Alexis Minerals Corporation

Alexis Minerals Corporation

July 16, 2008 08:30 ET

Alexis Pours Over 5,000 Ounces of Gold to Become the World's Newest Gold Producer

TORONTO, ONTARIO--(Marketwire - July 16, 2008) - ALEXIS MINERALS CORPORATION (TSX:AMC) is pleased to advise that it has entered the early stages of gold production, becoming the world's newest gold producer. While the global supply of gold projects is declining, Alexis has now discovered a new gold deposit, advanced pre-production mine development and is now producing gold, generating revenue from its first mine project at Lac Herbin, Val d'Or, Quebec.

Alexis recently completed its first custom milling production campaign on the Lac Herbin deposit. A total of 5,047 ounces of gold was recovered with the mill recording higher than anticipated grades. Milling of gold ores from its 100% owned Lac Herbin gold project in Val d'Or, Quebec commenced on June 16, 2008 and was completed on July 09, 2008. A total of 26,798 (dry) tonnes was processed, well in excess of the proposed 20,000 tonne program (See Press Release: June 4th, 2008). Very high mill recovery rates of 97.9% were maintained throughout the campaign. Reconciliation of the results from this campaign to ores and ore types separated into six original stockpiles is ongoing. Five of the six stockpiles returned from 10% to 40% higher milled grades than the predicted mine grades. This gold deposit has now created a revenue stream for Alexis, as 1,625 ounces of gold was sold on July 11th at C$970.00/oz. Au.

The Lac Herbin gold mine is a primary focus for Alexis and a recent thorough review and reassessment has resulted in the following:

- Commercial production will be achieved in October, 2008 due to a delay in ramp development caused by transition from mining contractor to company workforce and flooding of the main ramp in March. (Commercial production is defined as three months of consecutive production at a rate of 60% of the planned production rate)

- Full production is still expected during Q4-2008.

- Three additional gold milling campaigns are scheduled during 2008.

- Production targets: 17,000 oz. Au in 2008 with an annual run-rate of 36,000 ounces in 2009 and subsequent years.

- The economics and budget have been revised in light of ongoing delineation and exploration drilling, delineation and mining development on levels and sublevels within ore, and due to general industry cost increases. The life of mine cash operating costs have been revised to $489/oz.Au from $470/oz.Au in feasibility (See Press Release: February 21, 2008), with a resulting EBITDA of $1,000,000 per month (using C$850 per oz. Au and 1:1 US$/CDN$ exchange rate).

- The recently concluded milling campaign indicates that grades calculated for the stockpiles during mining again underestimate the actual milled grades. Prior bulk sampling indicated similar behavior (See Press Releases: January 16, 2007 and January 29, 2008).

- Five underground diamond drills continue delineation and exploration of the deposit.

Alexis Minerals continues to implement its short to medium term' strategy focused on mine development and production from Lac Herbin, in order to generate cash flows to support an ongoing and longer term strategy focused on regional exploration. Potential for exploration, development and additional production from the Lac Pelletier Deposit in Rouyn-Noranda is currently the focus of ongoing pre-feasibility studies. Regional exploration of the two large property packages in the Val d'Or and Rouyn-Noranda mining camps is continuing in the search for world class gold and base metal deposits.

Quality Control

Mr. Patrick Sevigny, Eng., Project Manager, who is a Qualified Person as defined under National Instrument 43-101, has reviewed and approved the contents of this press release.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian exploration and development company listed on the Toronto Stock Exchange. Alexis owns the 1400 tonne per day Aurbel gold mill and is currently advancing the adjacent, wholly-owned Lac Herbin Gold deposit into production in 2008. Alexis also has the right to earn in into a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda and is focused on advancing this project to a commercial production decision in 2008. Alexis holds an outstanding portfolio of properties covering 1,005 sq. km. of the prospective Val d'Or and Rouyn-Noranda Mining Camps in Quebec and explores these properties for both gold and base metals. Approximately 786 sq. km. of the Rouyn-Noranda Mining Camp is explored in a 50-50 joint venture with Xstrata Copper. Alexis has budgeted $5.5 million for exploration in 2008. There are currently five underground drills active at Lac Herbin, two surface drills active in Val d'Or and one surface drill active 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 and exploration, mineral prices, feasibility of projects, 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. 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)
    Alexis Minerals Corporation
    Bruce Barch
    VP Investor & Corporate Affairs
    (416) 861-5905
    Alexis Minerals Corporation
    Louis Baribeau
    (514) 667-2304