Alexis studies Lac Herbin

A preliminary evaluation suggests the Lac Herbin gold deposit, 10 km east of Val d’Or, Que., could support a small underground operation for owner Alexis Minerals (AMC-V).

The study envisages mining at the daily rate of 500 tonnes to produce about 35,000 oz. gold annually at a cash cost of US$224 per oz. over 5.3 years.

Contractor Ross-Finlay 2000 based its study on a diluted inferred resource of 960,000 tonnes grading 6.3 grams gold per tonne, equivalent to 194,450 oz. gold. The estimate takes into account a 30-metre crown pillar, 21% waste rock dilution, and a mining recovery rate of 90%.

The contractor says there is “good potential” to expand Lac Herbin’s resources; at last count, the total inferred figure was just shy of 1.1 million tonnes grading 7.3 grams gold.

Capital costs are pegged at $14.9 million, including underground exploration and bulk-sampling.

Plans call for ore from Lac Herbin to be processed 1 km away at the dormant, 1,400-tonne-per-day Aurbel mill, which Alexis has an option to acquire.

Based on a gold price of US$400 per oz. and a Canadian/U.S.-dollar exchange rate of 1.33, the operation is projected to generate a pretax internal rate of return of 29%.

Alexis intends to develop a ramp from an existing portal built in 1996. The ramp will allow for level development, delineation drilling and bulk sampling for metallurgical work.

Also, 2,000 metres of surface drilling will be carried out.