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Alexis Minerals Announces Substantial Gold Resource Increase at Snow Lake Mine in Manitoba

Published on October 29, 2010 at 7:45 AM

ALEXIS MINERALS CORPORATION (TSX:AMC)(OTCQX:AXSMF) has announced a substantial increase in gold Resources at the Company's Snow Lake Mine, located in Snow Lake, Manitoba.

Increases in tonnage, contained ounces of gold and overall quality of the Resource occur in the two principal zones - the Main Mine and #3 Zone. Infill drilling programs in 2010 have focused on the conversion of Inferred Resources and have resulted in:

  • A 63% increase in contained gold (54,270 ounces) in Measured and Indicated Resources in #3 Zone resulting from a 73% increase in tonnage (287,150 tonnes); and,
  • A 30% increase in contained gold (138,839 ounces) in Measured and Indicated Resources in the Main Mine resulting from a 70% increase in tonnage (1,980,000 tonnes).
  • Measured and Indicated Resources of 5,471,000 tonnes grading 4.14 g/t Au for 728,000 oz Au; and,
  • Inferred Resource of 2,367,000 tonnes grading 4.43 g/t Au for an additional 336,700 oz Au.

The Snow Lake property continues to show strong upside potential for increasing resources through exploration. Resources are considered open down-dip (plunge) at the Main Mine and also at #3 Zone. Mineralization at the Boundary, Bounter and Kim zones, all located in proximity to the Mine, will require additional drilling to evaluate areas of known mineralization. Two surface drills are currently engaged in surface exploration and a third drill will be mobilized shortly.

Resources were previously estimated and reported in a Preliminary Assessment of the Deposit (see news release: March 8, 2010). Recent infill drilling during 2010 has focused on upgrading the quality of information relating to the previously estimated inferred mineral resources in these areas. The new Mineral Resource estimate incorporates the drill results and uses a revised lower cut-off grade of 1.95 g Au/t to identify the limits of mineralization. The lowering of the cut off grade (Preliminary Assessment used 3.11 g Au/t) was in response to current metal price trends.

The Resource Estimate was made in conjunction with a Feasibility Study focused on the potential for reopening of the Snow Lake Mine. 

Lac Herbin Update

The Company advises an amended guidance for the 2010 gold production from its Lac Herbin gold mine, Val-d'Or, Quebec, now forecast to be approximately 24,000 ounces of gold. As previously reported, the Company has recently encountered grade variance as new stoping areas have been mined. Cost reduction measures are being implemented to coincide with the reduced production levels. Alexis continues to work on the challenges at the mine to produce profitable ounces of gold for the coming years.

Qualified Persons

Mineral Resource estimates for the Snow Lake Mine Property were prepared by Jamie Lavigne, P.Geo., Vice-President, Exploration with Alexis Minerals, and Qualified Person under NI 43-101 for the Resource estimate and who has reviewed the content of this press release. The technical and scientific content of this press release has been reviewed by Keith Boyle, P.Eng., Chief Operating Officer, Alexis Minerals and Qualified Person as defined under NI 43-101 guidelines.

Source: ALEXIS MINERALS CORPORATION

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