Alexis shares spike 48% with latest drill results

Alexis Minerals‘ (AMC-V) latest drill results from its Lac Herbin gold project near Val D’Or, Que. drove shares up 48% today to 86 on a volume of 7.7 million.

New intersections outside of the previously reported resource areas include 35.42 grams gold per tonne over 9.2 metres at a 300-metre depth (80 metres below any past drilling in the area). That intersection included 41.93 grams gold per tonne over 7.7 metres and 231 grams gold over 1.2 metres.

These are the highest grades Alexis has seen in the area. The new zone parallels one of the principal ore bodies in the current resource.

Alexis president and CEO David Rigg said the new zone is developing into an important gold structure for the project.

“The new intersections fall outside of current resources, offer very good upside potential for increasing grade and tonnage, and will provide additional input for ongoing feasibility and mine planning,” said Rigg in a statement.

Earlier this month, measured and indicated resources were increased to 495,000 tonnes grading 7.83 grams gold per tonne or about 125,000 oz. of gold. Lac Herbin’s inferred resource was upgraded to 678,000 tonnes at 7.69 grams gold per tonne — an additional 167,000 oz. of gold.

By the end of March, 445 metres of ramping, 1,180 metres of raising and drifting and 8,000 metres of diamond drilling will be completed for this phase of exploration.

Lac Herbin is 1.8 km from the 1,400-tonne-per-day Aurbel gold mill, which it recently purchased, and is next to the past producing Ferderber and Dumont mines.

Scoping study results released in March 2005 found that Lac Herbin had the potential to produce about 35,000 oz. per year at a cash cost of US$224 per oz. but the company plans to upgrade these results in March with its feasibility study.

Alexis also has plans to use its Lac Pelletier project in Rouyn-Noranda as a satellite operation to produce an extra 20,000 oz. of gold for the Aurbel mill, by 2008.

Alexis poured four gold dor bars in November when it completed a 15,000-tonne bulk sample from four separate stockpiles at Lac Herbin.