eEnergy Group Regulatory News (EAAS)

25 Oct 2006 07:01

Alexander Mining PLC25 October 2006 Alexander Mining plc 25 October 2006 Leon Project Makes Good Progress • First copper metal cathode plate produced using solvent extraction/ electro-winning (SX/EW) processing pilot plant. • Continued good progress with detailed mining engineering and metallurgy as part of the feasibility study. • Recruitment of experienced and qualified personnel continues. • Environmental Impact Study nearing completion. • Exploration work continues, with short term focus on drilling satellite copper deposits for processing at Leon. Matt Sutcliffe, Chairman and Chief Executive Officer, said: "Having seen thecopper cathode recovery first hand at Leon I am very excited about the progressof the feasibility work. Also, I am pleased to report that the search forsatellite ore deposits for processing at Leon is already generating highlyencouraging results." Leon Project The 500 tonne heap leach pad and SX/EW processing pilot plant, supplied bySociedad Terral SA (Terral) of Chile, has been performing well. It is believedthat this is possibly the first time that copper has been produced using the SX/EW process in Argentina. Electro-winning of the copper onto cathode plate isoperating on a 24 hour basis with electricity supplied for the purpose from thecompany's own power plant. Under Terral's expert supervision, and in conjunction with Alexander's owntechnical staff, the ongoing SX/EW pilot plant testwork will form a substantialpart of the detailed mineral processing component of the feasibility study workto put the mine into production. Moreover, detailed mining engineering studies continue, including preliminarydiscussions with suitable local mining contractors. The Environmental ImpactStudy (EIS) is also nearing completion. The Company is now in the process of hiring an experienced Argentinean minemanager and other professionals whilst upgrading the facilities at the Leonproject camp including the site access road and on-site communicationsfacilities. Exploration Drilling The short term objective of the exploration drilling programme is to identifyeconomic deposits of copper mineralisation suitable for processing at Leon.Recent intense activity has identified three exciting areas in particular, whichmay satisfy this objective: El Vampiro, Arbol Solo and Arroyo Los Negros. Exploration diamond drilling is well underway at El Vampiro, 35km northeast fromLeon. The copper mineralisation has a strike length of 900m. Rock chipsampling on surface has yielded values of up to 1.6% copper. At Arbol Solo, 23km due south of Leon, trenching and channel sampling, whichwill provide data to a standard acceptable for inclusion in any JORC coderesource calculation, has commenced over a mineralised strike of 2,500m.Initial rock chip sampling has indicated grades of up to 1.9% copper. At Arroyo Los Negros, 13km northwest of Leon, initial reconnaissance identifiedboulders containing copper oxide mineralisation grading up to 32% copper.Subsequent work in the area has located spectacular outcropping mineralisationof up to 11.2% copper. An area of 6,710 hectares has been claimed and surfaceexploration is continuing. For further information please contact: Alexander Mining plc Matt Sutcliffe, Chairman and Chief Executive Officer1st Floor, 35 PiccadillyLondon, W1J 0DW Tel: +44 (0) 20 7292 1300Fax: +44 (0) 20 7292 1313Mobile: +44 (0) 7887 930 758Email: mail@alexandermining.comWebsite: www.alexandermining.com Nominated Advisor and Broker Graham SwindellsArbuthnot Securities LimitedArbuthnot House, 20 Ropemaker StreetLondon, EC2Y 9ARTel: +44 (0) 20 7012 2000 Public/Media Relations Gary 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. The Leon copper/silver project is Alexander's most advanced project (out of 4).The Company signed an agreement in January 2005 to earn a 100% interest in 7,012hectares and subsequently has taken up an additional 102,238 hectares of miningclaims. Alexander has set up a SX/EW processing pilot plant and completedinitial pre-feasibility work including metallurgical test work and a JORC Codecompliant resource calculation. At the end of June 2006 the Company had £16m of cash. END This information is provided by RNS The company news service from the London Stock Exchange