eEnergy Group Regulatory News (EAAS)

10 May 2006 07:00

Alexander Mining PLC10 May 2006 Alexander Mining plc 10th May 2006 Excellent Progress at Leon Project • Drilling at Leon copper/silver project almost completed.• Drill rigs will be moving to start drilling of S Block, as part of regional exploration programme which is now underway.• Resource calculation currently being done by ACA Howe, due to be completed in June.• A pilot plant capable of producing copper cathode from leach solution will be delivered to site shortly for processing a 500t bulk sample.• Mining engineering, processing and environmental studies well advanced. Alexander Mining plc ("Alexander", "the Company"), the AIM-listed copper, goldand silver mining company with projects in Argentina and Peru, is pleased torelease this update on its Leon Project in the central part of the SaltaProvince of northwestern Argentina. Following the imminent completion of the diamond core drilling at Leon, thedrill rigs will move to start drilling on the S Block, as part of the regionalexploration programme. Reconnaissance of Alexander's 100,000 hectares claimarea is underway. To date, approximately 15,000 hectares have beeninvestigated. Geological and structural mapping with geochemical sampling hasidentified seven copper occurrences within this area. We believe that thesezones have similar potential to that seen in Leon and we intend to prove this upthrough further detailed work. Geological consulting firm ACA Howe has been engaged to prepare a resourcestatement to the JORC Code standard. Its resource reporting specialist hasalready visited the site and is now preparing his report, which is due to becompleted in June. A solvent extraction-electro winning (SX-EW) pilot plant will be delivered laterthis month to the Leon site from a specialist consultancy firm Sociedad TerralS.A. in Chile to process a 500t bulk sample. Site preparation work is alreadyunderway. A consultant from Knight Piesold, with considerable copper heap leachingexperience, has visited the Leon site to review geotechnical matters regardingthe leach pad and preliminary pit design and to prepare a water balance model,site layout and calculate earthworks volumes. Open pit design optimisation will be carried out by specialist consultant AdamWheeler. The environmental studies directed by Vector Engineering Inc., as part of a fullenvironmental impact report, are proceeding on schedule. These encompass floraand fauna, archaeological and sociological aspects. Matt Sutcliffe, Chairman and Chief Executive Officer, said: "The Companycontinues to make excellent progress towards completing the feasibility study onLeon and a decision to proceed with mine construction". For further information please contact: Alexander Mining plcMatt Sutcliffe, Chairman and Chief Executive Officer1st Floor35 PiccadillyLondonW1J 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 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 rapidly to grow 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 Exchange