Canadian Mining Journal

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GOLD STUDY: Alexis anticipates 80,000 oz/yr from Snow Lake mine

MANITOBA - The results of the feasibility study for the Snow Lake gold mine belonging to Alexis Minerals of To...



MANITOBA – The results of the feasibility study for the Snow Lake gold mine belonging to Alexis Minerals of Toronto is complete, and it is positive. The property is located in the town of the same name, 685 km north of Winnipeg.

Highlights of the report include:

?  Measured and indicated resources of 5.47 million tonnes grading 4.14 g/t Au for 729,000 contained ounces of gold. Additional inferred resources total 2.37 million tonnes at 4.43 g/t Au.

?  Proven and probable reserves (included in the resource total) are 3.48 million tonnes grading 4.04 g/t Au.

?  The initial capital cost will be C$39.70 million over a 12-month period to prepare a mine and mill that will produce 80,000 oz of gold annually over five years. Sustaining capital will be C$35.20 million.

?  Total cash costs per ounce will be US$811.00.

David Rigg, president and CEO of Alexis noted, “The Snow Lake mine is a modern facility built in 1995 with previous total capital expenditures of over $200 million. From 1995 to 2004 the mine had annual gold production of up to 100,000 ounces. A low risk restart of the mine is projected to generate over C$200 million of pre-tax cash flow at today’s gold prices of US$1,350 per ounce.”

The company maintains a website at www.AlexisMinerals.com.