Now this is interesting for AMCA nice bit of news
large area
3D models
hoping to raise 20 million in cash
wally
888888888888888
2004-05-11 07:47 ET - News Release
Also News Release (C-NRD) Noranda Inc
Mr. David Rigg of Alexis Minerals reports
ALEXIS ENTERS INTO AN OPTION AGREEMENT REGARDING ALL NORANDA INC. PROPERTIES IN THE ROUYN-NORANDA MINING CAMP, QUEBEC
Alexis Minerals has entered into a non-binding letter of intent dated May 10, 2004, with Noranda, wherein Alexis has an option to earn a 50-per-cent interest in all of Noranda's properties in the prospective Rouyn-Noranda base metal and gold camp, Quebec. Alexis will spend $16.5-million in exploration over a three-year option period, after which the parties will form a 50/50 joint venture to pursue further exploration and development of the properties.
The land position covers mineral rights, mining claims and mining concessions over an area of approximately 800 square kilometres within the Blake River group, Southern Abitibi district of Quebec. The properties cover the majority of the central area of the Rouyn-Noranda camp with significant interests in surrounding extensions of prospective Blake River group stratigraphy. The properties include the past-producing Horne and Quemont deposits, the Amulet, Gallen, Ansil, Newbec, East Waite and Old Waite mines, and numerous base metal occurrences and showings. Historical mine production from the Rouyn-Noranda camp is 2.4 million tonnes of copper, 1.9 million tonnes of zinc and 19.5 million ounces of gold from over 20 gold and base metal deposits. Maps of the property and regional geology are available at www.alexisminerals.com.
David M. Rigg, president and chief executive officer of Alexis, said: "Alexis has positioned itself with an exciting package of properties which provide many high-quality exploration targets. Our technical and management strengths have been recognized, and we anticipate significant developments through a 'partnership' approach towards exploration with Noranda. We believe there is significant potential for new discovery in the Rouyn-Noranda and Val d'Or camps. The joint venture and Val d'Or properties position Alexis to become a significant exploration and development company in Canada. The new joint venture opportunity also serves as a means to ensure effective and rapid commercial development of any new discovery."
Noranda will be the operator during the earn-in period and initial operator of the joint venture. Exploration will be conducted using a 'partnership approach toward mine discovery" with Alexis participating in programs through a technical steering committee and by providing technical personnel, input and expertise to the programs.
Supplementary financing for gold exploration, base metal resource drilling and feasibility programs
The quality of the properties, the number of exploration targets being generated from new technical approaches and a clear focus on drill testing targets, offer the potential for multiple discoveries during the three-year earn-in period. To promote multiple discoveries, Alexis will finance a supplementary $3.0-million for drilling on the first base metal discovery during the earn-in period.
Alexis has also acquired the right to undertake gold exploration on the properties. Alexis may spend the supplementary $3.0-million financing on gold exploration, up to such time as a base metal discovery is made.
Upon delineation of a inferred resource (as defined by National Instrument 43-101), Noranda will retain a first right to increase its interest in the discovery area to 65 per cent by incurring further expenditures of up to $20-million or by completing a bankable feasibility study. Should Noranda not elect to increase its interest, Alexis has the second right to elect to do so. Alexis will have the first right to increase its interest in any gold discovery area to 65 per cent under similar terms.
Letter of agreement
The letter of intent is subject to a number of conditions, including regulatory approval and detailed property title, and environmental due diligence. Alexis will have no current or future liabilities from previous work or mining activities. Mineral rights in sensitive environmental areas will be severed from surface rights and obligations. Surface rights, mineral title and past liabilities will remain with Noranda in sensitive environmental areas. Details of these severances will be defined in a binding letter of agreement expected before the end of May, 2004.
Upon signing the binding letter of agreement, and subject to regulatory approval and obtaining a technical report in accordance with National Instrument 43-101, Alexis will issue one million shares and 500,000 warrants (exercisable at 75 cents over two years) to Noranda, and advance an initial $1.0-million to provide immediate financing for exploration programs in 2004.
Current exploration focus
The properties cover highly prospective geology, alteration and mineral trends that have been successfully explored over several decades for base metals and gold. Noranda has recently completed a MegaTEM II airborne survey over the entire region. The survey is a powerful airborne geophysical method, which has been demonstrated to detect base metal deposits to depths in excess of 200-plus metres and deeper than previously available geophysical methods. Noranda has also completed a six-year, $1.0-million compilation to develop a 3-D Gocad model over the central camp area encompassing all historical work. The 3-D model (17-kilometre by 17-kilometre by two-kilometre depth) provides for rapid data integration, interrogation and target generation. Thirty-seven targets have been identified in the central camp to date, of which 27 have been validated and are at a drill-ready stage. The process of target generation and validation is continuing.
Option period exploration programs
The 2004 exploration program will include 30,000 metres of drilling to evaluate 20 targets in the central camp, 20 primary MegaTEM II geophysical targets on the properties, and 10 other targets developed along favourable stratigraphic and mineral trends.
The combination of advanced 3-D Gocad modelling with MegaTEM II and other deep-penetrating geophysical surveys will be used to develop targets on underexplored mine trends throughout the camp for drill testing in 2005 and 2006. A large proportion of budget will focus on drill testing high-quality targets.
Private placement financing
In order to finance the acquisition and its budgeted exploration programs, Alexis has entered into an agreement with a Canadian investment dealer to raise, on a best-efforts private placement basis, up to $20-million. It is expected that a significant portion of the proceeds will be raised on a flow-through share basis and expended on both the Rouyn-Noranda and Val d'Or camps.
A further announcement will be made upon the execution of the binding letter agreement with Noranda.
WARNING: The company relies upon litigation protection for "forward-looking" statements.