Alexandria Minerals Corp ALXDF

Follow up targets (from H1 2015 drill program)

[production05]

Agnico`s West Zone deposit, from pg of Alexandria`s presentation:  ``production aimed to begin in 2017``

There doesn`t seem to be any firm public info as to how well the permitting process is coming along.  The process has been happening for a while now.  I`m thinking that the permit could be granted in H1 2016 with mine construction starting in H2 2016, with potential production starting at some point in 2017 - if permitting doesn`t get delayed further.

I believe Alexandria`s 2% NSR will become more valuable once the permit is in hand.  At that piont, I think both Sandstorm Gold and Osisko Royalty - both active NSR players in this part of Quebec - could become more interested in the NSR.

Even if Agnico begins production at West Zone in 2017, Alexandria`s NSR payments will likely not kick in until around 2020 (or maybe even later).

If the permit does arrive in H1 2016, I think Alexandria should sell the 2% NSR to provide the next round of funding.  Alexandria`s management need to find additional ways to further eliminate the severe equity dilution to long suffering shareholders of this company.  The share price of 2.5 cents is simply pathetic.  At the end of the day, shareholders have gotten slaughtered alive.  That`s the bottom line.

All juniors are being hit hard right now, but Alexandria is suppose to be a ``best in class`` junior exploration and development company.  It has the assets.  It has the locations.  It has the right geologists.  There is no way Alexandria should be trading at 2.5 - 3.0 cents.  The problem is the 5 ro 10 million shares sitting on the ``ASK`` or waiting to be put on the ``ASK`` that need to be cleared out.  The shares are likely from the former Murgor shareholders.  The inability of Alexandria`s management (all year long) to find a buyer for these piddly amount of shares ($200K to $400K - assuming avg price of 4 cents) is concerning to me (and has been all year long). 


Follow up targets for the next round of drilling:


1)   New 400m Zone located 500m northeast of Orenada deposit 

The strike length of this new discovery is 400m, and is still open. 

It represents the western end of a 1.5 km long magnetic anomaly called Orenada Zone 5 – the rest of Zone 5 has exploration potential also, and could provide additional deposits.

The 2015 drill hole OAK-15-056 was 23.1m of (roughly)1.63 g/t gold equivalent (Cu-Au-Ag) minerals. 

Historical drill holes on this same 400m mineralized section are: 

* OR-34 A - 26.5m of (roughly) 2.55 g/t Au Eq gold (Cu-Au)
* OR-40 A - 16.8m of (roughly) 4.46 g/t Au Eq gold (Cu-Au)
* OR-32 A - 19.8m of (roughly) 1.62 g/t Au Eq gold (Cu-Au)
* ORL-06 - 3.1m of (roughly) 3.49 g/t Au Eq (Cu-Au)

I figure, if we continue to see more of the same with further drilling, this 400m area could house a 250,000 to 400,000 ounce gold deposit, but there is nothing firm when it comes to mineral exploration drilling of course  It would a nice satellite support deposit for the existing Orenada deposit.


2)  Inside of the Orenada deposit

Successful 2015 drill holes inside of the Orenada envelope of 1.43 g/t Au over 158.5m (including 17.03 g/t Au over 3.4m) and .93 g/t Au over 101.5m. 

A lot of high grade veins were identified within the broad intersections.  This could improve the economics of the Orenada deposit.  In addition, continued drill results like these could push the Orenada resource above the current 750,000 ounces.  Also, the initial Orenada resource was put together back in 2009.  Using today`s gold price (which is higher than 2009) for the next resource calc should assist also.


3)  Western Porphyry

They haven`t had much success with modern drill results thus far, but there is something there, as demonstrated by both modern geo work and historical drilling.  It seems like they still haven`t been able to drill the sweet spots as yet due to weather/ground issues. 


You can see the location of the various targets on pg 10 of the Corp Presentation.