Alexis Minerals Corporation

Alexis Minerals Corporation

February 24, 2009 08:30 ET

Alexis to Produce 50,000 Ounces Gold in 2009, Increasing to 75,000-85,000 Ounces Gold Per Year From 2010

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2009) - ALEXIS MINERALS CORPORATION (TSX:AMC) is pleased to provide guidance for its' gold production from mine operations in Val d'Or and Rouyn-Noranda, Quebec. Alexis expects to produce 50,000 ounces gold in 2009 and organic growth during 2009 is expected to lead to annual production of between 75,000 to 85,000 ounces per year commencing in 2010. The Lac Herbin gold mine achieved full production in Q4 2008. Production from the mine is expected to rise to 40,000 ounces annually in 2009, a conservative projected increase over prior production targets of 36,000 ounces per year. The revision is due to significant increases in the grade of Measured Resources confirmed through ore development and delineation during 2008, Table 1. During 2008 Measured Resources at Lac Herbin have increased 180%. Ore grade has increased substantially to 9.2 grams of gold per tonne (g.Au/t) from December 2007 estimates of 6.8 g.Au/t. The improved grade appears further substantiated in the first milling campaign of 2009 that commenced on February 13th. During the first 6 days, 6,123 tonnes entered the mill circuit at a belt grade of 9.15 gAu/t. The campaign will process an estimated 30,000 tonnes by March 12th.

Alexis intends to focus on organic growth during 2009, with particular efforts aimed to:

- Refurbish the Aurbel Gold Mill located 1.0 km east of the Lac Herbin Mine, commissioning milling operations in November 2009

- Advance the development of the Lac Pelletier Deposit near Rouyn-Noranda, Quebec. The ramp and two developed levels will be dewatered and refurbished. The 2009 program is planned to include a Bulk sample of Zones 3 and 4 to generate 10,000 ounces gold. In the event that Alexis makes a favourable production decision for the Lac Pelletier Mine, it is projected to produce 35,000 to 45,000 ounces of gold per year.

Alexis will issue Annual Financial Statements and their MD&A
February 24, 2009.
Copies will be available at and

Management will host a web cast presentation with a Q&A session starting at
2 pm (ET), Wednesday, February 25th 2009.

Call in numbers are:
416-695-9712 or 1-800-565-0813 (Toll Free)

Lac Herbin Gold Mine

The Lac Herbin gold mine achieved commercial production in October 2008 and full production in December 2008. Alexis anticipates annual production of 40,000 oz.Au per year from the deposit at an estimated cash cost of approximately C$536/oz over the currently estimated five year Life of Mine Model. Engineering planning is progressing towards a 5-year LOM Plan and statement of new Proven and Probable Reserves. A technical report in respect of such estimates is expected to be completed in March 2009.

The December 2008 Resource Estimate for the Lac Herbin Mine, Val d'Or is presented in Table 1. The new Resource evaluation demonstrates a significant increase in confidence in the deposit:

- Measured Resources are 124,800 tonnes grading 9.2 gAu/t for 37,100 ounces gold; an increase of 180% over December 2007 estimates. Grade has increased substantially to 9.2 g.Au/t from December 2007 estimates of 6.8 g.Au/t.

-- Measured Resource Tonnage has increased from 61,039 tonnes to 124,800 tonnes. Overall growth in Measured Resources during 2008 was 144,045 tonnes and Resources reflect ore mined during 2008 of 80,284 tonnes grading 6.90 gAu/t.

- Overall, Resources have been identified to replace ore mined during 2008.

- Resources fully support the 5-year Life of Mine Model developed in the feasibility study reported in 2008.

- Several new Resource areas and new structures with confirmed gold potential have been identified during 2008. Exploration will continue with two underground drill machines in 2009 in programs focused on continued Resource growth.

Table 1: Mineral Resource Statement as at December 31 2008,
Lac Herbin Mine, Val d'Or, Quebec

Resources Metric g.Au/t Contained
Tonnes (t) Oz. Au
Measured (M) 124,800 9.2 37,100
Indicated (I) 731,500 7.2 169,500
M&I Total 856,300 7.5 206,600

Inferred 420,500 6.0 80,500

Notes: (1) Mineral resource estimates have been prepared in accordance with
NI 43-101 and CIMM standards.
(2) Resource estimates are undiluted, use a minimum true width of
1.5 metres and apply an upper cutoff factor of 1.0 ozAu/t
(34.29 gAu/T) to high grade assays.
(3) The calculation was completed by Olivier Grondin, P.Geol. and
Audrey Lapointe P.Geol. under the supervision of Claude Gobeil,
P.Eng. Claude Gobeil, P.Eng., is the Qualified Person under
NI 43-101.
(4) Mineral resources that are not mineral reserves do not have
demonstrated economic viability.

Measured Resources include results from detailed sampling in extensive level and sub-level development, as well as detailed infill drilling of the deposit.

- Custom milling of the first production campaign in 2009 commenced on February 13th and provides further confirmation of grade. During the first 6 days, 6,123 tonnes entered the mill circuit at a (crushed ore - belt feed) grade of 9.15 gAu/t. The campaign will process an estimated 30,000 tonnes by March 12th of ore from stopes and development on the S1, S3, HW2 and HW zones.

Indicated and Inferred Resources are estimated largely from diamond drill holes. Drill holes are spaced closer together for Indicated Resources compared with Inferred Resources, and ore limits are generally well defined. Development in ore is not yet completed.

Drill estimated grades have been demonstrated to under-represent the eventual mine grade based on comparisons between Resources as they evolve and actual milling results and gold production. Upgrades are expected to Indicated and Inferred Resource grades, as moves to a Measured Resource. The S3 zone, for example, has shown an average 55% increase in contained gold in the mill over drill estimated resource grades. A grade increase has been applied during the Resource evaluation in only one area of the mine, to Indicated Resources inside the main developed trend of the S3 zone. In order to remain conservative, an upgrade of 25% was applied compared to the observed 55% upgrade.

Exploration Drilling Discovers new Resource Areas

55,056 metres of diamond drilling was completed at the mine during 2008 and largely in delineation of the deposit. Exploration drilling commenced in earnest underground in August 2008. One surface drill was also employed in Q4-2008 and continues in 2009. Management is excited about the discovery of several new areas where there is potential to increase Resources on an ongoing basis. Recent drilling has identified:

- New gold mineralized shears to the west of the mine, confirming the extension of multiple gold-bearing shears at Herbin for at least a further 500 metres to the west.

- An additional gold bearing shear directly north of the most northerly shear previously known in the mine.

- New Resource areas have also been identified in several new areas, including:

-- FL Zone - located slightly below the collar of the main Ramp and indicative of additional Resource potential linking Lac Herbin and the Ferdeber Mine to the east.

-- HW2 Zone - at depth below the 320-m level, the zone appears to open along strike into a new S1-type vein system. The zone remains open to the west at depth. Recent intersections include:

Hole HW2 Intersection (1) Hole HW2 Intersection (1)

02-097 1.61 / 1.5 m 02-104 9.58 / 2.3
02-352 5.21 / 1.5 m 02-186 6.09 / 2.5
02-354 13.98 (11.81 cut) / 5.7 m 02-357 3.63 / 2.6 m
02-356 30.07 (27.94 cut) / 1.5 m 02-358 4.74 / 1.7 m

(1) Uncut gAu/t (gAu/t cut) /true width in metres. Cut factor - very high
assay intervals reduced to 34.29 g.Au/t.

-- S3 Zone - Drilling on the eastern side of the zone at depth has identified a new, laterally extensive, high grade extension that plunges to the east and contrary to the trend of the main S3 zone. The new mineralized trend lies within the S3 shear but is characterized by almost complete absence of the typical vein-type host rock. Recent intersections include:

Hole Intersection (1) Hole Intersection (1)

02-140 5.83 / 3.8 04-028 19.17 / 3.5
05-003 17.17 / 2.0 m 05-006 21.89 (17.53 cut) / 1.7 m
05-004 13.40 / 1.7 m 05-008 4.30 / 1.5 m

Aurbel Gold Mill

Alexis is reviewing prior estimates of operating and capital costs to restart the wholly-owned, 1400 tpd, gold mill located only 1 kilometer from the Lac Herbin Mine. Alternatives to prior engineering proposals, revised scheduling of Capital expenditures and refurbishment of the gravity - floatation - cyanidation of pyrite-gold concentrate circuit, used for ores at the historic Ferdeber and Dumont Mines, significantly decreases required Capital costs. Additional engineering is in progress and refurbishment will advance in 2009 funded by cash flows from Lac Herbin production. With the Mill in operation, Alexis would expect to decrease overall milling and shipping costs by $10 - $15 per tonne in 2010 in comparison to increases in custom milling charges experienced in 2009.

Lac Pelletier Gold Project

The 2007 scoping study on Lac Pelletier prepared by Golder (see Press Release: April 19, 2007), shows clear economic potential for the deposit, The Lac Pelletier project was affected by dramatically changing market conditions during 2008, principally general cost increases in the mining industry, availability of personnel, and then the negative reversal of the worldwide economic climate. The risks associated with the project during 2008, while also moving Lac Herbin through pre-production and into production, became of paramount concern. A further review of the technical aspects of the project was initiated prior to underground work. A new resource calculation incorporating all Alexis surface drilling and using an alternative longitudinal method was completed in 2008. The study has confirmed the independent resource calculation completed in 2006 for the study will be reported shortly.

A more detailed pre-feasibility study was also started in 2008 and recognized the need for rock mechanic and hydrological studies of the crown pillar, studies which have been initiated. Several basic assumptions used in the scoping study, including gold price and US$/C$ exchange rates, have changed substantially. These changes are being incorporated into the pre-feasibility study which will be reported in April 2009.

The 2009 program will dewater and rehabilitate the ramp and two levels (developed during exploration in 1992) and lead to bulk sampling in Zones 3 and 4 of the deposit. Alexis expects the bulk sample to generate approximately 10,000 ounces gold in 2009. Given the positive indications from the scoping study, and the offsetting nature of increased costs and higher gold prices, Alexis anticipates a positive outcome to the pre-feasibility study and 2009 program, with the result being projected production of 35,000 to 45,000 ounces of gold per year from this deposit commencing in 2010.

Update on Deep West Target Exploration, Louvicourt Mine Area, Val d'Or

Deep drilling of the Deep West target, which is located 1.5 km from the Louvicourt Volcanogenic Massive Sulphide (VMS) deposit, has resulted in the discovery of a zone of copper-rich massive sulphides and broad zone of copper-rich stringer mineralization (see Press Release: October 17 2008). Assay results from the stinger zone have been returned and the intersection consists of:

- 0.5 % Cu over 81.6m in Stringer type mineralization from 1927.0 to 2008.6 metres; including,

-- 1.0 % Cu over 16.3 m, at 1965.7 to 1982.0, and,

- 3.6 % Cu over 9.4 m in a combined stringer and Massive Sulphide zone between 2008.6 and 2018.0 m; including,

-- 6.8 % Cu over 3.45 m, in Massive to Semi-Massive Sulphides between 2014.55 and 2018.0 m

The VMS mineralization is interpreted to be at the same stratigraphic location as the nearby Louvicourt Mine. Alexis has recently identified regional folding through the Val d'Or Camp. A major fold axis may pass directly to the south of this intersection and if present would significantly modify mineralization trends and vectors. Compilation and 3D modeling is progressing on the target and is expected to be completed during Q2-2009.

Quality Control

The technical and scientific content of this press release has been reviewed by Keith Boyle, P.Eng.; Patrick Sevigny, Eng.; Mr. Jean Girard, Eng.; Mr. Claude Gobeil, P.Eng.; Olivier Grondin, P.Geo.; and, Denys Vermettte, P.Geol,; employees of the Company and Qualified Persons as defined under NI 43-101guidelines. Assay samples for exploration drilling are taken from NQ or BQ core, sawed in half with one half sent to a commercial laboratory and other half retained for future reference. A strict QA/QC program is followed on samples from drill core which includes mineralized standards, blank and field duplicate for each batch of samples. Analyses are performed by ALS Chemex of Val d'Or, Quebec.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol "AMC"). 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. 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 and in joint venture with Xstrata Copper). There are currently two drills active underground at Lac Herbin and two surface drills active in surface exploration in Val d'Or. Further information about Alexis Minerals can be found at its website:

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 production estimates and cost of production projections, 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 future-looking information are based upon extensive technical and scientific analysis conducted by the management of the Company, 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.

Contact Information