QUEBEC - Alexis Minerals of Toronto has launched a turnaround plan for its Lac Herbin gold mine 10 km east of Val d'Or. The plan involves intensive underground development, near mine exploration, and milling changes to improve gold recovery.
The Lac Herbin mine is located on the Aurbel property. Commercial production began in October 2008, but a reassessment of reserves and a revised life-of-mine plan in Q4 2010 forced Alexis to write off over $21 million of the mine value.
Key to the turnaround plan is to increase operating flexibility by having a larger number of active stopes. The goal is to have up to five active stopes, rather than the three available previously. Additional equipment and manpower should complete the development activities by the end of Q3 2011.
Alexis expects the operation should return to profitability with 2012 production expected in the range from 15,000 to 20,000 oz leading to revenues from $22 million to $38 million at current gold prices. Furthermore, as part of the turnaround plan, the company's Aurbel mill, which has had year to date gold recoveries of 89.3%, is to be overhauled with the aim of increasing recoveries to 92%.
Please visit www.AlexisMinerals.com for additional information.
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