Production & Exploration
The Company holds a dominant property position (+1,104 km2) in three of Canada's richest mining camps: Val-d‟Or and Rouyn-Noranda, in Abitibi District of Québec, historically the 3rd richest gold producing region in the world; and Snow Lake, Manitoba.
Message: Reports Q4 and 2008 Financial Results
| February 25, 2009 | ||||
| Alexis Minerals Reports Q4 and 2008 Financial Results | ||||
TORONTO, ONTARIO--(Marketwire - Feb. 25, 2009) - ALEXIS MINERALS COPORATION (TSX:AMC) is pleased to announce its 2008 Fourth Quarter and Year End Financial Results. Alexis has delivered on its prime milestone for 2008, becoming one of the world's new gold producers. Alexis brought its first gold mine into full production, and continued to expand its resource base in support of extending the life of mine plan. The Company is successfully continuing with its other key strategic priorities, growth in production and exploring for significant gold and base metal deposits. All figures are reported in Canadian dollars, unless otherwise noted.---------------------------------------------------------------------------
Alexis issued its 2008 Annual Financial Statements and MD&A
February 24 2009.
Copies will be available at www.sedar.com and www.alexisminerals.com
Management will host a web cast presentation with a Q&A session starting at
2 pm (ET), Wednesday, February 25th 2009.
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Call in numbers are:
416-695-9712 or 1-800-565-0813 (Toll Free)
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During the three months ended December 31, 2008 ("Q4 2008"), the following occurred at Alexis Minerals: - The Company reported revenue of CAD $10.1 million. - Lac Herbin, in Val d'Or, Quebec, became the Company's first gold mine. - The Company sold 10,600 ounces of gold at a realized average price of CAD $995/oz. during Q4 2008. The gold sales included: -- 6,392 ounces from the preproduction period, and, -- 4,208 ounces from the commercial production period at a cash cost of CAD $581/oz (see Non GAAP Measures) - The first 6,392 ounces sold during the 4th quarter were produced in the preproduction phase. Consequently, the cost per ounce of these initial ounces sold was high relative to the cost of the ounces produced during the fourth quarter. Management expects the cash cost per ounce of the gold produced in December 2008 which will be sold in March 2009 to be on track with our estimated CAD $536/oz. - The Lac Herbin mine generated through its pre-production and production stages a total of 18,115 oz. of gold in the year. - A year end tabulation of Resources was completed at Lac Herbin. - Resources have been discovered to replace ore mined in 2008 and ensure a life of mine of at least five years. - The Quality of the resources has improved significantly: -- Measured Resources have increased 180% over December 2007 to 124,800 tonnes grading 9.2 gAu/ T for 37,100 ounces of gold. -- The grade of Measured Resource increased to 9.2 g Au/t from 6.8 g Au/t with the grade increase supported by milling results. (see press release: February 24, 2009) - Exploration discoveries in 2008, provide significant potential for further Resource growth in 2009: -- Discoveries in Lac Herbin's HW2 Zone and S3 Zone. -- Gold mineralized shears of the Lac Herbin mine appear to extend for at least a further 500 metres beyond current development. -- An additional gold bearing shear directly north of the Lac Herbin mine. -- A new zone ("FL Zone") is potentially a linking structure between the Herbin and Ferdeber mines. - A new discovery was made on the Central VMS properties in drilling of the Deep West target area. A copper-rich zone of Volcanic Massive Sulphides (VMS) was intersected and was underlain by an extensive copper-rich stringer zone. Mineralization is interpreted to be at the same stratigraphic location approximately 1.5 km. from the nearby past-producing Louvicourt Mine in Val d'Or. Financial Results: For the quarter and year ended December 31, 2008 ----------------------------------------------------------------------------
Three Twelve
months months
Alexis Minerals Corporation ended ended
31-Dec-08 31-Dec-08
Tonnes of ore mined 31,823 80,284
Grade per tonne 6.67g/t 6.90g/t
Total gold ounces mined 6,822 18,115
Average recovery rate 97.5% 97.6%
Gold ounces sold 10,600 15,265
Average realized gold price (per oz CAD) $995 $964
Revenue from mining operations (net of
Royalties and refining charges CAD 000's) $10,079 $10,079
Mine operating expenses (excludes depletion
and amortization - CAD 000's) $8,334 $8,334
Amortization and depletion (CAD 000's) $1,364 $1,364
Gross profit (CAD 000's) $381 $381
Net earnings (loss) (CAD 000's) $185 $(1,995)
Basic and diluted earnings (loss) per share (CAD) $0.00 $(0.02)
Cash flow from operating activates (CAD 000's) $4,558 $3,314
(i)Cost of sales per ounces sold (CAD) $786 $786
(i)see Non GAAP Measures
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The net loss for the twelve months ended December 31, 2008 was $1.99 million compared to a loss of $1.76 million for the twelve months ended December 31, 2007. Operating Performance The Company made a production decision in February, 2008. Lac Herbin achieved Commercial Production in October 2008 and Full Production in December 2008, as scheduled. The mine averaged 408 tonnes per day in the fourth quarter. Gold production in the fourth quarter was 6,822 ounces and production was positively impacted by a 58% higher grade than anticipated from mine estimates during processing at the regional custom mill. Underground development and exploration continued during the fourth quarter of 2008. Development work focused on production areas which will be exploited in 2009. Commercial production commenced in October 2008 with 31,823 tonnes and 6,822 ounces produced. Total ore mined during Q4-2008 and during the pre-production period through 2008 was 80,284 Tonnes grading 6.90 gAu/t. At the end of December 74 employees were working in the Company's mining operations. The Company managed operations effectively, preventing any environmental non-conformities during Q4-2008. Development Lac Herbin During Q4-2008 diamond drilling at Lac Herbin has continued to focus on delineation and infill drilling of areas of the S3, HW2 and S1 zones that required more information prior to development. A total of 2028 m were drilled for delineation purposes. Underground exploration drilling also started in earnest during Q4-2008 and a total of 13,245 m were completed. Total drilling at Lac Herbin during 2008 was 55,056 m. A new resource estimate for the Lac Herbin Mine was completed based on the extensive lateral development in ore and detailed drilling completed during 2008 (see News Release, February 23, 2009). As well, management is encouraged by the discovery of several new areas where there is significant potential to increase Resources on an annual ongoing basis. Lac Pelletier The 2007 scoping study on Lac Pelletier prepared by Golder (see Press Release: April 19, 2007), shows clear economic potential for the deposit, The Lac Pelletier project was affected by dramatically changing market conditions during 2008, principally general cost increases in the mining industry, availability of personnel, and then the negative reversal of the worldwide economic climate. The risks associated with the project during 2008, while also moving Lac Herbin through pre-production and into production, became of paramount concern. A further review of the technical aspects of the project was initiated prior to underground work. A new resource calculation incorporating all Alexis surface drilling and using an alternative longitudinal method was completed in 2008. The study has confirmed the independent resource calculation completed in 2006 for the study will be reported shortly. A prefeasibility study was also started during 2008 and will be completed in April 2009. Exploration Val d'Or 17,496 metres of drilling was completed in Q4-2008, bringing total drilling during the year to 78,487 metres. i) Aurbel With the completion of construction of the Lac Herbin Mine, Alexis' strategy has been to renew exploration focus on the near-by and wholly-owned, past-producing Dumont and Ferdeber mines in Val d'Or. The Dumont Mine produced 248,000 oz of gold from shear-vein zones from surface to a vertical depth of 400 metres between 1980-1994. Dumont is located on the Alexis Aurbel property, approximately 1 km southwest of the Lac Herbin Mine. The Dumont deposit is considered "open to depth" and will be further explored in 2009. The Ferdeber mine, which produced 362,000 oz of gold between 1979-1994, is located 1.5 km to the east of the Lac Herbin mine. During the fourth quarter information was reviewed and compiled, identifying targets to the east, west and at depth of the mine. Further exploration will be focused on extensions to these two deposits and in identifying the potential between these mines and the Lac Herbin mine. The recent inclusion of the FL Zone in Inferred Resources at Lac Herbin bodes well for future discovery in 2009, as well as potential for ramping up production from multiple locations in this key area around the Aurbel Gold Mill. ii) Central VMS In April, 2008 Alexis announced that it had vested into ownership of seventeen properties in the Val d'Or Mining District, Quebec. The seventeen properties cover 109 sq.km of the favourable Val d'Or Formation. The properties cover an area of exploration potential for both base metals and gold contiguous to the south of the wholly owned Alexis Aurbel gold property. Fourth quarter exploration on this large property in the Val d'Or Central VMS Camp resulted in: - The discovery of a zone of Volcanogenic Massive Sulphides (VMS) in the Deep West Target area. The massive sulphides are copper-rich and underlain by a wide copper-rich stringer zone. The VMS mineralization is interpreted to be at the same stratigraphic location as, and 1.5 km from, the nearby Louvicourt Mine in Val d'Or, Quebec. Assay results included: - 0.5 % Cu over 81.6m in Stringer type mineralization from
1927.0 to 2008.6 metres; including,
- 1.0 % Cu over 16.3 m, at 1965.7 to 1982.0, and,
- 3.6 % Cu over 9.4 m in a combined stringer and Massive Sulphide
zone between 2008.6 and 2018.0 m; including,
- 6.8 % Cu over 3.45 m, in Massive to Semi-Massive
Sulphides between 2014.55 and 2018.0m
- Dunraine target - Surface drilling is currently advancing towards a different off-hole target identified during Q4-2008 at a depth of 1200 metres; and located approximately 4 km to the SW of the Deep West target. Results from the 1500-metre hole are expected by the end of February, 2009. This area is recognized as almost a perfect mirror image of the setting around the Louvicourt mine. Rouyn-Noranda Alexis - Xstrata Joint Venture There was no additional drilling on the joint venture properties during Q4-2008. Non GAAP Measures The Company has included certain non-GAAP performance measures, namely cash costs per gold ounce sold, throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are non-GAAP measures. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, we and certain investors use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These non GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following table provides a reconciliation of cash costs per gold ounce sold to the Audited Consolidated Financial Statements for the years ended December 31, 2008 and 2007. Full reports can be found at www.sedar.com and www.alexisminerals.com. ----------------------------------------------------------------------------
Cash cost per ounces sold
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Oct Nov Dec Total
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Revenue
From preproduction ounces
(CAD 000) $4,530 - $1,350 - $5,880
From commercial production
ounces (CAD 000) - - - $4,199 $4,199
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$4,530 - $1,350 $4,199 $10,079
Ounces sold
Pre-production ounces sold 5,000 1,392 6,392
Commercial production ounce
sold 4,208 4,208
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Total ounces sold 5,000 1,392 4,208 10,600
Mine operating expenses (CAD 000) $4,739 $1,149 $2,446 $8,334
Cash cost per ounce sold (CAD
000's) $948 $825 $581 $786
(mining operating expenses divided
by ounces sold)
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Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol "AMC"). The Company owns one producing gold mine in Val d'Or and the right to earn a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda. Alexis undertakes exploration in the mineral rich Val d'Or (100% ownership of 212 sq. km.) and Rouyn-Noranda Mining Camps (50% ownership of 785 sq.km and in joint venture with Xstrata Copper). There are currently two drills active underground at Lac Herbin and two surface drills active in surface exploration in Val d'Or. Further information about Alexis Minerals can be found at its website: www.alexisminerals.com. |
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