eEnergy Group Regulatory News (EAAS)

17 Mar 2006 08:28

Alexander Mining PLC17 March 2006 Alexander Mining plc Molinetes Gold Project, Peru 17 March 2006 • Diligent community work pays off at the Molinetes gold project in Peru • Presence of high grade gold mineralisation and artisinal mining activity Alexander Mining plc ("Alexander", "the Company"), the AIM-listed copper, goldand silver mining company with projects in Argentina and Peru, is pleased toannounce that it has made major progress at the Molinetes Project. Under an agreement, Alexander has the right to acquire 100% of a local PeruvianCompany, "Compania Minera Molinetes S.A.C." ("Molinetes"), subject to Molinetesobtaining a Supreme Decree allowing foreign ownership of the project. Alexander has been diligently working with the community in Northern Peru sincethe project was referred to as "Project Peru" in its AIM admission document ofApril last year. Molinetes has just obtained an express authorisation grantedby the local community that allows for mining exploration and is in the processof submitting a Supreme Decree application to the government. The Molinetes property is located in the District of Las Lomas and approximately120km east of the city of Piura. It covers an area of 800 hectares. An extensive alteration system centred on and covering most of the Molinetesproperty has been identified. Preliminary observations suggest the presence ofa large scale epithermal/shear zone system with extensive veins of goldmineralisation, of a style not yet characterised and not observed before inPeru. It is in an area which, until recently, has had no previous history ofmining or modern exploration. The mineralisation covers a surface area of at least 6km2 and may extend beyondthe boundaries of the Molinetes property, although the major proportion of themineralisation appears to be located 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 located within the massive silicaaltered felsic volcanic rocks. Except for the shallow oxidised surfacemineralisation down to 20m, the gold and silver mineralisation present isassociated with sulphides. Reportedly, it is only since late 2004 that small scale artisinal mining,superficially down to depths of 20m, has taken place on high grade gold bearingquartz veins. Subject to obtaining the decree, the first stage of exploration would 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 Minera Yanacocha, the largest gold producer in South America,Pierina (2.5Moz) and Alto Chicama (9Moz) and silver deposits includingQuiruvilca (631,000t at 200g/t Ag). All these gold-silver deposits occur withinthe western Cordillera where regionally important east-trending trans-Andeanstructures appear to have aided mineralisation emplacement. Matt Sutcliffe, Chairman and Chief Executive Officer, said that: "We are mostsatisfied with our progress at Molinetes and our policy of engaging with localcommunities to secure their support prior to commencing exploration activitieson the ground." For further information please contact: Matt Sutcliffe, Chairman and Chief Executive OfficerAlexander Mining plc1st 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 BrokerEvolution Securities Limited100 Wood StreetLondonEC2V 7ANTel: +44 (0) 20 7071 4300 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 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