Alexandria Minerals monetizing Gold assets as it adds new ounces along the Cadillac Trend


Follow this company

Companies Mentioned

TSX.V:AZX / PK:ALXDF
04/09/2014 [ACCESSWIRE]

TORONTO, ON / ACCESSWIRE / April 9, 2014 / Alexandria Minerals Corporation (TSX VENTURE:AZX) (Pick Sheets:ALXDF) (Frankfurt:A9D) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors. AZX.V is focused on exploring, developing, and monetizing its Cadillac Break group of precious metal properties which contiguously stretch 35 km along the prolific Cadillac Trend in Quebec. The Cadillac Trend lies within the Southern Abitibi Greenstone Belt which has seen over 170 million ounces of Gold production history. AZX.V currently has global resources totaling 1,426,932 ounces gold (695,524 ounces Measured & Indicated and 731,408 ounces Inferred) on three 100% owned projects proximal to infrastructure-rich Val d'Or where 4 gold mills with excess capacity are within 15 km. The Company has ~$5 million in the bank plus a royalty on horizon from a recent asset sale, it is uniquely positioned along the Cadillac Trend with quality gold deposits, and has the intention to discover significantly more gold.
 
The full Mining Journal article may be found at http://miningmarketwatch.net/azx.htm online.
 
AZX.V, with 178,108,297 shares outstanding (203,746,234 fully diluted) appears to present an exceptional risk-reward scenario; trading with a market cap near $10M. AZX.V is positioned for potential extraordinary share price appreciation over the coming months and years as the reality of the large inherent value that the Company possesses is understood by the market and as it executes on its plan, continues to find new gold, and monetize existing gold assets.
 

AZX.V's plan is to advance its existing gold deposits to marketable status for monetization at local feed-hungry mills, and do what it does best -- discover more new gold; the Company's confidence level is high as it steps out and test potential multi-million ounce gold targets in 2014. AZX.V's rapid exploration success since coming public in 2006 and assembling its strategic Cadillac Break land package is attributable in large part to the skilled technical leadership of Eric Owens, PGeo., PhD, Alexandria Minerals' President, CEO, and Co-Founder. Since 2006, AZX.V has discovered >1.77 million ounces of gold (plus 61,255,885 lbs copper) efficiently at an all-up cost of discovery of ~$14 per ounce of gold.
 
AZX.V is responsible for discovering what appears will be Canada's next open pit Gold mine: 
In 2012 AZX.V discovered the West Zone Au-Cu deposit which now appears will soon be Canada's next open pit Gold mine; AZX.V sold the West Zone deposit (332,074 oz Gold and 61,255,885 lbs Copper Inferred) earlier this 2014 to Agnico Eagle (TSX: AEM) for $5 million and 2% NSR. AEM requires feed for its 8,600 TPD Goldex mill, which it was only operating at 4,000 TPD -- the West Zone deposit met the requirements to take Goldex up to 100% capacity. AEM is now actively prepping the West Zone to become Quebec's next Gold mine.
 
Alexandria Minerals does what few junior miners ever manage to do; explore for gold and make money at the same time (see related news release dated April 1, 2014 entitled "Alexandria Minerals Reports Net Income of $2,048,414 in 3rd Quarter"). The sale of West Zone to AEM demonstrates two important future drivers for the share price of AZX.V to the market; 1) Alexandria Minerals is capable of monetizing the gold it finds, and 2) AZX.V's gold deposits, all of which are proximal to mills hungry for feed, have an advantage over gold deposits that most other juniors are exploring/discovering (absent local mill/infrastructure), comparatively AZX.V gold deposits are apt to superior demand/returns as they do not necessarily require large capex of building a mill. The plan to advance its current gold deposits to monetization-ready status will facilitate AZX.V achieving its exploration goals non dilutively -- dramatically adding value to shares going forward. Again, important to note is the efficiency of gold discovery AZX.V is capable of on its Cadillac Trend ground; the actual recently sold West Zone gold deposit itself was proven up for discovery with only ~10 drill holes with costs totaling $0.69 per ounce Gold, the broader 14 claims sold had ~$2.7M in exploration cost. Some now refer to AZX.V as the 'unofficial exploration arm of Agnico Eagle' in the region, as AEM is highly supportive of AZX.V's efforts and holds a 9% equity stake in AZX.V, additionally AEM's success in the region is reliant upon new gold for its mills -- which AZX.V is highly skilled at finding.
 
Alexandria highly prospective for major gold discovery as it tackles the whole western half of its 35 km property package for multi-million ounce deposits:
The Cadillac Trend lies within the Southern Abitibi Greenstone Belt which has seen over 170 million ounces of Gold production history. AZX.V has affirmed its understanding of the geology of its Cadillac Trend claims, proven it can find Gold efficiently, proven it can monetize the gold it finds, and now believes it is poised to discover multi-million ounces of new gold. For the first several years AZX.V concentrated its exploration efforts on taking its 3 main known gold deposits (starting with Orenada, Sleepy, and then Akasaba) to resource. It focused efforts around the historic past producing mine of Akasaba and subsequently performed small step outs (such as the recently sold West Zone adjacent Akasaba). AZX.V's success and understanding surrounding what it has done stepping out from Akasaba leads the exploration team to believe AZX.V will encounter success by stepping away and finding more gold in 2014. It has just started the process of taking the whole western half of its 35 km property package and trying to find significant gold; the drill program that it just finished up in January in the north part of Akasaba and in the Valdora property to the north, was its first significant drill program in that effort. AZX.V released initial results from the winter program of intercepts in the range of 2.82 g/T to 19.2 g/T. Numerous sub-parallel, east-west trending, gold bearing zones with similar characteristics as the Akasaba have been identified across the property and the underlying geology is similar to that found under the prolific Bousquet-Doyon-LaRonde District where ~26 million ounces gold have been mined across an ~8km stretch -- AZX.V believes it its claim package has similar if not greater potential. Geophysical surveys conducted this Q1 2014 will assist in risk mitigation and have identified significant targets.
 
Current assets of significance being advanced toward near-term monetization:
1) Akasaba Gold Project -- NI 43-101 resources (Q1 2013): 248,790 oz. gold Indicated (made up of Indicated open pits = 132,475 oz gold (3,009,214 Tonnes @ 1.37 g/T) + Indicated underground = 116,158 oz gold (609,274 Tonnes @ 5.93 g/T)) and 278,600 oz. gold Inferred; (made up of Inferred open pits = 13,653 oz gold (219,882 Tonnes @ 1.93 g/T) + Inferred underground = 264,886 oz gold (1,475,622 Tonnes @ 5.58 g/T)). The current resource has been delineated around a past-producing mine, active in early 60’s (it historically produced 40,000 oz. of Gold at 5.14 g/t). AZX.V has recently conducted 12,277 m of drilling (completed in 2013 and 2014) on Akasaba. Akasaba possesses substantial near-surface and in depth growth potential. Akasaba’s main high grade zone is open at depth, deposit is open along strike to the east. Greenstone belts typically run deep, there are mines at 8,000 – 10,000+ feet, AZX.V has only explored to ~600m. Successful mines in the Abitibi area typically have a few years of production lined up ahead of time and just keep going for decades, adding as they go.
 
2) Sleepy Gold Project -- NI 43-101 resources (Q3 2009): 150,400 oz gold Inferred underground (1,557,000t @ 3.0 g/t Au). The sleepy deposit is a fairly high-grade disseminated gold pyrite ore body. AZX.V has drill holes down below the existing resource that intersected much higher grades and wider than the resource intercepts; e.g. 6.8 g/T over 16 m (true width), 11.29 g/T over 3 m. AZX.V has blue-sky potential to increase mineralization at Sleepy along strike and at depth. There is a 4,000 m drill program underway and AZX.V is aiming to provide an updated resource later in 2014 -- Mining MarketWatch Journal guesstimates 400K - 500K oz gold at a fairly high grade will be revealed in the revised resource and this will provide a catalyst for upside share price movement as Sleepy will be marketable for monetization at that point. There should be high interest in Sleepy as we expect it to be viewed as a fairly good size and quality deposit, located in amongst several Val d'Or mills looking for feed.
 
3) Oreanda Gold Project -- NI 43-101 resources (Q4 2009): 446,891 oz gold Measured & Indicated (~10.2M Tonnes @ 1.35 g/T Au), and 302,469 oz gold Inferred (~7.4M Tonnes @ 1.27 g/T). Oreanda is a surface bulk-tonnage deposit with 24-36 month production potential with outsourced milling. The deposit also has underground potential. It lies within 15 km of 4 mills operating below capacity. The deposit is open along strike and at depth. In the early 1990's Aur Resources completed a bulk sample that produced ~4,000 ounces of gold (72,195 tonnes grading 1.72 g/t Au). In short, Oreanda is ripe for monetization near-term.
 

The full Mining Journal article may be found at http://miningmarketwatch.net/azx.htm online.

 
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).
 
Contact information:
James O'Rourke, Editor

Mining MarketWatch Journal
editor@miningmarketwatch.net

SOURCE: Alexandria Minerals Corporation 

COMMENTS

Leave a comment...
 * 

Your Name
 *