Alexis Minerals Corporation
TSX VENTURE : AMC

Alexis Minerals Corporation

September 27, 2005 16:30 ET

Alexis Acquires Strategic Lac Pelletier Gold Deposit, Rouyn-Noranda, Quebec

TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2005) - Alexis Minerals Corporation (TSX VENTURE:AMC) is pleased to announce an agreement with Thundermin Resources Inc. (TSX:THR) ("Thundermin") on an option to acquire a 100% interest in the Lac Pelletier Mine property near Rouyn-Noranda, Quebec. The Lac Pelletier property, consisting of 35 claims and 2 mining concessions covering 607 hectares, is located 4 km southwest of the town of Rouyn-Noranda and within trucking distance to the Aurbel gold mill in Val d'Or.

David M. Rigg, President and CEO, stated: "This strategic acquisition adds a prospective property with good upside potential to our exploration portfolio. Several prospective areas are accessible by historic ramp development and within trucking distance of the 1400 tpd Aurbel Mill (currently included in an option and purchase agreement between Alexis and Aur Resources Inc. in Val d'Or). Lac Pelletier provides potential to Alexis for satellite mine operations to further enhance any production decision at our Lac Herbin project, potential to subsequently increase Aurbel mill through-put and potential leverage to future gold production in an increasingly positive metal cycle."

Alexis has recently initiated an underground program at the Lac Herbin project in Val d'Or to further evaluate the gold Resource, with a focus towards a potential production decision in 2006 (see press release: August 02, 2005) and purchase of the fully-permitted Aurbel gold Mill. A program of surface exploration will be undertaken over the Lac Pelletier property with provisions for resource re-evaluation and engineering studies, timed to coordinate with work on the Lac Herbin project.

History of the Lac Pelletier Property

The Cadillac - Larder Lake Break hosts numerous producing and past-producing gold mines in the Larder Lake - Rouyn-Noranda - Val d'Or areas of Ontario and Quebec. The optioned property straddles several structural splays emanating from this regional structure. Gold mineralization is focused within quartz-pyrite veins and shears with known gold zones remaining open at depth and along strike. Kilometric extensions of the favourable structures also remain largely untested by previous drilling.

Lac Pelletier property covers the past-producing Stadacona Mine where 2,742,000 tonnes (t) grading 5.49 grams of gold per tonne (g/t Au) were mined from 1928 to 1958 (Ref. Bibliographie des mineralisations metalliques, MRN, 1967, ES-002). The Stadacona shaft and workings also provide underground access to two immediately adjacent zones of mineralization:

- the Forbex zone, currently owned jointly by Cambior Inc. and Fieldex Exploration Inc., with Resources of 449 960 t grading 5.5 g/t Au (estimated prior to NI 43-101 standards and considered an historical estimate, Ref.: Gisement metallique, MRN, GM 57646), and,

- the Wright-Rouyn zone, currently owned by Ressources Yorbeau, with Resources of 41 000 t grading 8.9 g/t Au (estimated prior to NI 43-101 standards and considered an historical estimate, Ref.: Gisement metallique, MRN, GM 57646).

Lac Pelletier zone of mineralization was discovered in 1987 two kilometres west of the Stadacona Mine. Thundermin and Falconbridge Ltd. completed considerable exploration work on the project during 1987 and 1992 including: 42,656 m of surface and underground diamond drilling; 1050 m of ramp development; and 292 m of drifting. Their work included an 11,634t bulk sample that was treated at the Camflo Mill, Malartic where recoveries of approximately 95% were achieved. Upon the completion of this work, Thundermin determined that the Pelletier Lake gold deposit contained measured and indicated mineral resources of 501,596 t grading 8.10 g/t Au (130,627 oz) within the #1, #2, #3 and #4 Zones. Approximately 172,000 tonnes of this resource, grading 8.60 g/t Au (47,562 oz), was considered accessible from the main ramp without appreciable further development. Mr. Gilles Imbeau, P. Eng., prepared the mineral resource estimates prior to the implementation of National Instrument 43-101 ("NI 43-101") using procedures consistent with standards established under NI 43-101, except that the measured and indicated mineral resources were not separated (Ref.: Annual Report 2002, Thundermin Resources at sedar.com).

SOQUEM Inc. ("SOQUEM") and Resources Itamineraque Inc. ("RII"), a subsidiary of Mining Italianna S.p.a., optioned the property between 1999 to 2004 exploring for both gold and nickel-copper-palladium-platinum mineralization. Based on 14,826 m of drilling in 62 holes undertaken previously by Thundermin and 3,294 m of drilling in 12 holes undertaken by SOQUEM and RII in 2000 and 2002, SOQUEM and RII calculated that Zones 1 to 4 of the Pelletier Lake gold deposit contain a measured and indicated mineral resource of 484,799 tonnes grading 7.84 g/t Au (122,200 oz.Au) with a cut-off grade of 5.0 g/t Au over 2.0 m or 688,253 t grading 6.27 g/t Au (138,728 oz.Au) with a cut-off grade of 3.0 g/t over 2.0 m. Mr. Jean-Pierre Huertas, P.Geo. and QP for SOQUEM, prepared these mineral resource estimates in accordance with standards established under NI 43-101 (Ref. Annual Information Form 2003, Thundermin Resources at sedar.com ).

Alexis considers all resource estimates for zones of mineralization on, and adjacent to, the property to be historic estimates of resource potential which require review and reassessment in light of their potential to provide satellite mill feed to the Aurbel Gold Mill in Val d'Or. These estimates have not been re-evaluated by Alexis and investors are cautioned that their has been insufficient exploration and re-evaluation by Alexis to define a mineral resource on the property and it is uncertain if further exploration will result in the discovery of a mineral resource on the property suitable for satellite operations. The Aurbel gold mill is subject to a purchase agreement between Alexis and Aur Resources wherein the mill and any remaining interest in the Aurbel property may be acquired from Aur Resources in 2006. The purchase of the Mill will be a major determinant in the resource re-evaluation.

Terms of the Option Agreement

Alexis will pay Thundermin C$75,000 cash and issue 100,000 shares on signature of the agreement and receipt of regulatory approval. Alexis will undertake $1,000,000 in exploration drilling and engineering work over a 3-year option agreement to earn a 100% interest. $200,000 is committed to be spent by September 1, 2006; a further $300,000 is committed to be spent by September 1, 2007; and a further $500,000 of which Alexis has the option of spending by September 1, 2008. An estimated 8,000 metres of drilling is proposed to delineate and expand current Resources on the property, with engineering studies focused on a commercial production decision by September 2008. The property will be subject to a 2.5% NSR to Thundermin and an underlying 1.0% NSR to Falconbridge.

In addition, Thundermin will receive a tonnage royalty of $1.00 per tonne on any ores mined by Alexis on adjoining properties and hoisted to surface through current infrastructure on the property. A production decision can be extended to September 1, 2009 by making a $75,000 cash payment to Thundermin on or before September 1, 2008. If Alexis fails to reach commercial production by September 1, 2009, or September 1, 2010 if Alexis has exercised its extension option, Alexis will make advance royalty payments to Thundermin of $75,000 cash per year until commercial production has been reached. Any advance royalty payments will be recoupable by Alexis out of NSR royalties otherwise payable to Thundermin.

Work proposals in the 3-year option are matched to Alexis' ability to fund the programs while also vesting in major exploration agreements on Rouyn-Noranda (Falconbridge) and Val d'Or (Aur) properties. Any potential development of the Lac Pelletier mine will be planned to coincide with development of the Lac Herbin project in Val d'Or. Exploration and reporting on the property is supervised by Philippe Berthelot, P.Geo. and Qualified Person under National Instrument 43-101 guidelines. Consulting Engineer Richard Adams, P.Eng., will supervise all engineering studies.

The agreement has been ratified by both of the Boards of Thundermin and Alexis and has been submitted for approval by the TSX Venture Exchange.

Alexis Minerals Corporation is a Canadian exploration and development company listed on the TSX Venture Exchange. Alexis holds a portfolio of properties covering approximately 212 square kilometres in the Val d'Or area and considered highly prospective for both gold and base metals. Alexis has a clear route to 100% ownership in the properties and maintains an option to purchase the 1400 tonne per day Aurbel gold mill. The Company has also entered into option agreement with Falconbridge Limited (formerly Noranda Inc.) wherein Alexis will earn a 50% interest in all of Falconbridge's properties in the prospective Rouyn-Noranda base metal and gold camp, Quebec. The Falconbridge properties cover approximately 825 square kilometres in the Rouyn-Noranda area. In April 2005, Alexis is undertaking an underground program of exploration at the Lac Herbin project in Val d'Or and has two diamond drills currently active on the Val d'Or properties. An additional five drills are currently active in the Rouyn-Noranda area.

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)
    or
    Alexis Minerals Corporation
    Peter Cashin
    Investor & Corporate Affairs
    (416) 861-5905
    or
    Alexis Minerals Corporation
    Louis Baribeau
    Relationiste, Quebec
    (514) 605-0576
    info@alexisminerals.com
    www.alexisminerals.com