Alexandria`s near-term activities (Updated)1)
End of selling (from current seller) Eventually the seller (s) will be finished. Again, impossible to know exactly who that is. However, Victoria Gold Mines East Timmins Ltd. (60% private owner of the Golden Arrow property) was the largest Murgor shareholder. As a private company, in perhaps the most (or second most) depressed junior gold environment ever, selling some of its Alexandria common share holdings might be the only way to raise capital.
2)
Next steps for the new mineral discovery The discovery has a 400m strike length thus far and has another 1,100m of positive magnetic geophysical length to be tested.
3) Resource update for Hudvam Project
Price tag likely around $100K. Should result in an increase to Hudvam`s 43-101 ounces - similar exercise to WIM upgrade.
4) Resource update for Orenada
Price tag likely around $100K. Should result in an increase to Orenada`s 43-101 ounces. Orenada sits currently around 750K ounces. Perhaps a good target for the update is the 800 - 900K oz range. Orenada will eventually be a 1 million (plus) oz deposit, whether it is now or later.
5) Other Western Cadillac Break discoveries
There will be more discoveries, be it soon or in later rounds of drilling. The winter drilling program has been completed. I think some results might still be pending.
6) Preliminary Economic Assessment (PEA) for Sleepy
Price tag likely in the $250K area. A positive PEA study will allow Alexandria to pitch the project to potential joint venture partners (with preference to companies with mills in the Val d`Or area) . A PEA can be performed strictly on Inferred 43-101 ounces, thus no more drilling is required prior to performing the PEA.
7) Next steps for WIM Project
WIM is ready to go. It can be moved aggressively forward, in any direction Alexandria chooses. Alexandria could go down the exploration path (to try to take the resource from 685K Au Eq ounces to 1 million) or it could move the project to study phases (including feasibility) then to permitting, financing, development and production, with a J/V partner (likely Hudbay) and small project debt financing carrying the (heavier) financing weight. This project should be a somewhat low upfront capital expenditure project (relatively speaking), especially since they will likely be able to mine the low cap ex open pit for the first year or two.
8) Monetization of Orenada or keeping to grow West Cadillac to 3.5 - 5.0 million oz (Au Eq)
Alexandria could sell Orenada outright to Agnico-Eagle, similar to the sale of West Zone to Agnico. In my view, Orenada`s ore needs to be processed through a bulk tonnage mill. Agnico`s mill is the only Val d`Or area mill that can optimally process bulk tonnage ore - currently.
This might be put on hold due to the new discovery in the area. Alexandria might keep all of the Western Cadillac Break discoveries/deposits and try to establish a multi-million ounce consolidated deposit in that particular area (excluding east deposits such as Akasaba Main and Sleepy).
Establishing a 3.5 to 5.0 million ounce (gold equivalent) bulk tonnage deposit will open up really good options for Alexandria. It would no be restricted to selling to Agnico at substantially discounted prices. That size of deposit would give Alexandria the option of building its own processing mill on site or selling it to a mid-tier or senior company (which can come in and build its own mill on site).
9) Funding
As I have mentioned before, I would prefer that Alexandria sell 1% of its 2% West Zone NSR back to Agnico (early), as oppose to selling one of its gold deposits.
Integra Gold has a good cash balance, but I don`t think they will be willing to buyback 1% of the Triangle Zone NSR as yet. Drilling is likely too early to show if our NSR piece of the property carries sufficient value to make the payment. They can buy back 1% for $1 million. If Alexandria gets into a difficult cash need situation, it can pitch, say, a $700K buy back deal to Integra for early buyback of the 1%. This would provide good bridge cash until we get a bigger funding deal.
10) Selecting a J/V partner for Sleepy
To perform infill drilling and move the project to development - with ultimate goal of production.
11) Next steps for Hudvam Project
Alexandria can either launch a new exploration program at Hudvam or can move closer to J/V production. I believe Hudvam has potential to at least double existing resource.
12) New Cadillac Break targets
Alexandria has identified 20 (new) high priority targets on its Cadillac Break property package, plus a number of secondary targets. Alexandria can select 1 or 2 of the best targets and work them aggressively - once funding is in place. I guess the recent discovery represents 1 of the 20 high priority targets.
13) Other potential J/V properties
Alexandria will need to decide which of the other high potential exploration properties to J/V. Possibilities are: Gullrock (Red Lake), Wydee (Matachewan) and Mishibishu (Wawa area).
Red Lake property - Goldcorp?
Matachewan properties - Alamos Gold/Aurico?
Mishibishu property - Wesdome?
Fancamp & Embry - Iamgold? or Agnico?
Wim property - Hudbay?
Hudvam property - Hudbay?
Sleepy - Integra?, Wesdome?, Beacon Mill owners?, QMX?, Richmont Mines?
Akasaba Main - Integra?, Wesdome?, Beacon Mill owners?, QMX?, Richmont Mines?
Orenada - Agnico?