Alexis buys a bit of Aur

Alexis Minerals(AMC-V) is buying Aur Resources (AUR-T) Aurbel Gold Mill and the remaining 50% interest on the Aurbel property in Val-d’Or, Quebec.

In a press release issued on Apr. 13, Alexis’ president and chief executive David Rigg says with the acquisition Alexis now has a centre for its gold strategy in the Abitibi District.

“It allows Alexis the opportunity to become a mid-tier gold producer by 2007-2008,” Rigg says.

In Toronto on Apr. 13, Alexis’ shares were up roughly 12% or 7 to close at 63 on roughly 840,000 shares traded. Aur was off 1 to close at $15.82 on 348,000 shares traded.

The mill which can process 1,400 tonnes-per-day — is currently on care and maintenance but is fully permitted. Alexis says it will cost between $35 and $40 million to get the mill back in operation.

Alexis is also buying Aur’s exploration office in Val-d’Or for $550,000 payable over a 4-year period.

The Aurbel Property which will now be 100% controlled by Alexis — covers roughly 100 sq. km. of the Bourlamaque batholith and includes the Lac Herbin gold deposit located approximately 1.8 km northwest of the Aurbel Mill.

Alexis took a 50% interest on the property in February of this year.

In all Alexis is paying $3 million in cash to Aur for the property and the mill with Aur retaining a 2.5% net smelter return on ores from the property.

While that is $1 million less than Alexis agreed to pay Aur for the same assets in 2003, the new deal makes Alexis responsible for all bonding requirements associated with site closure plans.

The property also includes the past-producing Ferderber and Dumont gold mines as well as several prospective gold showings, the company says.

Alexis says its exploration program on the property will include underground development and bulk sampling of mineralization and that a feasibility study will be completed this year.

A Phase 1 underground exploration program to evaluate the Lac Herbin project on the property began in September 2005.

The program includes 1,250 metres of ramp excavation, development of the 165 Level which is 165 metres below surface — and the completion of 9,715 metres of delineation drilling from underground drill stations.

The company says delineation drilling is currently advancing across the Hanging Wall and Lac Herbin zones and will be completed in May 2006.

Currently the inferred resource is 1.07 million tonnes grading 7.3 grams gold per tonne.

Alexis now holds a portfolio of properties covering approximately 212 sq. km in the Val-d’Or area.

The company used the same release to announce it has also entered into option agreement with Falconbridge (FAL.LV-T, FAL-N) that will see Alexis take a 50% interest in all of Falconbridge’s properties in the prospective Rouyn-Noranda base metal and gold camp in Quebec. The properties cover approximately 825 sq. km in the Rouyn-Noranda area.