Alexis Minerals Corporation
TSX : AMC
OTCQX : AXSMF

Alexis Minerals Corporation

March 22, 2011 08:30 ET

Alexis Updates Lac Herbin Mine Resource

TORONTO, ONTARIO--(Marketwire - March 22, 2011) - ALEXIS MINERALS CORPORATION (TSX:AMC)(OTCQX:AXSMF) ("Alexis" or the "Company") announces the completion of its annual review of mineral resources and mineral reserves at its Lac Herbin Mine, Val d'Or, Quebec. The review incorporates new information obtained from on-going at the deposit. The following table summarizes the Mineral Resources as of December 31st, 2010.

Mineral Resources at Lac Herbin Mine, December 31 2010:
December 2010 Tonnes g Au/t oz. Au
Measured 67,000 9.2 19,900
Indicated 117,600 7.6 28,800
Measured and Indicated 184,600 8.2 48,700
       
Inferred 283,500 7.4 67,300

The 2010 mineral resource estimation was calculated using a minimum width of 1.5 meters (m) and a cut-off grade of 5.0 grams gold per tonne (g Au/t). Resources locally contain resource blocks grading 3.1 g/t to 4.9 g/t where lower grade material is included to generate acceptable mining blocks. Mineral Resource blocks were extended to mid-distance between holes on longitudinal sections and for a maximum of 20 metres where blocks are unconstrained. The review process also resulted in an updated estimation of Mineral Reserves, as summarized in the following table.

Mineral Reserves at Lac Herbin Mine, December 31 2010:
December 2010 Tonnes g Au/t oz. Au
Proven 43,000 7.45 10,300
Probable 96,000 6.45 19,900
Proven and probable 138,000 6.81 30,200

Mineral Reserves were estimated using a gold price of US$1,350 per ounce and a US$/C$ exchange rate of 1:1. A mill recovery of 92 % and royalties' of 4.5 % were considered in the calculations. A minimum cut-off grade of 5.6 g Au/t was applied. The mineral reserve estimations were based on 2D polygons. Different stope dilution factors have been applied based on mining experience and mining method used, resulting in an average dilution of 28%. Extraction was estimated at 82%. Higher operating costs were applied due to the mining of several small ore lenses. The lower production rate results in a higher cut-off grade compared to 2009, where a cut-off grade of 5.2 g Au/t was employed.

Francois Perron, Alexis President and CEO, comments: "The review of the mineral resource has underscored the need to continue exploration around our operations and we are aggressively pursuing new discovery. As we go through this challenging period at Lac Herbin our focus remains on our operations and to extend the mine life by following up nearby targets and infill drilling around the inferred resources of the mine. The Lac Herbin mine has completed its second full year of operation and our understanding of the complexities of the deposit has improved tremendously. As we transition into narrower parts of the system our team is adapting to these new operating constraints. We are reviewing our operating plan at the mine to take into account this resource update. Alexis does not intend to provide production guidance for 2011 until a full review of our operating plan has been completed."

Mineral Resources at Lac Herbin, December 31 2009:
December 2009 Tonnes g Au/t oz. Au
Measured 185,700 8.4 50,300
Indicated 572,800 6.7 123,500
Measured and Indicated 758,500 7.1 173,800
       
Inferred 537,200 6.0 103,500

The 2009 Mineral Resource was estimated using a minimum width of 1.5m and a cut-off grade of 2.5 g Au/t for Measured and Indicated Resources and 1.8 g Au/t for Inferred Resources. 

The significant reduction in Mineral Resources and Mineral Reserves is attributable to many factors, which include:

  • the mining of 133,000 tonnes at an average grade of 5.04g Au/t for 21,600 ounces of gold in 2010;
  • the use of higher cut-off grades (5.0 g Au/t versus 2.5 g Au/t in 2009);
  • reduced limits for the area of influence of each drill hole. These are now supported from mining experience gained in several zones outside of the principal S1 and S3 ore zones in 2010;
  • for drill intercepts where ore widths are greater than average composite widths for the zone, widths have been reduced to average ore widths; and,
  • all pillars in mining areas have been removed from Mineral Resources and Mineral Reserves and are considered non-recoverable in light of ground conditions encountered in 2010 [See News Releases: January 25, 2011].

The Mineral Resources and Mineral Reserve estimates contained in this press release were completed by the Lac Herbin Mine technical staff under the supervision of Austin Hitchins, P.Geo and Patrick Sevigny, Ing., "Qualified Persons" as defined under NI 43-101 guidelines. A NI 43-101 qualifying report will be filed in due course.

Qualified Persons

The technical and scientific content of this press release has been reviewed by Austin Hitchins, P.Geo and Patrick Sevigny, Ing. and "Qualified Persons" as defined under NI 43-101 guidelines.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian publicly traded mining company concentrating on exploration and mine development. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "AMC", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "AXSMF". The Company's focus is to grow through exploration, development and acquisition of mineral properties and directly and indirectly, through joint ventures. Alexis is now in its second full year as a junior gold-producing company. The Company holds a dominant property position (over 1,050 km2) in three of Canada's richest mining camps: Val-d'Or and Rouyn-Noranda, in the Abitibi District of Québec, Canada, historically the 3rd richest gold producing region in the world; and Snow Lake, Manitoba, Canada. Alexis undertakes exploration across these properties searching for new world class discoveries, while maintaining a focus on growing Alexis to become a mid-tier gold producer. 

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 impact of the results of the mineral resources review on the Company and its understanding of the property, the timing and amount of future exploration and development of the property, and the future financial or operating performance of Alexis and its projects. 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, which is available under the profile of the Company on SEDAR. 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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