Alexandria Minerals Corporation
TSX VENTURE : AZX
FRANKFURT : A9D

Alexandria Minerals Corporation

March 19, 2015 07:00 ET

Alexandria Provides Summary of Recently Acquired Assets and Update of Activities

TORONTO, ONTARIO--(Marketwired - March 19, 2015) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) ("Alexandria") is pleased to provide a summary of its recently acquired assets from the Murgor acquisition and an update of its activities for the coming months.

Significant highlights of the recent acquisition of Murgor Resources, which was successfully completed on March 10, 2015, include:

  • A substantial increase in Alexandria's mineral resources
  • A low cost of resource acquisition, at $3.50 per ounce of gold and gold equivalent, where the value of other metals have been converted to an equivalent value of gold
  • A coming, near term, increase in resources
  • Strengthening Alexandria's presence in strategic mining districts such as Red Lake and Matachewan, Ontario, Flin-Flon and Snow Lake, Manitoba, and Chibougamau, Quebec
  • Maintaining a Made-in-Canada approach, one of the world's safest and most reliable mining jurisdictions

The Manitoba Properties: Solid resources in a prolific mining camp

The WIM and Hudvam projects, located in northern Manitoba near the mining communities of Snow Lake and Flin-Flon, respectively, are Alexandria's newest projects with Current Resources. The Flin-Flon - Snow Lake district is a prolific mining district, having produced more than 183 million tonnes of copper-gold-silver-zinc sulfide ore from 27 past and present mines, including 3 active mines operated by Hudbay Minerals Inc.

The following table shows previously reported Current Resources at both the WIM and Hudvam projects:

Grade Contained Metal
Deposit Tonnes Gold
(g/t)
Copper
(%)
Silver
(g/t)
Zinc
(%)
Gold
(oz)
Copper
(lbs)
Silver
(oz)
Zinc
(lbs)
Indicated Category
Hudvam 854,076 3.82 1.22 13.84 1.78 105,000 23,008,000 380,000 33,541,000
WIM 2,776,787 1.88 1.94 7.53 0.30 168,000 118,763,000 672,000 18,365,000
Total Indicated 273,000 141,771,000 1,052,000 51,906,000
Inferred category
Hudvam 502,901 3.25 0.79 6.96 1.33 53,000 8,759,000 113,000 14,746,000
WIM 445,999 2.11 1.12 5.06 0.43 30,000 11,013,000 73,000 4,228,000
Total Inferred 83,000 19,772,000 186,000 18,974,000
Note: Resources estimated by Golder Associates in 2008 (See Murgor Resources Press Releases dated August 28, 2008 and September 9, 2008).

Both projects have along-strike and down dip potential for new discovery and growth of the resources. In addition, both have untested geophysical anomalies on the broader properties. Alexandria geologists are reviewing the technical data on both projects, and activities being considered for summer include geologic mapping and prospecting, trenching, and geophysics, with a possible first round drill program as follow-up of this work.

In the coming months, Alexandria intends to provide resource updates, compliant with NI 43-101, for both the WIM and Hudvam projects, as the Current Resources for the two projects were calculated in 2008 when metals prices were considerably lower than today. Those results were based on a cut-off grade of 2% copper, which is a higher cut-off grade and therefore lower tonnage, than anticipated at current prices. The Company expects the studies to increase the resources on both projects and result in a lower cut-off grade, as well as providing a basis for planning follow-up work and targeting future drill holes.

New Ontario Properties: Exploration assets close to gold deposits

Four new exploration property assets in well-known mining districts were acquired by Alexandria as a result of the Murgor transaction: the Gullrock property in the Red Lake district; the Golden Arrow property in the Timmins district; the Wydee property in the Matachewan district; and the Mishbishu property in the Wawa district.

The Gullrock property is adjacent to Goldcorp's Campbell-Red Lake mining property, which has produced more than 14 million ounces of gold, and is currently producing gold at a rate of about 500,000 ounces of gold per year. Gullrock is located east along the favorable gold-bearing structure, the Cochenour-Campbell-Red Lake gold trend, and has numerous soil geochemical and geophysical anomalies which have yet to be drill tested.

The Wydee property adds to Alexandria's existing presence in the Matachewan district. Wydee is located NW of the Young Davidson Gold Mine (5.2 million ounces of gold: Aurico Gold Inc.), and doubles the size of Alexandria's presence there, adding to Alexandria's Matachewan property, which is located adjacent to the Young Davidson Mine on the east. Together the two projects host important syenite-related gold targets, in proximity with the important Cadillac-Larder Lake Break, a very similar geologic environment to the ore host rock at the Young-Davidson mine.

The Mishibishu property is a gold exploration property in the Wawa area of northwestern Ontario, some 80 km southeast of Hemlo, Ontario. The property lies 6 km north of the Eagle River Mine (2.9 million tonnes grading 8.84 g/t gold) and 12 km south of the Mishi open pit gold mine (1.2 million tonnes grading 4.8 g/t gold), both of Wesdome Gold Mines Ltd. The project is underlain by significant shear zone corridors favorable to gold mineralization, with notable past assay results such as 5 g/t gold over 7.4 m in a drill hole, and numerous surface samples ranging in gold from 2.6 g/t to 11.4 g/t gold.

Alexandria picks up a 40% interest in the Golden Arrow property east of Timmins, Ontario. The Golden Arrow property hosts the past producing Golden Arrow Mine, which produced 303,449 tonnes grading 2.15 g/t gold from an open pit in 1981-1982. Gold is hosted along an altered shear zone in syenite, and drilling has identified a broader zone of gold mineralization below and along strike with the open pit.

Envisioned work on these properties during 2015 will consist variously of surface mapping and prospecting, geophysics and trenching. Alexandria's evaluation will be conducted in light of seeking possible partners for some of these projects.

New Quebec Properties: Gold projects within sight of headframes

Adding to Alexandria's already considerable presence in Quebec, the Fancamp and Embry properties are gold exploration properties located in the Chibougamau area, in the northeastern extremity of the Abitibi Belt, where Alexandria's Gwillim property is located.

The Fancamp project is centered on the Fancamp Deformation Zone, a 20 km long shear zone that hosts 15 gold deposits and occurrences along its length. The portion of the shear zone underlying the Fancamp property has yielded high grade gold assays in drill holes and trenches, including 4.5 g/t gold over 3.0 m, 9.3 g/t gold over 8.2 m, and 5.1 g/t gold over 3.4 m. The Embry property is an early stage exploration property covering a 15 km stretch of the Kapunapotagen Fault, a crustal scale shear zone with similarities to the prolific Cadillac-Larder Lake Break in the southern Abitibi Belt.

Current and Near-term Activities

The Company is currently underway with a winter time, 2,500 m drill program on its Cadillac Break properties in Val d'Or, Quebec, with a goal, weather permitting, of completing this program before spring thaw. Drill targets are focused on porphyry gold and copper targets in and around to the East Sullivan granitic stock, where historical exploration has identified numerous drill and surface gold and copper anomalies, and where the past producing East Sullivan copper-gold-silver-zinc and Mid-Canada gold-copper Mines have occurred.

As part of this overall program, Alexandria will be completing a Resource update on its Orenada project in the coming months. The prior resource estimate was completed in 2009 at lower gold prices; Alexandria expects a robust estimate to come out of this resource update.

Alexandria's team is also planning certain electromagnetic geophysical surveys on its Val d'Or projects, and has recently completed a statistical review of its regional data through the use of the CARDS program by Consulting of Montreal. Preliminary review of this data shows several higher priority drill targets on the property package which will be reviewed and prioritized.

All technical information presented in this press release has been previously released, and has been reviewed by Phillippe Berthelot, P.Geo, who is the Company's Qualified Person. All exploration work on the property is conducted under the direct supervision of Mr. Berthelot, and the Company adheres to industry best practices consistent with NI 43-101 for its QA/QC program.

Further information about the Company is available on the Company's website, www.azx.ca, or our social media sites listed below:

Facebook: https://www.facebook.com/pages/Alexandria-Minerals-Corporation-AZXTSXV/186115074772628

Twitter: https://twitter.com/azxmineralscorp

YouTube: http://www.youtube.com/AlexandriaMinerals

Flickr: http://www.flickr.com/alexandriaminerals/

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. Its gold resources are distributed between three projects on its Cadillac Break Property package, at Akasaba, Sleepy, and Orenada, the details of which can be found on the Company's website at www.azx.ca.

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
    Eric Owens, PGeo
    President/CEO
    416-363-9372

    Alexandria Minerals Corporation
    Mary Vorvis
    Vice-President Corporate Development & Investor Relations
    (416) 305-4999
    info@azx.ca
    www.azx.ca