QUEBEC - ALEXIS MINERALS of Toronto has given the nod to commercial production at its Lac Herbin gold deposit near Val d'Or. Commercial production is to begin in Q2 2008, with annual production to be 40,000 oz of gold.
The decision came after a revised feasibility study indicated an IRR of 238% after pre-production capital expenses of $6.7 million Proven and probable reserve numbers were revised upward 52% to 363,665 tonnes grading 7.33 g/t Au. Alexis believes there is also significant potential for higher operating grades and that the gold zones remain open.
Cash costs are expected to be $460/oz assuming a gold price of $850/oz in 2008 and 2009, and $750 over the long term with the Canadian and American dollars at par.
A comparison of the revised and previous feasibility studies is available in the press release dated Feb. 20, 2008, at www.AlexisMinerals.com.
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