Alexis Minerals Corporation
TSX : AMC

Alexis Minerals Corporation

January 29, 2008 08:30 ET

Alexis Digs Into the Future and Recovers 6,732 Troy Ounces of Gold in Bulk Sampling Program at Lac Herbin

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) - Alexis Minerals Corporation (TSX:AMC) is pleased to announce that 6,732 troy ounces of fine gold were recovered in a program of test mining and custom milling at the Lac Herbin Gold Project in Val d'Or, Quebec during Q4-2007. Alexis Minerals processed 46,410 dry metric tonnes as shown in Table 1.

The major highlights and conclusions of the program are:

- Strong ore continuity has been proven in all dimensions of the test stopes in the S1 and HW Zones.

- Indicated Resources significantly underestimate the gold content of subsequently mined and recovered mineralization.

- Gold recovered in milling confirms increases of 169% in S1 zone and 450% in the HW zone, over and above the gold content that would be estimated by the Indicated Resource method.

- Indicated Resources currently use a cut-off grade of 34.29 gAu/T (1.0 oz.Au/t), whereby all higher grade assays in the database are reduced to the cut-off grade in the Resource calculation. The Indicated Resource calculation provides a better estimate of gold content if the cut-off limit is raised to over 68.57 grams of gold per metric tonne (gAu/T) (2.00 ounces gold per short ton (oz.Au/t)), Table 2.

- Indicated Resources form the largest category of Resources used in economic evaluations of the Lac Herbin Deposit. A 68.57 gAu/T cut-off applied to these Resources would have a very positive material impact on estimated deposit economics.

- Measured Resources provide a very good estimate of the gold content of mineralization in both the S1 and HW areas, Table 2.

- Average Milling recoveries remain very high at 96.9%

"Alexis is very encouraged by the results of the program. The old saying 'Drill for structure and mine for grade' definitely applies to this deposit," stated David Rigg, President and CEO of Alexis Minerals. "The results suggest that mining will produce more tonnes, at the same or higher grade, than anticipated from Indicated Resource estimates, the principal category of Resource used for feasibility. Bulk sample results and over 30,000 metres of new drilling in 2007 are currently being incorporated into a new Resource estimate for the deposit. In addition, Alexis is proceeding with a revision to the 2007 feasibility study as the Company moves towards a formal production decision."

Bulk Sample Program

Two principal sources of gold mineralized material contributed to the bulk sample:

- Development Muck: 'Low Grade' material, Table 1, was stockpiled from widespread development headings throughout 2007 during the ongoing exploration of the Lac Herbin Deposit. This low grade material does not reflect anticipated production grades.

- Ore: recovered from three test-stopes in the S1, HW and Flat Vein zones mined during Q4-2007.

Development muck was used at the beginning and end of the custom milling program to isolate the Lac Herbin ore from other ores entering the custom mill before and after the Alexis campaign.



Table 1: Results of Bulk Sampling Program 2007,
Lac Herbin Project Val d'Or Quebec

--------------------------------------------------------------------------
Average
Milled Mill-
Mill Ounces Adjusted
Stockpile Date Processed Tonnage Recovered Grade
From To (metric Tonnes) (oz.Au) (gAu/T)
--------------------------------------------------------------------------
Low grade (1) 5-Nov-07 9-Nov-07 4,058 229 1.9
Low Grade (2) 9-Nov-07 13-Nov-07 4,447 517 3.7
Flat Vein Ore 13-Nov-07 19-Nov-07 7,330 693 3.0
S1 Ore 19-Nov-07 9-Dec-07 21,361 4,505 6.7
HW Ore 9-Dec-07 15-Dec-07 4,714 449 3.2
Low grade (3) 15-Dec-07 20-Dec-07 4,500 339 2.5

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TOTAL 5-Nov-07 20-Dec-07 46,410 6,732 4.7
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Custom Milling was undertaken at the Camflo Mill in Malartic, Quebec, approximately 20 km west of the Lac Herbin mine, under the supervision of Maureen Paterson, P.Eng., Metallurgist and Qualified Person, and Gilles St-Pierre, Mill Consultant. 14 Dore bars (a mixture of gold, silver and other contaminants) were refined at the Royal Canadian Mint in Ottawa, with Mint returns by January 14th 2008 confirming 79 percent of the dore bars was pure gold. 6,694 ounces of fine gold were recovered at the Mint and an additional 38 ounces of gold retained in various other products for future recovery.

Bulk Sample and Resource Estimations:

Reconciliation of the bulk sampling results from Q4-2007 incorporates the results from the 2006 Bulk Sampling Program (see Press Release: January 16, 2007) and all sampling and drilling results in the areas of the test stopes. Reviewing different aspects of the database allows reconciliation of milling results and gold poured, directly to Indicated Resource and Measured Resource estimates through the specific areas mined. Reconciliation of all data allows Alexis to conclude:

- Indicated Resources significantly underestimate the gold content of mineralization recovered in mining in both the S1 and HW areas, Table 2. Gold content in the mined areas, recovered in the mill, increase in these areas by 169% and 450% respectively. In the S1 Stope, Indicated Resources would estimate 2,292 oz.Au of contained gold in the bulk sample using a 34.29 g.Au/T cut-off, whereas mining and milling realized 3,885.2 oz.Au within the same area. Similarly, for the smaller bulk sample from the HW Stope, Indicated Resources support 83 oz.Au, whereas 373.6 oz.Au were actually mined and recovered.

- Measured Resources are very good estimates of the gold content of mineralization in both the S1 and HW areas, Table 2. Measured Resources rely on significant development and raising in ore where more detailed sampling and observation of the mineralization is possible.

- The Indicated Resource of the mined S1 area approximates the results from mining only if all high grade assays are cut to over 68.57 gAu/T (2 oz.Au/t), substantially higher than the current 34.29 gAu/T (1 oz.Au/t) cut-off employed by Alexis, Table 2. The higher cut-off lies closer to those used at the adjacent Ferdeber and Dumont mines where long term operating practice was to use 1.5 oz.Au/t (51.43 gAu/T) and 2.0 oz.Au/t (68.57 gAu/T) respectively.

- A higher cut-off will increased estimates of the contained ounces in the deposit and would have a positive material impact on results from feasibility studies. A Feasibility Study relies on Measured and Indicated Resources to evaluate the economic viability of a deposit and in the case of the Lac Herbin vein-type deposit, Indicated Resources will always represent the largest proportion of the assessed Resources.

- A higher grade cut-off factor may improve the estimation of Indicated Resources, at least in some areas of the deposit, however confidence in this will only be acquired after longer term mining of the deposit. Maintaining a 34.29 gAu/T (1 oz.Au/t) cut-off in Resource estimations will ensure a continued conservative approach towards the projected profitability of a mining operation while providing significant upside potential to future operations.

- Alexis considers Indicated Resources for the Lac Herbin deposit employing a 34.29 gAu/t cutting factor as very conservative.

- Average Milling recoveries remain very high at 96.9%, similar to previous recoveries of 98.3% in 2006 (see press release: January 16, 2007)

- The bulk sample in the Flat zone was mined to evaluate the grade characteristics of this zone. Due to the presence of coarse visible gold, the coarsest seen in the deposit to date, a large nugget effect was expected within mineralization. Results suggest that this is the case and a more harsh cutt-off of 27.0 gAu/T is suggested to be employed to match resource grades to recovered grades in this particular style of mineralization. Mineralization in the Flat zones is not included in project Resources.



Table 2 -Comparison of Gold from Bulk Sample with Measured and Indicated
Resource Estimates in Mined areas of Bulk Sample, and, Effect of Upper
Cut-Off Factor on Indicated Resource, Lac Herbin, Val d'Or, Quebec.

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STOPE AREA Estimate of Estimated Indicated Resource
Resource in the stoped Volume
in the at Different Cut-offs Bulk
Stoped Volume Sample:
Contained
Resource Meas- Indicat- Indicat- Indicat- Indicat- Indicat- Ounces
Category ured ed ed ed ed ed Gold
----------------------------------------------------------------------------
CUT-OFF:gAu/T 34.29 34.29 51.43 68.57 90.00 Uncut N/A
CUT-OFF:oz.Au/t 1.00 1.00 1.50 2.00 2.63 Uncut N/A
----------------------------------------------------------------------------
Contained Gold ozAu ozAu ozAu ozAu ozAu ozAu ozAu
----------------------------------------------------------------------------

S1 4,151 2,292 2,916 3,542 4,243 5,042 3885.2(i)

HW 353 83 102 122 147 225 373.6(i)

FLAT N/A 857 N/A N/A N/A N/A 713.7

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(i) Note: A 34.29 gAu/T (1.0 oz.Au/t) cut-off (also referred to as the "upper cut-off") is used to limit the influence of very high grade assays within the sample data base used to estimate a Resource. Reported assays higher than the cut-off f are reduced to the value of the cut-off.. An "un-cut" estimate relies on the assay database without any adjustments to the grades of the assays.

N/A - Not Applicable

Bulk Sample and Mining Approach

Careful design and execution of test stoping is critical to grade control. Dilution in the first stopes was high (60% and 79% for S1 and HW, respectively) partially by design (to ensure all the mineralized vein was recovered) and partly because unexpected ground conditions were encountered. Stope design was successfully modified as the program proceeded, reducing dilution in S1 and HW down to 15% and 21% respectively. Additional approaches to mining will be tested in the HW zone during 2008 to further control dilution and stabilize the hanging wall.

Assay samples were taken as regular samples from conveyor belts feeding crushed ore to the mill (mill feed), broken ore or development rounds (muck samples), from chip channel samples perpendicular to the orientation across the veins (Chip Samples), from exploration drill core sawed in half with one half sent to a commercial laboratory and other half retained for future reference, and finally from delineation core where whole core was sampled. A strict QA/QC program is followed which includes mineralized standards, blank and field duplicate for each batch of samples. Analyses were largely performed by ALS Chemex - Chimitec of Val-d'Or (Quebec) with mill feed samples assayed at both ALS Chemex-Chimitec and Bourlamaque Assay Lab. in Val d'Or, Quebec. Reconciliation of the recovery of gold from the bulk sample were completed by Mine Geologists Audrey Lapointe P.Geol. and Olivier Grondin, P.Geol. and under the supervision of Claude Gobeil, Senior Project Geologist, P.Geol. Claude Gobeil, P.Geol is the Qualified Geologist under NI 43-101 for the reconciliation. Maureen Paterson, P.Eng. was consulting metallurgist and QP for the bulk sampling and milling program.

Claude Gobeil, QP, and M. Maureen Paterson, P.Eng. have reviewed the content of this press release.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian exploration and development company listed on the Toronto Stock Exchange. Alexis holds an outstanding portfolio of properties covering the Val-d'Or and Rouyn-Noranda Mining Camps in Quebec. Alexis owns the 1400 tonne per day Aurbel gold mill and holds a 100%-interest in the Aurbel property. Alexis will vest into a 100% ownership of all remaining interests of Aur Resources on approximately 212 square kilometres of the Val-d'Or Mining Camp in early 2008. Alexis also has the right to earn-in into a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda. The Company has earned a 50% interest in approximately 786 square kilometres of the Rouyn-Noranda Mining Camp and has entered into a joint venture with Xstrata Copper. 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. One surface drill is currently active in Val-d'Or and one surface drill in Rouyn-Noranda.

Forward-looking information. This document may contain or refer to forward looking information based on current expectations, including, but not limited to, mineralization projections, estimates regarding the timing and costs of production, mineral prices, feasibility of projects, and future mining plans. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

Contact Information

  • Alexis Minerals Corporation
    David Rigg
    President and CEO
    (416) 861-5889
    (416) 861-8165 (FAX)
    or
    Alexis Minerals Corporation
    Bruce Barch
    Manager Investor Relations
    (416) 861-5905
    or
    Alexis Minerals Corporation
    Louis Baribeau
    Relationiste, Quebec
    (514) 667-2304
    Email: info@alexisminerals.com
    Website: www.alexisminerals.com