GOLD STUDY: Snow Lake mine study outlines ‘robust economics’

MANITOBA - Alexis Minerals of Toronto and Garson Gold of Vancouver have jointly reported that the preliminary assessment (PA) of the Snow Lake (formerly New Britannia) mine at Snow Lake shows "robust economics" for reopening the former producer.

Using current resources in the Main mine and No.3 zone, estimates are that the Snow Lake mine would produce a total of approximately 423,000 oz of gold over an estimated six-year project life. The total cash cost over the life of the mine would be approximately US$544/oz. The initial capital cost is estimated at C$33.7 million, including working capital.

The Snow Lake mine is projected to generate a 191% internal rate of return (IRR) and approximately C$163.8 million accumulated cash flow on a before tax basis. The payback period is estimated at less than 2 years.

The most recent estimate includes measured and indicated resources of 3.0 tonnes at 5.2 g/t Au (506,100 contained oz) and inferred resources of 2.1 million tonnes at 45.2 g/t Au (357.100 contained oz). The New Britannia mine had historic production of 1.44 million oz of gold. Operated by Kinross Gold and High River Gold from 1992 to 2005, it produced 822,550 oz of gold.

Alexis Minerals owns 95% of the outstanding shares of Garson Gold. See www.GarsonGold.ca for more information.