Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported new
results from surface and underground exploration drilling at the
Island Gold mine, further extending high-grade gold mineralization
in Island East and West. All reported drill widths are true width
of the mineralized zones, unless otherwise stated.
- Island
East: high-grade gold mineralization extended 20 metres (“m”) east
from the nearest Inferred Mineral Resource block, over
significantly greater widths. This included the best hole
drilled to date, 45 m down-plunge from the previous best surface
directional hole MH25-04 (28.97 g/t Au (27.96 g/t cut) over 21.76
m). MH25-08 and the previously reported MH25-04 have true widths
approximately four times greater than the average width of the
large high-grade Inferred Resource block up-plunge, demonstrating
the zone has widened in this area. New highlights include:
- 71.21
g/t Au (39.24 g/t cut) over 21.33 m (MH25-08); and
- 34.87 g/t
Au (34.87 g/t cut) over 5.98 m (MH25-07).
-
Island West: underground directional drilling extended
high-grade gold mineralization 50 m below the nearest Inferred
Mineral Resource block and partially closed the 185 m gap between
two high-grade Inferred Mineral Resource blocks. New
highlights include:
-
31.58 g/t Au (28.74 g/t cut) over 2.43 m
(740-471-41).
Note: Drillhole composite intervals reported as
“cut” may include higher grade samples which have been cut to 185
g/t Au for the Island East Area, and 225 g/t for Island Main and
West.
“Over the past year, ongoing exploration success
has driven another one million ounce increase in Mineral Reserves
and Resources at Island Gold and returned the two best
intersections to date. We expect these new results to drive further
Mineral Resource growth in one of the highest grade portions of the
ore body. This already large Mineral Resource block in Island East
is in proximity to the planned shaft and remains open laterally and
down-plunge demonstrating further significant upside to the Phase
III Expansion,” said John A. McCluskey, President and Chief
Executive Officer.
2021 Exploration Drilling Program –
Island Gold Mine
A total of $25 million is budgeted in 2021 for
surface and underground exploration at Island Gold, up from $13
million spent in 2020. The focus remains on continuing to define
new near mine Mineral Resources across the two-kilometre long
Island Gold Main Zone, as well as advancing and evaluating several
regional targets. The 2021 exploration budget includes 27,500 m of
surface directional drilling, 24,000 m of underground directional
drilling, 28,000 m of underground exploration drilling, and 900 m
of underground exploration development to extend drill platforms on
the 620, 790, and 840-levels. A 25,000 m regional exploration drill
program is also planned in 2021, significantly larger than in
previous years.
A total of 6,683 m of surface directional
diamond drilling, 3,233 m of underground directional drilling and
8,948 m of standard underground exploration diamond drilling has
been completed as of May 31, 2021. Assays remain pending on a
significant portion of this drilling; however, the turnaround time
from assay laboratories has improved over the past several
weeks.
New highlight intercepts can be found in Tables
1 and 2, and in Figures 1 and 2 at the end of this news release.
Island East
Surface Directional Drilling
Surface directional drilling continues to extend
high-grade gold mineralization beyond Mineral Resource blocks in
the lower portions of Island East with drill hole spacing ranging
from 50 m to 100 m (Figures 1 and 2).
New highlights from the drilling program include
(E1E-Zone) (Table 1):
- 71.21
g/t Au (39.24 g/t cut) over 21.33 m (MH25-08); and
- 34.87 g/t
Au (34.87 g/t cut) over 5.98 m (MH25-07).
Drillhole MH25-08 (71.21 g/t Au (39.24
g/t cut) over 21.33 m) intersected significantly wider,
high-grade mineralization 45 m and 80 m from previously reported
drillholes MH25-04 (28.97 g/t Au (27.96
g/t cut) over 21.76 m) and MH25-05
(54.18 g/t Au (33.12 g/t cut) over 6.54 m),
respectively.
In addition, drillhole MH25-08 extended
high-grade mineralization 20 m east of the existing Inferred
Mineral Resource block which contained 1,309,700 ounces, grading
18.26 g/t Au (2.23 million tonnes) as of December 31, 2020. Using
the cut weighted gold grade for metal factor calculation, drillhole
MH25-08 (71.21 g/t Au (39.24 g/t cut) over
21.33 m) is the best hole drilled to date at Island Gold
in terms of gold content for a drill hole intersect. Drillhole
MH25-07 (34.87 g/t Au (34.87 g/t cut) over 5.98 m)
also further extended high-grade mineralization at Island East,
intersecting high-grade mineralization 60 m above MH25-04, and 40 m
from the nearest Inferred Mineral Resource block.
Underground Exploration Drilling
Underground drilling from the 840-level
exploration drift continues to extend high-grade mineralization and
close the gap between Mineral Reserves and Resources in the upper
and middle portions of Island East (between depths of 850 m and
1,100 m). New highlights include (E1E-Zone) (Table 2):
- 8.88 g/t Au
(8.88 g/t cut) over 8.45 m (840-584-03); and
- 16.75 g/t Au
(16.75 g/t cut) over 2.64 m (840-590-10).
Island West
Underground directional drilling extended
high-grade mineralization 50 m beyond existing Mineral Resources
and partially closed the 185 m gap between Inferred Mineral
Resource blocks in Island West which contained 454,300 ounces,
grading 15.83 g/t Au (0.9 million tonnes) as of December 31, 2020.
New highlights include (Table 1 and Figure 1):
- 31.58
g/t Au (28.74 g/t cut) over 2.43 m (740-471-41).
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice
President, Technical Services, has reviewed and approved the
scientific and technical information contained in this news
release. Chris Bostwick is a Qualified Person within the meaning of
Canadian Securities Administrator’s National Instrument 43-101 (“NI
43-101”).
Exploration programs at the Island Gold Mine are
directed by Raynald Vincent, P.Eng., M.G.P., Chief Geologist at the
Island Gold Mine and a Qualified Person within the meaning of NI
43-101.
Quality Control
Alamos Gold maintains an internal QA/QC program
at the Island Gold Mine to ensure sampling and analysis of all
exploration work is conducted in accordance with best
practices.
Access to the Island Gold Mine is controlled by
security personnel. Drill core is logged and sampled at the core
logging facility within the mine site under the supervision of a
Qualified Geologist. A geologist marks the individual samples for
analysis, and sample intervals, sample numbers, standards and
blanks are entered into the database. The core is cut in half using
an electric core saw equipped with a diamond tipped blade. One half
of the core is placed into a plastic sample bag and sealed with zip
ties in preparation for shipment. The other half of the core is
returned to the core box and retained for future reference. The
samples are placed in large heavy-duty nylon reinforced Fabrene
bags, which are identified and sealed before being placed on
pallets. The core samples are picked up at the mine site and
delivered to Laboratoire Expert Inc. in Rouyn-Noranda, Québec or to
AGAT Laboratories in Thunder Bay, Ontario.
Gold is analyzed by a one assay-ton fire assay
(29.16 grams) with an Atomic Absorption (AA) finish. Samples
greater than 6.8 g/t are re-analyzed using gravimetric finish
methods. Laboratoire Expert Inc. has internal quality control
(“QC”) programs that include insertion of reagent blanks, reference
materials, and pulp duplicates.
The Corporation inserts QC samples (blanks and
reference materials) at regular intervals to monitor laboratory
performance. Cross check assays are completed on a regular basis in
a secondary accredited laboratory. The QA/QC procedures are more
completely described in the Technical Report filed on SEDAR August
31, 2020.
About Alamos
Alamos is a Canadian-based intermediate gold
producer with diversified production from three operating mines in
North America. This includes the Young-Davidson and Island Gold
mines in northern Ontario, Canada and the Mulatos mine in Sonora
State, Mexico. Additionally, the Company has a significant
portfolio of development stage projects in Canada, Mexico, Turkey,
and the United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons Vice
President, Investor Relations (416) 368-9932 x 5439
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release includes certain statements
that constitute forward-looking information within the meaning of
applicable Canadian and U.S. securities laws ("forward-looking
statements"). All statements in this news release, other than
statements of historical fact, which address events, results,
outcomes or developments that Alamos expects to occur are
forward-looking statements. Forward-looking statements are
generally, but not always, identified by the use of forward-looking
terminology such as “continue”, “focus”, "estimate", or “potential”
or variations of such words and phrases and similar expressions or
statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved
or the negative connotation of such terms. In particular, this news
release contains forward-looking statements including, without
limitation, with respect to the 2021 surface exploration drilling
program at the Island Gold mine, the estimation of Mineral
Resources, exploration results, potential mineralization, changes
in Mineral Resources and Mineral Reserves, Island Gold’s Phase III
expansion and other information that is based on forecasts and
projections of future operational, geological or financial results,
estimates of amounts not yet determinable and assumptions of
management.
Exploration results that include geophysics,
sampling, and drill results on wide spacings may not be indicative
of the occurrence of a mineral deposit. Such results do not provide
assurance that further work will establish sufficient grade,
continuity, metallurgical characteristics and economic potential to
be classed as a category of Mineral Resource. A Mineral Resource
that is classified as "Inferred" or "Indicated" has a great amount
of uncertainty as to its existence and economic and legal
feasibility. It cannot be assumed that any or part of an "Indicated
Mineral Resource" or "Inferred Mineral Resource" will ever be
upgraded to a higher category of Mineral Resource. Investors are
cautioned not to assume that all or any part of mineral deposits in
these categories will ever be converted into Proven and Probable
Mineral Reserves.
Forward-looking statements are necessarily based
upon a number of factors and assumptions that, while considered
reasonable by management at the time of making such statements, are
inherently subject to significant business, economic, technical,
legal, political and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements,
and undue reliance should not be placed on such statements and
information.
Such factors and assumptions underlying the
forward-looking statements in this news release include: the actual
results of current exploration activities, conclusions of economic
and geological evaluations, changes in project parameters as plans
continue to be refined, operations may be exposed to widespread
pandemic; the impact of the COVID-19 pandemic on the broader
market; provincial and federal orders or mandates (including with
respect to mining operations generally or auxiliary businesses or
services required for our operations) in Canada, Mexico, the United
States and Turkey; the duration of regulatory responses to the
COVID-19 pandemic; changes in national and local government
legislation, controls or regulations, failure to comply with
environmental and health and safety laws and regulations; labour
and contractor availability (and being able to secure the same on
favourable terms); disruptions in the maintenance or provision of
required infrastructure and information technology systems;
fluctuations in the price of gold or certain other commodities such
as, diesel fuel, natural gas, and electricity; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges and changes to
production estimates (which assume accuracy of projected ore grade,
mining rates, recovery timing and recovery rate estimates and may
be impacted by unscheduled maintenance; changes in foreign exchange
rates (particularly the Canadian dollar, U.S. dollar, Mexican peso
and Turkish Lira); the impact of inflation; employee and community
relations; litigation and administrative proceedings; disruptions
affecting operations; availability of and increased costs
associated with mining inputs and labour; delays with the Phase III
Expansion Project at the Island Gold mine; inherent risks and
hazards associated with mining and mineral processing including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures and cave-ins; the risk that
the Company’s mines may not perform as planned; uncertainty
with the Company's ability to secure additional capital to execute
its business plans; the speculative nature of mineral exploration
and development, risks in obtaining and maintaining necessary
licenses, permits and authorizations, contests over title to
properties; expropriation or nationalization of property; political
or economic developments in Canada, Mexico, the United States,
Turkey and other jurisdictions in which the Company may carry on
business in the future; increased costs and risks related to the
potential impact of climate change; the costs and timing of
construction and development of new deposits; risk of loss due to
sabotage, protests and other civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; and business
opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the Company’s latest 40-F/Annual
Information Form and Management’s Discussion and Analysis, each
under the heading “Risk Factors” available on the SEDAR website at
www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be
reviewed in conjunction with the information found in this news
release.
The Company disclaims any intention or
obligation to update or revise any forward-looking statement,
whether written or oral, or whether as a result of new information,
future events or otherwise, except as required by applicable
law.
Cautionary Note to U.S. Investors –
Mineral Reserve and Resource Estimates
All resource and reserve estimates included in
this news release have been prepared in accordance with Canadian
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects (“NI 43-101”) and the Canadian Institute of Mining,
Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on
Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended (the “CIM Standards”). NI 43-101 is a rule developed by
the Canadian Securities Administrators, which established standards
for all public disclosure an issuer makes of scientific and
technical information concerning mineral projects. The terms
“Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral
Reserve” are Canadian mining terms as defined in accordance with NI
43-101 and the CIM Standards. Investors are cautioned not to assume
that all or any part of mineral deposits in these categories will
ever be converted into reserves. “Inferred Mineral Resources” have
a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an Inferred Mineral Resource
will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of
feasibility or pre-feasibility studies, except in very limited
circumstances. Investors are cautioned not to assume that all or
any part of an Inferred Mineral Resource exists or is economically
or legally mineable. Disclosure of “contained ounces” in a Mineral
Resource is permitted disclosure under Canadian regulations.
Table 1: Island Gold – Previously
Unreleased Select Composite Intervals from Surface and Underground
Directional Exploration Drilling
Composite intervals greater than 3 g/t Au
weighted average, capping values: Island West @
225 g/t Au; Island East @ 185 g/t Au.
Hole ID |
Zone |
Target Area |
From (m) |
To (m) |
Core Length (m) |
True Width (m) |
Au Uncut (g/t) |
Au Cut (g/t) |
Vertical Depth (m) |
740-471-41 |
C |
Island West |
634.05 |
641.00 |
6.95 |
2.43 |
31.58 |
28.74 |
1295 |
MH25-07 |
E1E |
Island East |
1562.90 |
1569.30 |
6.40 |
5.98 |
34.87 |
34.87 |
1373 |
MH25-08 |
E1E |
Island East |
1589.80 |
1614.90 |
25.10 |
21.33 |
71.21 |
39.24 |
1455 |
MH26-02 |
E1E |
Island East |
1536.00 |
1539.90 |
3.90 |
3.41 |
4.97 |
4.97 |
1445 |
MH26-03 |
E1E |
Island East |
1551.70 |
1558.40 |
6.70 |
4.78 |
6.52 |
6.52 |
1470 |
Table 2: Island Gold – Previously
Unreleased Select Composite Intervals from Underground Exploration
Drilling
Composite intervals greater than 3 g/t Au
weighted average, capping values:Western and Main
Extension areas @ 225 g/t Au; Eastern Extension area @ 185 g/t
Au.
Hole ID |
Zone |
Target Area |
From (m) |
To (m) |
Core Length (m) |
True Width (m) |
Au Uncut (g/t) |
Au Cut (g/t) |
Vertical Depth (m) |
620-623-11 |
E1E |
Island East |
98.95 |
101.4 |
2.45 |
2.11 |
3.21 |
3.21 |
506.21 |
840-584-03 |
E1E |
Island East |
175.73 |
187.4 |
11.67 |
8.45 |
8.88 |
8.88 |
923.15 |
840-590-06 |
E1E |
Island East |
134.4 |
137.5 |
3.1 |
2.59 |
3.2 |
3.2 |
870.36 |
840-590-10 |
E1E |
Island East |
173.9 |
177.4 |
3.5 |
2.64 |
16.75 |
16.75 |
928.36 |
840-602-20 |
E1E |
Island East |
144.2 |
147.3 |
3.1 |
2.41 |
8.18 |
8.18 |
906.62 |
840-602-32 |
E1E |
Island East |
186.5 |
194.1 |
7.6 |
4.53 |
4.63 |
4.63 |
950.18 |
Table 3: Surface and underground
directional drill holes; azimuth, dip, drilled length, and collar
location at surface (UTM NAD83)
Hole ID |
Azimuth (°) |
Dip (°) |
Drilled Length (m) |
UTM Easting (m) |
UTM Northing (m) |
UTM Elevation (m) |
Comments |
740-471-38 |
85 |
-38 |
588 |
690297 |
5351608 |
-369 |
|
740-471-39A |
108 |
-75 |
550 |
690297 |
5351608 |
-369 |
Cut from 740-471-39 at 450 m |
740-471-41 |
126 |
-62 |
810 |
690297 |
5351608 |
-369 |
|
740-471-42B |
148 |
-67 |
330 |
690297 |
5351608 |
-369 |
Cut from 740-471-42 at 519 m |
MH24-03 |
338 |
-77 |
968 |
692027 |
5351126 |
395 |
Cut from MH24-02 at 756 m |
MH25-07 |
335 |
-80 |
1306 |
692314 |
5351074 |
398 |
Cut from MH25-06 at 894 m |
MH25-08 |
335 |
-80 |
778 |
692314 |
5351074 |
398 |
Cut from MH25-07 at 933 m |
MH26-02 |
338 |
-79 |
1305 |
692210 |
5351208 |
394 |
Cut from MH26-01 at 495 m |
MH26-03 |
338 |
-79 |
894 |
692210 |
5351208 |
394 |
Cut from MH26-02 at 911 m |
MH27-01 |
338 |
-76 |
2075 |
692344 |
5351146 |
392 |
|
Note: UTM mine surface elevation 382 m
Table 4: UG Exploration drill holes;
azimuth, dip, drilled length, and collar location at surface (UTM
NAD83)
Hole ID |
Azimuth (°) |
Dip (°) |
Drilled Length (m) |
UTM Easting (m) |
UTM Northing (m) |
UTM Elevation (m) |
620-623-12 |
161 |
26 |
144 |
691707 |
5352177 |
-207 |
620-623-16A |
169 |
6 |
144 |
691735 |
5352189 |
-207 |
840-584-02 |
159 |
-5 |
228 |
691378 |
5351957 |
-456 |
840-584-03 |
159 |
-28 |
267 |
691378 |
5351957 |
-457 |
840-590-04 |
167 |
-5 |
189 |
691442 |
5351957 |
-454 |
840-590-06 |
161 |
-15 |
210 |
691442 |
5351957 |
-454 |
840-590-08 |
147 |
-15 |
219 |
691442 |
5351957 |
-454 |
840-590-09 |
144 |
-24 |
234 |
691442 |
5351957 |
-454 |
840-590-10 |
164 |
-32 |
237 |
691442 |
5351957 |
-454 |
840-602-16 |
166 |
-5 |
183 |
691562 |
5351985 |
-453 |
840-602-20 |
166 |
-30 |
216 |
691562 |
5351985 |
-453 |
840-602-22 |
151 |
-5 |
186 |
691561 |
5351984 |
-453 |
840-602-32 |
180 |
-37 |
234 |
691560 |
5351985 |
-453 |
Note: UTM mine surface elevation 382 m
Figure 1: Island Gold Mine
Longitudinalhttps://www.globenewswire.com/NewsRoom/AttachmentNg/62069db0-d8e0-4615-9e65-6b3547689725
Figure 2: Island Gold Mine Main and East
Areas – Surface and Underground Directional Drilling
Resultshttps://www.globenewswire.com/NewsRoom/AttachmentNg/e52dec25-aa6c-4121-b06f-a266c64300e2
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