A scoping study of Alexis Minerals (AMC-V) Lac Pelletier gold project, located 4 km southwest of Rouyn-Noranda, Que., concludes that a mine can be brought into production within a year and potentially be operated profitably.
Kirk Rogers of engineering firm Golder Associates prepared the study, which made use of a recent resource estimate by Carl Pelletier of consultants Innovexplom.
Pelletier tallied measured and indicated resources at Lac Pelletier of 1.2 million tonnes grading 5.42 grams gold per tonne, for 217,000 contained oz. gold, plus additional inferred resources of 491,000 tonnes at 4.94 grams gold, or 78,000 contained oz. gold.
The scoping study sketches out a preliminary plan to produce at least 40,000 oz. gold per year from Lac Pelletier at a cash cost of US$423 per oz., with first production within one year.
Mining would be carried out for at least three years, with work being carried out as a form of satellite operation to Alexis larger Lac Herbin gold project in the Val d’Or camp.
It is assumed that Lac Pelletier ore would be trucked 130 km east to Alexiss recently purchased, 1,400-tonne-per day Aurbel gold mill in Val dOr, which may be converted a total cyanidation plant.
The study produced the following numbers for Lac Pelletier: a daily mining rate of 700 tonnes; capital costs of $4 million; sustaining capital of $4.5 million over a minimum 3-year mine life; operating costs estimated to be C$77.55 per tonne; a 6-month period to bring the deposit into full production.
The study assumes a US$550 per oz. gold price, a 90% recovery of gold from ore, and a C$1.10-to-US$1 ratio.
Based on these early results, Golder is recommending to Alexis that steps be taken to move the project towards a commercial production decision.
“The Scoping Study clearly makes the case for the potential to develop a robust underground mining operation at a US$550 per ounce gold price with considerable upside potential,” Alexis president and CEO David Rigg said in a release.
Rigg added that there is good potential for further resource expansion, improved mining costs and approach, and better milling recoveries.
Once the required permits are in hand, Alexis will dewater Lac Pelletiers existing underground workings developed in 1990-91 and carry out underground exploration to upgrade and expand the resource.
The company will also test mine to confirm grade and generate material for further metallurgical work.
In May, Alexis will also begin drilling the deposit from surface, both on land for near-surface mineralized zones and from a barge for down-plunge extensions of mineralization.
Alexis has a large portfolio of gold and base metals properties both wholly owned and under option in the Val-d’Or and Rouyn-Noranda camps.
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