Alexandria Minerals Corp ALXDF

RE:Great deal for Metalla......

[NextPhase]

Goodbadandugly wrote: The Royalty has been acquired for $250,000 in cash. Agnico will maintain its buy-back right of 1% for $7 million, and the Royalty will be payable after gold production on the claims comprising the property has exceeded 210,000 ounces. And production expected to start 2020!, as Agnico has been busy getting all permitting and approvals in place.

Agnico Eagle only plans to produce between 20,000 and 25,000 ounces of gold annually for only 4 to 5 years at Akasaba West.

NP

From Agnico Eagle's website:

We acquired the Akasaba West gold-copper deposit in 2014. Located less than 30 km from Goldex, the deposit could create flexibility and synergies for the Company's operations in the Abitibi region by using extra milling capacity at both Goldex and LaRonde, while reducing overall unit costs. Akasaba West currently hosts probable gold reserves of approximately 145,000 ounces (5.2 million tonnes at 0.87 g/t gold and 0.49% copper) and an indicated gold resource of approximately 49,000 ounces (2.2 million tonnes at 0.70 g/t gold and 0.41% copper) as of December 31, 2017.

The public hearing process has been completed at Akasaba West, and permitting activities are expected to continue through early 2018. Based on an internal technical study, the Akasaba West deposit has the potential to produce approximately 20,000 to 25,000 ounces of gold and 8.5 to 10.0 million pounds of copper per year for four to five years. The average total cash costs on a by-product basis to produce gold are estimated to be approximately $400 per ounce. Capital costs (including closure costs) are estimated to be approximately C$50 million. Mining activities are expected to begin on the project in 2020.