Abitibi Royalties Files Technical Report Including an Economic Analysis

Abitibi Royalties Files Technical Report Including an Economic Analysis 
VAL-D'OR, QUEBEC -- (Marketwired) -- 04/19/13 -- Further to its news
release of March 6, 2013, Abitibi Royalties Inc. ((TSX VENTURE:RZZ),
hereinafter "Abitibi Royalties" or the "Company") is pleased to
announce that it has received a technical report (the "Report") of
the audit completed by Micon International Limited ("Micon") of the
year-end 2012 gold reserve and resource estimate completed by Osisko
Mining Corp. ("Osisko") limited to the Mammoth/Barnat and Jeffrey
zones located on the Malartic CHL Property . The Malartic CHL
Property is the object of a joint venture with Osisko in which
Abitibi Royalties holds a 30% free carried interest. 
A copy of the Report has been filed with the regulators and is
available for viewing through the Internet under the Company's issuer
profile on the SEDAR website at www.sedar.com. 
The gold reserves and resources from the Malartic CHL Property
contained in the Report and as previously reported in the Company's
March 6, 2013 news release are reproduced at the end of this press
release for reference. 
In addition, Micon included an economic analysis consisting of a
preliminary, before tax, cash flow evaluation of the three zones,
Gouldie, Mammoth/Barnat and Jeffrey. A gold price of $1,450/oz was
used. Please refer to the Report for the assumptions and disclaimers
set out by Micon in preparing the cash flow estimates as summarized
below: 


 
                                 Table 22.2                                 
                    Mammoth/Barnat and Jeffrey Cash Flow                    
----------------------------------------------------------------------------
                                                                            
BARNAT                    Year -2  Year -1 Year 1(i)  Year 2  Year 3   Total
----------------------------------------------------------------------------
Waste (000t)                                   2,000   3,500   2,000   7,500
Ore (000t)                                       415     800     800   2,015
Grade (g/t)                                     0.94    0.94    0.94    0.94
Gold (Ounces)                                 12,543  24,180  24,180  60,904
Metallurgical Recovery                                     
                 
 (%)                                           88.12   88.12   88.12   88.12
Recovered Gold (Ounces)                       11,053  21,307  21,307  53,668
Gross Revenue ($000)                          16,027  30,896  30,896  77,819
Less Ref. Cost                                                              
 @$4.25/Oz($000)                                  47      91      91     228
Net Revenue ($000)                            15,980  30,805  30,805  77,591
Less: Ore based Costs                                                       
 @$11.07/t ($000)                              4,594   8,856   8,856  22,306
Less: Mining Cost                                                           
 @$2.40/t ($000)                               5,796  10,320   6,720  22,836
Barnat Cash Flow ($000)                        5,590  11,629  15,229  32,449
30% of BCF ($000)                              1,677   3,489   4,569   9,735
NPV @5% ($000)              8,708                                           
                                                                            
JEFFREY                   Year -2  Year -1 Year 1(i)  Year 2  Year 3   Total
----------------------------------------------------------------------------
Waste (000t)                                     800   1,800   1,067   3,667
Ore (000t)                                       600   1,500   1,295   3,395
Grade (g/t)                                     0.73    0.73    0.73    0.73
Gold (Ounces)                                 14,084  35,209  30,397  79,690
Metallurgical Recovery                                                      
 (%)                                              82      82      82      82
Recovered Gold (Ounces)                       11,549  28,871  24,926  65,346
Gross Revenue ($000)                          16,745  41,864  36,142  94,751
Less Ref. Cost                                                              
 @$4.25/Oz($000)                                  49     123     106     278
Net Revenue ($000)                            16,696  41,741  36,036  94,473
Less: Ore Based Costs                                                       
 @$11.60/t ($000)                              6,960  17,400  15,022  39,382
Less: Mining Cost                                                           
 @$2.40/t ($000)                               3,360   7,920   5,669  16,949
Jeffrey Cash Flow ($000)                       6,376  16,421  15,345  38,143
30% of JCF ($000)                              1,913   4,926   4,604  11,443
NPV @5% ($000)             10,267                                           
                                                                            
(i) - Expected to be 2015                                                   

 
"Based on the above economic analysis, and subject to the assumptions
made by Micon, the aggregate net present value of Abitibi Royalties'
share of the cash flow from the CHL property is estimated by Micon to
be $18.9 million - which is approximately four times greater than our
current market capitalization", said Glenn Mullan, President and CEO.
"In addition, the Gouldie Zone (in which Abitibi Royalties has a 2%
net smelter royalty)is expected to provide cash flow to the Company
starting in November of this year based on Osisko's operating
budget", said Mr. Mullan. 
Micon also included an economic analysis of Abitibi Royalties' net
smelter return royalty on the Gouldie Zone as part of the Report as
summarized below: 


 
                                 Table 22.1                                 
                            Gouldie NSR Cash Flow                           
                                                                            
                                                    2013      2014     Total
                                              ------------------------------
GOULDIE                                                                     
Ore (000t)                                           296       871      1167
Grade (g/t)                                        0.842     0.947      0.92
Gold (Ounces)                                      8,014    26,522    34,522
Metallurgical Recovery (%)                         80.84     80.84     80.84
Recovered Gold (Ounces)                            6,478    21,440    27,908
Gross Revenue ($000)                               9,394    31,089    40,466
Less Refining Cost @$4.25/Oz ($000)                   28        91       119
Net Smelter Return ($000)                          9,366    30,998    40,348
2% of NSR ($000)                                     187       620       807
NPV @5% ($000)                                       741                    

 
The above cash flows are conceptual in nature, as estimated by Micon.
They do not reflect the fact that ore from the Malartic CHL property
will be milled in conjunction with ore from the Canadian Malartic
mine and is subject to the scheduling requirements of that much
larger operation and various logistical concerns related to that
operation. Actual NSR and NPV may vary from these amounts shown.
Their purpose is to justify classification of the mineralization as a
reserve. For the above analyses, the average grade of
 the deposit has
been inserted into the variable recovery equations for the
Mammoth/Barnat and Gouldie deposits to determine recoveries to be
used. 
Abitibi Royalties Recovers Bourdon Prospects 
In other news, the Company announces that the option agreement (the
"Agreement") pursuant to which each of Noront Resources Ltd. and
White Pine Resources Inc. (together the "Optionees") can earn a 35%
interest in the Luc Bourdon and Bourdon West Prospects (the "Bourdon
Prospects") has been terminated as a result of the Optionees failing
to incur the exploration expenditures required under the Agreement by
the due date, and failing to cure the default within 60 days of
Abitibi Royalties' notice to each of them to this effect. As a
result, Abitibi Royalties retains a 100% interest in the Bourdon
Prospects. The Bourdon Prospects are located in the Ring of Fire
area, McFaulds Lake, Ontario. 
CHL Property Reserve and Resource Summary  


 
                                                                            
                                                                            
Table 1.1 - Mammoth/Barnat Mineral Resource Estimate                        
                                                                            
----------------------------------------------------------------------------
                                                            Grade  Contained
Category                                Area     Tonnes  (g/t Au)         Oz
----------------------------------------------------------------------------
Measured Resource             Mammoth/Barnat    229,300      1.02      7,523
----------------------------------------------------------------------------
Total Measured Resource                         229,300      1.02      7,523
----------------------------------------------------------------------------
Indicated Resource            Mammoth/Barnat  1,842,200      0.77     45,574
----------------------------------------------------------------------------
Total Indicated Resource                      1,842,200      0.77     45,574
----------------------------------------------------------------------------
Measured & Indicated Resource Mammoth/Barnat  2,071,600      0.80     53,097
----------------------------------------------------------------------------
Total M&I Resource            Mammoth/Barnat  2,071,600      0.80     53,097
----------------------------------------------------------------------------
Inferred Resource             Mammoth/Barnat  1,433,700      1.06     48,965
----------------------------------------------------------------------------
                                                                            
                                                                            
Table 1.2 - Jeffrey Zone Mineral Resource Estimate                          
                                                                            
----------------------------------------------------------------------------
                                                          Grade    Contained
Category                             Area      Tonnes  (g/t Au)           Oz
----------------------------------------------------------------------------
Measured Resource                 Jeffrey           -         -            -
----------------------------------------------------------------------------
Total Measured Resource                             -         -            -
----------------------------------------------------------------------------
Indicated Resource                Jeffrey   5,269,000      0.65      110,696
----------------------------------------------------------------------------
Total Indicated Resource                    5,269,000      0.65      110,696
----------------------------------------------------------------------------
Measured & Indicated Resource     Jeffrey   5,269,000      0.65      110,696
----------------------------------------------------------------------------
Total M&I Resource                          5,269,000      0.65      110,696
----------------------------------------------------------------------------
Inferred Resource                 Jeffrey     376,200      0.90       10,842
----------------------------------------------------------------------------

 
Table 1.3 - Gouldie Mineral Resource Estimate 
The following resources are in addition to Reserves noted above: 


 
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                           Grade   Contained
Category                              Area      Tonnes  (g/t Au)          Oz
----------------------------------------------------------------------------
Measured Resources                 Gouldie     843,700      1.17      31,816
----------------------------------------------------------------------------
Indicated Resources                Gouldie   4,662,800      0.96     143,815
----------------------------------------------------------------------------
Measured & Indicated Resources     Gouldie   5,506,500      0.99     175,631
----------------------------------------------------------------------------
Inferred Resources                 Gouldie     857,800      0.83      22,935
----------------------------------------------------------------------------
                                                                            
(1)  Mineral Reserves are reported at a commodity price of US$1,475/oz Au   
     for Gouldie and Barnat and $1,450/oz Au for Jeffrey, and have an       
     effective date of December 31, 2012. Tonnages have been rounded to     
     nearest hundred tonnes. Numbers may not add up due to rounding.        
(2)  Mineral Resources are reported exclusive of Mineral Reserves and are   
     determined by Ordinary Kriging and a variable cut-off grade ranging    
     from 0.31 to 0.34 g/t Au. Mineral Resources that are not Mineral       
     Reserves do not have demonstrated economic viability.                  
(3)  Rounding as required by reporting guidelines may result in apparent    
     summation differences between tonnes, grade and contained metal        
     content.                                                               
(4)  Tonnage and grade measurements are in metric units. Contained gold     
     ounces are reported as troy ounces.                                    
(5)  Mineral Resources have been classified following the standards and     
     definitions of the CIM.                                                
                                                                            
                                                                            
Table 1.4 - Mammoth/Barnat Zone Mineral Reserves                            
                                                                            
----------------------------------------------------------------------------
                                                   Ore     Grade   Contained
Category                              Area      Tonnes  (Au g/t)          Oz
------------------------------
----------------------------------------------
Proven Reserve              Mammoth/Barnat     376,300      0.93      11,200
----------------------------------------------------------------------------
Probable Reserve            Mammoth/Barnat   1,638,300      0.94      49,447
----------------------------------------------------------------------------
Proven & Probable Reserve   Mammoth/Barnat   2,014,600      0.94      60,647
----------------------------------------------------------------------------
                                                                            
                                                                            
Table 1.5 - Jeffrey Zone Mineral Reserves                                   
                                                                            
----------------------------------------------------------------------------
                                                   Ore     Grade   Contained
Category                              Area      Tonnes  (Au g/t)          Oz
----------------------------------------------------------------------------
Proven Reserve                     Jeffrey           -         -           -
----------------------------------------------------------------------------
Probable Reserve                   Jeffrey   3,395,200      0.73      79,249
----------------------------------------------------------------------------
Proven & Probably Reserve          Jeffrey   3,395,200      0.73      79,249
----------------------------------------------------------------------------
                                                                            
                                                                            
Table 1.6 - Gouldie Zone Mineral Reserves                                   
                                                                            
----------------------------------------------------------------------------
                                                   Ore     Grade   Contained
Category                              Area      Tonnes  (Au g/t)          Oz
----------------------------------------------------------------------------
Proven Reserves                    Gouldie     666,800      0.99      21,151
----------------------------------------------------------------------------
Probable Reserves                  Gouldie     500,300      0.83      13,321
----------------------------------------------------------------------------
Proven & Probable Reserves         Gouldie   1,167,100      0.92      34,472
----------------------------------------------------------------------------
                                                                            
(1)  Mineral Reserves are reported at a commodity price of US$1,475/oz Au   
     for Gouldie and Barnat and $1,450/oz Au for Jeffrey, and have an       
     effective date of December 31, 2012.Tonnages have been rounded to      
     nearest hundred tonnes.Numbers may not add up due to rounding.         
(2)  Rounding as required by reporting guidelines may result in apparent    
     summation differences between tonnes, grade and contained metal        
     content.                                                               
(3)  Tonnage and grade measurements are in metric units. Contained gold     
     ounces are reported as troy ounces.                                    
(4)  A Proven Reserve is economically minable part of a Measured Mineral    
     Resource. It includes diluting materials and allowances for losses     
     which occur when the material is mined. A Proven Reserve represents the
     highest confidence category of reserve estimate.                       
(5)  A Probable Reserve is the economically minable part of Indicated       
     Mineral Resource. It includes diluting material and allowances for     
     losses which may occur when the material is mined. A Probable Ore      
     Reserve has a lower level of confidence than a Proven Reserve but is of
     sufficient quality to serve as the basis for decision on the           
     development of deposit.                                                
(6)  Mineral Reserves have been classified following the standards and      
     definitions of the CIM.                                                

 
Qualified Person 
Mr. Donald Gervais is the qualified person, as defined in NI 43-101,
who has reviewed and is responsible for the technical information in
this new release, including verification of the data disclosed, the
sampling, and the analytical QA-QC data underlying the technical
information. Resources and Reserves have been classified following
the standards and definitions of the CIM.  
About Micon International 
Since 1988, Micon International has provided consulting services to
the international mining industry with particular focus upon mineral
resource estimations, metallurgical services, mine design and
production scheduling, preparation of pre-feasibility and feasibility
studies, independent reviews of mining and mineral properties,
project monitoring, independent engineer roles, financial analysis
and litigation support. Micon's clients include mining and mineral
exploration companies, financial institutions and government agencies
from around the world. A particular expertise has been developed in
the economic evaluation of mining properties, including studies in
support of debt and equity financing. Micon's professional staff has
the experience, education and professional credentials to act as
Qualified Persons and/or Competent Persons, as required by world-wide
regulatory agencies.  
About Abitibi Royalties Inc. 
Abitibi Royalties holds title to the Luc Bourdon and Bourdon West
Prospects (also known as the McFaulds Lake Property) and a 30% free
carried interest on the Malartic CHL Property which is the object of
a joint venture with Osisko. In addition, the Company holds a 2% net
smelter royalty interest in one claim held by Osisko, and may acquire
and generate other property and royalty interests.  
Forward Looking Statements: 
This news release contains certain statements that may be deemed
"forward-looking statements. Forward looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or realities may differ
materially from those in forward looking statements. Forward looking
statements are based on the beliefs, estimates and opinions of the
Company's management on the date the statements are made. Except as
required by law, the Company undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.  
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
release. 
Contacts:
Glenn J. Mullan
Chief Executive Officer
819-824-2808, x 1222
glenn.mullan@goldenvalleymines.com