The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor The long-awaited restart of an idle Snow Lake gold mine could be one step closer, but residents of the northern town may be taking a wait-and-see approach. Alexis Minerals Corp. plans to use proceeds from the sale of a base-metal property in Quebec to help commence production once again at the former New Britannia Mine. Alexis recently entered into a letter of intent to sell to Vancouver-based Druk Capital Partners its base metals camp in Rouyn-Noranda, Quebec, for $5 million and a 19 per cent ownership stake in Druk. A key benefit of the deal, Alexis said, is the increased cash position it will gain to move the New Britannia project forward. 'I am pleased to be strategically partnering with Druk, which we believe will allow for the rapid mobilization of exploration efforts in Rouyn, while allowing Alexis to advance on its core priorities as well,' said Francois Perron, president and CEO of Alexis, in a news release. 'Entering into this agreement with Druk is an important strategic move for the future of Alexis. The structure of the deal is such that it will still allow Alexis to participate in the exploration upside of the property, which we continue to believe is impressive, yet it allows us to move forward in our goal of getting the Snow Lake project closer to production.' Tempered Despite this latest development, residents of Snow Lake may keep their enthusiasm tempered. After all, Alexis has spent the past few years talking about restarting New Britannia, to no avail thus far. At one point the company even announced plans for production in early 2011. The property _ now called the Snow Lake Mine _ saw its first production between the mid-1940s and the late 1950s. It closed for more than three decades before reopening in 1995. The mine was shut down again in 2005 and has remained closed ever since. Alexis has indicated bringing the mine back into production could create about 200 jobs _ a major boon to Snow Lake, which is already gearing up for Hudbay's Lalor Mine. The Toronto-based Alexis has termed 'favourable' the results of a feasibility study surrounding the potential restart of the mine. The company said the study confirmed an estimated 80,000 ounces of gold per year over five years at an average cost of US$640 per ounce, after an initial capital cost of C$39.7 million over a one-year period.
