Alexis Minerals Corporation

Alexis Minerals Corporation

March 01, 2005 10:16 ET

Scoping Study Confirms Potential For Economic Gold Production at Alexis' Lac Herbin Project in Val d'Or


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALEXIS MINERALS CORPORATION

TSX VENTURE SYMBOL: AMC

MARCH 1, 2005 - 10:16 ET

Scoping Study Confirms Potential For Economic Gold
Production at Alexis' Lac Herbin Project in Val d'Or

TORONTO, ONTARIO--(CCNMatthews - March 1, 2005) - Alexis Minerals
Corporation (TSX VENTURE:AMC) is pleased to announce that it has
completed a Scoping Study (Preliminary Economic Evaluation) on the Lac
Herbin Deposit located in Val d'Or, Quebec. The study was prepared by
Kevin Weston, P.Eng and Qualified Person under 43-101 guidelines,
through Quebec-based engineering and mining contract firm Ross Finlay
2000 Inc. (Ross Finlay). The report (filed on www.sedar.com:
"Preliminary Assessment Study of the Lac Herbin Deposit") confirms that
the Lac Herbin Deposit is potentially economic at current gold prices.
The Scoping Study demonstrates that the Lac Herbin Project has the
potential to produce approximately 35,000 ounces per year at a cash cost
of US$224 per ounce and be in production within one year. The report is
based on the recently completed resource estimate (Inferred Resource of
1,070,000 tonnes grading 7.3 grams gold per tonne for approximately
250,000 ounces) prepared by Richard Roy, P.Geo., of NordQuest Inc. and
verified by Carl Pelletier, Innovexplo Inc., Independent Qualified
Person as defined under NI 43-101 guidelines.

Alexis and Ross Finlay note that this Scoping Study is based upon
Inferred Mineral Resources that are considered too geologically
speculative to have economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty that the preliminary assessment will be realized.

Key conclusions of the Scoping Study are:

- Production of 35,000 ounces per year at a cash cost of US$224 per
ounce

- A pre-tax internal rate of return of 29% at US$400 gold price and
US$-CDN$ exchange rate of 1.33

- Total capital investment of US$12 million, of which US$7.6 million is
for underground exploration and bulk sampling and US$4.4 million is to
put the mine in production

- 12 month pre-production period

- An existing, fully permitted plant, with a capacity of 1,400 tonnes
per day, is located within one kilometre of the site and can be used for
processing. Alexis maintains a purchase option on the plant within the
original property agreement

"The Scoping Study clearly makes the case for the potential to develop a
robust underground mining operation at a US$400 per ounce gold price
with considerable upside potential to expand resources", stated David
Rigg, President and CEO. "Alexis will focus on an underground
exploration program to upgrade and expand the resource, test mining to
confirm grade, and metallurgical work. The project has the potential to
produce 35,000 ounces of gold per year over 5.3 years at a cash cost of
US$224 per ounce. There is also good potential for further resource
expansion."

"What makes the project particularly attractive is the short lead time
for start up and the low capital because an existing fully permitted
plant and tailings facility is already at the site. The project can move
Alexis into a gold-producing company and will have a significant
positive socio-economic impact in the Val d'Or area", confirms David
Rigg, President and CEO of Alexis.

"Both of the adjacent Ferderber and Dumont mines started with a small
resource base which expanded by 150% to 250% once the mines started
production. We expect that Lac Herbin has similar potential," said
Richard Roy, P.Geo. and project geologist for Lac Herbin program.

Scoping Study Results

The financial analysis has been estimated based on the diluted Inferred
Resources, and production rates, development quantities, and cost
estimates calculated by Ross Finlay. The potential "mineable" tonnes
were estimated by Ross Finlay using the Inferred Resources below a
recommended 30-meter crown pillar, with addition of 21% waste rock
dilution (grading 0.03 gAu/T) and a mining recovery factor of 90%. These
factors will need to be confirmed by further analysis but are reasonable
based on past mining experience in the camp.

The cost estimates assume processing of the mined ore at the existing
Aurbel Gold Mill under option to Alexis and located roughly one
kilometre from the mine portal. Cost estimates and recovery for the
operation of this mill were developed from historical records and by
comparison with other similar operations where costs are known.

Input parameters:

- Diluted Inferred Resources, less provision for a crown pillar, with a
mining recovery factor of 90% - 960,000 tonnes at 6.3 g/t,

- Production rate of 500 tonnes per day over a 5.3 year underground mine
life, providing annual production of 35,000 ounces of gold per annum.

- Gold price of US$400 per ounce,

- Gold recovery of 95%,

- Exchange rate of US$1 equals CDN$1.33,

- Mining costs of CDN$32.41 per tonne (includes stoping, delineation
drilling and ore transportation to mill),

- Milling costs of CDN$15.00 per tonne,

- Overhead costs of CDN$1.9 million per year (CDN$10.41 per tonne),

- Capital costs of $CDN14.9 million, of which approximately CDN$9.5
million is underground exploratory development and for a bulk sample,
and CDN$4.9 million is for pre-production capital,

- Ongoing underground development costs of CDN$2.2 million per year,

- No provision for environmental reclamation, and

- No provision for Quebec Tax Refunds (up to 47%), which may be
generated from underground exploration expenditures.

Based on these parameters, the financial analysis gives:

- A cash operating cost of US$224 per ounce,

- A pre-tax internal rate of return of 29%.

Future Underground Exploration and Development Program

Alexis' view is that significant resource potential has been developed
on the property that can now be advanced through a program of
underground exploration towards a feasibility study. The program will
focus on ramp development from a portal developed previously in 1996,
subsequent level development and delineation drilling to upgrade and
expand current resources, and, bulk sampling and metallurgical work.

Initial preliminary work has already been commissioned. Crown pillar
design is currently in progress under the direction of David West,
P.Eng., Wardrop Engineering and a 2000-meter surface drill program is in
progress to provide required geotechnical data.

Future Resource Growth

The project has good potential for additional resource growth. C.
Pelletier, P.Geol. and independent QP and author of the report on
Resources (filed on www.sedar.com), considers that "the potential to
delineate additional resources in the Lac Herbin area to be good."
Potential occurs:

- "On east-, west- and down dip-extensions of known resource areas, and,

- On sub-parallel structures to the immediate south of the current area
of exploration intersected in previous resource drilling in the
hanging-wall to the known zones."

Specific targets include:

- "the interpreted junction between the HW and S1 shears located below
Zone 2 and which currently remains unexplored, and,

- Many high grade drillhole intercepts, considered to be sub-horizontal
tension veins but not incorporated into Resources. This kind of tension
veining at the Beaufor mine represents 20% of the mine production at a
higher than average mine grade."

Historical Perspective

The past-producing Ferdeber and Dumont Mines from historical mine
records (C. Pelletier, P.Geol.) provide clear perspective on the
potential of the Lac Herbin area:
- The Ferderber Mine produced a total of 1,600,606 tonnes grading 6.99
gAu/T between 1979 and 1994.

- Ferdeber mine reserves in March 1982, estimated pre N.I. 43-101, were
reported at 1,109,914 tonnes (undiluted) grading 6.93 gAu/T.

- The Dumont Mine produced a total of 1,197,152 tonnes grading 6.51
gAu/T during the same period. Reserves at Dumont reported in March 1982,
estimated pre N.I. 43-101, were 409,863 tonnes (undiluted) grading 6.07
gAu/T.

The final mined (diluted) grade and tonnage from production at both
mines were higher than initial undiluted pre-43-101 "reserve" estimates
completed shortly after start-up of operations. The mines provide a
wealth of data for exploration and subsequent mining at Lac Herbin which
has a similar geological setting and style of mineralization to the
historic production.

C. Pelletier, Independent QP, also concludes that "the total lease area
covers approximately 90 square km (8,893.36 ha) of which mostly the
southern half portion has been investigated. Significant exploration
potential exists to the north and west on the property."

Alexis Minerals Corporation is a Canadian exploration and development
company. Alexis holds a portfolio of properties covering approximately
270 square kilometers in the Val d'Or area and considered highly
prospective for both gold and base metals. Alexis has a clear route to
100% ownership in the properties and maintains an option to purchase the
1400 tpd Aurbel gold mill. The Company has also entered into option
agreement with Noranda Inc. wherein Alexis will earn a 50% interest in
all of Noranda's properties in the prospective Rouyn-Noranda base metal
and gold camp, Quebec. The Noranda properties cover approximately 800
square kilometres in the Rouyn-Noranda area. In 2004, Alexis
successfully closed a financing of $10.7M through CIBC World Markets to
fund aggressive exploration on these two substantial and prospective
areas.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these "forward
looking statements".

A map is available on CCNMatthews' website at the following address:
http://www2.ccnmatthews.com/database/fax/2000/AMC0301.pdf

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Alexis Minerals Corporation
    David Rigg
    President & CEO
    (416) 861-5889
    (416) 861-8165 (FAX)
    or
    Alexis Minerals Corporation
    John Pritchard
    VP Corporate Development
    (416) 861-5884
    or
    Alexis Minerals Corporation
    Louis Baribeau
    Relationniste, Quebec
    (514) 605-0576
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.