June 8, 2011 / 12:05 PM / in 6 years

UPDATE 2-Alexis sees profit at flagship gold mine after ramp-up

(Adds share movement)

* To build infrastructure, add manpower to Lac Herbin mine

* Sees 2012 gold output of 15,000-20,000 ounces at mine

* Sees 2012 rev of C$22-C$38 mln from the mine

* Shares up 6 percent

June 8 (Reuters) - Canadian miner Alexis Minerals Corp expects its flagship Lac Herbin gold mine in Val-d‘Or, Quebec to return to profitability once plans to revamp the project are completed by the third quarter, sending its shares up 6 percent.

Alexis’ plan involves intensive underground development, exploring in areas near the mine and improving the recovery rate at the Aurbel mill, it said in a statement.

Lower grades at the mine had hurt the company’s fourth-quarter output, and Alexis now plans to build new infrastructure and employ more manpower at the mine to boost output.

Alexis expects to produce 15,000-20,000 ounces of gold at the mine in 2012 which would amount to C$22-C$38 million ($22.6-$39.0 million) in revenue. The mine’s output was about 22,637 ounces in 2010.

The company is also aiming to raise recovery rate at the Aurbel mill to 92 percent from the current levels of 89.3 percent.

Shares of the company, which also own properties in the Abitibi Mining District in Quebec and the Snow Lake Mining Camp in Manitoba, were trading up 0.5 Canadian cents at 9 Canadian cents on Wednesday on the Toronto Stock Exchange. ($1 = 0.974 Canadian Dollars) (Reporting by Aftab Ahmed in Bangalore; Editing by Savio D‘Souza)

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