18th Jul 2006 07:30
Alexander Mining PLC18 July 2006 Alexander Mining plc 18 July 2006 Operations Update • Leon engineering feasibility studies progressing well• Leon JORC Resource Statement completed• Leon regional exploration generates numerous interesting outcrops and targets • Fred van Dongen, mining engineer, appointed Chief Operating Officer• Cash position of £17.7m as at 31st May 2006 Alexander Mining plc ("Alexander", "the Company"), the AIM-listed copper, goldand silver mining company with projects in Argentina and Peru, is pleased torelease this Operations Update which reports continuing significant progress atLeon and the appointment of a new Chief Operating Officer. Leon Project Leon Feasibility Study Good progress continues to be made with advancing Leon towards completion of thefeasibility study and a decision to proceed with mine construction. Mine design and scheduling has commenced. This design and scheduling will bebased upon the report submitted by Adam Wheeler following his visit to the siteduring the first week in June. Adam Wheeler is an independent open pit mineplanning and design Datamine expert. Meanwhile, the pilot plant preparations have proceeded at site. A bulk samplefrom El Cobre, the zone targeted for initial mining, has been stacked on theleach pad. All reticulation systems are in place awaiting the arrival of theSXEW Pilot Plant. This is currently en route from Chile and is expected to be onsite in the near term. Metallurgical testwork has continued at SGS Lakefield in Canada and column testsare underway in Chile at Sociedad Terral S.A and at SGS Lakefield to refine theprocess flowsheet. This is principally aimed at determining the ultimateparticle size for the leach pad ore and hence the mine operating cost per tonne. Most of the environmental base line work is complete and will be incorporated as part of the full environmental impact study by Vector Engineering. This is the key document required for starting work at the site and for the mine to proceed to full scale construction. Drilling Drilling has now been completed on the Leon project. A total of 15,296m werecompleted in 192 drill holes, including 857m of large diameter PQ drilling formetallurgical purposes. For a table of drilling results, a geological plan of Leon, a map showing theCompany's regional exploration zones and various photographs of the project,please access the News Release section of our website on the link below: http://www.alexandermining.com/htm/investor/index.htm Independent Resource Statement A.C.A. Howe International Limited ("A.C.A. Howe") was contracted as independenttechnical/resource auditors and also to make an independent JORC Code compliantresource calculation (the Australasian Code widely adopted throughout the worldand which sets out minimum standards, recommendations and guidelines forreporting of exploration results, mineral resources and ore reserves). Sulphide resources were also calculated by A.C.A. Howe but are not reported asthey are not relevant to the current mining feasibility study which is focussedexclusively on the Leon oxide resource. Table 1. LEON PROJECT - EL COBRE RESOURCE ESTIMATE Report Material(2) Class(3) Density Tonnes Cu% Ag(4) Cu Cu (Mlb) Ag (Moz) Cut-off(1) (t/m(3)) (Mt) (uncut) (g/t) ('000t) LOX INDICATED 2.37 1.67 0.90 20.12 15.03 33.14 1.08 LOX INFERRED 2.37 0.06 0.74 14.82 0.44 0.98 0.03 LOX TOTAL 2.37 1.73 0.89 19.92 15.47 34.12 1.11 SOX INDICATED 2.25 0.47 0.73 7.89 3.43 7.56 0.12 SOX INFERRED 2.25 0.14 0.56 7.61 0.78 1.73 0.03 SOX TOTAL 2.25 0.61 0.69 7.83 4.21 9.29 0.15 ALL OX INDICATED 2.33(5) 2.14 0.86 19.15 18.46 40.70 1.20 ALL OX INFERRED 2.33(5) 0.20 0.61 9.78 1.22 2.71 0.060.2% Cu ALL OX TOTAL 2.33(5) 2.34 0.84 18.67 19.68 43.41 1.26 Notes: Cu = copper, Ag = silver, Mlb = million pounds, Moz = million troy ounces (onetroy ounce = 31.1 grammes), t/m3 = tonnes per cubic metre and Mt = milliontonnes. Contained metal refers to in situ estimates. (1) Cut-off derived from the ore wireframe (2) LOX = limestone oxide, SOX = sandstone oxide. Oxide material refers to material in which copper oxides are present, the base of which is 1,430m RL and 1,400m RL for limestone and sandstone respectively. (3) JORC classification categories (4) Ag with 80g/t top-cut (limestone) and 25g/t top-cut (sandstone) applied (5) Density applied to the total resource is calculated as a weighted average of limestone and sandstone densities based on the ratio of contained tonnages of both lithologies (limestone:sandstone = 2.28:1) Table 2. LEON PROJECT - EL PLOMO RESOURCE ESTIMATE Report Material(2) Class(3) Density Tonnes Cu% Ag(4) Cu Cu (Mlbs) Ag (Mozs) Cut-Off(1) (t/m(3)) (Mt) (uncut) (g/t) ('000t) LOX INDICATED 2.25 1.81 0.46 18.07 8.33 18.36 1.05 LOX INFERRED 2.25 1.08 0.49 17.85 5.32 11.72 0.62 LOX TOTAL 2.25 2.88 0.47 17.98 13.65 30.09 1.67 SOX INDICATED 2.25 0.10 0.50 9.73 0.48 1.05 0.03 SOX INFERRED 2.25 0.10 0.57 9.09 0.56 1.23 0.03 SOX TOTAL 2.25 0.19 0.53 9.40 1.03 2.28 0.06 ALL OX INDICATED 2.25 1.90 0.46 17.65 8.81 19.41 1.08 ALL OX INFERRED 2.25 1.18 0.50 17.12 5.88 12.95 0.650.2% Cu ALL OX TOTAL 2.25 3.08 0.48 17.44 14.68 32.37 1.73 (1) Cut-off derived from the ore wireframe (2) LOX = limestone oxide, SOX = sandstone oxide. Oxide material refers to material in which copper oxides are present, the base of which is 1350RL for limestone and sandstone. (3) JORC classification categories (4) Ag with 80g/t top-cut (limestone) and 20g/t top-cut (sandstone) applied The following table shows the combined indicated and inferred oxide resource forthe Leon project. Table 3. TABLE 3. LEON PROJECT - TOTAL INDICATED AND INFERRED OXIDE RESOURCE ESTIMATE FOR EL COBRE AND EL PLOMO Area Tonnes Cu Ag Cu Cu Ag (Mt) (%) (g/t) ('000t) (Mlbs) (Mozs) El Cobre 2.34 0.84 18.67 19.68 43.41 1.26 El Plomo 3.08 0.48 17.44 14.68 32.37 1.73 Total 5.42 0.64 17.97 34.36 75.78 2.99 Leon Regional Exploration Programme In August 2005, the Company claimed approximately 102,000 hectares of groundover a north - south distance of 80km in the Province of Salta, north-westernArgentina that could potentially host mineralisation of similar volume and gradeto that encountered on the Leon Project. This region includes the 'S' and 'P'Blocks, known as the El Salto (1,900 hectares) and Punilla (3,896 hectares)Blocks respectively. Reconnaissance commenced in April 2006 after theenvironmental permits to carry out first stage exploration had been approved.This reconnaissance work programme consisted of geological and structuralmapping combined with rock chip and sediment geochemical sampling. Todate, approximately 30% of the area has been reconnoitred and nine mineralisedtargets have been identified. More detailed exploration has been completed oris in progress on six of the targets in preparation for drill evaluation. 1. El Salto - 'S' Block El Salto lies at 28km directly to the northeast of Leon, from where it isaccessed by national and provincial roads. Mineralisation occurs in limestonesof the Yacorite formation and has been traced over a north south strike distanceof 125m. The outcrop disappears below soil cover to the south. The copperoccurs as disseminated malachite and azurite, with minor chalcocite in the hostrock. Samples taken north to south gave values of 1.71% Cu and 14g/t Ag, 3.53%Cu and 33g/t Ag, 0.87% Cu and 10g/t Ag and 0.19% Cu and 2g/t Ag . 2. Punilla - 'P' Block Punilla is 3km to the north of Alto la Mina and two mineralised zones have beenidentified, 1.4km apart in a north-south direction. The mineralisation may becontinuous between the two areas and remains to be investigated. Themineralisation occurs in the sandstones on the contact with the limestones andoccurs as veinlets and disseminated malachite, azurite and chalcocite. Thenorthern zone has a value of 2.84% Cu and 30g/t Ag from a sample taken at theentrance to an adit. At 650m further to the north a shaft (to be sampled) withmineralisation has been located, giving a total potential mineralised strike ofapproximately 2km. The southern area had a sample taken returning 0.99% Cu and7g/t Ag. The thickness is uncertain. 3. Lecho This occurrence is located 5km to the south of Leon. Mineralisation occurs inthe footwall sandstones as at Leon. This mineralisation may be continuousbetween Leon, Lecho and Vera Cruz and hence warrants close investigation. Threetalus samples were taken and returned values of between 0.22% Cu and 0.24% Cu. 4. Vera Cruz This occurrence is located 10km to the south of Leon. Copper oxidemineralisation occurs in sandstones and has been traced southwards for at least600m. Northern continuations are currently being investigated. Assays areawaited. 5. El Ebro This area is 4km to the east of El Salto. The copper mineralisation occurs ingrey shales overlying limestones. The horizon that is mineralised in El Saltodoes not outcrop due to soil cover. One rock chip sample gave a value of 1.45%Cu and 10g/t Ag and the mineralisation occurs as malachite and rare azurite in adisseminated form. 6. Alto la Mina This area is 35km in a direct line from Leon. The mineralisation occurs asdisseminated malachite and rare azurite in porous oolitic limestones at the baseof the Yacorite formation. This is the same stratigraphic level as themineralisation at Leon. The mineralisation has been located in an old adit andshaft which are separated by 145m. The rest of the area is covered by soil andvegetation. One sample in the adit gave a value of 0.49% Cu and 4.35g/t Ag. 7. El Vampiro This area is located 23km directly to the northeast of Leon and is accessed vianational and provincial roads. There are previous workings on the property,including a small shaft where very high grade mineralisation was exploited. Themineralisation occurs as veinlets, disseminated and interbedded within thelimestones of the Yacorite formation. The copper minerals are malachite,azurite and chalcocite. Two samples have been taken from outcrops which are115m apart along a northwest to southeast strike. The total mineralised strikelength is unknown due to soil cover. The northwesterly sample gave a value of0.80% Cu and 5g/t Ag and the southeasterly sample a value of 1.09% Cu and 12g/tAg. 8. Cruz Quemada This area lies 3.5km to the southwest of El Vampiro. The mineralisation occurswithin the limestones of the Yacorite formation as disseminated and interbeddedmalachite, chalcocite and rare azurite. The mineralisation has been located attwo points which are 950m apart in a north-south direction. The areas betweenthe points and to the north and south remain to be investigated. Assays thathave been received to date are 0.62% Cu, 1.09% Cu and 2.45% Cu. 9. Americo This area is covered by soil and vegetation resulting in poor outcrop, howeverone small trench has been located with disseminated and fracture filled copperoxides in sandstone. Assay results are awaited. Sulcha Initial results from the exploration drilling programme were not sufficientlyencouraging to justify the continuation of the drilling/work programme.Analysis of the geology is ongoing to consider if further work is appropriate. Rachaite Six holes of 250m each were drilled on Rachaite into the exposed part of thealtered andesitic body, which has dimensions of 3,000m by 1,500m and has provedto be anomalous in silver, lead and zinc. Values of up to 15.3g/t silver, 1.66%zinc and 0.46% lead have been encountered. In the southern part of the body,one hole intersected 2.4m at 0.39g/t gold at approximately 40m below surface.The Company is in discussions regarding a joint venture to continue drilling. Appointment of new Chief Operating Officer The Company is pleased to announce that Mr Fred van Dongen has joined theCompany as its Chief Operating Officer. Fred, aged 57, is an experienced miningengineer, holding a South African Mine Manager's Certificate. Fluent in severallanguages, including Spanish, Fred's experience encompasses 20 years in theSouth African mining industry and 13 years in Venezuela, where he was Operationsand Project Manager for Monarch Resources and Delta Minerals Corporation. During his time in Venezuela, Fred was fully responsible for capital expenditureand budget control for all field operations in the country and was in charge ofthe 22 expatriate and 250 local personnel employed by the company, as well asthe various contractors hired for the start-up of the La Camorra undergroundgold mine (total project cost c.US$65m), as well as the Revemin gold plant plusassociated infrastructure (c.US$30m). The La Camorra mine, which was sold byMonarch Resources in 1999 to Hecla Mining, produced 101,474oz gold in 2005.From 2003, until joining Alexander, he was General Manager at FirestoneDiamonds' alluvial diamond mining operations in Namaqualand, South Africa. Matt Sutcliffe, Chairman and Chief Executive Officer, said: "I am most pleasedwith the continuing excellent progress that the Company is making at Leon. Inaddition, I am delighted that Fred has agreed to join Alexander. Fred's miningengineering skills, fluency in Spanish and successful mine building experiencein South America will be indispensable to the Company as we enter an excitingphase of growing the company. My colleagues and I look forward to hiscontribution and working together. " Qualified person Angus Innes, Alexander's Head of Latin American Exploration, has reviewed andapproved this news release as the Company's qualified person. Angus Innes holds a degree in geology from the University of Witwatersrand inSouth Africa and has over 30 years' experience in exploration and mininggeology. Prior to joining the Company in 2005, he was, for six years, aconsulting geologist to mining companies in South America. He has also workedas Exploration Manager for Billiton in Argentina and Bolivia. Before moving toSouth America, Angus was employed as a Senior Geologist for Gencor in SouthAfrica in the Witwaterstrand Sedimentary Basin. He has extensive explorationand mine geology experience in sedimentary hosted and hydrothermal copperdeposits in South Africa and Namibia. For further information please contact: Alexander Mining plc Matt Sutcliffe, Chairman and Chief Executive Officer1st Floor35 PiccadillyLondonW1J 0DWTel: +44 (0) 20 7292 1300Fax: +44 (0) 20 7292 1313Mobile: +44 (0) 7887 930 758Email: [email protected]: www.alexandermining.com Nominated Advisor and BrokerGraham SwindellsArbuthnot Securities LimitedArbuthnot House20 Ropemaker StreetLondonEC2Y 9ARTel: +44 (0) 20 7012 2000 Public/Media RelationsGary MiddletonSt Swithins Public RelationsTel: +44 (0) 20 7929 4391Mobile: +44 (0) 7951 603 289 Notes for editors Alexander Mining plc is a mining company that intends to grow rapidly into a lowcost and highly profitable diversified metal producer. The Company has a highlyskilled management team with expertise in both natural resources and finance. END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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