Reviving High-Grade Gold Mine Unlocks Self-Funded Exploration Upside

• Abcourt Mines is a Quebec-based gold development company beginning production at its Sleeping Giant mine and mill in Q1 2024.
• The company owns over 13 properties within trucking distance of the Sleeping Giant mill, which has 750-900 ton per day capacity.
• Abcourt aims to generate $500k net per month from an initial 8,000 tons stockpile to fund further exploration and drilling without dilution.
• The goal is to increase the resource estimate from 500k ounces through an extensive drilling program targeting high-grade narrow veins around historic Sleeping Giant mine.
• Expertise in mine building and geology modeling positions Abcourt to potentially substantially increase reserves and mine life.

Potential Returns from Revived Quebec Gold Mine

Abcourt Mines is on the cusp of generating revenue from the revived Sleeping Giant gold mine and mill in Quebec after a couple of years spent upgrading infrastructure and modeling high-grade narrow vein deposits. With the 750-900 ton per day capacity mill scheduled to begin production in Q1 2024, investors have a unique opportunity to capitalize on near-term cash flows funding expanded exploration of known deposits without dilution.

Immediate Production to Fund Growth

Abcourt President and CEO Pascal Hamelin highlights that “We commissioned the mill back in November 2023 [and] we're filling the mill right now.” Initial processing will come from 8,000 tons of broken stockpile material including 5,000 tons grading between 6-8g/t. Open disclosure of ongoing geology modeling provides confidence around expected recoveries near 96% based on historical data. crucially, open access to modeling visualizations enables investors to track mine development and exploration in real-time.

“You're looking at possibly up to 70,000 ounces a year eventually with that Mill." With gold prices still strong, above $1,900 per ounce, such production could generate upwards of $100 million in annual revenue once the mine hits stride. More importantly in the near term, Hamelin believes the immediate "cash for growth" from production means "possibly $500,000 a month net" to fund expanded drilling and exploration "without deluding the shareholders."

This combination of funding exploration from production differentiates Abcourt from the majority of junior miners needing to regularly access external capital.

Large Land Package Holds Exploration Potential

Beyond the revived Sleeping Giant mine itself, Abcourt controls over 13 distinct properties within trucking distance of its centralized mill. The company can therefore incrementally add production from satellite deposits to increase total throughput and further leverage existing infrastructure. Abcourt has already identified nearly 100,000 ounces grading above 10g/t accessible from the top four levels of tunnels alone that sit outside current resources. Significant potential exists to increase total resources from about 500,000 ounces currently outlined.

According to Hamelin, "The extra cash that we're going to generate is going to be for drilling, drilling, drilling Sleeping Giant itself...and the surrounding deposit to the mill." He adds that "80% Sleeping Giant and 20% on the surrounding deposit to the mill" will be the exploration focus to feed substantial excess capacity. An aggressive drill program is already underway with plans to ramp up to 30,000 meters per year. Hamelin notes that during peak historic production in the 1990s, five drill rigs operated to delineate new resources now targeted in Abcourt's modeled deposits.

The Investment Thesis for Abcourt Mines

• Near-term producer status de-risks stock with cash flows funding growth
• Centralized mill and infrastructure allows incremental regional production
• Vast holdings surround the past-producing Sleeping Giant mine with known gold
• Public 3D deposit models track resource expansion potential
• Avoid dilution risks with an internally funded 30,000-meter drill program
• Targeting > 10-year mine life underpinned by increasing 1M+ ounce resource

Abcourt Mines presents a unique investment opportunity as an emerging junior gold producer capable of funding significant exploration upside. Reviving and expanding the Sleeping Giant mine leverages existing infrastructure to potentially increase gold reserves exponentially in a rising price environment. Nearology to past exceptional high-grade results provides confidence for investors.

Macro Thematic Analysis

"Once the markets see that we have a bank account building up...When the markets see that, they are going to say 'yeah it would be nice to have a pre-feasibility study but we don't really care.' You're not diluting anyone, so they don't care" - Pascal Hamelin, President and CEO Abcourt Mines

This sentiment encapsulates the core bull case for Abcourt Mines. As a self-funded junior miner avoiding repetitive dilution from capital raises, investors can maintain upside exposure to exploration success without typical risks. Normally, financings for drilling or other work correspondingly reduce equity stakes. With production slated to begin imminently, the upside optionality from deploying revenue into rapid resource delineation makes for an extremely asymmetrical risk-reward profile in Abcourt shares given the modest current valuation.