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XMFSinchiruna (27.59)

Alexandria Minerals' global resource now 2.12 million GEOs!

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33

February 07, 2013 – Comments (15)

Following a 261% increase in inferred gold resources at its flagship Akasaba property in Quebec, Alexandria Minerals now commands a very substantial 2.12 million gold-equivalent ounces in global resources across its Cadillac Break property package.

Here's a little food for thought: Alexandria Minerals has a market cap of less than $15 million for 2.12 million GEOs M&I plus Inferred. Silver Wheaton just handed Vale $1.9 billion for a pair of gold streams that are projected to yield 2.2 million ounces of gold over the next 20 years.

While of course I'm not suggesting that Alexandria's shares deserve a large-cap valuation, it's in the degree of disconnect between the two that makes plain just how undervalued Alexandria's shares are.

Also very impressive is Alexandria's continued low cost of adding new resource ounces:

Eric Owens, President of Alexandria Minerals, said, "We are very pleased with the substantial increase in resources at Akasaba. A major factor influencing the increase was the new discovery of the West Gold‐Copper Zone this past year, a result of our decision to step out significantly and test targets farther afield. In addition to the growth potential this work indicates, it has been incredibly efficient, as the eleven shallow holes that have so‐far defined this zone cost just 47 cents per ounce of gold discovered." 

http://www.juniorminingnetwork.com/news-releases/805-tsx-venture/azx/8034-alexandria-increases-indicated-resources-9-and-inferred-resources-263-at-its-akasaba-gold-copper-project.html

 

15 Comments – Post Your Own

#1) On February 07, 2013 at 11:05 AM, SN3165 (< 20) wrote:

"The completion of the update is expected by early March." (Jan. 17)

Any idea why it was released so early? 

Pretty impressive results from the west zone! 

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Notes:

"Currently running two drill rigs on the Akasaba Project and one rig on the Sleepy Project."

Of the 51 holes, 40 holes have been included in the new 43‐101 update and 11 holes are awaiting assay results.

A total of 176 holes for 61,120 meters of drilling has been completed to‐date on the project since Alexandria first began its initial drill program in 2009.

Resources now extend for more than 2,000 m along strike and 600 m to depth, a 10 fold increase in size since 2009, with potential for growth in all directions.

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#2) On February 07, 2013 at 11:12 AM, SN3165 (< 20) wrote:

"While of course I'm not suggesting that Alexandria's shares deserve a large-cap valuation, it's in the degree of disconnect between the two that makes plain just how undervalued Alexandria's shares are."

 ----

 Enterprise Values per Gold Equivalent Ounces (Explorers)

 Paramount - $32

 Sabina - $36

NovaGold - $27

 Tyhee - $15

Claude - $22 (Producer) 

Alexandria - $6.3 (estimate)

---

Market Cap - $13.43 million

GEO's - 2.12 million

I am long.

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#3) On February 07, 2013 at 11:20 AM, SN3165 (< 20) wrote:

To make this story even more compelling:

-----

IAMGOLD bought out Trelawney in 2012, a canadian gold explorer which had .93 million indicated gold ounces and 5.94 inferred gold ounces. 

They paid $608 million for them or around $90 per ounce. 

Oh, and IAMGOLD currently owns about 7 percent of Alexandria along with Teck (Agnico owns 10 percent). 

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#4) On February 07, 2013 at 5:29 PM, tdonb (< 20) wrote:

Amazing. I might have to buy up some more. 

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#5) On February 07, 2013 at 9:37 PM, amassafortune (29.66) wrote:

And less risk of being nationalized than many higher-valued mines in less-stable countries.

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#6) On February 08, 2013 at 11:24 AM, kurtj3 (< 20) wrote:

Does anyone see anything negative in the report?

 This company continues to look compelling, but it's always good to try to poke holes in the investment thesis.  My greatest concern by far is access to additional capital if the capital markets freeze up.  Share offerings are painful at this share price but management seems to be unlocking value with the money they spend.  Patience should reward shareholders greatly. 

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#7) On February 10, 2013 at 10:11 AM, XMFSinchiruna (27.59) wrote:

kurtj3,

I think you summed the situation up nicely. Every micro-cap explorer presents what must be characterized as an elevated degree of risk in this very challenging environment of persistently impaired valuations, lack of financing options, and the resulting likelihood of further dilutive capital raises at depressed prices. But the important flip-side that you point out is the regularity with which Alexandria continues to deliver low-cost resource expansion with the capital thus raised. For that reason, I look forward to participating in any future capital raises to maintain my percentage stake, because I believe that eventually these depressed valuations will correct, and that Alexandria's impressive success rate will continue to define a noteworthy gold resource at Akasaba and elsewhere in its huge Cadillac Break portfolio.

Notwithstanding the risk factors discussed above, and undeterred by the length of time spent beneath my cost basis, Alexandria Minerals remains my single largest equity holding.

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#8) On February 13, 2013 at 12:51 PM, Sturmudgeon (< 20) wrote:

Sinch. & SN3165:

Thanks for the information.  It is rather a crazy environment out there!

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#9) On February 13, 2013 at 3:53 PM, SN3165 (< 20) wrote:

I bought Premier Royalty at $1.62 the other day. I hope to add much more in the coming weeks/months. I don't have much time now to explain my bullishness but to sum it up quickly:

 - $130 market cap with $40 million in cash to buy new gold streams/NSR's.

 - Sandstorm is a 60 percent shareholder, in at close to $2 a share. 

 - Close to 5K ounces attributable in 2013 will lead to around $5-6 million cash flow in my estimates.

 - Big potential to do more deals this year

 -An Eventual and obvious buyout candidate

- My bullishness on the streaming business in general, as they continue to outperform the miners. 

 

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#10) On February 14, 2013 at 12:23 AM, awallejr (81.36) wrote:

Personally I prefer the streamers mainly because it is all about the ultimate profit (cost vs sales). However Alexandria is compelling in that they have serious assets but patience is required since it will take years until there is actual production.  Buy a set amount on a monthly basis with the understanding that this is a patient holding.

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#11) On February 14, 2013 at 11:19 AM, Sturmudgeon (< 20) wrote:

Sinch:  Aunff has just made an announcement of a reverse-split @ one-for-eight....   What might your take be on this one?   Most everyone of my stocks that has done this action has proven "lousy".

Thanks,

Stirling

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#12) On February 16, 2013 at 5:01 PM, Horiemon (< 20) wrote:

Interview with Eric Owens:
http://www.youtube.com/watch?v=Wk8d3RGW1JA&feature=youtu.be

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#13) On February 16, 2013 at 10:35 PM, skypilot2005 (< 20) wrote:

Reference:

http://caps.fool.com/Blogs/alexandria-minerals-now-has/722299

Alexandria Minerals Now Has 1.4 Million Ounces Gold

 

3/27/12

“With this morning's release of the initial resource estimate for its Akasaba property, Alexandria Minerals' global gold resource just surged 56% to top 1.4 MILLION OUNCES!

http://tmx.quotemedia.com/article.php?newsid=49759865&......

70% of the newly added gold, moreover, corresponds to a high-grade underground resource with an average grade above 5 grams per ton.

Eric Owens, President of Alexandria Minerals, said, "These results are an exciting first step for a deposit with significant potential for further growth. Our exploration during the past year has demonstrated to us several favorable zones which we will be aggressively drilling with additional drill rigs. These new resources at Akasaba have added considerably to our global resources in Val d'Or where we now have one of the largest total resources in the camp. We are favourably positioned to exploit our strategic land package with an enviable discovery cost of roughly $13 per ounce of gold discovered."

Incredibly, the current market capitalization of CAD$16.33m equates to a valuation of only $11.62 for each ounce of gold discovered to date. That's less than the company's discovery cost, which illustrates the remarkable value proposition in these excessively discounted shares.

I am LONG shares of Alexandria Minerals.”

 

http://tmx.quotemedia.com/article.php?newsid=49759865&qm_symbol=AZX

 

Sky

Long Alexandria 

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#14) On February 17, 2013 at 6:42 AM, skypilot2005 (< 20) wrote:

Reference:

 

2/7/13

http://www.reuters.com/article/2013/02/07/idUSnMKW735a+70+MKW20130207

Alexandria Increases Indicated Resources 9% and Inferred Resources 263% at Its Akasaba Gold-Copper Project

"The West Gold-Copper Zone is a zone of disseminated gold-copper mineralization located on the main mine trend 1600 m west of the past-producing Akasaba Mine, where the underground resources are located. As defined by drilling, the West Zone is some 400 m long, 300 m deep, averages 60 m wide, and is open at depth. In contrast with the mine area mineralization, where gold is hosted with quartz-carbonate-pyrite veins, gold in the West Zone is hosted with pyrite, chalcopyrite and bornite, in strongly deformed and altered intermediate to felsic volcaniclastic rocks, within the geological influence of the Cadillac Break shear zone and the Callahan granitic intrusive stock."

"Since the March 27, 2012 release of its first NI 43-101 Resource Estimate at Akasaba, Alexandria has drilled 51 holes totaling 22,102 m on the Akasaba project, with focus on 1) expanding the deep high grade zone below the historic Akasaba Mine, and 2) expanding the shallow deposit along strike through step-out drilling, the latter resulting in the new discovery of the West Gold-Copper Zone."

"Other targets with similar characteristics occur elsewhere on the property and on adjacent properties."

"Currently, the Company has three drill rigs turning on its properties: two at Akasaba and one on its Sleepy project, located 13 km east of Akasaba. The drilling program on both projects is aimed at step-out drilling designed to enlarge existing resources, especially focused on desirable targets that require winter ice conditions to complete. To-date assays are pending for 11 completed drill holes at Akasaba, and 1 at Sleepy."

Sky

Official Web Link Assistant to Sinchi

 

 

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#15) On February 18, 2013 at 6:33 AM, skypilot2005 (< 20) wrote:

http://www.goldcorp.com/English/Investor-Resources/News/News-Details/2013/Goldcorp-announces-strong-quarterly-cash-flow-and-earnings-Gold-reserves-increase-for-ninth-consecutive-year/default.aspx

Goldcorp announces strong quarterly cash flow and earnings; Gold reserves increase for ninth consecutive year

2/14/13

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