All amounts are in United States dollars,
unless otherwise stated.
Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) (“Alamos” or the “Company”)
today reported its updated mineral reserves and resources as of
December 31, 2017. For a detailed summary of mineral reserves and
resources by project, refer to the tables below.
Highlights
- Global Proven and Probable mineral reserves increased
28%, or 2.1 million ounces, to 9.8 million ounces of gold,
(203 million tonnes (“mt”) grading 1.50 grams per tonne of gold
(“g/t Au”)) net of mining depletion, with grades increasing 16%.
The increase reflects the addition of Island Gold (with the
acquisition of Richmont Mines closing November 23, 2017), further
growth at La Yaqui Grande and the declaration of an initial mineral
reserve at Lynn Lake
- Island Gold’s Proven and Probable mineral reserves
increased 18% to 887,000 ounces of gold, (2.7 mt grading
10.20 g/t Au) net of mining depletion. Mineral reserve grades also
increased 11% to 10.20 g/t Au compared to 9.17 g/t Au at the end of
2016. Since 2014, mineral reserves have increased 383% in terms of
ounces and 60% in terms of grade
- Increased Proven and Probable mineral reserves at La
Yaqui Grande to 644,000 ounces of gold, (14.3 mt grading
1.40 g/t Au) a 24%, or 123,000 ounce increase. Including
additions within the Mulatos Pit, this offset mining depletion at
Mulatos
- Initial Proven and Probable mineral reserve declared at
Lynn Lake of 1.6 million ounces of gold (26.8 mt grading
1.89 g/t Au) with the release of the positive feasibility study in
December 2017
- Global Measured and Indicated mineral resources
decreased 21% to 7.4 million ounces of gold, (207 mt
grading 1.1 g/t Au) reflecting the conversion of mineral resources
to mineral reserves at Lynn Lake
- Global exploration budget of $36 million, a 50%
increase from 2017 with nearly 80% of the spending to be
focused on following up exploration success at Island Gold and the
Mulatos District
“Alamos’ reserve base has grown substantially over the past
several years, both in size and quality. Our 2017 exploration
program is a continuation of this success, highlighted by strong
increases at Island Gold in terms of ounces and grade. With
reserves approaching 10 million ounces of gold, this represents one
of the highest quality, longest life reserve bases in some of the
best jurisdictions in the world. With significant potential at each
of our core operations and development projects, we look forward to
continued exploration success,” said John A. McCluskey, President
and Chief Executive Officer.
|
TOTAL MINERAL RESERVES AND
RESOURCES |
|
|
|
|
|
|
|
|
|
|
Proven and Probable Gold Mineral
Reserves |
|
2017 |
2016 |
% Change |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
857 |
0.98 |
27 |
1,165 |
0.91 |
34 |
-26 |
% |
8 |
% |
-21 |
% |
Young-Davidson - Underground |
40,011 |
2.67 |
3,440 |
42,054 |
2.70 |
3,653 |
-5 |
% |
-1 |
% |
-6 |
% |
Total Young-Davidson |
40,868 |
2.64 |
3,467 |
43,220 |
2.65 |
3,687 |
-5 |
% |
-1 |
% |
-6 |
% |
Island Gold |
2,703 |
10.20 |
887 |
- |
- |
- |
- |
|
- |
|
- |
|
Mulatos Mine |
21,944 |
0.88 |
624 |
26,020 |
0.90 |
750 |
-16 |
% |
-1 |
% |
-17 |
% |
Stockpiles |
8,855 |
1.30 |
370 |
7,129 |
1.38 |
317 |
24 |
% |
-6 |
% |
17 |
% |
La Yaqui |
1,444 |
1.39 |
65 |
1,939 |
1.40 |
87 |
-26 |
% |
- |
|
-26 |
% |
La Yaqui Grande |
14,325 |
1.40 |
644 |
11,548 |
1.40 |
521 |
24 |
% |
- |
|
24 |
% |
Cerro Pelon |
3,253 |
1.63 |
170 |
3,253 |
1.63 |
170 |
- |
|
- |
|
- |
|
Underground |
39 |
12.05 |
15 |
106 |
11.65 |
40 |
-63 |
% |
3 |
% |
-62 |
% |
Total Mulatos |
49,860 |
1.18 |
1,888 |
49,995 |
1.17 |
1,885 |
- |
|
- |
|
- |
|
El Chanate - Open Pit |
2,700 |
0.63 |
54 |
10,812 |
0.56 |
193 |
-75 |
% |
13 |
% |
-72 |
% |
El Chanate - Leach Pad Inv. |
- |
- |
80 |
- |
- |
100 |
- |
|
- |
|
-20 |
% |
Total El Chanate |
2,700 |
- |
135 |
10,812 |
- |
293 |
-75 |
% |
- |
|
-54 |
% |
Total Lynn Lake |
26,803 |
1.89 |
1,625 |
- |
- |
- |
- |
|
- |
|
- |
|
Ağı Dağı |
54,361 |
0.67 |
1,166 |
54,361 |
0.67 |
1,166 |
- |
|
- |
|
- |
|
Kirazlı |
26,104 |
0.79 |
665 |
26,104 |
0.79 |
665 |
- |
|
- |
|
- |
|
Total Turkey |
80,465 |
0.71 |
1,831 |
80,465 |
0.71 |
1,831 |
- |
|
- |
|
- |
|
Alamos - Total |
203,399 |
1.50 |
9,832 |
184,492 |
1.30 |
7,696 |
10 |
% |
16 |
% |
28 |
% |
|
|
|
|
|
|
|
|
|
|
Measured and Indicated Gold Mineral Resources
(exclusive of Mineral Reserves) |
Young-Davidson - Surface |
1,739 |
1.24 |
69 |
1,739 |
1.24 |
69 |
- |
|
- |
|
- |
|
Young-Davidson - Underground |
11,374 |
3.53 |
1,291 |
10,792 |
3.39 |
1,177 |
5 |
% |
4 |
% |
10 |
% |
Total Young-Davidson |
13,113 |
3.23 |
1,361 |
12,531 |
3.09 |
1,246 |
5 |
% |
4 |
% |
9 |
% |
Island Gold |
591 |
5.86 |
111 |
- |
- |
- |
- |
|
- |
|
- |
|
Mulatos Mine |
69,467 |
1.10 |
2,461 |
72,491 |
1.10 |
2,554 |
-4 |
% |
1 |
% |
-4 |
% |
Underground |
519 |
4.68 |
78 |
558 |
5.20 |
93 |
-7 |
% |
-10 |
% |
-16 |
% |
La Yaqui Grande |
3,045 |
1.11 |
109 |
1,108 |
1.91 |
68 |
175 |
% |
-42 |
% |
60 |
% |
Cerro Pelon |
572 |
2.56 |
47 |
572 |
2.56 |
47 |
- |
|
- |
|
- |
|
Carricito |
1,355 |
0.83 |
36 |
1,355 |
0.83 |
36 |
- |
|
-1 |
% |
-1 |
% |
Total Mulatos |
74,958 |
1.13 |
2,731 |
76,084 |
1.14 |
2,798 |
-1 |
% |
-1 |
% |
-2 |
% |
El Chanate |
5,757 |
0.72 |
134 |
4,415 |
0.66 |
93 |
30 |
% |
10 |
% |
43 |
% |
Lynn Lake |
7,972 |
1.91 |
490 |
40,303 |
2.03 |
2,629 |
-80 |
% |
-6 |
% |
-81 |
% |
Esperanza |
34,352 |
0.98 |
1,083 |
34,352 |
0.98 |
1,083 |
- |
|
- |
|
- |
|
Turkey |
58,574 |
0.59 |
1,108 |
58,574 |
0.59 |
1,108 |
- |
|
- |
|
- |
|
Quartz Mountain |
12,156 |
0.87 |
339 |
12,156 |
0.87 |
339 |
- |
|
- |
|
- |
|
Alamos - Total |
207,472 |
1.10 |
7,357 |
238,415 |
1.21 |
9,298 |
-13 |
% |
-9 |
% |
-21 |
% |
|
|
|
|
|
|
|
|
|
|
Inferred Gold Mineral Resources |
Total Young-Davidson |
3,528 |
2.74 |
311 |
3,555 |
2.75 |
314 |
-1 |
% |
- |
|
-1 |
% |
Island Gold |
2,958 |
9.55 |
908 |
- |
- |
- |
- |
|
- |
|
- |
|
Mulatos Mine |
8,804 |
0.92 |
261 |
8,935 |
0.92 |
265 |
-1 |
% |
- |
|
-2 |
% |
Underground |
162 |
4.93 |
26 |
162 |
4.93 |
26 |
- |
|
- |
|
- |
|
La Yaqui Grande |
303 |
0.97 |
9 |
174 |
1.39 |
8 |
74 |
% |
-30 |
% |
13 |
% |
Cerro Pelon |
109 |
1.23 |
4 |
109 |
1.23 |
4 |
- |
|
- |
|
- |
|
Carricito |
900 |
0.74 |
22 |
900 |
0.74 |
22 |
- |
|
- |
|
- |
|
Total Mulatos |
10,278 |
0.97 |
322 |
10,280 |
0.98 |
325 |
- |
|
-1 |
% |
-1 |
% |
El Chanate |
52 |
0.79 |
1 |
112 |
0.71 |
3 |
-53 |
% |
12 |
% |
-48 |
% |
Lynn Lake |
45,923 |
1.11 |
1,646 |
50,704 |
1.28 |
2,089 |
-9 |
% |
-13 |
% |
-21 |
% |
Esperanza |
718 |
0.80 |
18 |
718 |
0.80 |
18 |
- |
|
- |
|
- |
|
Turkey |
25,240 |
0.54 |
438 |
25,240 |
0.54 |
438 |
- |
|
- |
|
- |
|
Quartz Mountain |
39,205 |
0.91 |
1,147 |
39,205 |
0.91 |
1,147 |
- |
|
- |
|
- |
|
Alamos - Total |
127,903 |
1.17 |
4,791 |
129,815 |
1.04 |
4,334 |
-1 |
% |
12 |
% |
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mineral Reserves
Global Proven and Probable mineral reserves increased by 28% to
9.8 million ounces of gold, net of mining depletion as of December
31, 2017. This reflects the addition of Island Gold, following the
completion of the Richmont Mines acquisition on November 23, 2017,
further growth at La Yaqui Grande and the declaration of an initial
mineral reserve at Lynn Lake. These increases were partially offset
by mining depletion at Young-Davidson and El Chanate with no
exploration drilling conducted at either operation in 2017.
The Island Gold deposit continues to demonstrate significant
growth, both in terms of the size and quality of its mineral
reserve base. Island Gold’s mineral reserves increased a further
18% in 2017 to 887,000 ounces compared to the end of 2016. This is
a continuation of a strong trend since 2014 which has seen mineral
reserves grow by 383%. Mineral reserve additions of 236,000 ounces
more than offset mining depletion of 102,000 ounces. The mineral
reserve grade increased a further 11% to 10.20 g/t Au, marking a
60% increase since 2014. This growth was part of a successful 2017
program focused on upgrading a portion of the large inferred
mineral resource base.
La Yaqui Grande’s mineral reserves grew 24% to 644,000 ounces
following up on an initial mineral reserve of 521,000 ounces
declared at the end of 2016. The majority of the growth came
through mineral reserve additions within Zones 2 and 3. La Yaqui
Grande is now more than seven times the size of La Yaqui Phase I
based on its initial mineral reserve. La Yaqui Phase I was
constructed and brought into production during 2017.
Mineral Reserves across the Mulatos District were unchanged at
1.9 million ounces with the additions at La Yaqui Grande and the El
Salto area of the Mulatos Pit, offsetting mining depletion.
At Lynn Lake, an initial Proven and Probable mineral reserve of
1.6 million ounces was declared reflecting the successful
conversion of Measured, Indicated and Inferred mineral resources as
detailed in the feasibility study on the project, results of which
were released in December 2017.
No exploration drilling was conducted at Young-Davidson given
its existing long life mineral reserve base of 14 years.
Exploration activities are expected to recommence once the lower
mine has been developed. Similarly, no exploration was conducted at
El Chanate with mining operations expected to cease in 2018.
A $1,250 per ounce gold price assumption was used in estimating
2017 mineral reserves, unchanged from 2016. A detailed summary of
Proven and Probable mineral reserves as of December 31, 2017 is
presented in Table 1 at the end of this press release.
Mineral Resources
Global Measured and Indicated mineral resources (exclusive of
mineral reserves) totaled 7.4 million ounces as of December 31,
2017. This represents a 21% decrease from the end of 2016
reflecting the conversion of mineral resources at Lynn Lake to
mineral reserves, partially offset by the addition of Island Gold
and increases at Young-Davidson and La Yaqui Grande.
Global Inferred mineral resources totaled 4.8 million ounces as
of December 31, 2017, up 11% from 2016 reflecting the addition of
Island Gold, partially offset by the successful conversion of
mineral resources at Lynn Lake to mineral reserves.
The Company’s $1,400 per ounce gold price assumption for
estimating mineral resources is unchanged from 2016. Detailed
summaries of the Company’s Measured and Indicated, and Inferred
mineral resources as of December 31, 2017 are presented in Tables 3
and 4 respectively, at the end of this press release.
Island Gold
|
2017 |
2016 |
% Change |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Proven & Probable Mineral Reserves |
2,703 |
10.20 |
887 |
2,551 |
9.17 |
752 |
6 |
% |
11 |
% |
18 |
% |
Measured & Indicated Mineral Resources |
591 |
5.86 |
111 |
479 |
5.94 |
91 |
23 |
% |
-1 |
% |
22 |
% |
Inferred Mineral Resources |
2,958 |
9.55 |
908 |
3,042 |
10.18 |
996 |
-3 |
% |
-6 |
% |
-9 |
% |
Island Gold’s mineral reserves increased 18% to 887,000 ounces,
net of mining depletion, from the end of 2016. The 2017 exploration
program was focused on upgrading a portion of the large inferred
mineral resource base and successful in adding 236,000 ounces of
new mineral reserves, more than offsetting mining depletion of
102,000 ounces.
Mineral reserve grades also increased 11% to 10.20 g/t Au as the
mineral reserve continues to grow both in size and quality. Over
the past three years, Island Gold’s mineral reserve has grown by
more than 700,000 ounces, net of mining depletion, for a 383%
increase. Over the same period, the mineral reserve grade has
increased from 6.39 g/t Au to 10.20 g/t Au for a 60% increase.
Based on throughput rates of 1,100 tonnes per day (“tpd”),
Island Gold has a current mineral reserve life of approximately
seven years. With a large mineral resource base, significant
exploration potential, and strong track record of mineral resource
additions and conversion to mineral reserves, the Company expects a
significantly longer mine life.
Measured and Indicated mineral resources increased 22% to
111,000 ounces while Inferred mineral resources decreased 9% to
908,000 ounces reflecting the above noted conversion of mineral
resources to mineral reserves. Despite not being a primary
focus, 147,000 ounces of Inferred mineral resources were added,
replacing nearly two-thirds of the 236,000 ounces that were
converted to mineral reserves.
The 2017 exploration program was also successful in outlining
additional gold mineralization down plunge to the southeast.
The majority of the exploration drill results in this area are not
yet at the required drill spacing to allow for inclusion into the
Inferred mineral resource category.
Previously released highlight intercepts not included in year
end 2017 mineral reserve or resource calculations include (all true
width and capped at 70 g/t Au):
- 19.85 g/t Au over 8.40 metres (“m”) (MH8-4, E1E Zone);
- 17.67 g/t Au over 2.30 m (MH10-2, E1E Zone);
- 11.36 g/t Au over 3.57 m (MH10-3, E1E Zone); and
- 10.48 g/t Au over 2.92 m (MH9-5A, E1E Zone).
See Figure 1 for locations of the above noted intercepts and
Table 5 at the end of this press release.
These results all sit down plunge to the southeast of the main
mineralization at Island Gold. The 2018 exploration program
will be focused on converting this newly outlined zone of
mineralization into the Inferred mineral resource category by the
end of 2018. This new zone of mineralization and the area of
Inferred mineral resources above it (to the northwest) form an area
with similar dimensions as the Phase I PEA expansion
area.
The 2018 exploration program (see Figure 2) will also be focused
on further drilling below the 1,000 m level, both beneath the
existing mine infrastructure and to the west, and first pass
drilling over the five to six kilometre long strike extent of the
Goudreau Deformation Zone to the east of the main Island Gold
Deposit. A total of $15 million and 84,000 m has been budgeted for
the 2018 exploration program at Island Gold, consistent with what
was spent in 2017.
Young-Davidson
Mineral reserves at Young-Davidson decreased 0.2 million ounces
to 3.5 million ounces of gold, reflecting mining depletion. Given
its large existing mineral reserve base, long mineral reserve life
of approximately 14 years, and it being cost prohibitive to drill
from surface, exploration has not been a focus. Exploration
activities will recommence once the lower mine has been developed
allowing for drilling platforms at depth. The operation has
excellent exploration potential with the deposit open at depth and
to the west.
Young-Davidson also hosts a large Measured and Indicated mineral
resource base of 1.4 million ounces, which increased 0.1 million
ounces through underground infill drilling. The Company expects a
strong conversion rate of mineral resources to mineral reserves
through additional stope definition and infill drilling and further
potential to add to the mineral resource base. Inferred mineral
resources of 0.3 million ounces were largely unchanged.
In addition to the underground mineral reserves, the Company has
0.9 million tonnes of surface stockpiles grading 0.98 g/t Au. These
stockpiles will be used to supplement higher grade underground ore
until the tie in of the upper and lower mine is completed. The tie
in is currently scheduled for the fourth quarter of 2019, after
which underground mining rates are expected to ramp up above 7,500
tpd. Based on expected underground mining rates, the remaining
mineral reserve life of the Young-Davidson mine is approximately 14
years as of December 31, 2017.
Mulatos
Total Mulatos District mineral reserves (including La Yaqui
Grande and Cerro Pelon) of 1.9 million ounces grading 1.18 g/t Au
were unchanged with mineral reserve additions at La Yaqui Grande
and the El Salto portion of the Mulatos Mine, offsetting mining
depletion.
Based on the 2018 budgeted throughput rates, the remaining
mineral reserve life of the Mulatos District is approximately eight
years, as of December 31, 2017.
Underground mineral reserves at Mulatos decreased 25,000 ounces
reflecting mining depletion at San Carlos. The Company continues to
have success mining ore outside of the remaining mineral reserves
with depletion of 67,000 tonnes, approximately half the 133,000
tonnes milled. The Company expects remaining mineral reserves to be
depleted during the first half of 2018.
Measured and Indicated mineral resources at Mulatos of 2.7
million ounces are largely unchanged with additions at La Yaqui
Grande partially offsetting a decrease in the Mulatos Mine
reflecting the conversion of mineral resources at El Salto to
mineral reserves. Inferred mineral resources at Mulatos were
unchanged at 0.3 million ounces.
La Yaqui Grande
Mineral reserves at La Yaqui Grande increased 24%, or 123,000
ounces to 644,000 ounces, with the mineral reserve grade unchanged
at 1.40 g/t Au. The bulk of the increase was driven through
further exploration success in Zone 2 and an initial mineral
reserve in Zone 3. This followed an initial mineral reserve of
521,000 ounces declared on the project at the end of 2016. In the
span of two years, La Yaqui Grande has grown substantially and is
now more than seven times the size of La Yaqui Phase I which was
brought into production in September 2017.
La Yaqui Grande’s mineral reserve grade of 1.40 g/t Au is 59%
higher than the Mulatos Mine mineral reserve grade of 0.88 g/t Au.
Similar to La Yaqui Phase I, the higher grades are expected to
support lower cost production than current levels at the Mulatos
Mine.
Additionally, the Measured and Indicated mineral resource at La
Yaqui Grande increased by 41,000 ounces to now total 109,000
ounces.
Mulatos District Exploration
A total of $13 million and 41,500 m has been budgeted at Mulatos
for exploration in 2018. El Carricito will be a key focus with
mapping, sampling and geophysics planned for the first half of the
year followed by approximately 10,000 m of scout drilling in the
second half of 2018. The field programs at El Carricito commenced
in the fourth quarter of 2017 with mapping and sampling already
underway.
Lynn Lake
An initial mineral reserve totaling 1.6 million ounces was
declared on the Lynn Lake project reflecting the successful
conversion of Measured, Indicated and Inferred Mineral Resources at
the Gordon and MacLellan deposits. This was outlined in the
feasibility study completed on the project and published earlier
this year. Based on the feasibility mine plan, Lynn Lake has an
expected mineral reserve life of more than 10 years.
Measured and Indicated mineral resources on the project
decreased to 0.5 million ounces reflecting the conversion to
mineral reserves. The Lynn Lake project combined with the
Burnt Timber and Linkwood deposits also host Inferred mineral
resources totalling 1.6 million ounces. This was also down from a
year ago reflecting the conversion of some of these Inferred
mineral resources to mineral reserves.
A total of $4 million and 10,000 m has been budgeted for
exploration at the Lynn Lake project in 2018. The focus of
the 2018 program will be regional scale targeting, prospect
delineation and ranking through mapping, sampling and geophysics
and technical studies on structures, veins and stratigraphy.
Drilling adjacent to known deposits and scout drilling on the
southern shear, over regional targets is also planned.
El Chanate
El Chanate’s mineral reserves decreased to 135,000 ounces with
mining activities expected to wind down mid-2018. Given the
long leach cycle at El Chanate, the Company expects to benefit from
ongoing gold production beyond 2018 through residual leaching of
the pad. This is expected to drive higher mine-site free cash flow
from the operation in the second half of the year and into
2019.
Kirazlı, Ağı Dağı, Çamyurt, Esperanza and Quartz Mountain
Mineral reserves and resources for the Kirazlı, Ağı Dağı,
Çamyurt, Esperanza and Quartz Mountain projects were unchanged from
a year ago.
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”). The
Qualified Persons for the National Instrument 43-101 compliant
mineral reserve and resource estimates are detailed in the
following table.
Resources |
|
|
Jeffrey Volk, CPG, FAusIMM |
Director - Reserves and Resource, Alamos Gold Inc. |
Young-Davidson, El Chanate, San Carlos U/G, Lynn Lake |
Raynald Vincent, P.Eng., M.G.P. |
Chief Geologist - Island Gold |
Island Gold |
Marc Jutras, P.Eng |
Principal, Ginto Consulting Inc. |
Mulatos Pits, Cerro Pelon, La Yaqui, Carricito, Esperanza, Ağı
Dağı, Kirazlı, Çamyurt, Quartz Mountain |
|
|
|
Reserves |
|
|
Chris Bostwick, FAusIMM |
VP Technical Services, Alamos Gold Inc. |
Young-Davidson, El Chanate, San Carlos Underground, Lynn Lake |
Leon LeBlanc, P.Eng |
Chief Engineer - Island Gold |
Island Gold |
Herb Welhener, SME-QP |
VP, Independent Mining Consultants Inc. |
Mulatos Pits, Cerro Pelon, La Yaqui, Ağı Dağı, Kirazlı |
With the exception of Mr. Volk, Mr. Bostwick, Mr. Vincent, and
Mr. LeBlanc each of the foregoing individuals are independent of
Alamos Gold.
Exploration programs for the Company are directed by Aoife
McGrath, M.Sc., M.AIG, Alamos' Vice President of Exploration and a
Qualified Person under the requirements of National Instrument
43-101.
About Alamos
Alamos is a Canadian-based intermediate gold producer with
diversified production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos and El Chanate mines 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 |
|
|
|
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 "forward-looking statements".
All statements other than statements of historical fact included in
this release are forward-looking statements that involve various
risks and uncertainties. These forward-looking statements include,
but are not limited to, statements with respect to planned
exploration programs, costs and expenditures, changes in mineral
resources and conversion of mineral resources to proven and
probable reserves, and other information that is based on forecasts
of future operational or financial results, estimates of amounts
not yet determinable and assumptions of management.
These forward-looking statements include, but are not limited
to, statements with respect to future exploration potential,
project economics, timing and scope of future exploration,
anticipated costs and expenditures, changes in mineral resources
and conversion of mineral resources to proven and probable
reserves, and other information that is based on forecasts of
future operational or financial results, estimates of amounts not
yet determinable and assumptions of management.
Any statements that express or involve discussions with respect
to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate",
"plans", "estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements." Forward-looking statements
are subject to a variety of risks and uncertainties that could
cause actual events or results to differ from those reflected in
the forward-looking statements.
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 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 reserves.
There can be no assurance that forward-looking statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Alamos' expectations include, among others, risks
related to international operations, risks related to obtaining the
permits required to carry out planned exploration or development
work, the actual results of current exploration activities,
conclusions of economic evaluations and changes in project
parameters as plans continue to be refined as well as future prices
of gold and silver, as well as those factors discussed in the
section entitled "Risk Factors" in Alamos' Annual Information Form
and other disclosures of "Risk Factors" by Alamos and its
predecessors, available on SEDAR and EDGAR. Although Alamos has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Cautionary Note to U.S. Investors – Mineral Reserve and
Resource Estimates
All resource and reserve estimates included in this news release
or documents referenced 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. These definitions differ materially from the definitions
in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United
States Securities Act of 1933, as amended, and the Exchange Act.
Under SEC Industry Guide 7 standards, a "final" or "bankable"
feasibility study is required to report reserves, the three-year
historical average price is used in any reserve or cash flow
analysis to designate reserves and the primary environmental
analysis or report must be filed with the appropriate governmental
authority.
In addition, the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" are defined in and required to be disclosed by NI 43-101
and the CIM Standards; however, these terms are not defined terms
under SEC Industry Guide 7 and are normally not permitted to be
used in reports and registration statements filed with the U.S.
Securities and Exchange Commission (the "SEC"). 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 resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in place tonnage and grade without
reference to unit measures.
Table 1: Total Proven and Probable
Mineral Reserves as of December 31, 2017
PROVEN AND PROBABLE GOLD MINERAL RESERVES (as
at December 31, 2017) |
|
Proven Reserves |
Probable Reserves |
Total Proven and Probable |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
857 |
0.98 |
27 |
- |
- |
- |
857 |
0.98 |
27 |
Young-Davidson - Underground |
14,688 |
2.75 |
1,298 |
25,323 |
2.63 |
2,142 |
40,011 |
2.67 |
3,440 |
Total Young-Davidson |
15,545 |
2.65 |
1,325 |
25,323 |
2.63 |
2,142 |
40,868 |
2.64 |
3,467 |
Island Gold |
807 |
11.14 |
289 |
1,896 |
9.81 |
598 |
2,703 |
10.20 |
887 |
Mulatos Main Pits |
3,249 |
1.00 |
105 |
18,695 |
0.86 |
519 |
21,944 |
0.88 |
624 |
San Carlos Underground |
29 |
13.27 |
12 |
11 |
8.72 |
3 |
39 |
12.05 |
15 |
Stockpiles |
8,855 |
1.30 |
370 |
- |
- |
- |
8,855 |
1.30 |
370 |
La Yaqui |
374 |
1.49 |
18 |
1,070 |
1.36 |
47 |
1,444 |
1.39 |
65 |
La Yaqui Grande |
- |
- |
- |
14,325 |
1.40 |
644 |
14,325 |
1.40 |
644 |
Cerro Pelon |
960 |
1.70 |
53 |
2,293 |
1.59 |
117 |
3,253 |
1.63 |
170 |
Total Mulatos |
13,467 |
1.29 |
558 |
36,394 |
1.14 |
1,329 |
49,860 |
1.18 |
1,888 |
El Chanate - Open Pit |
1,209 |
0.60 |
23 |
1,492 |
0.65 |
31 |
2,700 |
0.63 |
54 |
El Chanate - Leach Pad Inv. |
- |
- |
80 |
- |
- |
- |
- |
- |
80 |
Total El Chanate |
1,209 |
- |
104 |
1,492 |
- |
31 |
2,700 |
- |
135 |
MacLellan |
9,552 |
1.91 |
586 |
8,528 |
1.32 |
361 |
18,080 |
1.63 |
947 |
Gordon |
2,311 |
2.82 |
210 |
6,412 |
2.27 |
468 |
8,723 |
2.42 |
678 |
Total Lynn Lake |
11,863 |
2.09 |
796 |
14,939 |
1.73 |
829 |
26,803 |
1.89 |
1,625 |
Ağı Dağı |
1,450 |
0.76 |
36 |
52,911 |
0.66 |
1,130 |
54,361 |
0.67 |
1,166 |
Kirazlı |
700 |
1.25 |
28 |
25,404 |
0.78 |
637 |
26,104 |
0.79 |
665 |
Total Turkey |
2,150 |
0.93 |
64 |
78,315 |
0.70 |
1,767 |
80,465 |
0.71 |
1,831 |
Alamos - Total |
45,040 |
2.17 |
3,135 |
158,359 |
1.32 |
6,697 |
203,399 |
1.50 |
9,832 |
|
|
|
|
|
|
|
|
|
|
PROVEN AND PROBABLE SILVER MINERAL RESERVES
(as at Dec 31, 2017) |
|
Proven Reserves |
Probable Reserves |
Total Proven and Probable |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
La Yaqui |
374 |
8.62 |
104 |
1,070 |
7.19 |
247 |
1,444 |
7.56 |
351 |
La Yaqui Grande |
- |
- |
- |
14,325 |
17.05 |
7,853 |
14,325 |
17.05 |
7,853 |
MacLellan |
9,552 |
5.01 |
1,538 |
8,528 |
3.79 |
1,040 |
18,080 |
4.44 |
2,578 |
Ağı Dağı |
1,450 |
6.22 |
290 |
52,911 |
5.39 |
9,169 |
54,361 |
5.41 |
9,459 |
Kirazlı |
700 |
15.90 |
358 |
25,404 |
11.90 |
9,720 |
26,104 |
12.01 |
10,078 |
Alamos - Total |
12,076 |
5.90 |
2,290 |
102,238 |
8.53 |
28,029 |
114,314 |
8.25 |
30,319 |
|
|
|
|
|
|
|
|
|
|
Table 2: Project Life-of-Mine
Waste-to-Ore Ratios as of December 31, 2017
Project Life-of-Mine Waste-to-Ore
Ratiosas of December 31, 2017 |
Project |
Waste-to-Ore Ratio |
Mulatos Mine |
1.28 |
Cerro Pelon Pit |
2.25 |
La Yaqui Pit |
6.61 |
El Chanate Pit |
2.21 |
Ağı Dağı Pit |
1.03 |
Kirazlı Pit |
1.45 |
Lynn Lake Pits |
7.28 |
|
|
Table 3: Total Measured and Indicated
Mineral Resources as of December 31, 2017
MEASURED AND INDICATED GOLD MINERAL RESOURCES
(as at Dec 31, 2017) |
|
Measured Resources |
Indicated Resources |
Total Measured and Indicated |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
496 |
1.13 |
18 |
1,242 |
1.28 |
51 |
1,739 |
1.24 |
69 |
Young-Davidson - Underground |
7,411 |
3.30 |
785 |
3,964 |
3.97 |
506 |
11,374 |
3.53 |
1,291 |
Total Young-Davidson |
7,907 |
3.16 |
803 |
5,206 |
3.33 |
557 |
13,113 |
3.23 |
1,361 |
Island Gold |
48 |
4.46 |
7 |
542 |
5.98 |
104 |
591 |
5.86 |
111 |
Mulatos |
7,963 |
1.25 |
321 |
61,504 |
1.08 |
2,140 |
69,467 |
1.10 |
2,461 |
San Carlos UG |
167 |
4.88 |
26 |
351 |
4.58 |
52 |
519 |
4.68 |
78 |
La Yaqui |
- |
- |
- |
3,045 |
1.11 |
109 |
3,045 |
1.11 |
109 |
Cerro Pelon |
117 |
2.75 |
10 |
455 |
2.52 |
37 |
572 |
2.56 |
47 |
Carricito |
58 |
0.82 |
2 |
1,297 |
0.82 |
34 |
1,355 |
0.83 |
36 |
Total Mulatos |
8,305 |
1.35 |
359 |
66,652 |
1.11 |
2,372 |
74,958 |
1.13 |
2,731 |
El Chanate |
2,381 |
0.62 |
47 |
3,376 |
0.79 |
86 |
5,757 |
0.72 |
134 |
MacLellan - Open Pit |
2,110 |
1.86 |
126 |
2,236 |
1.24 |
89 |
4,347 |
1.54 |
215 |
MacLellan - Underground |
- |
- |
- |
1,161 |
4.37 |
163 |
1,161 |
4.37 |
163 |
Gordon |
9 |
1.72 |
0.47 |
451 |
1.96 |
28 |
460 |
1.95 |
29 |
Burnt Timber |
- |
- |
- |
1,021 |
1.40 |
46 |
1,021 |
1.40 |
46 |
Linkwood |
- |
- |
- |
984 |
1.16 |
37 |
984 |
1.17 |
37 |
Total Lynn Lake |
2,119 |
1.86 |
127 |
5,853 |
1.93 |
364 |
7,972 |
1.91 |
490 |
Esperanza |
19,226 |
1.01 |
622 |
15,126 |
0.95 |
462 |
34,352 |
0.98 |
1,083 |
Ağı Dağı |
553 |
0.44 |
8 |
34,334 |
0.46 |
510 |
34,887 |
0.46 |
518 |
Kirazlı |
118 |
0.50 |
2 |
5,848 |
0.43 |
80 |
5,966 |
0.43 |
82 |
Çamyurt |
513 |
1.00 |
16 |
17,208 |
0.89 |
492 |
17,721 |
0.89 |
508 |
Total Turkey |
1,184 |
0.68 |
26 |
57,390 |
0.59 |
1,082 |
58,574 |
0.59 |
1,108 |
Quartz Mountain |
214 |
0.95 |
7 |
11,942 |
0.87 |
333 |
12,156 |
0.87 |
339 |
Alamos - Total |
41,384 |
1.50 |
1,998 |
166,088 |
1.00 |
5,360 |
207,472 |
1.10 |
7,357 |
|
|
|
|
|
|
|
|
|
|
MEASURED AND INDICATED SILVER MINERAL
RESOURCES (as at Dec 31, 2017) |
|
Measured Resources |
Indicated Resources |
Total Measured and Indicated |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
- |
- |
- |
3,045 |
12 |
1,140 |
3,045 |
12 |
1,140 |
MacLellan - Open Pit |
2,110 |
5.34 |
362 |
2,236 |
4.24 |
305 |
4,347 |
4.77 |
667 |
MacLellan - Underground |
- |
- |
- |
1,161 |
6.23 |
233 |
1,161 |
6.23 |
233 |
Esperanza |
19,226 |
7.25 |
4,482 |
15,126 |
9.16 |
4,455 |
34,352 |
8.09 |
8,936 |
Ağı Dağı |
553 |
1.59 |
28 |
34,334 |
2.19 |
2,417 |
34,887 |
2.18 |
2,445 |
Kirazlı |
118 |
2.73 |
10 |
5,848 |
2.17 |
408 |
5,966 |
2.18 |
418 |
Çamyurt |
513 |
5.63 |
93 |
17,208 |
6.15 |
3,404 |
17,721 |
6.14 |
3,497 |
Alamos - Total |
22,520 |
6.87 |
4,975 |
78,958 |
4.87 |
12,361 |
101,478 |
5.31 |
17,335 |
|
|
|
|
|
|
|
|
|
|
Table 4: Total Inferred Mineral Resources
as of December 31, 2017
INFERRED GOLD MINERAL RESOURCES (as at Dec 31,
2017) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
31 |
0.99 |
1 |
Young-Davidson - Underground |
3,498 |
2.75 |
310 |
Total Young-Davidson |
3,528 |
2.74 |
311 |
Island Gold |
2,958 |
9.55 |
908 |
Mulatos |
8,804 |
0.92 |
261 |
San Carlos UG |
162 |
4.93 |
26 |
La Yaqui |
303 |
0.97 |
9 |
Cerro Pelon |
109 |
1.23 |
4 |
Carricito |
900 |
0.74 |
22 |
Total Mulatos |
10,278 |
0.97 |
322 |
El Chanate |
52 |
0.79 |
1 |
MacLellan - Open Pit |
750 |
1.62 |
39 |
MacLellan - Underground |
116 |
3.82 |
14 |
Gordon |
615 |
1.30 |
29 |
Burnt Timber |
23,438 |
1.04 |
781 |
Linkwood |
21,004 |
1.16 |
783 |
Total Lynn Lake |
45,923 |
1.11 |
1,646 |
Esperanza |
718 |
0.80 |
18 |
Ağı Dağı |
16,760 |
0.46 |
245 |
Kirazlı |
5,689 |
0.59 |
108 |
Çamyurt |
2,791 |
0.95 |
85 |
Total Turkey |
25,240 |
0.54 |
438 |
Quartz Mountain |
39,205 |
0.91 |
1,147 |
Alamos - Total |
127,903 |
1.17 |
4,791 |
|
|
|
|
INFERRED SILVER MINERAL RESOURCES (as at Dec
31, 2017) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
303 |
5.80 |
57 |
MacLellan - Open Pit |
750 |
2.80 |
67 |
MacLellan - Underground |
116 |
3.43 |
13 |
Esperanza |
718 |
15.04 |
347 |
Ağı Dağı |
16,760 |
2.85 |
1,534 |
Kirazlı |
5,689 |
8.96 |
1,638 |
Çamyurt |
2,791 |
5.77 |
518 |
Alamos - Total |
27,126 |
4.79 |
4,174 |
|
|
|
|
Notes to Mineral Reserve and Resource
Tables:
- The Company’s mineral reserves and mineral resource as at
December 31, 2017 are classified in accordance with the Canadian
Institute of Mining Metallurgy and Petroleum’s “CIM Standards on
Mineral Resources and Reserves, Definition and Guidelines” as per
Canadian Securities Administrator’s NI 43-101 requirements.
- Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
- Mineral resources are exclusive of mineral reserves.
- Mineral reserve cut-off grade for the Mulatos Mine, the Cerro
Pelon Pit, the La Yaqui Pits, the Kirazlı Pit and the Ağı Dağı Pit
are determined as a net of process value of $0.10 per tonne for
each model block
- All Measured, Indicated and Inferred open pit mineral resources
are pit constrained with the exception of those outside the Mulatos
Main Pits on the Mulatos property which have no economic
restrictions and are tabulated by gold cut-off grade.
- Mineral reserve estimates assumed a gold price of $1,250 per
ounce and mineral resource estimates assumed a gold price of $1,400
per ounce. Metal prices, cut-off grades and metallurgical
recoveries are set out in the table below.
- El Chanate reserve ounces include a December 31, 2017 inventory
of 80,300 recoverable ounces in the heap leach pad
|
|
|
|
|
Resources |
Reserves |
|
|
Gold Price |
Cut-off |
Gold Price |
Cut-off |
Met Recovery |
Mulatos: |
|
|
|
|
|
Mulatos Main Open Pit |
$1,400 |
0.5 |
$1,250 |
see notes |
>50% |
San Carlos Underground |
$1,400 |
2.5 |
$1,250 |
3.27 |
70% |
Cerro Pelon |
$1,400 |
0.5 |
$1,250 |
see notes |
75% |
La Yaqui |
$1,400 |
0.5 |
$1,250 |
see notes |
75% |
Carricito |
$1,400 |
0.3 |
n/a |
n/a |
n/a |
Young-Davidson - Surface |
$1,400 |
0.5 |
$1,250 |
0.5 |
91% |
Young-Davidson - Underground |
$1,400 |
1.3 |
$1,250 |
1.9 |
91% |
Island Gold |
$1,400 |
4.0 |
$1,250 |
3.39-3.94 |
96.5% |
El Chanate |
$1,400 |
0.15 |
$1,250 |
0.15 |
30-65% |
Lynn Lake - MacLellan |
$1,400 |
0.42 |
$1,250 |
0.47 |
91-92% |
Lynn Lake - MacLellan Underground |
$1,400 |
2.0 |
n/a |
n/a |
n/a |
Lynn Lake - Gordon |
$1,400 |
0.62 |
$1,250 |
0.69 |
89-94% |
Esperanza |
$1,400 |
0.4 |
n/a |
n/a |
60-72% |
Ağı Dağı |
$1,400 |
0.2 |
$1,250 |
see notes |
80% |
Kirazlı |
$1,400 |
0.2 |
$1,250 |
see notes |
81% |
Çamyurt |
$1,400 |
0.2 |
n/a |
n/a |
78% |
Quartz Mountain |
$1,400 |
0.21 Oxide, 0.6 Sulfide |
n/a |
n/a |
65-80% |
|
|
|
|
|
|
|
Figure 1: Island Gold Mine – Highlights
from 2017 Drill Program
A photo accompanying this announcement is
available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/ebceaf52-a241-4103-8ebd-4720be1767a8
Figure 2: Island Gold Mine – 2018
Exploration Program
A photo accompanying this announcement is
available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/488b9d4a-a4f2-4720-a6b5-5e1351b497ed
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Table 5: Island Gold – Previously Released
Select Composite Intervals from Surface Exploration Drilling Not
Yet Incorporated into Mineral Resource Estimates |
Intercepts calculated using zones of greater
than 3g/t weighted average, minimum intercept width is 2.0m (except
for X Zones), 0m internal waste, capping values per zone: Zone
X2-E1E @ 70g/t |
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Hole ID |
From (m) |
To (m) |
Core Length (m) |
True thickness (m) |
Au Grade Uncut (g/t) |
Au Grade Cut (g/t) |
Zone |
Vertical Depth (m) |
MH8 |
1,378.50 |
1,382.10 |
3.60 |
2.45 |
4.60 |
4.60 |
E1E |
1,198 |
MH8-4 |
1,441.80 |
1,451.80 |
10.00 |
8.40 |
32.41 |
19.85 |
E1E |
1,315 |
MH9-1 |
1,442.40 |
1,445.50 |
3.10 |
2.46 |
11.65 |
6.38 |
E1E |
1,375 |
MH9-2 |
1,481.40 |
1,486.15 |
4.75 |
2.56 |
5.05 |
5.05 |
E1E |
1,399 |
MH9-5A |
1,443.10 |
1,448.45 |
5.35 |
2.92 |
16.89 |
10.48 |
E1E |
1,369 |
MH10 |
1,590.75 |
1,596.00 |
5.25 |
3.22 |
4.82 |
4.82 |
E1E |
1,491 |
MH10-1 |
1,500.50 |
1,503.70 |
3.20 |
2.42 |
16.67 |
9.71 |
E1E |
1,357 |
MH10-2 |
1,476.20 |
1,479.20 |
3.00 |
2.30 |
40.12 |
17.67 |
E1E |
1,358 |
MH10-3 |
1,513.30 |
1,517.20 |
3.90 |
3.57 |
11.45 |
11.36 |
E1E |
1,395 |
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