David Rigg, President and CEO of Alexis Minerals Corporation, has a legacy of experience that is rich at depth, much like the mines he’s spent his life discovering.

Rigg started with Alexis Minerals in September 2003, as President and CEO. At that time Alexis was a shell company with two option agreements in the Val d’Or area.

“In the last four years we’ve developed Alexis as a major player in the Southern Abitibi area, an area of world class deposits and superb exploration potential,” said Rigg. “In 2007 we continued our exploration through the region and have reached the stage where we are now in a position where we can vest into ownership on all our properties in the region.”

Rigg’s master’s thesis at Queens University (UK) focused on the Campbell Red Lake and Gold Corp Mine in Red Lake. That led to 25 years in the mining and exploration industry, predominantly in Northern Quebec and Northern Ontario. Rigg managed the program that found the Musselwhite deposit in Northwestern Ontario while also acting as Chief Geologist at the Dona Lake deposit in a program which extended that deposit down plunge and to depth. He worked f0o Agnico Eagle Mines for 10 years as chief geologist at the Dumagami Mine (now called LaRonde), Chief geologist at Goldex Mine and Exploration Manager for Quebec, He contributed to the discovery of the current LaRonde Mine, as part of the discovery team that was awarded Prospector of the Year award by the QPA in 1995.

After that he broadened his range and experience, discovering mines in Africa and Sweden, and returned to Canada five years ago.

Two Mining Camps in Canada

Alexis Minerals’ property now covers over 1,000 square kilometers in two major mining camps in Canada; the mining districts of Val d’Or and Rouyn-Noranda, Quebec. The firm’s current gold resource base in all categories is an estimated 615,000 ounces. Our team believes that through a continuing long term exploration effort that these resources can be expanded to 1.5 million ounces.

Alexis explores for both gold and base metals in the Val d’Or and Rouyn-Noranda areas. In Val d’Or, the company will vest into a 100% interest in the final part of properties covering 212 sq. km. in 2008. The property package represents the largest land position in the region and dominance in the Val d’Or camp east of Val d’Or. The properties host at least eight former gold and base metal mines and historical production in the camp totals 0.7 million tonnes (MT) of copper, 0.7 MT Zinc (Zn), 18.4 million ounces gold (M oz. Au) and 50.0 M oz. silver (Ag). Gold has been recovered largely from vein type gold deposits similar to our current Lac Herbin project.


Aerial View of the Lac Herbin Site

Alexis is also moving toward a 50% ownership of the 825 square kilometers of the Rouyn-Noranda Mining Camp, and all of the property holdings of Falconbridge Limited (formerly Noranda Inc.) and now XstrataCopper. Xstrata undertakes base metal exploration with our participation, while Alexis independently explores for gold across these areas. In addition, Alexis recently acquired the option to acquire a 100% undivided interest in the Lac Pelletier gold property from Thundermin Resources, 4 kilometres from the town of Rouyn-Nornada. Historical production from the camp is 2.4 MT Cu, 1.9 MT Zn, 19.5 M oz. Au and 94.4 M oz. Ag.

Diamond Drilling

“We are currently advancing a short medium-term strategy focused on the Lac Herbin gold project in Val d’Or and the Lac Pelletier gold project in Rouyn,” said Rigg. “This strategy is focused on the development of and production from these two deposits, with the objective of bringing them into production in 2008. We’re looking for about 40,000 ounces a year production from Lac Herbin and 40,000 to 45,000 ounces from Lac Pelletier, resulting in 80,000 to 90,000 ounces of gold per year at full commercial production levels in 2009. Our longer term strategy remains focused on new mine discovery through long term aggressive exploration for gold, and base metals across our extensive land packages. This effort continues.”



At the Lac Herbin project, where exploration has successfully proven a substantial resource, Alexis was able to buy the Aurbel Gold Mill, a nearby historic mill capable of processing 1,400 tons per day of ore, fully permitted and currently on care and maintenance. The mill has a replacement value of $36 million.

“We’ve advanced Lac Herbin since 2003 with surface exploration that built a resource of over a quarter million ounces. We decided to proceed with underground exploration and development in a stepwise progression towards production,” said Rigg.

Alexis expanded resources in 2006 to over 300,000 ounces on the Lac Herbin project. A NI 43-101 resource calculation and feasibility study in 2007 (with a four-year production model) shows a rate of return of 39 percent. Using the study and higher current gold prices, the project is even more appealing with strong cash flows and higher rates of return.

“Lac Herbin is a substantial project by itself. The objective at Lac Pelletier was to find a satellite deposit to add to production from Lac Herbin and meet the treatment potential through the Aurbel Mill.. Adding in Lac Pelletier also gives us better leverage on gold prices,” said Rigg. “The exploration possibilities are here. Lac Herbin has been very successful.”


Lac Herbin

Drilling Poses Challenges

Conventional and historic mining wisdom in Val d’Or is to “drill for structure and mine for grade”. The vein–type gold deposits typically are difficult to evaluate due to the patchy nature of pyrite, with which gold is associated within the veins. Historical mining records reveal that during exploration and definition drilling of veins in stoped areas, mined areas that have contributed to actual mine production, in past-producing mines, they experience a 40 percent hit rate. Two out of five drill holes will intersect ore grade through the future stope, whereas three out of five holes will intersect only the vein but will not intersect ore grade. This provides a considerable challenge for these kinds of deposits with true mine grade only being established after mining development of the stopes.

Historically, firms have found that they have to keep development of these deposits about two years ahead of production. By the time a high quality reserve has been proven, it is time to mine it. Firms are rarely able to develop 10 or 15 years of proven reserves.

Said Rigg, “Economically it’s suicide to try to develop a large proven reserve due to the cost of significant mine development required to do so. Our target should be to keep exploration two years ahead of development. In the right mine environment, and we seem to have this at Lac Herbin, this approach will lead to mining of the deposit for a long time. On average we know we need to sink the ramp a vertical depth of 40 metres to meet our production targets.”



“Lac Herbin mine is controlled by two regional structures we can recognize right now. It’s a wedge-like area between these two structures that is perfect for these kinds of vein deposits,” he added. “The controlling structures extend for over eight kilometers on surface. They can be expected to go deep and mineralization will follow them to depth. Mineralization at the project has currently been extended from surface to Files a Final Prospectus at least 500 meters depth. The current ramp goes down to 250 meters, approximately half of the drilled depth of the deposit.”

Alexis has found two new high grade ore bodies at depth. With a stride length of over 250 meters of mineralization, these are typical of some of the larger deposits in the Val d’Or area. The deposit seems to stack to the southwest as it moves towards depth. Rigg estimates a projected potential of at least a million ounce deposit, and 10 to 15 years of production coming out of that area.

Production Planned for 2008

At Lac Pelletier, Alexis has completed a scoping study and results calculation. Purchased for $75,000 two years ago, it had a ramp and two levels already developed. Alexis has increased resources by 247 percent to more than 300,000 ounces. “We’ve just received permitting to go underground and site construction is ongoing. We will de-water in Q1-2008 and proceed with a 40,000 ton bulk sample, advancing towards production through 2008,” Rigg said.

Engineering studies at the Aurbel Mill indicate that rehabilitation could be completed in about four to five months. Alexis is currently processing a 50,000 ton bolt sample using a custom mill, part of the significant infrastructure in this historic mining area.. Before opening their own Aurbel Gold Mill, management intends to be sure that they have resources and production to support the capital costs involved.

Comparing the two deposits, Herbin will produce about 640 tons a day on a five-day basis while Lac Pelletier can produce probably about 750 tons a day, using different mechanized mining methods, which is enough to open up the mill.

Aurbel Gold Mill

“All the scoping engineering studies we’ve done have used $25 a ton, which is our estimate of our custom milling cost, as opposed to incurring $11 million in capital costs to the mill with a lower operating cost of $18.60 a ton. So there’s the balance. It’s just a question of ore tonnage,” he said.

To move to full-scale production at Lac Pelletier would require capital expenditures of about $4.5 million. The estimated capital cost at Lac Herbin in the recent feasibility study is $6.5 million. A large part of that, $5.6 million of it, is for mobile mining equipment, which was scheduled for December 2007 delivery.

Along with the revenue generated from milling of the current bulk sample, Alexis has additional cash which is generated from Provincial incentive programs, wherein approximately 42% of exploration expenditures in any year are refunded to the company in the subsequent year. Refunds of at least $9M are expected during 2008, explained Rigg. Subsequent to production, they have the cash flow to support the company ongoing.

Modern Techniques, a Solid Team

“We have in Alexis a long term focus on exploration using modern technologies. We’ve got detailed databases that have been developed across all our properties. These are being used using 3-D modeling and all modern geophysical systems. We can see up to three times deeper than previously with some types of modern geophysics which also helps identify new targets. Alexis ultimately relies on a strong emphasis of diamond drilling developed targets. New discoveries are ultimately found “through the drill bit”,” he said.

Alexis’ dedicated exploration team includes six geologists and another four geologists working with XstrataCopper in Rouyn-Noranda. . Jean Girard, P. Eng., is the Alexis Exploration Manager and has been involved in Quebec exploration for more than 30 years. The team is focused in developing new targets and finding deposits through the drill bit. In 2003, their objective was drilling 60,000 meters a year each year for 3 years, a substantial amount for a junior company. The exploration group drilled 61,000 meters, 74,000 meters and 62,000 meters, capping the effort with 64,000 meters of drilling in the first three quarters of 2007. “So our belief is that these areas will yield additional high-grade and substantial deposits. You have to persevere in exploration to find these kinds of deposits,” Rigg said.

The Alexis management team includes Deborah Battiston, Chief Financial Officer with 20 years of accounting and financial management experience in eight countries and Patrick Gleeson, Corporate Secretary, whose experience focuses on securities law, particularly mergers and acquisitions. Keith Boyle, P.Eng., is Chief Operating Officer, a professional engineer with over 22 years experience in the mining industry. He has worked with Sherritt International, Dynatec Corporation, Inco Ltd, Placer Dome, Aur Resources and Cominco in the Northwest Territories, Quebec, Ontario, Papua New Guinea, Australia and Madagascar. Boyle has built and efficiently operated narrow vein and bulk underground mines as well as open pit mines. He received a second J.T. Ryan trophy for the Stobie Mine being the safest mine in Ontario.

Analysts recognize the wisdom of Alexis’ strategy for gold production and are optimistic about growth in the target price. Rigg also suggests there is longer term potential for the investor. Noranda, Teck, Cambior, Agnico Eagle, Aur Resources and indeed the precursors to Barrick Gold, all developed their original company-making deposits in this very same area of Quebec and Ontario. Their discoveries allowed their companies to grow into the firms that they are now, major mining names in Canada.

“Several of them have recently been taken over but major mining houses have been developed from world class discovery in this very area,” said Rigg. “It is my belief we can do it again.”

Alexis Minerals Corporation
65 Queen Street West, Suite 815, P.O. Box 75
Toronto, Ontario
Canada M5H 2M5 
Tel: 416-861-5888, Fax: 416-861-8165