N/R 10:52Jun 16, 2009 10:52 ET
Alexis Outlines Strategic Objectives and Focus to Achieve Status as a Mid-Tier Gold Producer
TORONTO, ONTARIO--(Marketwire - June 16, 2009) - ALEXIS MINERALS CORPORATION (TSX:AMC) is implementing a renewed strategy and focus to grow to a mid-tier gold producing mining company. In the next 12 to 18 months, Alexis will advance strategic investments in the Val d'Or - Rouyn-Noranda Area, focus exploration around these projects and advance merger and acquisition activities (M&A). Alexis intends to realize this next tier recognition by:
- Production from the Lac Herbin Mine of 36,000 to 40,000 ounces gold per year through the current 5-year life of mine plan;
- Refurbish the Aurbel gold mill one kilometer from the Lac Herbin mine to achieve an estimated 10% reduction in costs and provide milling capacity for new satellite deposits;
- Advance the Lac Pelletier deposit in Rouyn-Noranda into production in 2010 thereby doubling annual production to an estimated 75,000 to 85,000 ounces of gold per year;
- Focus exploration to realize the million ounce gold potential recognized in the Lac Herbin Mine area and surrounding 100 sq.km Aurbel property, in proximity to the Aurbel Gold mill and more specifically in areas of recent exploration success:
-- In and adjacent to the Lac Herbin Mine;
-- Down-dip of the historic Dumont mine where the deposit appears to be open to depth;
-- In the West Zone, 1.0 to 1.3 km west of Lac Herbin;
-- In the 7 sq.km. area of the NEF zone, 4km NE of Lac Herbin; and,
-- In areas of new initiative, including adjacent to and beneath the historic Ferdeber Mine.
- Focus on Merger and Acquisitions (M&A) that are accretive and contribute to next tier recognition
- Several recent management changes have also been made to provide clear focus in the company and support these growth objectives.
Lac Herbin Mine
The Lac Herbin mine, the company's flagship operation, is targeting an annual production rate of 36,000 - 40,000 ounces per year with mining costs of US$115/tonne (t) in 2009 and decreasing to US$105/t in 2010-2014. At current currency exchange rates, cash costs are US$550/ oz in 2009, decreasing to US$500/oz in 2010 -2014. A solid 5 year mine plan is supported by current Measured and Indicated Resources of 856,300 tonnes grading 7.5 grams gold per tonne (g.Au/t) for 206,000 ounces gold (oz.Au). The mine is also supported by additional Inferred Resources of 420,500 t grading 6.0 g.Au/t, for another 78,000 oz.Au (See Press Release: February 24, 2009). Historically, typical vein-type deposits in the Val d'Or District of northwestern Quebec consistently demonstrate annual replacement of resources through ongoing mine exploration, extending mine life significantly beyond outlined Resource and Reserves. Recent exploration immediately adjacent to the Lac Herbin Mine has demonstrated such on-going potential (see press release: April 3, 2009). Mine exploration will continue to focus on Resource growth on strike and at depth.
Aurbel Gold Mill
The first strategic project for Alexis is completion of refurbishment of the Aurbel gold mill, located one kilometer from the Lac Herbin mine. Alexis intends to reactivate the 1400 tonnes per day capacity mill to accommodate the Lac Herbin ore. This development will reduce operating costs by approximately $12.00 per tonne, or 10% of the cash cost of the mine. The mill provides significant additional capacity to treat ores from the new discovery areas targeted on the Aurbel property, other new satellite deposits in the region, and, to offer Toll milling facilities to other companies. At a cost of $5 million, the refurbishment of the mill is expected to be completed by the end of Q4-2009.
Lac Pelletier Mine
The second strategic project for Alexis is to bring the Lac Pelletier deposit in Rouyn-Noranda into production in 2010. The deposit hosts Measured and Indicated Resources of 1,240,800 tonnes grading 5.42 g.Au/t or 216,405 oz.Au and Inferred Resources of 491,100 tonnes grading 4.94 g.Au/t or 78,029 oz.Au at a 3.0 g.Au/t cut off (See 43-101 Technical Report: October 3, 2006). A 40,000 tonnes bulk sample is planned by the end of the year with a production decision to follow. Dewatering of the Lac Pelletier Ramp and Underground workings has commenced and Alexis expects to announce results from a pre-feasibility study on the deposit by the end of the quarter. At a proposed rate of 35,000 to 45,000 ounces per year, the operation is projected to double annual production of Alexis to 75,000 to 85,000 ounces of gold per year. The production projections are preliminary in nature, and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.
Organic Growth through Exploration
Exploration across the extensive 100 sq/km Aurbel property surrounding Lac Herbin in 2009 has successfully demonstrated at least three new areas with clear deposit scale potential (See Press Release: May 27, 2009). The company believes there is potential to deliver over a million ounces on the Aurbel property over its production lifetime and maintain its long term role as the cash engine of the company for many years into the future. Exploration in 2009 will continue to focus on areas adjacent to the Lac Herbin Mine; down-dip of the past producing Dumont mine; and, in the West Zone and NEF zones on the Aurbel property. New initiatives will be introduced to the exploration focus including exploration near, and beneath, the historic Ferdeber Mine.
M&A Activity
As part of its growth plan, Alexis is also actively seeking accretive acquisitions to grow to the next level. The Val d'Or - Rouyn area has significant exploration potential for new world class discovery and hosts numerous known deposits with potential to act as satellite deposits.
Management Focus
Alexis is also pleased to announce a refocused management structure to realize this growth. Stan Bharti, Executive Chairman of the Board, will focus on capital markets. Mr. Bharti has been instrumental in developing a variety of Resource companies over the last 4 years and associated project and company financing. David Rigg, President and CEO will focus on strategy and corporate growth through acquisition and new discovery. Mr. Rigg has been instrumental in numerous mine discoveries during his career, including several world class deposits. Keith Boyle, EVP and COO, will be responsible for mine operations including delivery and development of strategic projects. Mr. Boyle has been responsible for the successful development of at least five producing mines during his career and introduces key aspects focused on cost controls, safety, environment and productivity.
Alexis has appointed Mr. Patrick Sevigny, Eng. as manager of Strategic Development for Alexis. Mr. Sevigny is a mining engineer from the Abitibi region and more recently steered the successful development of the Lac Herbin mine. He will focus on the evaluation of growth opportunities for the company. Mr. Jean Bastien, Eng. and Mr. Pascal Hamelin, Eng. have been recently hired as Mine Managers of Lac Herbin and Lac Pelletier Mines respectively.
Alexis continues to fulfill its strategy of expanding its gold profile to achieve mid-tier producer status. The Company's management focus, growing production profile, large land holdings and strategic infrastructure, provide the foundation for the discovery, development and operation of new deposits. The extensive property portfolio of Alexis in the highly prolific mining camps of the Abitibi district ultimately offers the potential for the discovery of world class deposits.
Quality Control:
The technical and scientific content of this press release has been reviewed by Mr. David Rigg, P.Geo. and Mr. Keith Boyle, Eng., officers of the Company and Qualified Persons as defined under NI 43-101 guidelines.