Alexis Minerals Corporation

Alexis Minerals Corporation

January 16, 2007 09:00 ET

Alexis Lac Herbin Reconciliation Shows 98.3% Recoveries on 2,322 oz. of Gold Milled-Supports Higher Mined Grade Versus Drilled Resource Grade

TORONTO, ONTARIO--(CCNMatthews - Jan. 16, 2007) - Alexis Minerals Corporation (TSX VENTURE:AMC) is pleased to announce that final reconciliation of gold recovered from custom milling of a bulk sample on the Lac Herbin gold deposit has been completed. A total of 2,282.53 ounces (oz.) of fine gold (Au) has been recovered from 2322.54 oz. Au in 14,917 (dry) tonnes (t) of 'development ore' from drifting and raising on the Hangingwall (HW) and S1 West (S1W) zones and from other underground development headings, Table 1. The Lac Herbin project is located 10 km northeast of Val-d'Or and 1.8 km from the wholly-owned 1400 TPD Aurbel Gold Mill.

Conclusions from the gold reconciliation study are:

- 'Drill-indicated Resource grades' under-estimate 'mill-adjusted development grades' by between 51% and 244% in the four principal areas of level and sublevel development within the HW and S1W zones, the two principal mineralized zones within the deposit, Table 2.

- 'Cut(i) underground chip sample results' are the best grade estimator for 'mill-adjusted development grades' in these working areas (see Table 3)

- Current cutting practice using a cut-off grade of (i)1.0 oz. Au/t (34.28 g Au/t) for higher grade assays in the deposit appears reasonable

- Overall Mill recoveries were 98.3% using total cyanidation during milling

- Gold to silver ratios in dore bars were approximately 10:1

The completed milling campaign and reconciliation represent the final stages of a three-phase underground exploration program initiated in September 2005. The observed increase from 'drill-indicated Resource grade' to 'mill-adjusted development grade' is a very significant conclusion. The increase more than compensates for any anticipated dilution during commercial mining of the deposit. The program has increased the confidence level of Resources at the Lac Herbin Project.

"The gold reconciliation process is the final step in the Phase 3 exploration and test milling campaign and is the culmination of a lot of hard work by the project team," said David Rigg, President and CEO of Alexis Minerals. "We will now focus on additional exploration of the deposit to further grow Resources while feasibility work is concluded. I am very pleased with the higher than anticipated gold results returned thus far."

Table 1 - Reconciled Lac Herbin Bulk Sample Results
Mill Avg. Mill-adjusted
Stockpile Date Processed Tonnage Milled Ounces Grade
------------------- ---------- (g Au/t)
From To (metric)
Other #1 23-oct-06 26-oct-06 3884 276.26 2.21
HW 26-oct-06 31-oct-06 4475 771.97 5.36
S1W 31-oct-06 03-nov-06 3943 1044.56 8.25
Other #2 03-nov-06 06-nov-06 2615 229.76 2.73
TOTAL 23-oct-06 06-nov-06 14917 2322.54 4.84

Table 2 - Reconciled development grade of ore in sill and sublevel drifts,
HW and S1W Zones and comparison with drill-indicated Resource grade from
underground delineation drilling
LENGTH g Au/t over g Au/t over Resource grade Resource to
(m) Average Width Average Width g Au/t Undiluted grade
1700 Level (170 m below surface)
HW Sill 76.0 6.56 / 3.7m 9.02 / 2.7m 5.96 +51%
HW Sub 76.0 3.73 / 3.1m 5.89 / 1.8m 2.80 +110%
2000 Level (200 m below surface)
S1W Sill 90.5 6.03 / 3.1m 9.17 / 1.8m 5.63 +63%
S1W Sub 57.0 14.91/ 3.1m 19.37 / 2.5m 5.63 +244%
(i) - Mill Adjusted Grades

Richard Roy, P.Geo. and QP on the program commented: "Reconciliation of the milling results are supported by statistics from past-production at the adjacent Ferdeber and Dumont deposits. Expected mine grades after mining dilution should approximate the undiluted, 'drill-indicated Resource grade' of resources before mining. In a mine setting this effectively results in more tonnes being produced than estimated by drilling, and at a higher than drill indicated grade. The adage that we "drill for structure and mine for grade" remains applicable to the Lac Herbin Deposit. We have confirmed excellent strike and vertical continuity to mineralization, with Resource areas remaining open for expansion."

Bulk Sampling and Custom Milling

The milling campaign was completed on a bulk sample in October 2006. The bulk sample consisted of three separate stockpiles representing mineralization from drifting and raising on the two principal zones, the HW Zone and the S1W Zone. The third stockpile represented highly diluted "Other" mineralized zones encountered throughout the 3-phase underground program (see Table 1). The low grade mineralization from the "Other" pile was split into two parts and processed before and after the high-grade HW and S1W material. This practice ensured separation of the HW and S1W samples from regular Camflo mill feed, more complete recovery of gold from the HW and S1W mineralization, and, provided for an accurate determination of average grades of the principal zones (see Table 3). The stockpiles were processed in sequence by the nearby Camflo Gold mill to confirm ore grades, cutting factors, metallurgical characteristics and mill recoveries in support of an on-going internal feasibility study on the Lac Herbin deposit.

Table 3 - Chip Sample grades of Development headings and raises
contributing to the S1W and HW Zone Bulk Samples, Lac Herbin Project,
Val d'Or, Quebec
Location Tonnes Unadjusted Au Grade (g/t) Reconciled Diluted
------------------------- Grade (g/t)
Cut Uncut

HW Sill Drift 2750.4 7.25 10.66 6.56
HW Manway 306.0 5.78 7.18 5.23
HW Subdrift 1669.4 4.12 4.47 3.73
HW Ore Pass 185.2 2.80 2.80 2.53

TOTAL HW Stockpile 4911.0 5.93 8.04 5.36

S1W Sill Drift 1408.4 5.68 9.17 6.03
S1W Alimack 779.0 5.08 5.81 5.39
S1W Ore Pass 165.5 6.41 6.41 6.80
S1W Sub 3147 557.8 2.62 2.62 2.78
S1W Sub 3132 173.2 7.86 10.51 8.34
S1W Sub 3117 1295.6 14.05 34.31 14.91

TOTAL S1W Stockpile 4379.5 7.77 15.12 8.25

Level and Sublevel Development

The developed strike length of the HW and S1W zones varies from 76m to 90.5m, Table 2,. This compares favourably with typical stope length at the Dumont and Ferderber mines. The east limit of the S1W Subdrift remains in ore and the HW development represents less than 50% of the total estimated HW ore strike-length on the level. Resource evaluation based on delineation diamond drilling, Table 2, clearly underestimates the reconciled Development grades at these locations. Mining dilution in the development drifts is estimated to be 34%, in line with industry standards and higher than would be expected in subsequent stope production.

The very high-grade and continuous section of mineralization encountered over the length of the sub-level development on the S1W Zone was not expected from delineation drilling. Similar high grade areas may occur throughout the deposit and offer good upside potential to further increase mine development and production grades. Their frequency and distribution remains to be established throughout the deposit.

Quality Control

The Milling Campaign on the Lac Herbin bulk sample was undertaken on a commercial basis by Usine Camflo Inc., Malartic, Quebec and was supervised on behalf of Alexis by Maureen Paterson, P.Eng. and Gilles St-Pierre, P.Eng., Independent Metallurgists and Qualified Persons as defined under NI 43-101 guidelines. A strict QA/QC program was followed on samples taken from the mill circuit. Rejects are kept for future reference or metallurgical testing. Analyses were performed by Bourlamaque Assay Labs - Val d'Or (Quebec) for Camflo and Alexis duplicated all belt samples to determine crushed ore head grades at ALS Chemex - Chimitec of Val-d'Or.

Richard Roy, P.Geo. and QP; Claude Perrault, P.Ing and QP with R.Inglis P.Eng. and R. Adams P.Eng. supervised the underground program. Reconciliation of milling results was completed by R.Roy.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian exploration and development company listed on the TSX Venture Exchange. Alexis holds an outstanding portfolio of properties covering the Val-d'Or and Rouyn-Noranda Mining Camps in Quebec. Alexis is following strategic exploration approaches across these properties for both gold and base metals, with a focus on the potential for gold production from the 100%-owned Lac Herbin and Lac Pelletier deposits during 2007 - 2008. Alexis has a clear route to 100% ownership of all interests of Aur Resources on approximately 212 square kilometres of the Val-d'Or Mining Camp. Alexis has purchased the 1400 tonne per day Aurbel gold mil and holds a 100%-interest in the Aurbel property. The Company is also currently advancing towards a 50% interest in 825 square kilometres of the Rouyn-Noranda Mining Camp in JV with Xstrata Plc (formerly Falconbridge Ltd.).

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward looking statements".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alexis Minerals Corporation
    David Rigg
    President and CEO
    (416) 861-5889
    (416) 861-8165 (FAX)
    Alexis Minerals Corporation
    Peter Cashin
    Investor & Corporate Affairs
    (416) 861-5905
    Alexis Minerals Corporation
    Louis Baribeau
    Relationiste, Quebec
    (514) 667-2304