With a final feasibility study imminent on Argentina's Leon copper project, Alexander Mining is bullish on Peru's Molinetes gold property.

Matt Sutcliffe, chairman and chief executive officer of AIM-quoted Alexander, says 'we are less than two weeks away from full feasibility' at Leon in north west Argentina's Salta province. 'We are going full steam ahead,' he declares, with full support from the provincial government, 'and we should see cash flow in early 2008.'

In January, the company announced total indicated and inferred resources at two oxide deposits within the Leon structure. It reported 24,000 tonnes of copper at an average grade of 0.9 per cent and 1.6 million oz of silver at El Cobre and 17,100 tonnes of copper grading an average 0.45 per cent and 2.1 million oz of silver at El Plomo.

Drilling is under way Arbol Sol, a big structure 26 km to the south, following 'encouraging' trial exploration. Ex-corporate financier Sutcliffe also enthuses about Molinetes, Alexander's high-grade gold property in northern Peru, for which the company received official authorisation earlier this month.

Alexander says local miners have exploited quartz veins hosting 'bonanza' grades of more than 16 grammes of gold per tonne of ore in the vicinity and Sutcliffe speaks of individual samples of up to 1,200 grammes a tonne. He describes Molinetes as a 'very exciting new discovery' and points out that it is in the same area of Peru as Newmont Mining's 36 million-oz Yanacocha mine, the largest gold producer in South America.

'We are cashed up and we will build mines,' declares Sutcliffe, who describes the company's projects as 'small but lucrative'. Alexander lost £1.5 million in the six months to June, but ended the half year still with £2.4 million cash and nearly £14 million in short-term bank deposits.

Floated two years ago at 30p, Alexander shares now languish at 20.25p. They offer distinct speculative possibilities, provided the sector holds up.