Alexis Minerals Corporation
TSX : AMC
OTCQX : AXSMF
PINK SHEETS : AXSMF

Alexis Minerals Corporation

July 15, 2010 08:00 ET

Alexis Opens its Own Gold Mill to Reduce Costs

TORONTO, ONTARIO--(Marketwire - July 15, 2010) - ALEXIS MINERALS CORPORATION (TSX:AMC)(OTCQX:AXSMF)(PINK SHEETS:AXSMF) ("Alexis" or the "Company") is pleased to announce that it has successfully refurbished its wholly-owned gold mill in a focused initiative to reduce costs. The prime intent of this project is to reduce transportation and custom milling costs, with the important overall impact of lowering cash costs by an estimated $12-15 per tonne, by internally processing ore from the Company's Lac Herbin gold mine, near Val-d'Or, Quebec. Having the Aurbel Mill operational is also another step in the Company's growth strategy, establishing a new active asset for Alexis. Milling its own ore provides Alexis with a key benefit of a consistent cash flow, versus the sporadic approach over the past year with the previous custom milling arrangement. Another benefit is the potential to ultimately earn additional revenue by providing custom milling to other local non-Alexis projects.

Since the Lac Herbin mine went into production 19 months ago, the ore from the mine had been trucked approximately 35 km. to be custom milled at the Camflo Mill, operated by Richmont Mines. Currently, ore stockpiled from Lac Herbin while the Aurbel Mill was being commissioned, is being milled at the Camflo Mill to expedite the recovery of the contained gold.

The Aurbel Mill, situated on Alexis' Aurbel property, is only 1.8 km east of the Lac Herbin gold mine, so time and cost will be reduced now that the mill is operational. Refurbishing the Aurbel Mill started in late July, 2009 and began commissioning with crushing low grade ore in late March, 2010. The mill uses a gravity-flotation-cyanidation process and has been refurbished to process up to 800 tonnes per day (tpd). It is currently processing approximately 650 tpd in order to fine tune the process and improve the recovery rate from the current 88 – 92% to the expected recovery rate of 94 - 96%. The mill is operating on a shortened week basis as it is being ramped up to the designed 800 tpd and will process the Lac Herbin ore at the mine's usual mining rate of 450-480 tpd. 

The Aurbel (formerly Belmoral) Mill was originally purchased from Aur Resources (since acquired by Teck) in 2006 and has been on care and maintenance. In its fully refurbished state it would have a 1400 tpd capacity and was originally used to mill ore from the Ferderber Gold Mine, atop which the Aurbel Mill sits, and the nearby Dumont Gold Mine. The Ferderber and Dumont mines were closed in the mid – 1990's, along with the mill, and both mines are also owned by Alexis (refer news release May 7, 2009, regarding drill results and potential at Dumont). Replacement cost for the mill, site and infrastructure has been independently estimated at approximately $36 million.

The Aurbel Mill is one of two gold mills owned by Alexis, the other being the 2150 tpd mill in Snow Lake, Manitoba, that was acquired in the recent acquisition of Garson Gold Corp. (refer news release October 20, 2009).

Quality Control

The technical and scientific content of this press release has been reviewed by Keith Boyle, P.Eng., Executive Vice-President and Chief Operating Officer, Alexis Minerals and Qualified Person as defined under NI 43-101 guidelines.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol "AMC") and trades in the United States on the Over the Counter QX International platform (OTCQX:AXSMF). The Company owns one producing gold mine in Val-d'Or and the right to earn a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda, both in Quebec. Alexis also owns the Snow Lake Mine in Manitoba. With these assets Alexis has the potential to develop gold production forwards. Alexis is targeting mid-tier gold production levels in 2011. Alexis undertakes exploration in the mineral rich Val-d'Or (100% ownership of 212 sq. km.) and Rouyn-Noranda Mining Camps (50% ownership of 785 sq. km and in joint venture with Xstrata Copper) as well as in the Snow Lake Mining Camp (100% ownership of 50 sq. km). For more information about Alexis Minerals visit www.alexisminerals.com.

Forward looking information

This document may contain or refer to forward looking information within the meaning of applicable securities laws, based on current expectations, including, but not limited to, mineralization projections, future exploration priorities, estimates and costs, projected capital and operating expenditures, future exploration plans and techniques, estimates regarding the timing and costs of exploration, mineral prices, and future mining plans. Forward looking statements are subject to significant risks and uncertainties, including those risks identified in the annual information form of the Company, which is available under the profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions underlying the mineralization projections are based upon extensive technical and scientific analysis conducted by the management of the Company, the results from drill programs and other exploration, the analysis of external consultants and information obtained by the Company from third parties. Readers should not place undue reliance on forward-looking information. Forward looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

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