Alexis bets on Abitibi belt

Alexis Minerals (AMC-V) is betting on finding new base metal and gold deposits in Quebec’s prolific Abitibi mining belt.

Last year they partnered with Aur Resources (AUR-T), in a multi-year exploration program in the Val d’Or area and now Alexis has signed a letter of intent to enter into an option agreement with Noranda (NRD-T) to explore for base metals and gold on all of its properties in the Rouyn-Noranda mining belt.

The Abitibi Greenstone Belt stretches from Timmins and Kirkland Lake in the west, through the Rouyn-Noranda area, to the Val d’Or area in the east. Over the next three years, Alexis will be earning a 50% interest in Noranda’s properties in the southern Abitibi, covering an area of 800 sq. km. The properties include eight past-producing base metal and gold mines as well as numerous base metal occurrences and showings.

The agreement, to be completed later this month, calls for Alexis to advance an initial $1 million to provide immediate funding for exploration; it also must issue to Noranda, 1 million shares and 500,000 warrants exercisable at 75 over a 2-year period. Alexis is indemnified from any current or future liability associated with past work or mining on the properties. Noranda will be operator of the joint venture during the earn-in period and Alexis will spend $16.5 million.

Noranda recently completed an airborne MegaTEM II transient electromagnetic survey over the entire region. This geophysical method can detect base metal deposits at depths of 200 metres; to date, 37 targets have been identified, 27 of which have been validated and are drill-ready.

Historical production from the Rouyn-Noranda camp is: 2.4 million tonnes copper, 1.9 million tonnes zinc and 19.5 million oz. gold.

In July 2003, Alexis became partners with Aur Resources on a couple of its Val d’Or properties (the Cadillac Group and Aurbel properties, which together cover 157 sq. km). It also maintains an option to purchase the 1400-metric tonnes-per-day Aurbel mill that is currently on care and maintenance. The Val d’Or camp has had past production and current reserves from base metal deposits totalling 700,000 tonnes copper, 700,000 tonnes zinc, 900,000 ounces gold and 50 million ounces silver.Total gold production from the Val d’Or area is 17.5 million ounces.

Alexis Minerals had 16.6 million shares issued and outstanding as of Mar. 31, 2004. It has entered into an agreement with a Canadian investment dealer to raise up to $20 million, most of which is expected to be in the form of flow-through shares.