Alexandria gives up Joanna gold project to Aurizon

As Alexandria Minerals (AZX-V, ALXDF-o) gears up for its next 10,000-metre drilling expedition, the company is cashing in on its Joannes Twp. claims by optioning the property to Aurizon Mines (ARZ-T, AZK-X).

The agreement is rather strategic for Aurizon as the deposit lies next to its Joanna gold project, which has an indicated resource totalling 630,000 oz. gold with an average grade of 1.7 grams gold per tonne, as well as an inferred resource of 1.4 million oz. at a grade of 1.6 grams gold.

But Alexandria will get more than cash out of the deal. To earn 100%, Aurizon must pay Alexandria $200,000 in cash within 30 days of signing the agreement plus issue another $200,000 worth of Aurizon shares. Aurizon must spend $650,000 in exploration on the property over two years and issue Alexandria another $1.6 million in shares within two years of the signed agreement.

In a statement, Alexandria president Eric Owens said he was happy about the agreement for a few reasons.

“It gives Alexandria an indirect interest in this property going forward,” Owens said. “As well, it gives us an interest in Aurizon, a strong gold mining company which, in addition to advancing the Joanna project, expects to produce 160,000 oz. gold at its Casa Berardi mine this year.”

Alexandria, which has property interests covering 50 km of the 300- km Cadillac Break, plans to soon begin a 10,000-metre drill program to be completed over 12-15 months. The company has $3 million in cash and is expecting another $2 million in mining rebates from the Quebec government in the near future.

Alexandria is still waiting on drill results from summer drilling, but has recently reported finding some surprise copper mineralization at its Sleepy project in Val d’Or.

An intersection of 35.7 metres grading 0.34% copper and 4.96 grams silver per tonne (23.9 metres true width) was found in an area that was being tested for gold. The intersection included a 2.5-metre intersection grading 1.12% copper, 10.07 grams silver and 0.06% zinc (1.6 metres true width).

The company tested the area based on a moderate-intensity induced- polarization anomaly near the gabbro sill, and was looking for gold mineralization similar to that at the historic Sleepy deposit, estimated to host 152,000 tonnes grading 5.2 grams gold per tonne. The sleepy zone is a disseminated pyrite-gold deposit hosted in gabro and diorite of the Vicour Sill.