Alexis Minerals Corporation

Alexis Minerals Corporation

December 08, 2009 08:30 ET

Alexis Starts Milling Bulk Sample From Lac Pelletier Gold Mine Project

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2009) - ALEXIS MINERALS CORPORATION (TSX:AMC) is pleased to announce that milling of ore has started for the bulk sample from its Lac Pelletier gold mine project at Rouyn-Noranda, Quebec. Custom milling of the first 10,000 tonnes of ore, obtained from initial development in the mineralized zones, commenced last Friday, with the expectation of a total of 40,000 tonnes (t) being milled for the bulk sample program. Approximately 9,400 ounces of gold (oz Au) are expected to be mined from the zones being developed for stoping. The bulk sample is now forecast to be completed by mid-February, 2010. After that, the Company anticipates a production decision will be made in the first quarter of 2010, based on feasibility study results being completed concurrent with the bulk sample program.

Alexis has decided to displace Lac Herbin ore during this custom milling campaign, replacing it with the first 10,000 tonnes of the Lac Pelletier bulk sample to get valuable information on the grade at Lac Pelletier. Accordingly, the 2009 production from Lac Herbin is now expected to be approximately 35,000 oz Au which includes an estimated 5,000 ounces on stockpile at year end. This meets the Company's guidance for 2009 and it will issue a separate news release to summarize the 2009 production.

Lac Pelletier is approximately 4 kilometres southwest of the city of Rouyn-Noranda, Quebec, in the prolific Abitibi Mining Camp, historically one of the world's top gold producing regions. According to its August, 2009 pre-feasibility study, the Lac Pelletier Gold Mine is projected to generate over CDN $20.7 million free cash flow on production of approximately 118,100 oz Au (109,300 ounces recovered) over an estimated minimum 3 year project life. Measured and Indicated Resources, using a 3.0 g.Au/t cut-off grade, total 917,883 t @ 7.11 grams of gold per metric tonne (g.Au/t), for 209,895 ounces gold with additional Inferred Resources of 391,770 t @ 6.52 g.Au/t for 82,127 oz.Au. Please see news release of July 16, 2009 for a full description of the parameters and estimates underlying the results from the pre-feasibility study. The Lac Pelletier deposit shows good upside potential for the expansion of Resources and Reserves through the further exploration and delineation of remaining resource areas in the deposit and on any extensions. Lac Pelletier offers Alexis an opportunity to bring a second mine operation into production to complement cash flow earned from the Alexis Lac Herbin mine in Val d'Or, Quebec.

As reported in the news release of November 5, 2009, the Company made an important revision to the current bulk sample program, in early October, electing to excavate a second egress to surface and future ventilation raise prior to the bulk sample stoping, instead of at the commencement of pre-production development in 2010. This revision was designed to meet stricter safety standards and allow continued production from areas selected for testing in the bulk sample program, concurrent with pre-production development. The raise development caused a one month delay in the original bulk sample schedule; however it shortens the pre-production development for the overall project, effectively allowing the Company to maintain the original project schedule.

All permit requests for full production are submitted, and the Company expects to receive confirmation on these before the end of 2009. A feasibility study began in mid-October and is expected to be completed upon reconciliation of results from the milling of the 40,000 tonnes bulk sample in February 2010.

Alexis' management expects to make a positive production decision in March 2010 subject to the results of the bulk sample and feasibility study. With Lac Pelletier in production, the Company's total projected gold output would increase in 2010 to annualized levels of between 75,000 and 80,000 ounces of gold including the production from the Lac Herbin gold mine. This would represent another significant step toward achieving the new Corporate Strategy of developing Alexis into a mid-tier gold-producing mining company.

Quality Control:

The technical and scientific content of this press release has been prepared and reviewed by Martin Perron, Ing. and Pascal Hamelin, Ing., P.Eng, employees of the Company and Qualified Persons 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"). 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). Recently Alexis entered a binding agreement to acquire all shares of Garson Gold Corp. Further information about Alexis Minerals can be found at its website:

Forward looking information.

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Alexis and its projects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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