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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.

    

 
"...Alexandria Minerals has among the best risk/reward profiles of any junior exploration company I have ever covered."

 

...click here for full copy from source

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);
Recent price -- C$0.05

 

HIGHLIGHTS:
* Last year's takeover battle for Osisko Mining (eventually won by a joint venture between Yamana Gold and Agnico Eagle Gold) spectacularly brought eastern Canada's Abitibi Greenstone Belt area back in front of investors. New M&A rumblings in this camp are evident as we begin 2015.

 
* Alexandria Minerals has already demonstrated an ability to monetize some of its vast land holdings and prospects. After its own initial exploration work, it was able to sell an area comprising a mere 2% of its holdings to Agnico Eagle for C$5 million.

 
* Those funds additionally bolstered the company's coffers (on top of a successful financing in late 2013.) Alexandria was thus actively drilling in 2014--in addition to doing additional work--to expand known mineralized zones and upgrade resources, with the objective of developing additional parts of its holdings sufficiently to interest a "major."

 
* In my view, Alexandria's place in one of the most established and safest mining jurisdictions in the world--together with the clear desire of larger companies in the area to acquire new resources--renders Alexandria a less speculative play than many similar companies. Yet at a recent share price of C$0.05, it is selling for MUCH less than companies with similar profiles.

 

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.

 
Excerpt from 'Drilling is Ongoing' section...
 

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.
 

On September 25, the company provided an update of the drilling program. One of the intriguing aspects of its press release, though, had to do with its work in compiling, analyzing and digitizing a wealth of historic drill date in the area from several decades ago. Specifically, Alexandria discussed a (total) 7 km-long area of its land holdings where previous drilling (primarily from the late 1960's) left a lot to be desired according to today's standards and, frankly, was undertaken with different objectives.

 

Keep in mind that, in those days, the U.S. dollar price of gold was pegged at $35 per ounce. Often, companies would drill in areas like the Abitibi not first looking for gold, but for copper and other industrial metals. It was not uncommon for drill core to not even be assayed for its gold content at all. And even some of the copper and other readings were not as accurate as today's methods make possible. So for a company like Alexandria, who receives as part of their acquisition of a property much in the way of historical data, old drill cores, logs and the like (another advantage of dealing in a safe, well-ordered firstworld jurisdiction) a lot of work they would have to spend millions of dollars on themselves has already been done in the past! It but needs to be brought up to date.

 

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."
 

Ideally, the company will, sooner rather than later, be able to monetize these resources as well; alternately, it could make a decision to further drill Sleepy and increase the resource further. I expect that, in early 2015, we'll be hearing from the company as to its expected near-term drilling and other exploration work for the New Year.

 

Also in early 2015, I expect the company to be releasing some additional information as to its recent 12,000 meter drilling program on its Akasaba and Ducros properties (they are located some 15 and 22 kilometers west of the Sleepy project, respectively.) I am also eager to learn ever more about just what all the old data/drill core lead to. Those of you who have followed some individual stories in what, again, in the last few years has been an extremely depressed junior mining space know that there have been some interesting examples of well-funded, well-managed companies being able to acquire or add to properties for pennies on the dollar. Two of my other recommended companies in The National Investor, similarly to Alexandria, now own massive historical work, data and drill core/logs worth A LOT of money; and all because they were able to survive the current slump, when others could not.

 

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.
 

In short, based on all of the preceding, my view is that Alexandria Minerals has among the best risk/reward profiles of any junior exploration company I have ever covered. The fact that it remains somewhat under the radar compared to the higher-profile names in the resurgent eastern Canadian area it is primarily based in is to your potential benefit!...

 

...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

editorial@SectorNewswire.com

 

 

 

  

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