Sector NewswireTM Sector: Mining - Metals and Minerals :
News Release - April 17, 2015 4:02 PM ET
Alexandria Minerals' Net Smelter Gold Royalty -- Update
NEW YORK, NY, April 17, 2015 /Sector Newswire/ - Alexandria Minerals Corporation (TSX-V: AZX) (US Listing: ALXDF) (Frankfurt: A9D) has a significant 2% NSR set to kick-in from the 'West Zone' gold asset it sold to Agnico Eagle. The West Zone deposit is being fast-tracked to mine production; AEM has applied for environmental permits and it is anticipated a ~3,000 TPD operation (feeding its nearby Goldex mill) will occur from the West Zone beginning in 2016 (or possibly sooner) at which time AZX.V is entitled to the 2% NSR on material after 210K oz of gold has been mined. We estimate that at ~3 years in (as the NSR kicks in) Agnico Eagle will buyout 1% of the NSR for ~$7M and the remaining 1% NSR will provide AZX.V with ~$500,000/year. The West Zone deposit was recently the subject, in part, of a corporate presentation at the Metals & Natural Resource Conference at the Westin New York Grand Central this March 30, 2015. In the presentation management of Agnico Eagle affirmed that the West Zone Deposit is part of its plan to feed and extend the life of Goldex.
This affirmation sheds new light on the upside share price revaluation potential of Alexandria based on market cap value relative to intrinsic value and the fact the royalty appears increasingly a reality on the near-term horizon. Put another way, the discounted future value of the potential West Zone royalty alone totals close to the current market cap of AZX.V, ignoring the nearly 2.5 million ounces of gold and gold equivalent on projects approaching marketability/monetization, also ignoring the apparent resource growth potential, and ignoring the large new discovery potential along the largest contiguous land package in the prolific Val d-Or region.
Alexandria Minerals now possesses an impressive portfolio of advanced-stage projects with serious intrinsic resource value in Quebec, Ontario, and Manitoba.
All of AZX.V's flagship deposits are within close proximity to mills hungry for feed, giving it an advantage over other juniors explorers (which are absent local mill/infrastructure), comparatively all of AZX.V's established deposits are apt to superior demand/returns as they are do not necessarily require large capex of building a mill. [See research URLs at bottom of this page for further information on Alexandria Minerals]
The following are excerpts that mention Alexandria Minerals, the West Zone deposit, and Goldex, sourced from management of Agnico Eagle's corporate update presentation at the Metals & Natural Resources Conference, presented at the Westin New York Grand Central, March 30, 2015:
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Sector Newswire has identified the following research links for additional DD on Alexandria Minerals Corporation:
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Alexandria
Minerals
Corporation corporate website:
http://www.azx.ca • Recent Mining Journal review of Alexandria Minerals: http://miningmarketwatch.net/azx.htm • 'Buy' recommendation of Chris Temple of National Investor: http://sectornewswire.com/AnalystReportNIFeb-2015.pdf "...Alexandria Minerals has among the best risk/reward profiles of any junior exploration company I have ever covered."
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Au equivalents are using using US$1,100 gold, US$2.60 copper, and US$0.85 Zn. 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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