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Sector: Mining - Metals and Minerals   :

 

News Release -  May 1, 2015 4:02 PM ET 

 

 

Alexandria Continues to Intersect High-Grade at Orenada, Including 3.4 Meters Grading 17.03 g/t Gold

 

NEW YORK, NY, May 1, 2015 /Sector Newswire/ - Alexandria Minerals Corporation (TSX-V: AZX) (US Listing: ALXDF) (Frankfurt: A9D) this week announced news of continued high-grade intercepts from initial drill hole assay results from its wintertime exploration drilling program on the western half of its Cadillac Break Properties, Val d'Or.

 

 Alexandria Minerals possesses an impressive portfolio of advanced-stage projects with serious intrinsic resource value in Quebec, Ontario, and Manitoba.

In Quebec: 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. AZX.V currently has global resources in Quebec totaling 1,583,882 ounces gold (695,524 ounces Measured & Indicated and 888,358 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.

In Manitoba: AZX.V has two advanced-stage Cu-Au-Ag-Zn projects with ~800,000 of gold equivalent ounces. These two Manitoba projects were considered the flagship assets of Murgor (now 100% owned by Alexandria Minerals) and have serious intrinsic high-grade copper-gold resource value and blue-sky potential.

 

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.

 

Valuation commentary

 

Alexandria's current market cap (<CDN$13 million) relative to intrinsic value appears disproportionate and presents an exceptional risk-reward scenario; entering Q2-2015 AZX.V's has ~CDN$2 million in current assets (that includes cash and refunds coming from the Quebec government), has nearly 2.5 million ounces of gold and gold equivalent on projects approaching marketability/monetization, and possesses a significant 2% NSR set to kick-in from the 'West Zone' gold asset sale 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 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. 

[See research URLs at bottom of this page for further information on Alexandria Minerals]

 

Excerpt of Alexandria Minerals' latest (April 30, 2015) news release:

 

Alexandria Extends Zone of High Grade Gold Veins at Orenada With 3.4 Meters Grading 17.03 g/t Gold

 

TORONTO, ONTARIO--(Marketwired - April 30, 2015) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) ("Alexandria" or the "Company") is pleased to announce new high grade assay results in diamond drill hole OAX-15-54 at its Orenada project in Val d'Or, updating previously released results (Press Release April 22, 2015). The updated data expand the earlier reported drilled intersection to 3.14 g/t gold over 27.8 meters, including 17.03 g/t over 3.4m and 131 g/t gold over 0.4m.

These results lengthen the mineralized drill intersection from 111.3 meters grading 1.24 g/t gold to 158.5 meters grading 1.43 g/t gold, and deepen the zone from 282.8 meters downhole to 330.0 meters downhole.

Eric Owens, President and CEO, stated, "These new results lie below past drilling, and open up potential for deeper gold mineralization. We anticipate further positive assay results, which are still pending, from the second hole to test these veins."

The highlights of the new results are as follows:

Hole name   From (m) To (m)   Core length (m) Gold grade (g/t)
            (uncapped)
             
    171.5 330   158.5 1.43
             
  Including 302.2 330   27.8 3.14
             
OAX-15-054 Including 312.6 313.3   0.7 18.6
             
  Including 324.6 328   3.4 17.03
             
  Including 324.6 325   0.4 131

Drilling on Orenada Zone 4, part of the Company's 2,500 meter wintertime drilling program, has focused on the re-interpretation of past drill hole data and underground mapping, resulting in the recognition of flat-lying, high grade veins within the steeply-dipping Cadillac Break shear zone. The shear zone hosts the low-grade, bulk- tonnage Current Resources at Orenada, which were the focus of the 2009 resource estimate (Press Release September 16, 2009).

Borehole OAX-15-054 is the first of two boreholes drilled within the Zone 4 Current Resource envelope (National Instrument 43-101 compliant) to test specifically for high grade veins. It was drilled with a core-orienting system to collect structural data and will be surveyed with optical borehole imaging to confirm the measurements. Assays are pending for the entire second hole...

... click here for full copy from source

 

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Sector Newswire has identified the following research links for additional DD on Alexandria Minerals Corporation:

 

  • Alexandria Minerals Corporation corporate website: http://www.azx.ca
  • SEDAR Filings for Alexandria Minerals Corporation.: http://sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00021583

  • 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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