Alexis Feasibility Study Substantially Increases Snow Lake Gold Resources
TORONTO, ONTARIO -- (Marketwire) -- 10/27/10 -- ALEXIS MINERALS CORPORATION (TSX: AMC)(OTCQX: AXSMF) ('Alexis' or the 'Company') is pleased to announce a substantial increase in gold Resources at the Company's Snow Lake Mine, located in Snow Lake, Manitoba. Increases in tonnage, contained ounces of gold and overall quality of the Resource occur in the two principal zones - the Main Mine and #3 Zone. Infill drilling programs in 2010 have focused on the conversion of Inferred Resources and have resulted in:
-- A 63% increase in contained gold (54,270 ounces) in Measured and
Indicated Resources in #3 Zone resulting from a 73% increase in tonnage
(287,150 tonnes); and,
-- A 30% increase in contained gold (138,839 ounces) in Measured and
Indicated Resources in the Main Mine resulting from a 70% increase in
tonnage (1,980,000 tonnes).
The Resource is presented in Table 1 and confirms that the Snow Lake Mine
hosts:
-- Measured and Indicated Resources of 5,471,000 tonnes grading 4.14 g/t Au
for 728,000 oz Au; and,
-- Inferred Resource of 2,367,000 tonnes grading 4.43 g/t Au for an
additional 336,700 oz Au.
The Snow Lake property continues to show strong upside potential for increasing resources through exploration. Resources are considered open down-dip (plunge) at the Main Mine and also at #3 Zone. Mineralization at the Boundary, Bounter and Kim zones, all located in proximity to the Mine, will require additional drilling to evaluate areas of known mineralization. Two surface drills are currently engaged in surface exploration and a third drill will be mobilized shortly.
Resources were previously estimated and reported in a Preliminary Assessment of the Deposit (see news release: March 8, 2010). Recent infill drilling during 2010 has focused on upgrading the quality of information relating to the previously estimated inferred mineral resources in these areas. The new Mineral Resource estimate incorporates the drill results and uses a revised lower cut-off grade of 1.95 g Au/t to identify the limits of mineralization. The lowering of the cut off grade (Preliminary Assessment used 3.11 g Au/t) was in response to current metal price trends.
The Resource Estimate was made in conjunction with a Feasibility Study focused on the potential for reopening of the Snow Lake Mine. Results from the Feasibility Study will be available shortly, including the parameters and methodology used, described in a NI 43-101 technical report which will be filed on www.sedar.com.
Table 1.Snow Lake Resource Estimate
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Resource
Zone Category Tonnes Grade (g/t) Ounces Au
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Main Mine Lower(1) Measured 7,000 4.76 1,000
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Main Mine Upper(2) Indicated 3,748,000 3.57 427,600
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Main Mine Lower(1) Indicated 1,035,000 4.81 160,100
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No. 3 Zone - Main(2) Indicated 606,000 6.44 125,600
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No. 3 Zone -
Footwall(2) Indicated 75,000 5.69 13,700
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Total Property
Measured and
Indicated Resources 5,471,000 4.14 728,000
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Main Mine Upper(2) Inferred 446,000 3.57 51,200
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Main Mine Lower(1) Inferred 486,000 3.98 62,200
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No. 3 Zone - Main(2) Inferred 139,000 6.14 27,300
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No. 3 Zone -
Footwall(2) Inferred 290,000 4.39 40,900
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Birch(1) Inferred 569,000 4.42 81,000
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Squall Margaret
Upper(3) Inferred 100,000 4.87 15,600
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Squall Margaret
Lower(3) Inferred 337,000 5.42 58,500
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Total Snow Lake Mine
Property Inferred
Resources 2,367,000 4.43 336,700
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(1) NI 43-101 Technical report on the New Britannia Mine Property and Review
of the Mineral Resource Estimate, Snow Lake Manitoba by Wiliam J. Lewis, P.
Geo and Richard Gowans, P. Eng., Micon International Ltd, October 2006.Cut-
off grade 0,077 opt
(2) Numbers incorporate results of estimation completed for NI 43-101
Feasibility study, to be published on www.sedar.com.
(3) NI 43-101 Technical Report on the Squall Lake Property, The Pas Mining
Division Snow Lake Manitoba. Completed for Garson Resources Ltd. by D
Beilhartz, P. Geo., April 2006.
Lac Herbin Update
The Company advises an amended guidance for the 2010 gold production from its Lac Herbin gold mine, Val-d'Or, Quebec, now forecast to be approximately 24,000 ounces of gold. As previously reported, the Company has recently encountered grade variance as new stoping areas have been mined. Cost reduction measures are being implemented to coincide with the reduced production levels. Alexis continues to work on the challenges at the mine to produce profitable ounces of gold for the coming years.
Qualified Persons
Mineral Resource estimates for the Snow Lake Mine Property were prepared by Jamie Lavigne, P.Geo., Vice-President, Exploration with Alexis Minerals, and Qualified Person under NI 43-101 for the Resource estimate and who has reviewed the content of this press release. The technical and scientific content of this press release has been reviewed by Keith Boyle, P.Eng., Chief Operating Officer, Alexis Minerals and Qualified Person as defined under NI 43-101 guidelines.
About Alexis Minerals
Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol 'AMC') and trades in the United States on the Over the Counter QX International platform (OTCQX: AXSMF). The Company owns one producing gold mine in Val-d'Or and the right to earn a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda, both in Quebec. Alexis also owns the Snow Lake Mine in Manitoba. With these assets Alexis has the potential to develop gold production forwards. Alexis is targeting mid-tier gold production levels in 2011. Alexis undertakes exploration in the mineral rich Val-d'Or (100% ownership of 212 sq. km.) and Rouyn-Noranda Mining Camps (50% ownership of 785 sq.km and in joint venture with Xstrata Copper) as well as in the Snow Lake Mining Camp (100% ownership of 50 sq. km). For more information about Alexis Minerals visit www.alexisminerals.com.
Forward-looking information.
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Alexis and its projects, the identification of mineral reserves and resources, costs of and capital for development and mining projects, development and exploration expenditures, timing of future development, exploration and production, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company. For a description of the factors affecting forward-looking information and the basis of management estimates, please see a copy of the annual information form of the Company and the technical report relating to the feasibility study, both of which are available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Alexis Minerals Corporation
David Rigg
President and CEO
(416) 861-5889
(416) 861-8165 (FAX)
info@alexisminerals.com
Alexis Minerals Corporation
Bruce Barch
VP Investor & Corporate Affairs
(416) 861-5905
bruce.barch@alexisminerals.ca
Alexis Minerals Corporation
Louis Baribeau
Relationniste
(514) 667-2304
lb@decorporateconsultants.ca
www.alexisminerals.com