Alexis prepares Lac Pelletier for bulk sample

Alexis Minerals (AMC-T, AXSMF-O) is steering its Lac Pelletier gold project near Rouyn-Noranda, Que., towards a production decision, but first the company is getting the mine and the property ready for a 40,000-tonne bulk sample.

The company recently received a permit for both underground exploration and the bulk sample.

Alexis will soon start clearing the site so it can construct the required buildings and settling ponds to allow dewatering of a ramp and underground workings that were excavated in 1992. Hydro Quebec has nearly finished repairing the electricity supply line.

The dewatering will start in early 2008 and will be followed by the development of a ventilation raise to surface, and then by underground exploration including lateral drifting, ramp extension and drilling.

The results from the bulk sample will determine whether Alexis will continue with production.

Alexis has an option to earn 100% of the project from Thundermin Resources (THR-T, TUDMF-O) but it must make its decision by September 2008. Alexis can delay production for one year, but would have to pay Thudermin $75,000. Otherwise, once production starts, the project is subject to a 1% net smelter return (NSR), payable to Xstrata (XSRAF-O, XTA-L), and a 2.5% NSR to Thundermin.

Using a cutoff grade of 5 grams gold per tonne, Lac Pelletier has a measured and indicated resource of 61,000 tonnes grading 6.19 grams gold per tonne and an indicated resource of 558,000 tonnes grading 8.43 grams gold for a combined total of 163,000 oz. gold. Inferred resources are estimated at 175,000 tonnes grading 7.45 grams gold or 42,000 oz.