eEnergy Group Regulatory News (EAAS)

1 Aug 2005 11:17

Alexander Mining PLC01 August 2005 Alexander Mining plc 1st August, 2005 • Major technical and drilling programme underway at the Leon Project (formerly known as Juramento) • Metallurgical test-work started at Leon • New senior management appointments Operational and Corporate Update Alexander Mining plc ("Alexander" - AXM), the copper, gold and silver miningcompany, with projects in Argentina and Peru, is pleased to announce significantprogress since its listing in April, with the following operational andcorporate update. Operations Leon Copper/Silver Project, Salta Province, NW Argentina A 10,000m diamond core drilling programme has started at the Leon Project(formerly known as Juramento) sedimentary hosted copper/silver deposit. Leon islocated in Salta Province of Argentina, approximately 1,250km northwest of theCapital, Buenos Aires and 55km southeast of the City of Salta. An on-sitecontractors' camp has been established and the staffing of operations withCompany employees and contract workers is underway and progressing according toplan. Initially, drilling will be on sections approximately 100m apart. The programmeis designed to delineate the mineable resources of the Leon deposit to the JORCCode standard (the Australasian Code widely adopted throughout the world andwhich sets out minimum standards, recommendations and guidelines for reportingof exploration results, mineral resources and ore reserves). The company looksforward to reporting the results in due course. A significant metallurgicaltest-work programme is underway. The property was previously explored and drilled by a Canadian company between1994 and 1997. Following this work, it issued a press announcement indicating atotal resource of 44.7Mt at 0.8% copper and 21.8g/t silver. A community relations socio-economic policy has been instigated; including,wherever possible, the sourcing of supplies, equipment and labour locally. Apro-active process of dialogue between provincial and national government isongoing. The first regulatory environmental exploration report has beensubmitted to the Mines and Water Resources Departments and their approvalgranted for the drilling programme. A baseline environmental study hascommenced. Rachaite, Copper/Gold Project, NW Argentina Contract drilling rig availability has been confirmed and repair to the accessroad is underway, in anticipation of starting a drilling campaign in the thirdquarter of 2005. Appropriate geological mapping and sampling has beencompleted. A local community relations programme has also commenced. The Rachaite copper/gold project is located in the Department of Cochinoca,Jujuy in Argentina, 290km northwest of the province's capital of San Salvador deJujuy. There are three contiguous exploitation licences covering 1,000ha. TheRachaite complex is a potentially large porphyry target situated in a favourablestructural environment. The project is located within a collapsed caldera in thecentre of a strata volcano. Sulcha, Gold/Silver Project, Peru Preliminary planning is underway for a drilling campaign later in the year. TheSulcha gold/silver deposit is located in the Province of Otuzco, in the Andes,approximately 55km east of the city of Trujillo, Peru's second largest city.Some 50km to the northeast is Barrick Gold's Alto Chicama property and its newLagunas Norte mine, which in June 2005 commenced production at an initial threefull year average of 800,000oz gold pa (9Moz gold in reserves). Widespread quartz veining and associated hydrothermal alteration is present onthe Sulcha property. This is associated mainly with north-northwest trendingstructures in which alteration veining is most intense. The most prominent ofsuch structures, the Sulcha Vein, is exposed on the southeast side of CerroSulcha where it can be traced over a horizontal strike distance of 550m and avertical interval of 175m. Senior Management Appointments The Group is delighted to announce the following key appointments ofprofessionals who combine many years' experience gained within the resources andfinancial sector, with the diverse range of skills which the Directors believeare required to build a successful mining group. Gordon Lewis, Chief Operating Officer Gordon (56) is a mining engineer with considerable senior management andpractical experience in planning, building and managing mining operations ontime and on budget in emerging market country locations. He graduated fromMelbourne University in 1971 with a Bachelor degree in Engineering and then wenton to take his Master of Engineering at McGill University in Canada. Most recently, he was responsible for Avocet Mining plc's assets in Indonesia,including its low cost North Lanut heap leach gold mine, taking it from in-filldrilling, feasibility study, construction through to production within a tighttimeframe. Prior to this he was Executive Director, Business Development forAvocet Gold Limited, where he was responsible for seeking and evaluating newgold and base metal opportunities for the company. His time with the AvocetGroup also included, from 1996-2001, responsibility for the construction,start-up and operation of Malaysia's largest gold mine, Penjom, which iscurrently producing at well over 100,000oz pa gold. His experience also includes: from 1990-95, Manager Mining for the Rio Tinto 90%owned PT Kelian Equatorial Mining, which operated the large Kelian open pit goldmine in Indonesia and, from 1986-90, senior mining and commercial positions atthe world class Bougainville copper mine in Papua New Guinea. Gordon is a Member of the Australasian Institute of Mining and Metallurgy andholds a First Class Mine Manager's Certificate, South Australia. Martin Rosser, Head of Business Development (UK). Martin (45) has over 23 years' practical industry and City experience sincegraduating as a mining engineer from the Camborne School of Mines in 1981.Initially, he spent five years working as a mining engineer in Australia, bothon underground and surface gold mines, including time with Western MiningCorporation. In 1987, he returned to the UK and worked as a mining analyst withtwo UK stockbrokers before he joined David Williamson Associates Limited (DWA -now VSA Resources Limited - VSA) in 1989 as a founder employee and thendirector. During his time with DWA/VSA, he developed extensive worldwide miningindustry contacts in the course of providing regulated corporate finance andinvestor relations services to the firm's clients seeking exposure to Europeaninstitutions. Martin is a Chartered Engineer, a Fellow of The Institute of Materials, Mineralsand Mining, a Member of The Australasian Institution of Mining and Metallurgyand an Associate of The Securities and Investment Institute. Peter Gardner, Financial Controller Pete (32) graduated with a first class honours degree in Physics from theUniversity of Birmingham in 1994. He subsequently qualified as a charteredaccountant with BDO Stoy Hayward and worked for clients in a variety ofdisciplines, including Initial Public Offerings (IPO's), capital fund raising,mergers and acquisitions. In April 2004, he joined PKF where he focussed on thefirm's mining industry clients. This encompassed working on AIM listing IPO's,together with secondary fund raisings, for a number of junior companies. He isMember of The Institute of Chartered Accountants in England and Wales and anAssociate of The Securities and Investment Institute. Matt Sutcliffe, Chairman and Chief Executive, said: "I am delighted with theprogress the company had made since listing and with its appointment of seniormanagement necessary to develop and grow Alexander Mining plc over the next fewyears into a mid-size mining group". For Further Information please contact: Matt Sutcliffe, Chairman and Chief Executive Officer Alexander Mining plc1st Floor35 PiccadillyLondonW1J 0DWTel: +44 (0) 20 7292 1300Fax: +44 (0) 20 7292 1313Mobile: +44 (0) 7887 930 758www.alexandermining.com Nominated Advisor and BrokerEvolution Securities Limited100 Wood StreetLondonEC2V 7ANTel: +44 (0) 20 7071 4300 Public/Media RelationsGary MiddletonSt Swithins Public RelationsTel: +44 (0) 20 7929 4391Mobile : +44 (0) 7951 603 289 Notes for editors The Group is involved in mining exploration and intends to grow rapidly into alow cost and highly profitable diversified metal producer. The Company has ahighly skilled management team who combine many years' experience gained withinthe resources sector, with the diverse range of skills which the Directorsbelieve are required to build a successful mid-size mining group. The Company currently has a cash position of approximately £21m. These fundsare to be used for drilling and initiating a feasibility study on the Leoncopper/silver deposit and further to develop its South American gold and silverproperties at Trinidad, Rachaite and Sulcha. In addition, the Company intends toacquire further assets and seek licence applications and acquisitions elsewhere. This information is provided by RNS The company news service from the London Stock Exchange