the shaft was deepened 15 meters (50 feet), new stations were
established on three upper levels, in no 2 shaft, that is the 4th, 5th and 6th levels, an ore pass
and a waste pass system with loading pockets was established, 142 surface and 75
underground diamond drill holes were drilled, approximately 2,134 meters (7,000 feet) of new
drifts were excavated, ventilation raises were driven and a few stopes were started.
Approximately 13,200 m. tonnes of ore with a grade of 0.198 oz/mt of gold were extracted.
Following a drop in the price of gold, the mine was closed.
From 1995 to 2011, several surface drilling programs were completed. During the period
ending on June 30, 2011, 103 holes, for a total of 15,642 meters, were drilled on the Elder-
Tagami property at a cost of $1,515,000, for an average cost of $96.86 per meter. In our short
22
form prospectuses of December 2010 and April 2011, we had budgeted $1.8 M for this
drilling.
Results were excellent and several Press Releases were issued during the period. See our Web
site: www.abcourt.com. In 2012, diamond drilling will be done underground once the mine is
dewatered. During the second half of the June 30, 2011 period, an important amount of work
and expenses were needed to inspect, repair and upgrade the surface plant, the hoisting
equipment and the shaft before proceeding with the dewatering of the mine. The dewatering
started in May and at June 30, it had reached a depth of 205 meters. As of the date of this
report, it has reached a depth of 273 meters.
In 2012, the dewatering will continue to the end of March. Subsequently, diamond drilling
will be done underground and drifts will be excavated. Currently, we are converting all the
data from the English system to metrics and a revision of resources, in accordance with
NI 43-101, is being done. At the beginning of 2012, we will do a preliminary economic
assessment (PEA) report to determine if additional exploration work is needed to increase
resources before considering a start of production. If that is the case, the exploration program
recommended by Jean-Pierre Bérubé in his 43-101 report (2009), will be realized. On the
other hand, if the PEA study indicates that enough resources and funds are available, a mine
development program will be started with the objective of putting the mine in production as
soon as possible.
THE ALDERMAC PROPERTY
In January 2007, Abcourt announced that a 4-year option was signed for 100% of the
Aldermac property located in Beauchastel township near .
This 303-hectare property is the site of a former mine, serviced by a 495-meter 3-
compartment shaft and nine levels. In the past, it produced two million tons of ore with a
grade of 1.78% Cu, 0.2 oz/t Ag, 0.02 oz/t Au and 1.50% ± Zn.
Around the old mine and 300 meters further east, where a new ore body was discovered in
1987, historical resources are as follows:
Description Short tons Cu % Zn % Ag oz/t
Area around the old mine 620,000 1.60 ± 2.00 ± 0.2
New ore body to the east 1,150,000 1.50 4.13 0.9
Total 1,770,000 1.54 3.38 0.6
The historical resources reported above were prepared before the introduction of National
Instrument 43-101 (“43-101”). The historical resources have not been verified and should not
be relied upon. This being said, Abcourt believes that these estimates, particularly the ones
prepared by Wright Engineers, were estimated by competent persons. This statement is made
by Mr. Renaud Hinse, professional engineer, President of Abcourt Mines Inc. Mr. Hinse is a
qualified person under 43-101.
23
A 22-hole drilling program totalling 5,514 meters at a cost of $601,399 was completed during
the 2008 winter. Several excellent values over important widths were cut and reported in
Press Releases and previous annual reports. See our Web site: www.abcourt.com.
Having placed a priority on Elder-Tagami and Abcourt-Barvue, there was no exploration
work done on this property in 2011 and none is budgeted for 2012.
However, this property is interesting and additional work will be done later.
THE JONPOL PROPERTY
In March 2007, Abcourt announced the signature of a 7-year option to purchase 100% of the
Jonpol property located in Dalquier township near . This 880-hectare
property was subject to several exploration programs in the past and three shafts were sunk,
the deepest reaching a depth of 152 meters.
This exploration work outlined the following historical resources:
Zone Date Author Short tons % Cu % Zn oz/t Ag
Upper Ag-Zn 1969 Waisberg (1) 20,000 - - 4.0 8.0
Jay Copper 1969 Waisberg 26,000 3.5 - - 1.0
Main West Cu 1974 Kilborn (2) 1,946,000 1.04 - - 0.02
Lower Ag-Zn-Cu 1983 Getty (3) 815,000 1.25 3.21 3.55
(1) S. Waisberg, 1969, Conigo Mines Ltd
(2) H.B. Hicks, 1974, Kilborn Engineering Ltd, preliminary feasibility study for 1,000 TPD
mining and milling plant
(3) D. Titaro, 1983, Getty Canadian Mines Ltd, work summary
In addition, several significant gold intersections were obtained in the drilling.
This information comes from a report by C.M Cooke, senior project geologist for Aur
Resources Inc., dated November 1992.
The historical resources reported above were prepared before the introduction of National
Instrument 43-101 (“43-101”). The historical resources have not been verified and should not
be relied upon. However Abcourt believes that these estimates, particularly the ones prepared
by Kilborn and Getty, were estimated by competent persons. This statement is made by Mr.
Renaud Hinse, professional engineer, President of Abcourt Mines Inc. Mr. Hinse is a qualified
person under 43-101.
In the Fall of 2007, 22 holes were drilled for a total of 2,630 meters at a cost of $325,141.
Several interesting values in silver, copper and zinc were cut and were reported in Press
Releases and in previous annual reports. See our Web site: www.abcourt.com.
Aur Resources Inc. with whom we had negotiated the first agreement was amalgamated with
Teck-Cominco Limited. We have re-negotiated this agreement with Teck Cominco Limited
and obtained more advantageous conditions.
24
Diamond drilling
In the fall of 2009, the Company drilled two holes for a total of 1,329 meters. Interesting
values in silver, copper and zinc were intersected.
During the period ended on June 30, 2011, there was no diamond drilling done on the Jonpol
property, but during September and October 2011, there were nine holes drilled, for a total of
1,659 meters. We are waiting for assay results. A similar program will be done later, in 2012.
THE VEZZA PROPERTY
In 2009 and 2010, Abcourt has acquired by staking 85 claims and 19 cells totalling 2,233
hectares in . This property covers about 8 km along the Casa
Berardi-Douay-Cameron deformation zone where several gold occurrences have been
reported in the past. This new property is currently in the exploration stage and is without a
known body of commercial ore or economic deposit.
During the period ending on June 30, 2011, we drilled two holes (573 meters) on a
sediments/volcanics contact, generally carrying some pyrite with gold values. No significant
values were intersected. This drilling was done to renew the claims. During July 2011, we
drilled two additional holes, for a total of 438 meters.
STRATEGY AND OUTLOOK
Our objective is to maximize the value of the Company for our shareholders and our strategy
to obtain this result is to develop our properties. To proceed with this strategy, we completed
several placements in 2011. The funds received were used to complete important drilling
programs on the Elder-Tagami property and at Abcourt-Barvue. Also, there were some share
issues to purchase mining properties.
For any additional information, please consult our web site www.Abcourt.com and the
SEDAR site www.sedar.com.
ABCOURT MINES INC.
NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
NOTICE IS HEREBY GIVEN that the General Annual and Special Meeting of Shareholders of
Abcourt Mines Inc. (the « Corporation ») will be held at l’Hotellerie Rive Gauche, Room ,
(), at 9:30 A.M. on December 9, 2011, for the following
purposes:
1. To receive the Financial Statements of the Corporation for the period ended June
30, 2011, and the Independent Auditor’s Report thereon;
2. To elect the Directors;
3. To appoint the Independent Auditor and to authorize the Board of Directors to fix its
remuneration;
4. To approve a resolution ratifying the By-laws replacing the General By-laws of the
Corporation;
5. To approve the reconfirmation of the Shareholder Rights Plan of the Corporation;
and
6. To transact such other business as may be properly brought before the Meeting.
A form of proxy and a copy of the management proxy circular are forwarded herewith and provide
additional information on the matters to be acted upon at the Meeting.
Rouyn-Noranda ()
October 31, 2011
BY ORDER OF THE BOARD
(Signed) Julie Godard
Julie Godard
Secretary
been elected as directors at a previous shareholder meeting comprising management information circular.
NAME AND OFFICE HELD WITH
THE CORPORATION PRINCIPAL OCCUPATION
DATE OF
ELECTION TO
THE BOARD OF
DIRECTORS
NUMBER OF CLASS «B»
SHARES ON WHICH
CONTROL WAS EXERCISED
AS OF OCTOBER 28, 2011
Renaud Hinse(1)
St-Hilaire ()
President, CEO and Director
Mining Engineer, President and
CEO of the Corporation
December 1979 9,420,949(2)
Judith Lortie Hinse
St-Hilaire ()
Director
B.A.A., Consultant in
Management
December 1979 1,086,372
Normand Hinse
()
Director
B.A.A., President of Rayco
Electronic SystemLtd.
November 1986 1,625,273(3)
Jean-Guy Courtois
()
Director and Chief Financial
Officer
Treasurer and CFO of the
Corporation
December 1979 329,393
Marc Filion(1)
()
Director
Ph. D., M.B.A., Engineer,
President of CHIM International
March 2007 0
Judith Baker
()
Director
Bs. M.B.A., President and CEO
of Cenit Corporation and of Blue
Vista Technologies Inc.
December 2009 126,588
Christian Dupont(1)
Janneville (New-Brunswick)
Director
Mining Engineer, President and
CEO of Explor Resources Inc.
December 2009 69,683
Notes:
(1) Member of the Audit Committee.
(2) Renaud Hinse holds 3,915,074 common shares of the Corporation directly and 5,505,875 common shares through a holding
Corporation that he controls with members of his family.
(3) Normand Hinse owns 1,375,273 common shares directly and 250,000 common shares through Rayco Electronic SystemsLtd.,
a company for which he is the only shareholder.