Gold producer Alexis Minerals (TSE:AMC) said Tuesday since initiating its turnaround plan for the Lac Herbin Mine in Val D’Or, Quebec production levels and cash costs have stabilized.
The company said recovery rates for the first quarter have increased compared with the fourth quarter's lower than expected average recovery rates of around 81 percent.
For the first quarter of 2012, the company produced about 5,500 ounces of gold and included 700 ounces of custom milling from its Lac Herbin Mine.
That is in line with its prior guidance for 2012 production of 18,500 to 20,500 ounces for this year, the company said.
Production costs will be released along with first quarter results in May.
"The first quarter production is in line with our guidance for the year and demonstrates that operations are now beginning to achieve their objectives," Alexis Minerals' chief executive Francois Perron said.
The company, which also has properties in the Rouyn-Noranda region of Quebec and at Snow Flake, Manitoba, said it now expects a mineral resource update at the start of second quarter.
Initially, Alexis had expected to publish the resource estimate in the first quarter, but interruptions in compiling final results delayed the report’s release.
The Lac Herbin properties cover a surface area of 9,706-hectares. The Aurbel-Lac Herbin properties consist of 431 claims, four mining leases and one surface lease.
In addition, the properties include two past mining operations: the Dumont and Ferderber mines that produced about 610,000 ounces of gold.
Alexis Minerals’ share price traded at four cents each on the Toronto Stock Exchange Tuesday.
Alexis Minerals says turnaround plan stabilizes production levels at Lac Herbin Mine
Published: 02:07 11 Apr 2012 AEST