Alexis Minerals Achieves First Quarter 2012 Operating Costs of $1,538 per Ounce on the Sale of 5,043 Ounces of Gold
TORONTO, ONTARIO -- (Marketwire) -- 05/11/12 -- ALEXIS MINERALS CORPORATION (TSX: AMC)(OTCQX: ASXMF) ("Alexis" or the "Company") is pleased to announce its first quarter financial and operational results for the period ending March 31, 2012. All figures are reported in Canadian dollars, unless noted otherwise.
Financial Summary:
-- The Lac Herbin mine in Val d'Or recovered 5,529 ounces of gold.
-- The Aurbel Gold Mill realized an average recovery rate of 86.7%.
-- Alexis reported revenue on mining operations of $8.14 million for the
quarter on the sale of 5,043 ounces of gold at an average realized price
of $1,689 per ounce.
-- Cash cost of sales per ounce of gold production from Lac Herbin was
$1,538 per ounce (see non-GAAP measures)
-- The Company reported a net loss of $11.6 million or $0.02 per share for
the quarter which includes an $8.5 million impairment charge on the
Rouyn-Noranda Property.
First Quarter Results From Operations
Alexis sold 5,043 ounces of gold to generate $8.14 million in revenue from mining operations during the first quarter with an average gold sale price of $1,689 (USD $1,692) per ounce. Mine operating expenses were $7.76 million and amortization and depletion amounted to approximately $1.60 million. The cost of sales per ounce sold during the current quarter, excluding amortization and depletion, was $1,538 per ounce (see non-GAAP Measures), which represents a $1,000 per ounce decrease compared to cash cost figures of $2,555 in the first quarter of 2011. This significant decrease can be attributed to the turnaround plan at the Lac Herbin mine implemented in the third quarter of 2011.
Alexis recorded a net loss for the quarter of $11.6 million or $0.02 per share. The loss includes an impairment charge of $8.5 million assessed on the properties held at Rouyn-Noranda and General & Administrative charges of $1.6 million.
Commenting on the results, Francois Perron, President and CEO stated: "I am extremely pleased with the results in the first quarter. They show that Lac Herbin is capable of becoming profitable while also maintaining a high safety standard within the operation. These results also suggest that we are in a position to meet our goal of producing 18,000 to 20,000 ounces in 2012 at an average cash cost of $1,300 to 1,500. Thank you to the team at Lac Herbin for their hard work and commitment in working towards our turnaround plan goals. As the Lac Herbin Mine continues to move forward, we continue to advance the financing process that will move us closer to adding Snow Lake to our production profile."
Exploration and Operational Outlook
Alexis will continue to implement the improvements budgeted in the turnaround plan at Lac Herbin. Further work is also being carried out at the Aurbel Mill to improve recovery and target recoveries of 90% over the coming quarters. Exploration efforts for the first half of the year at Lac Herbin are focused on infill drilling at the FL, Apex and Bonanza Zones with the goal of expanding these zones of mineralization, all of which are located near the mine infrastructure.
Exploration at Snow Lake continues to analyze results from the remainder of results from the extensive 2011 drill program. Once results have been concluded on the No. 3 Zone Deep, Birch Deep, and Birch West programs they will be released.
Complete interim financial statements and related Management's Discussion and Analysis documents will be available under the Company's profile on www.sedar.com and at the Company's website www.alexisminerals.com.
Non-GAAP Measures
The Company has included certain non-GAAP performance measures, namely, cash costs per gold ounce sold throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are non-GAAP measures. In addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following tables provide a reconciliation of cash costs per gold ounce sold for the three months ended March 31, 2012 and 2011.
Cash cost per ounces sold
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March 31, March 31,
Period ending 2012 2011
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Revenue
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From commercial production ounces (CAD 000's) $ 8,138 $ 2,344
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Ounces sold 5,043 1,826
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Mine operating expenses (CAD 000's) $ 7,756 $ 4,665
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Cash cost per ounce sold (CAD) $ 1,538 $ 2,555
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(mining operating expenses divided by ounces sold)
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Qualified Person
Technical programs and information included in this release have been supervised, compiled, reviewed and approved by David Rigg, P.Geo., the Chairman of the Company and a Qualified Person as defined under NI 43-101.
About Alexis
Alexis Minerals Corporation is a Canadian publicly traded mining company concentrating on exploration and mine development. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "AMC", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "AXSMF". The Company's focus is to grow through exploration, development and acquisition of mineral properties and directly and indirectly, through joint ventures. Alexis is now in its second full year as a junior gold-producing company. The Company holds a dominant property position (over 1,104 km2) in three of Canada's richest mining camps: Val-d'Or and Rouyn-Noranda, in the Abitibi District of Quebec, Canada, historically the third richest gold producing region in the world; and Snow Lake, Manitoba, Canada. Alexis undertakes exploration across these properties searching for new world class discoveries, while maintaining a focus on growing Alexis to become a mid-tier gold producer.
For more information, please visit the company's website at www.alexisminerals.com or follow us on Facebook (search for Alexis Minerals Corporation) or Twitter @Alexis_Minerals.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the outcome of these financial results on the future of the Company; the future financial performance of the Company; development potential of the Company's properties; the future price of gold and other minerals; the estimation of mineral reserves and mineral resources; the successful implementation of the development plans at each of the Company's properties; the realization of mineral reserve estimates; the timing and amount of estimated future production; future costs of production; future capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Lac Herbin and Snow Lake Projects are based on assumptions underlying mineral reserve and mineral resource estimates, the results of feasibility studies on the properties and the realization of such estimates are set out herein.
Capital and operating cost estimates are based on extensive research of the Company, costs incurred at the projects to date, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks outlined in the annual information form of the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Alexis Minerals Corporation
Francois Perron
President and CEO
(416) 309-2952
Alexis Minerals Corporation
Louis Baribeau
Public Relations
(514) 667-2304
Alexis Minerals Corporation
Rob Hopkins
Investor Relations
(416) 861-5899
Alexis Minerals Corporation
Toll free: 877-717-3027
info@alexisminerals.com
www.alexisminerals.com
