Sector NewswireTM Sector: Mining - Metals and Minerals :
News Release - February 27, 2015 3:34 PM ET
Research firm reiterates coverage on Gold exploration junior miner Alexandria Minerals Corporation
Alexandria proceeds with acquisition of Murgor, advances deposits toward monetization, and aims for new discoveries.
NEW YORK, NY, February 27, 2015 /Sector Newswire/ - Alexandria Minerals Corporation (TSX-V: AZX) (US Listing: ALXDF) (Frankfurt: A9D) is identified in a newly issued advisory by financial services industry veteran Chris Temple, Editor and Publisher of The National Investor. Mr. Temple initiated coverage on AZX.V as a "BUY" recently among his short-list of recommended speculative equities for investors seeking exposure to precious metals, and has this month reiterated his conviction in a detailed report. This recommendation comes on the heals of news from Alexandria whereby it has entered into agreement to acquire all of the outstanding common shares of Murgor. The acquisition will see AZX.V pay near $3.50/oz for Murgor's gold assets (those are gold equivalent ounces, converting the metal value of the 2008 resource) -- which is dramatically lower than the already impressively-low, ~$15.00/oz, cost of gold discovery AZX.V has an established track record of in Val d'Or. The report details how AZX.V is continuing to grow resources, and advance one of the largest properties along the Cadillac Trend in the prolific Val d'Or, Quebec, gold mining district. AZX.V currently has a total of nearly 1.6 million ounces in gold resources (in all categories) on three deposits at its Cadillac Break Project. The Murgor acquisition, expected to close by mid-March, will add considerable ounces to the balance sheet.
Mr. Temple released his advisory to his paid subscriber base; full copy may be viewed at http://sectornewswire.com/AnalystReportNIFeb-2015.pdf online.
Excerpts from Chris Temple's advisory on Alexandria Minerals Corporation:
Recommendation: Alexandria Minerals (TSXV-AZX;
OTC-ALXDF);
Alexandria Minerals' Val d'Or Land Claims Map
Cadillac Break claims map (above): Alexandria Minerals' extensive land holdings are situated on what is known as the "Cadillac Break" area, a regional fault system that is host to various kinds of mineralization and has already supported several area mines.
In a big program starting mid-2014, Alexandria drilled an additional 10,000 meters' worth of exploratory and development holes on its property, on top of over 4,000 meters from earlier in the year. There are three main areas along the company's Cadillac Break holdings: they are dubbed the Orenada, Akasaba and Sleepy. In total, the three areas (as indicated in the below chart) have to date been calculated to contain a total of nearly 1.6 million ounces in gold resources. Copper, silver and molybdenum are also present.
Announcing the
start of the Summer drilling program back in
July, Dr. Owens commented that, "This new
round of drilling will be testing some of
the large geological and alteration systems
we have identified on our Cadillac Break
Property Group, which includes Akasaba-like
gold-copper targets over the western half of
the property package." It was from the
Akasaba-Valdora area of its holdings that
most promising drilling results for the
company have been obtained to date. The
company believes that this mineralization,
of the kind that has already produced a
buyer in the form of Agnico's purchase in
January, is actually characteristic of much
of the rest of the western half of
Alexandria's holdings.
Speaking of
updates, Alexandria announced in late
October that it had released a new Resource
Estimate for the Sleepy Project. It
calculates Inferred Resources totaling
307,350 ounces of gold (uncapped), at a 3
gram/tonne cutoff. This is double the number
of gold ounces the company reported at
Sleepy from the first Resource Estimate
released in 2009. Said Dr. Owens in
announcing the new Estimate, "This is a
great step forward in the Sleepy story, as
the size of the resource has doubled and the
grade has increased by 60%. The project is
now approximately the size and grade of
average historical mines in Val d’Or, and we
believe that it is an opportune time for
Sleepy to capitalize on the Val d’Or area
infrastructure."
Excerpt from 'Conclusion' section...
What Yours truly
especially has to do is compare companies in
the same industry...look at the
risks...jurisdictions...management...and
MUCH more in order to come up with the
opportunities for my Members I think have
the best risk/reward ratios. Even among its
exploration neighbors in Ontario and Quebec,
Alexandria compares favorably over many
metrics. As you see in the above chart,
Alexandria's valuation is FAR less (based on
a recent valuation in comparison to its
measured and indicated goldequivalent
resources) than the average of its regional
peers in the Abitibi area. And its finding
costs as it has added to its resources over
time--at a mere $14/ounce--is also lower
than ANY of its neighbors.
...click here for full copy from source
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.
SOURCE: Sector Newswire editorial
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