Alexis Minerals Corporation

Alexis Minerals Corporation

October 05, 2010 09:25 ET

Alexis to Spinoff Quebec Exploration Assets to Unlock Value in World Class Properties

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) -


ALEXIS MINERALS CORPORATION (TSX:AMC)(OTCQX:AXSMF) ("Alexis" or the "Company") announces that its Board of Directors has commenced a review of the potential spinoff of the Company's Quebec exploration properties into a new publicly listed company ("ExplorationCo"). The restructuring would focus Alexis on the production of gold from its Lac Herbin, Snow Lake and Lac Pelletier gold projects while also providing current shareholders of the Company with exposure to ExplorationCo. ExplorationCo would own, manage and explore the extensive gold and base metal exploration properties that are currently held by the Company in the Val-d'Or and Rouyn-Noranda Mining Camps in Quebec.

Objective of Strategic Review

Alexis intends to review strategic options in relation to its Quebec exploration assets with the objective of finding ways to unlock Alexis' shareholder value. The proposed spinoff would focus Alexis on its goal of becoming a mid-tier gold producer with over 150,000 ounces of gold production per year. Alexis would continue to produce gold from the Lac Herbin mine, and would look to develop the Snow Lake mine commencing in 2011 and the Lac Pelletier mine thereafter. The new production-focused company will be renamed at the next Annual General Meeting to reflect these changes.

The company will own 100% interests in the estimated mineral reserves and mineral resources described in Tables 1 and 2 below. The Company is currently in the final stages of completing a Feasibility Study on Snow Lake and, as announced on September 30, 2010, intends to complete project financing for the development of the Snow Lake mine that does not require gold hedging or the further issue of equity securities.

ExplorationCo would focus on gold and base metal exploration in Quebec. Alexis believes that its large gold and base metal exploration properties in Quebec offer significant opportunities for exploration discovery that are severely undervalued in the current corporate structure. Further, ExplorationCo could take advantage of the favourable Quebec taxation regime for mineral exploration and the availability of flow-through financing. ExplorationCo would be positioned to build upon the past exploration success of the Alexis geological team.

Review Process

The Board has mandated the Company to consider the proposed spinoff transaction. The Company is currently obtaining legal and tax advice as to the most efficient and expeditious transaction structure and will provide further details regarding its review of the proposed spinoff as the review progresses. Completion of the spinoff depends on the results of the Company's review and the Company obtaining all necessary board, shareholder and regulatory approvals.

Table 1. Proven and Probable Reserves:
Category / Deposit Tonnes   Grade   Resource
      (g/t)   (oz Au)
Lac Herbin 97,900   9.0   28,400
Lac Pelletier 59,770   6.2   11,914
Lac Herbin 519,500   7.0   117,600
Lac Pelletier 108,230   6.6   22,966
Total Proven & Probable 785,400   7.2   180,880


Table 2. Measured and Indicated Resources:
Category / Deposit Tonnes   Grade   Resource
      (g/t)   (oz Au)
Lac Herbin 124,800   9.2   37,100
Lac Pelletier 57,806   8.6   16,041
Snow Lake Main Mine 7,000   4.8   1,000
Lac Herbin 731,500   7.2    
Lac Pelletier 221,637   8.61   61,331
Snow Lake Main Mine     5.0    
  2,631,000       420,000
No. 3 Zone Main 394,000   6.7   85,100
Total Measured & Indicated 4,167,743   5.9   790,072

Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Source: Management's Discussion and Analysis, for the Second Quarter 2010, August 16, 2010.

Qualified Person

The technical and scientific content of this press release has been reviewed by David Rigg, P.Geo. President and Chief Executive Officer of Alexis Minerals and a Qualified Person as defined under NI 43-101. Assay samples are taken from NQ core, sawed in half with one half sent to a commercial laboratory and the other half retained for future reference. A strict QA/QC program is followed on samples from drill core that includes mineralized standards, blank and field duplicate for each batch of samples. Analyses are performed by Techni-Lab of Ste- Germaine Boulé, Québec.

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 the producing Lac Herbin gold mine in Val-d'Or and the Lac Pelletier gold property in Rouyn-Noranda, both in Quebec. Alexis

also owns the Snow Lake Mine in Manitoba where a Feasibility Study is nearing completion. With these assets Alexis has the potential to increase gold production and is targeting mid-tier gold production levels in 2011-2012. 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) as well as in the Snow Lake Mining Camp (100% ownership of 50 sq. km). Alexis Minerals has two drills active in Val-d'Or and two drills active in Snow Lake on surface exploration programs. For more information about Alexis Minerals visit

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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