Alexandria Minerals Corporation

TSX VENTURE : AZX
FRANKFURT : A9D
PINKSHEETS : ALXDF


Alexandria Minerals Corporation

February 07, 2013 09:30 ET

Alexandria Increases Indicated Resources 9% and Inferred Resources 263% at Its Akasaba Gold-Copper Project

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2013) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D)(PINKSHEETS:ALXDF) provided today an updated resource estimate at its 100%‐owned Akasaba property in Bourlamaque Township, Val d'Or, Quebec. The new mineral resource estimates, which are National Instrument ("NI") 43‐101 compliant, were completed by independent Qualified Person Christian D'Amours of Geopointcom in Val d'Or, QC.

Highlights of the new study show a significant increase in both Indicated and Inferred Resources over the NI 43‐ 101 Resources initially released last year (see Press Release, March 27, 2012).

Indicated Resources total 254,132 ounces of gold, up 9% over the previous NI 43‐101 estimate, comprised of the following:

Underground: 653,929 tonnes grading 5.79 g/t Au
Main Open Pit: 3,009,214 tonnes grading 1.37 g/t Au (previously released)

Inferred Resources total 620,612 ounces of gold and 61,255,885 kilograms (134,762,947 lbs.) of copper, equivalent to 342,108 ounces of gold, up 263% over the previous year's estimate, and consists of the following:

Underground: 1,537,973 tonnes grading 5.51 g/t Au,
Satellite Open Pit: 285,374 tonnes grading 1.76 g/t Au (previously released)
West Zone Open Pit: 14,863,740 tonnes grading 0.69 g/t Au and 0.41% Cu

Eric Owens, President of Alexandria Minerals, said, "We are very pleased with the substantial increase in resources at Akasaba. A major factor influencing the increase was the new discovery of the West Gold‐Copper Zone this past year, a result of our decision to step out significantly and test targets farther afield. In addition to the growth potential this work indicates, it has been incredibly efficient, as the eleven shallow holes that have so‐far defined this zone cost just 47 cents per ounce of gold discovered."

The West Gold‐Copper Zone is a zone of disseminated gold‐copper mineralization located on the main mine trend 1600 m west of the past‐producing Akasaba Mine, where the underground resources are located. As defined by drilling, the West Zone is some 400 m long, 300 m deep, averages 60 m wide, and is open at depth. In contrast with the mine area mineralization, where gold is hosted with quartz‐carbonate‐pyrite veins, gold in the West Zone is hosted with pyrite, chalcopyrite and bornite, in strongly deformed and altered intermediate to felsic volcaniclastic rocks, within the geological influence of the Cadillac Break shear zone and the Callahan granitic intrusive stock.

Since the March 27, 2012 release of its first NI 43‐101 Resource Estimate at Akasaba, Alexandria has drilled 51 holes totaling 22,102 m on the Akasaba project, with focus on 1) expanding the deep high grade zone below the historic Akasaba Mine, and 2) expanding the shallow deposit along strike through step‐out drilling, the latter resulting in the new discovery of the West Gold‐Copper Zone.

Of the 51 holes, 40 holes have been included in the new 43‐101 update and 11 holes are awaiting assay results. A total of 176 holes for 61,120 meters of drilling has been completed to‐date on the project since Alexandria first began its initial drill program in 2009. Resources now extend for more than 2,000 m along strike and 600 m to depth, a 10 fold increase in size since 2009, with potential for growth in all directions.

Table 1. Current Resource Estimate at Akasaba (NI 43‐101 Compliant)
Indicated Resources Inferred Resources
Zone Tonnage Au Grade
(g/t)
Contained
Gold (oz.)
Tonnage Au Grade
(g/t)
Contained
Au (oz.)
Cu Grade
(%)
Contained
Cu (Kg)
Cu in Gold
Equiv.
(oz.)
2
Underground 653,929 5.79 121,657 1,537,973 5.51 272,385
Main Pit1 3,009,214 1.37 132,475
Satellite Pit1 285,374 1.76 16,153
West Zone Pit 14,863,740 0.69 332,074 0.41 61,255,885 342,108
Totals 254,132 620,612 61,255,885 342,108

Notes to table:

  1. Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues, although the Company is not aware of any such issues.
  2. Resources at the Main Pit and Satellite Pit were released on March 27, 2012 and are not part of this study.
  3. Estimate of value of copper in terms of gold ("Gold Equivalent") is calculated by multiplying kilogram of copper by the price of copper ($/kg) and dividing the product by the price of gold ($/oz).
  4. Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio‐political, marketing, or other relevant issues, although the Company is not aware of any such issues.
  5. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them.
  6. The mineral resources were estimated using the Canadian institute of Mining, metallurgy and Petroleum (CIM), CIM Standards on mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  7. Assumptions for the Resource Calculation for Underground and West Zone Pit: (a) Gold Price, $1,325/oz., Copper Price $7.40/kg, (b) Cut‐off Grade, Underground, 2.25 g/t Au, Open‐pit, 0.5 g/t, (c) Bulk Density, Mine area underground and open pits, Specific Gravity 2.8; West Zone pit, Specific gravity 2.65, (d) Minimum true width, Underground, 2.5 m, all Open Pits, 5m, (e) Blasting/Mucking costs, Underground, $68/tonne, Open‐Pit, $5.75/tonne, (f) Milling Costs, $12/tonne, (g) Overburden removal costs, $3/cubic meter, (h) Open pit shell optimized for best revenue, (i) Geostatistical analysis indicate no grade capping is necessary.

As a result of this new study, Alexandria's overall resources from its 35 km‐long Cadillac Break property portfolio total 701,023 ounces of gold (Measured and Indicated Resources), 1,073,255 ounces of gold and 61,255,885 kg (134,762,947 lbs.) of copper, for 342,108 ounces of Gold Equivalent (Inferred Resources), as summarized in the table below:

Deposit Measured and Indicated Inferred
Cut‐off
Grade
Tonnes Grade
(g/t Au)
Au (oz.) Tonnes Grade
(g/t
Au)
Au (oz.) Grade
(%
Cu)
Cu (kg.) Gold Eq.
(oz.)
1
Akasaba Underground 2.25 653,929 5.79 121,657 1,537,973 5.51 272,385
Akasaba Open Pits 0.50 3,009,214 1.37 132,475 285,374 1.76 16,153
Akasaba West Zone Pit 0.50 14,863,740 0.69 332,074 0.41 % 61,255,885 342,108
Orenada 0.50 10,273,975 1.35 446,891 7,399,643 1.27 302,469
Sleepy 2.00 1,557,000 3.00 150,400
Totals 701,023 1,073,481 61,255,885 342,108

The Akasaba Mine reportedly produced some 282,000 tonnes grading 5.14 g/t Au from 1961‐1963 (approximately 40,000 ounces of gold, and 10,000 ounces of silver). The deposit occurs within sheared mafic‐ intermediate volcaniclastic rocks stratigraphically below a massive dacite (the "Mine Horizon"), about 600 m north of the Cadillac Break shear zone, and 2 km east of the Callahan diorite intrusive stock. Sulfide content in the host volcanic rocks, principally pyrrhotite, with widespread chalcopyrite (0.5‐1%), pyrite, and local high grade sphalerite, ranges from 5‐30% over several tens of meters across stratigraphy. Other targets with similar characteristics occur elsewhere on the property and on adjacent properties.

Currently, the Company has three drill rigs turning on its properties: two at Akasaba and one on its Sleepy project, located 13 km east of Akasaba. The drilling program on both projects is aimed at step‐out drilling designed to enlarge existing resources, especially focused on desirable targets that require winter ice conditions to complete. To‐date assays are pending for 11 completed drill holes at Akasaba, and 1 at Sleepy.

The geostatistical evaluation of the diamond drill hole results were performed by independent Qualified Person Christian D'Amours, P.Geo., of Geopointcom in Val d'Or, QC, on data verified by Independent Qualified Persons Alain‐Jean Beauregard, P. Geo., OGQ, FGAC and Daniel Gaudreault, P. Eng., OIQ, both of Geologica Groupe Conseil, of Val d'Or, QC. Geological interpretation and geological database compilation of Akasaba was performed under the supervision of Peter Legein, Qualified Person, of Alexandria Minerals Corporation. This Press Release has been reviewed by all parties, and the technical report for this resource estimate will be filed on SEDAR within 45 days. Please note that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Program design, management, and Quality Control/Quality Assurance is governed by Alexandria's exploration group, of which Peter Legein, P.Geo, and Eric Owens, P.Geo, are the Company's Qualified Persons. Peter Legein supervises the technical activities of the Company. The QA/QC program is consistent with NI 43‐101 and industry best practices; this will be summarized in the technical report, but has previously been addressed in the NI 43‐101 Technical Report on the Cadillac Break properties (February 2008).

About Alexandria Minerals Corporation

Alexandria Minerals Corporation is a Toronto‐based junior gold exploration and development company with one of the largest portfolio of properties along the prolific, gold‐producing Cadillac Break in Val d'Or, Quebec. The Company is currently focused on advancing its Akasaba and Sleepy projects. Agnico‐Eagle Mines Ltd., with two producing gold mines in the region, owns roughly 10% of the Company.

WARNING: This News Release may contain forward‐looking statements including but not limited to comments regarding the timing and content of up‐ coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward‐looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward‐looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alexandria Minerals Corporation
    Andreas Curkovic
    Investor Relations
    (416) 577-9927

    Alexandria Minerals Corporation
    Eric Owens
    President/CEO
    (416) 363-9372
    info@azx.ca
    www.azx.ca