Alexis Minerals becomes world’s newest gold producer

Alexis Minerals‘ (AMC-T) mine at Lac Herbin near Val d’or in Quebec is the world’s newest gold producer, churning out its first 5,047 oz. gold.

Milling began on June 16 at the Canadian junior’s 100%-owned Lac Herbin deposit. So far, 26,798 (dry) tonnes have been processed more than the company’s originally proposed 20,000-tonne program.

Recovery rates of 97.9% were reached throughout the milling process with five of the six stockpiles returning from 10% to 40% higher grades than the milled grades initially forecast for the project.

On July 11, Alexis earned revenues from the sale of 1,625 oz. gold at C$970 per oz gold.

The mine will move into commercial production in October with full production slated for the fourth quarter. Commercial production has been delayed due to ramp development and flooding of the main ramp in March.

Production of 17,000 oz. gold this year is the target, with an annual run-rate of 36,000 oz. gold planned for 2009.

Life-of-mine cash operating costs have been revised to $489 per oz. gold from $470 per oz gold in the feasibility with earnings before interest, taxes, depreciation and amortization, or EBITDA, of $1 million per month.

Alexis holds an outstanding portfolio of properties stretching across 1,005 sq. km in Quebec’s Val d’Or and Rouyn-Noranda mining camps.

About $5.5 million has been earmarked for exploration expenditures this year. Alexis currently has five underground drills active at Lac Herbin, two surface drills operating in Val d’Or and one surface drill in Rouyn-Noranda.

Alexis closed up 3 a share, or 5.36%, at 59 on a trading volume of 209,100. Its shares have traded between 54 and $1.17 over the last year.