Alexis aims for gold production at Lac Herbin this year

Alexis Minerals‘ (AMC-V) recent drill results have increased the gold resource at its Lac Herbin project near Val d’Or, Que., driving the company towards a production decision sometime this year.

The company’s shares were up about 3 or 5% to 58 on a volume of 158,000 on Thursday.

Measured and indicated resources are now up to 495,000 tonnes grading 7.83 grams gold per tonne or about 125,000 oz. of gold. Lac Herbin’s inferred resource is now 678,000 tonnes at 7.69 grams gold per tonne — an additional 167,000 oz. of gold.

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.

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, which is less than 2 km from Lac Herbin, bringing the total to 55,000 oz. per year by 2008.

The company bought the neighbouring Aurbel property from Aur Resources (AUR-T) last August. The acquisition included the 1,400-tonne-per-day, fully permitted Aurbel mill. The past-producing Dumont and Ferderber mines, both in operation between 1979 and 1994, are also located on the Aurbel property.

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

Last year the company set a target to start production at Lac Herbin by the second quarter of 2007, though it didn’t indicate any specific production dates with the latest drill results.

“The deposit continues to exceed corporate objectives as we drive towards a production decision in early 2007,” said Alexis president and CEO David Rigg in a statement.

Rigg also said that the company is further exploring the deposit, which is open to depth and along strike.

The latest drill results will be used to determine the economics of the project and the company is currently working on an internal feasibility study.