eEnergy Group Regulatory News (EAAS)

12 Mar 2007 07:01

Alexander Mining PLC12 March 2007 Alexander Mining plc ("Alexander" or "the Company") Molinetes Gold Property, Peru 12th March 2007 • Supreme Decree issued authorising acquisition of Molinetes Property • Presence of bonanza high grade gold mineralisation, reportedly up to several ounces per tonne, being exploited by artisanal mining activity Matt Sutcliffe, Chairman and Chief Executive Officer, said today: "We aredelighted to have received the Supreme Decree on this extremely exciting goldproperty in northern Peru. We intend to start exploration activities on theground as soon as possible." Alexander is pleased to announce that the Supreme Decree authorising theacquisition of the Molinetes gold property in northern Peru has just beenpublished in the official gazette "El Peruano", Supreme Decree No. 010-2007-EM. The Molinetes property is in the District of Las Lomas, approximately 120km eastof the city of Piura. The concession covers an area of circa 800 hectares (ha). An extensive alteration system centred on and covering most of the Molinetesproperty has already been identified. Preliminary observations suggest thepresence of a large scale epithermal/shear zone system with extensive veins ofgold mineralisation. The mineralisation appears to cover a surface area of at least 6km2 and mayextend beyond the boundaries of the Molinetes property, although the majorproportion of the mineralisation seems to be within the property boundaries. The mineralisation is distributed beneath a broad band of shallow altered claysalong the geological contacts and expresses itself as a series of discrete highgrade veins and broad disseminated stock works within the massive silica alteredfelsic volcanic rocks. Except for the shallow oxidised surface mineralisationdown to 20m, the gold and silver mineralisation present is associated withsulphides. Until recently, there had been no previous history of mining or modernexploration. Reportedly, it is only since late 2004 that artisanal miners havebeen working in the general area. Local miners are exploiting quartz veinshosting bonanza grades (>16g/t gold). The workings are restricted to the top 20min crude shafts and pits. It is believed that in addition to the high gradeveins, the area also hosts a substantial low grade halo which is left unmined;as seen in the nearby Bolsa del Diablo project. The first stage of exploration will start as soon as possible and involve:geological mapping of the area, soil and rock chip sampling and systematic griddrilling using both diamond and reverse circulation methods. Most of the gold occurrences of northern Peru lie within a 290km belt located inthe western Cordillera of the Peruvian Andes. This belt comprises anorth-northwest trending basin, largely filled by Upper Jurassic and LowerCretaceous marine and deltaic clastic sediments. The Chimu and Calipuyformations host a number of world-class gold deposits such as Newmont Mining's36 Moz resource at Yanacocha - the largest gold producer in South America,Pierina (2.5Moz) and Alto Chicama (9Moz) plus silver deposits includingQuiruvilca (631kt at 200g/t silver). All these gold-silver deposits occur withinthe western Cordillera where regionally important east-trending trans-Andeanstructures appear to have aided mineralisation emplacement. For further information please contact: Alexander Mining plc Matt Sutcliffe, Chairman and Chief Executive Officer1st Floor, 35 PiccadillyLondon, W1J 0DWTel: +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 Britton Financial PR:Tim Blackstone,Tel: +44 (0) 20 7251 2544 or +44 (0) 7957 140 416 END This information is provided by RNS The company news service from the London Stock Exchange