Alio Gold Inc (TSX:ALO) (NYSE MKT:ALO) (“Alio
Gold” or the “Company”), today announced that it has awarded GDI
STRACON GyM S.A. de CV (“GDI STRACON”) the contract for developing
the underground decline at the high grade, high margin Ana Paula
project in Guerrero, Mexico. In addition, the Company has engaged
JDS Energy and Mining (“JDS”) to manage the contract and
underground mining operation.
“GDI STRACON is a highly respected mining
contractor and we are pleased to be working with them on the Ana
Paula project,” said Greg McCunn, Chief Executive Officer. “The
underground decline at Ana Paula is expected to be completed in
mid-2018 after which we will be able to commence an exploration
program that has the potential to significantly enhance the value
of the Project.”
Under the terms of the contract, the 1,200 metre
decline is expected to take 7 months after mobilization to complete
at a cost of approximately $10 million, including development of
underground drill stations. GDI STRACON anticipates development of
5-7 meters per day. Mobilization of the contractors to site is
expected in November 2017 with the establishment of the first camp
and permanent infrastructure at Ana Paula. Decline construction is
expected to follow in January 2018.
The underground decline will be driven from a
portal site located in the adjacent valley from the proposed pit
and approximately 400 meters from the proposed mill site. The
decline is being advanced to provide access for a drill program
that is targeted to confirm the continuity and shape of the
high-grade gold mineralization below the proposed pit that is
hosted in the complex breccia. It will also provide access to
explore the gold mineralization indications at depth hosted in
hornfels skarn, typical of the Guerrero Gold Belt.
A definitive feasibility study (“DFS”) is
currently underway and expected to be completed in the second
quarter of 2018 followed by a construction decision on the project.
With the exploration program targeted to commence after the DFS is
completed positive results would be incorporated into an optimized
mine plan.
About Alio Gold
Alio Gold is a growth oriented gold mining
company, focused on exploration, development and production in
Mexico. Its principal assets include its 100%-owned and
operating San Francisco Mine in Sonora, Mexico and its 100%-owned
development stage Ana Paula Project in Guerrero, Mexico. Located
within the highly prospective Guerrero Gold Belt on 56,000 hectares
of underexplored land the Ana Paula Project is a high-grade, high
margin project currently in the definitive feasibility stage. An
underground decline to provide access for an exploration drill
program has been initiated. The drill program will target the
continuation of the high-grade gold mineralization below the
proposed pit which has the potential to significantly enhance the
robust economics of the project. The Company also has a portfolio
of other exploration properties, all of which are located in
Mexico.
About GDI STRACON
GDI STRACON has extensive experience in
providing integrated mining and construction services to open pit
and underground operations. Their services span all phases of
a mining project, comprising mine planning, development,
construction, and operations, through to mine rehabilitation and
closure. With numerous projects, successfully executed in the
region, GDI STRACON has built a sustainable business based on
providing efficient and innovative services whilst maintaining the
highest standards in safety, environment, and community
relations. GDI STRACON operate a fleet of equipment,
distributed across a number of projects in Latin America.
About JDS Energy and Mining
JDS Energy & Mining Inc. (JDS) was founded
in 2004 by Jeff Stibbard and is now composed of a diverse set of
skilled and highly experienced mining and construction
professionals. With a proven record providing clients with
fit-for-purpose solutions and value delivery, JDS has acquired a
reputation for delivering and executing project plans on budget, on
time, and most importantly, safely. The JDS team prides itself on
delivering project concepts from inception to full operations – a
process it has executed seamlessly for operations throughout Canada
and the world, including the Minto Mine in the Yukon, the Gahcho
Kue Mine located in the Northwest Territories, and most recently
the Silvertip Mine in northern British Columbia.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements and
information contained in this news release constitute
“forward-looking statements” within the meaning of applicable U.S.
securities laws and “forward-looking information” within the
meaning of applicable Canadian securities laws, which we refer to
collectively as “forward-looking statements”. Forward-looking
statements are statements and information regarding possible
events, conditions or results of operations that are based upon
assumptions about future economic conditions and courses of action.
All statements and information other than statements of historical
fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words
such as “seek”, “expect”, “anticipate”, “budget”, “plan”,
“estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”,
“potential”, “target”, “may”, “could”, “would”, “might”, “will” and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in news release
herein by reference include, but are not limited to statements and
information regarding: the Company's future mining activities,
including mining capacity, recovery, cash costs, production and
mine life; the Company's reserves and resources estimates; the
Company’s exploration and development plans, including anticipated
costs and timing thereof; the Company’s plans for growth through
exploration activities, acquisitions or otherwise; and expectations
regarding future maintenance and capital expenditures, working
capital requirements, the availability of financing and future
effective tax rates. Such forward-looking statements are based on a
number of material factors and assumptions, including, but not
limited to: that contracted parties provide goods or services in a
timely manner, that no unusual geological or technical problems
occur, that plant and equipment function as anticipated and that
there is no material adverse change in the price of gold, costs
associated with production or recovery. Forward- looking statements
involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in
such forward-looking statements. The Company believes the
expectations reflected in such forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and you are cautioned not to place undue
reliance on forward-looking statements contained herein.
Some of the risks and other factors which could
cause actual results to differ materially from those expressed in
the forward- looking statements contained in this news release
herein by reference include, but are not limited to: risks and
uncertainties relating to the interpretation of drill results, the
geology, grade and continuity of mineral deposits and conclusions
of economic evaluations; results of initial feasibility,
pre-feasibility and feasibility studies, and the possibility that
future exploration, development or mining results will not be
consistent with the Company’s expectations; risks relating to
possible variations in reserves, resources, grade, planned mining
dilution and ore loss, or recovery rates and changes in project
parameters as plans continue to be refined; mining and development
risks, including risks related to accidents, equipment breakdowns,
labour disputes (including work stoppages and strikes) or other
unanticipated difficulties with or interruptions in exploration and
development; the potential for delays in exploration or development
activities or the completion of feasibility studies; risks related
to the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses; risks related to
commodity price and foreign exchange rate fluctuations; the
uncertainty of profitability based upon the cyclical nature of the
industry in which the Company operates; risks related to failure to
obtain adequate financing on a timely basis and on acceptable terms
or delays in obtaining governmental or local community approvals or
in the completion of development or construction activities; risks
related to environmental regulation and liability; political and
regulatory risks associated with mining and exploration; risks
related to the uncertain global economic environment; and other
factors contained in the section entitled “Risks and Uncertainties”
per above.
Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in the forward-looking
statements, you are cautioned that this list is not exhaustive and
there may be other factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or
revise any forward-looking statements included in, or incorporated
by reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
For further information, please
contact:
Lynette GouldVice President, Investor
Relations604-638-8976lynette.gould@aliogold.com
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX) nor
the New York Stock Exchange MKT accepts responsibility for the
adequacy or accuracy of this news release.
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