Abitibi Royalties Update on Canadian Malartic Mine & Early Stage Exploration Royalties

VAL-D’OR, Québec, Feb. 18, 2020 (GLOBE NEWSWIRE) -- Abitibi Royalties Inc. (RZZ-TSX-V: “Abitibi Royalties” or the “Company”) is pleased to provide an update on the Company’s net smelter royalties (“NSR”) at the Canadian Malartic Mine, Canada’s largest gold mine, near Val-d’Or, Québec, in addition to other NSRs the Company holds on earlier stage exploration projects. The Company is unique among its peers due to its strong treasury, no debt, monthly dividend, share buyback program and limited number of outstanding shares (approximately 12.5 million).

Royalties at Canadian Malartic Mine

The Canadian Malartic Mine, where Abitibi Royalties owns various NSRs and a net profit interest (“NPI”), is jointly operated by Agnico Eagle Mines Limited (“Agnico Eagle”) and Yamana Gold Inc. (“Yamana”). Abitibi Royalties’ NSRs and NPI cover portions of East Malartic (3% NSR), Odyssey (3% NSR), Sladen (3% NSR), Sheehan (3% NSR), Jeffrey (3% NSR), Barnat Extension (3% NSR), Gouldie Zone (2% NSR) and the Charlie Zone (2% NSR). In addition, the Company holds a 1.5% NSR on the Midway Project and a 15% NPI on the Radium Property, which are all operated and located at, or proximate to, the Canadian Malartic Mine (Fig. 1).

1) Updated Resource Estimate for East Malartic & Odyssey Project

The objective of the 2019 exploration program at Canadian Malartic was to define and increase underground mineral resources, with a focus on Odyssey, East Malartic, and the newly discovered East Gouldie Zone (Fig. 1). The owners of the Canadian Malartic Mine issued new resource estimates for East Malartic and Odyssey (as of year-end 2019) on February 13, 2020. The updated resource estimate for East Malartic includes Indicated Resources of 694,000 ounces of gold (9.9 million tonnes grading 2.18 g/t gold) and Inferred mineral resources of 5,192,000 ounces of gold (78.8 million tonnes grading 2.05 g/t). The updated resource estimate for the Odyssey Project includes Indicated mineral resources of 136,000 ounces of gold (2.0 million tonnes grading 2.10 g/t) and Inferred mineral resources of 1,666,000 ounces of gold (23.4 million tonnes grading 2.22 g/t).  No estimate was provided for the Midway Project where the Company holds a 1.5% NSR (subject to a 1% buyback for USD$1 million), which contains a historical NI 43-101 resource estimate.