Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported its
updated Mineral Reserves and Resources as of December 31, 2018. For
a detailed summary of Mineral Reserves and Resources by project,
refer to the tables below.
Highlights
- Global Proven and Probable Mineral Reserves of 9.7
million ounces of gold, (199 million tonnes (“mt”) grading
1.51 grams per tonne of gold (“g/t Au”)), down slightly from 9.8
million ounces at the end of 2017 with mining depletion largely
offset by increases at Island Gold and Lynn Lake
- Island Gold’s Proven and Probable Mineral Reserves
increased 14% to 1.0 million ounces of gold, (3.0 mt
grading 10.28 g/t Au) net of mining depletion with Mineral Reserve
grades also increasing
- Lynn Lake’s Proven and Probable Mineral Reserves
increased 16% to 1.9 million ounces of gold, (32.0 mt
grading 1.83 g/t Au) with the Mineral Reserve additions being
incorporated into an optimized Feasibility Study to be published in
the second quarter of 2019
- Global Measured and Indicated Mineral Resources of 7.2
million ounces of gold, (202 mt grading 1.11 g/t Au) down
2% reflecting decreases at Mulatos and El Chanate, partially offset
by additions at Island Gold and Lynn Lake
- Global Inferred Mineral Resources increased 13% to 5.4
million ounces of gold, (129 mt grading 1.31 g/t Au) with
grades also increasing 12% driven by substantial additions at
Island Gold
- Island Gold’s Inferred Mineral Resources increased 73%
to 1.6 million ounces of gold, (4.2 mt grading 11.71 g/t
Au) with grades increasing 23%
- Global exploration budget of $33 million in
2019, including $19 million at Island Gold focused on
defining additional near mine Mineral Resources and $6 million
budgeted at each of Mulatos and Lynn Lake
“Since its acquisition in November 2017, the Island Gold mine
has outperformed in every regard and validated our views on the
quality of the asset. During 2018, we added one million ounces
across all mineral reserve and resource categories at Island Gold,
before mining depletion. The Island Gold deposit is approaching
three million ounces in all categories, production is hitting new
records and the operation is generating strong free cash flow, even
with our continued aggressive investment in exploration. We look
forward to continuing to grow both mineral reserves and resources
and production at Island Gold,” said John A. McCluskey, President
and Chief Executive Officer.
TOTAL MINERAL RESERVES AND RESOURCES (as at
December 31, 2018) |
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Proven and Probable Gold Mineral
Reserves |
|
2018 |
2017 |
% 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 |
219 |
0.83 |
6 |
857 |
0.98 |
27 |
-74% |
-15% |
-78% |
Young-Davidson - Underground |
37,720 |
2.69 |
3,256 |
40,011 |
2.67 |
3,440 |
-6% |
0% |
-5% |
Total Young-Davidson |
37,939 |
2.67 |
3,262 |
40,868 |
2.64 |
3,467 |
-7% |
1% |
-6% |
Island Gold |
3,047 |
10.28 |
1,007 |
2,703 |
10.20 |
887 |
13% |
1% |
14% |
Mulatos Mine |
15,443 |
0.87 |
434 |
21,944 |
0.88 |
624 |
-30% |
-1% |
-30% |
Stockpiles |
10,663 |
1.25 |
429 |
8,855 |
1.30 |
370 |
20% |
-4% |
16% |
La Yaqui |
786 |
0.90 |
23 |
1,444 |
1.39 |
65 |
-46% |
-35% |
-65% |
La Yaqui Grande |
15,945 |
1.26 |
643 |
14,325 |
1.40 |
644 |
11% |
-10% |
0% |
Cerro Pelon |
3,121 |
1.88 |
189 |
3,253 |
1.63 |
170 |
-4% |
16% |
11% |
Open Pit, Heap Leach |
45,958 |
1.16 |
1,717 |
49,821 |
1.17 |
1,872 |
-8% |
-1% |
-8% |
Underground |
- |
- |
- |
39 |
12.05 |
15 |
-100% |
-100% |
-100% |
Total Mulatos |
45,958 |
1.16 |
1,717 |
49,860 |
1.18 |
1,888 |
-8% |
-1% |
-9% |
El Chanate - Open Pit |
- |
- |
- |
2,700 |
0.63 |
54 |
-100% |
-100% |
-100% |
El Chanate - Leach Pad Inv. |
- |
- |
- |
- |
- |
80 |
- |
- |
-100% |
Total El Chanate |
- |
- |
- |
2,700 |
1.55 |
135 |
-100% |
-100% |
-100% |
MacLellan |
23,254 |
1.61 |
1,206 |
18,080 |
1.63 |
947 |
29% |
-1% |
27% |
Gordon |
8,723 |
2.42 |
678 |
8,723 |
2.42 |
678 |
- |
- |
- |
Total Lynn Lake |
31,977 |
1.83 |
1,884 |
26,803 |
1.89 |
1,625 |
19% |
-3% |
16% |
Agi Dagi |
54,361 |
0.67 |
1,166 |
54,361 |
0.67 |
1,166 |
- |
- |
- |
Kirazli |
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 |
199,386 |
1.51 |
9,702 |
203,399 |
1.50 |
9,832 |
-2% |
1% |
-1% |
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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 |
11,374 |
3.53 |
1,291 |
- |
- |
- |
Total Young-Davidson |
13,113 |
3.23 |
1,361 |
13,113 |
3.23 |
1,361 |
- |
- |
- |
Island Gold |
696 |
8.77 |
196 |
591 |
5.86 |
111 |
18% |
50% |
76% |
Mulatos Mine |
70,944 |
1.11 |
2,521 |
69,467 |
1.10 |
2,461 |
2% |
0% |
2% |
Underground |
- |
- |
- |
519 |
4.68 |
78 |
-100% |
-100% |
-100% |
La Yaqui Grande |
1,101 |
0.93 |
33 |
3,045 |
1.11 |
109 |
-64% |
-16% |
-70% |
Cerro Pelon |
179 |
1.56 |
9 |
572 |
2.56 |
47 |
-69% |
-39% |
-81% |
Carricito |
1,355 |
0.83 |
36 |
1,355 |
0.83 |
36 |
- |
- |
- |
Total Mulatos |
73,579 |
1.10 |
2,599 |
74,958 |
1.13 |
2,731 |
-2% |
-3% |
-5% |
El Chanate |
- |
- |
- |
5,757 |
0.72 |
134 |
-100% |
-100% |
-100% |
Lynn Lake |
9,993 |
1.74 |
560 |
7,972 |
1.91 |
490 |
25% |
-9% |
14% |
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 |
202,463 |
1.11 |
7,247 |
207,472 |
1.10 |
7,357 |
-2% |
1% |
-2% |
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Inferred Gold Mineral Resources |
Young-Davidson - Surface |
31 |
0.99 |
1 |
31 |
0.99 |
1 |
- |
- |
- |
Young-Davidson - Underground |
3,498 |
2.75 |
310 |
3,498 |
2.75 |
310 |
- |
- |
- |
Total Young-Davidson |
3,528 |
2.74 |
311 |
3,528 |
2.74 |
311 |
- |
- |
- |
Island Gold |
4,178 |
11.71 |
1,573 |
2,958 |
9.55 |
908 |
41% |
23% |
73% |
Mulatos Mine |
8,369 |
0.92 |
248 |
8,804 |
0.92 |
261 |
-5% |
0% |
-5% |
Underground |
- |
- |
- |
162 |
4.93 |
26 |
-100% |
-100% |
-100% |
La Yaqui Grande |
229 |
0.90 |
7 |
303 |
0.97 |
9 |
-24% |
-7% |
-22% |
Cerro Pelon |
70 |
0.70 |
2 |
109 |
1.23 |
4 |
-36% |
-43% |
-50% |
Carricito |
900 |
0.74 |
22 |
900 |
0.74 |
22 |
- |
- |
- |
Total Mulatos |
9,568 |
0.91 |
279 |
10,278 |
0.97 |
322 |
-7% |
-7% |
-13% |
El Chanate |
- |
- |
- |
52 |
0.79 |
1 |
-100% |
-100% |
-100% |
Lynn Lake |
46,466 |
1.11 |
1,663 |
45,923 |
1.11 |
1,646 |
1% |
0% |
1% |
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 |
128,903 |
1.31 |
5,429 |
127,903 |
1.17 |
4,791 |
1% |
12% |
13% |
Mineral Reserves
Global Proven and Probable Mineral Reserves total 9.7 million
ounces of gold as of December 31, 2018. This is consistent with 9.8
million ounces at the end of 2017, reflecting additions at Island
Gold and Lynn Lake largely replacing mining depletion of 578,000
ounces in 2018.
Island Gold was again the driver of Mineral Reserve and Resource
growth across the Company as the deposit continues to grow in size
and quality. Despite not being the focus of exploration drilling in
2018, Mineral Reserves increased 14% in 2018 to 1.0 million ounces.
This included Mineral Reserve additions of 230,000 ounces, more
than offsetting mining depletion of 110,000 ounces. Mineral Reserve
grades also increased slightly to 10.28 g/t Au. Since the
acquisition of Island Gold in 2017, Mineral Reserves have increased
34%, (net of depletion), while Mineral Reserve grades have
increased 12%.
At Lynn Lake, Mineral Reserves increased 16% to 1.9 million
ounces driven by exploration success during 2017 and 2018 which was
not included in the December 2017 Feasibility Study, as well as an
optimization of the pit slopes. The increase in Mineral Reserves,
along with other improvements to the project identified through
value engineering will be incorporated into an optimized
Feasibility Study, expected to be released in the second quarter of
2019.
Minimal exploration drilling was undertaken at Young-Davidson,
Mulatos or El Chanate in 2018. Accordingly, production from these
assets represents the majority of mining depletion for the year. No
exploration drilling was conducted at Young-Davidson given the
existing long-life Mineral Reserve base of 13 years and focus on
completing the lower mine expansion. The exploration focus at
Mulatos was on earlier stage targets and no drilling was undertaken
at El Chanate with the operation having transitioned to residual
leaching in the fourth quarter of 2018.
A $1,250 per ounce gold price assumption was used in estimating
2018 Mineral Reserves, unchanged from 2017. A detailed summary of
Proven and Probable Mineral Reserves as of December 31, 2018 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 7.2 million ounces as of December 31,
2018. This is down 110,000 ounces, or 2%, from 2017 reflecting the
write-down of remaining Mineral Resources at El Chanate, partially
offset by higher grade additions at Island Gold.
Global Inferred Mineral Resources totaled 5.4 million ounces as
of December 31, 2018, a 13% increase from 2017. This was driven by
a 665,000 ounce increase at Island Gold.
The Company’s $1,400 per ounce gold price assumption for
estimating Mineral Resources is unchanged from 2017. Detailed
summaries of the Company’s Measured and Indicated, and Inferred
Mineral Resources as of December 31, 2018 are presented in Tables 3
and 4 respectively, at the end of this press release.
Island Gold
The focus of the 2018 exploration program was on expanding the
down-plunge and lateral extensions of the Island Gold deposit with
the objective of adding near mine Mineral Resources across the
Main, Eastern and Western Extensions. The program was highly
successful on all fronts, most notably in the Western and Main
Extensions.
Island Gold’s Mineral Reserves increased to 1.0 million ounces,
a 14% increase from the end of 2017 and 5% increase from the June
30, 2018 update, net of mining depletion. This included a 230,000
ounce increase in Mineral Reserves, or 120,000 ounce increase net
of mining depletion of 110,000 ounces in 2018. Approximately 70% of
the new Mineral Reserves came from gains in the Main C Zone with
the bulk of the remainder in the Eastern Extension (see Figure 1 at
the end of this press release). Mineral Reserve grades increased
slightly to 10.28 g/t Au, from 10.20 g/t Au at the end of 2017.
Since the acquisition of Island Gold in 2017,
- Mineral Reserves have increased 467,000 ounces before
mining depletion, or 255,000 ounces net of mining depletion, with
Mineral Reserve grades increasing 12%
- Measured and Indicated Mineral Resources have increased
115% or 105,000 ounces, with grades increasing 48%
- Inferred Mineral Resources have increased 58%, or
577,000 ounces, with grades increasing 15%
Based on throughput rates of 1,100 tonnes per day (“tpd”),
Island Gold has a current Mineral Reserve life of approximately
eight years. Given the significantly larger Mineral Resource base,
strong track record of conversion to Mineral Reserves, and ongoing
exploration success, the Company expects Island Gold’s mine life
will more than double the current Mineral Reserve life.
Measured and Indicated Mineral Resources increased 76% to
196,000 ounces with grades also increasing 50% to 8.77 g/t Au from
the end of 2017. The majority of the increase came in the Eastern
Extension. This was down slightly from 221,000 ounces in the June
30, 2018 update (see press release dated September 5, 2018)
reflecting the conversion to Mineral Reserves.
Inferred Mineral Resources increased 73%, or 665,000 ounces, to
1.6 million ounces with grades also increasing 23% to 11.71 g/t Au
compared to the end of 2017. This included a 393,000 ounce increase
from the June 30, 2018 update based on drilling success in the
second half of the year.
In the Main Extension, 673,000 ounces of new Inferred Mineral
Resources were identified in different blocks averaging 12.57 g/t
Au, down-plunge from existing Mineral Reserves (see Figure 2).
Inferred Mineral Resources extend approximately one kilometre from
existing mine workings in the Main Extension and this east-plunging
high-grade ore shoot remains open both laterally and
down-plunge.
In the Western Extension, drilling was successful in connecting
and expanding two existing Inferred Mineral Resource blocks, adding
111,000 ounces. A new Mineral Resource block containing 30,000
ounces was also added further down-plunge and in proximity to hole
MH16-03 which intersected 152.07 g/t Au (35.74 g/t cut) over 5.00
metres (previously released). This was completed after the year end
cut off for inclusion into Mineral Resources and is the best
surface directional hole drilled to date in the Western Extension.
With this located 50 metres below and outside of this new Mineral
Resource block and with high-grade mineralization open both
laterally and down-plunge, this area hosts excellent potential for
further Mineral Resource growth.
A total of $19 million has been budgeted for exploration at
Island Gold in 2019. The focus will remain on continuing to define
new near-mine Mineral Resources and extend high-grade
mineralization laterally and down-plunge across each of the
Western, Main and Eastern Extensions.
Young-Davidson
Mineral Reserves at Young-Davidson decreased 0.2 million ounces
to 3.3 million ounces of gold, reflecting mining depletion. With a
large existing Mineral Reserve base and the near-term focus on
completing the lower mine expansion, exploration has not been a
priority over the last several years. Following completion of the
lower mine expansion in 2020, the Company expects to recommence
exploration activities from underground drilling platforms at
depth. With the deposit open at depth and to the west,
Young-Davidson has excellent exploration potential.
Measured and Indicated Mineral Resources of 1.4 million ounces
and Inferred Mineral Resources of 0.3 million ounces were unchanged
from a year ago. The Company expects a strong conversion rate of
these Mineral Resources to Mineral Reserves through additional
stope definition and infill drilling with further potential to add
to the Mineral Resource base.
Young-Davidson also has 0.2 million tonnes of surface stockpiles
grading 0.83 g/t Au. These will be used to supplement higher grade
underground ore until depleted in the third quarter of 2019. Based
on expected underground mining rates, the remaining Mineral Reserve
life of the Young-Davidson mine is approximately 13 years as of
December 31, 2018.
Mulatos
Total Mulatos District Mineral Reserves (including La Yaqui
Grande and Cerro Pelon) decreased 170,000 ounces to 1.7 million
ounces grading 1.16 g/t Au with mining depletion partially offset
by higher grade additions at Cerro Pelon.
Mineral Reserves at Cerro Pelon increased 11%, to 189,000
ounces, with the Mineral Reserve grade also increasing 16% to 1.88
g/t Au. The increase in ounces and grade was driven by the
conversion of higher grade Measured and Indicated Mineral Resources
through additional drilling. With a Mineral Reserve grade more than
double the Mulatos Mine Mineral Reserve grade of 0.87 g/t Au, Cerro
Pelon is expected to be a low capital, low cost, high return
project with an after-tax internal rate of return of approximately
70%. Full scale construction of Cerro Pelon is underway with
initial production expected in 2020.
Mineral Reserves at La Yaqui Grande were unchanged at 643,000
with the grade decreasing to 1.26 g/t Au. The decrease reflects the
conversion of some blocks previously modeled as waste within the
pit to ore which has contributed to a significant reduction in the
La Yaqui Grande waste-to-ore ratio to 5.6:1, from 7.3:1 at the end
of 2017. Similar to Cerro Pelon, La Yaqui Grande’s higher grades
(relative to the Mulatos Mine) are expected to support lower cost
production than currently from the Mulatos Mine.
The remaining Mineral Reserve life of the Mulatos District is
approximately seven years, as of December 31, 2018.
Measured and Indicated Mineral Resources at Mulatos decreased
132,000 ounces to 2.6 million ounces reflecting the conversion of
Mineral Resources at Cerro Pelon to Mineral Reserves and declines
at San Carlos Underground and La Yaqui Grande, partially offset by
gains in the Mulatos Mine. Inferred Mineral Resources were largely
unchanged at 0.3 million ounces.
A total of $6 million has been budgeted for exploration at
Mulatos in 2019, including 10,000 metres of drilling, with the main
areas of focus being the near mine area. A property-wide VTEM
geophysical survey completed during the last few weeks of 2018 and
ongoing mapping will form the basis for developing regional targets
in 2019. Interpretation from the 2018 exploration program at
El Carricito and other prospects is ongoing and is expected to
produce targets for future drill testing.
Lynn Lake
Mineral Reserves at Lynn Lake increased 16%, or 259,000 ounces,
to 1.9 million ounces with grades decreasing slightly to 1.83 g/t
Au. The increase reflects exploration success adjacent to the
MacLellan pit following the 2017 Feasibility Study, as well as an
optimization of the MacLellan pit slopes. This Mineral Reserve
growth will be incorporated into an updated Feasibility Study along
with other changes identified through value engineering
initiatives. The optimized Feasibility Study is expected to be
completed in the second quarter of 2019.
Measured and Indicated Mineral Resources also increased 14% to
560,000 ounces reflecting the above noted pit slope optimization.
Combined with the Burnt Timber and Linkwood deposits, Lynn Lake
also hosts Inferred Mineral Resources totalling 1.6 million ounces,
largely unchanged from the end of 2017.
A total of $6 million has been budgeted for exploration at the
Lynn Lake project in 2019, including 19,000 m of drilling. The key
focus of the 2019 exploration program will be to test exploration
targets within and in proximity to the Gordon and MacLellan
deposits with the goal of adding to Mineral Resources. An
additional area of focus is to establish a pipeline of prospective
exploration targets within the 58,000-hectare Lynn Lake
Property.
El Chanate
With the end of mining activities in 2018, El Chanate no longer
hosts any Mineral Reserves and Resources. The decrease in Mineral
Reserves reflects mining depletion and a write-down of the leach
pad inventory. El Chanate has transitioned to residual leaching and
is expected to produce between 15,000 and 25,000 ounces in
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 |
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Jeffrey Volk, CPG, FAusIMM |
Director - Reserves and Resource, Alamos Gold Inc. |
Young-Davidson, 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, Lynn Lake |
Nathan Bourgeault, 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. Bourgeault each of the foregoing individuals are independent of
Alamos Gold.
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.
All amounts are in United States dollars, unless otherwise
stated.
Cautionary Note regarding Forward-Looking
Statements
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, 2018
PROVEN AND PROBABLE MINERAL GOLD RESERVES (as
at December 31, 2018) |
|
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 |
219 |
0.83 |
6 |
0 |
0.00 |
0 |
219 |
0.83 |
6 |
Young-Davidson - Underground |
12,636 |
2.79 |
1,133 |
25,084 |
2.63 |
2,123 |
37,720 |
2.69 |
3,256 |
Total Young-Davidson |
12,855 |
2.76 |
1,139 |
25,084 |
2.63 |
2,123 |
37,939 |
2.67 |
3,262 |
Island Gold |
948 |
12.09 |
368 |
2,100 |
9.46 |
639 |
3,047 |
10.28 |
1,007 |
Mulatos Main Pits |
2,268 |
0.97 |
71 |
13,175 |
0.86 |
363 |
15,443 |
0.87 |
434 |
Stockpiles |
10,663 |
1.25 |
429 |
0 |
0.00 |
0 |
10,663 |
1.25 |
429 |
La Yaqui |
215 |
0.99 |
7 |
571 |
0.87 |
16 |
786 |
0.90 |
23 |
La Yaqui Grande |
0 |
0.00 |
0 |
15,945 |
1.26 |
643 |
15,945 |
1.26 |
643 |
Cerro Pelon |
998 |
2.02 |
65 |
2,123 |
1.82 |
124 |
3,121 |
1.88 |
189 |
Total Mulatos |
14,144 |
1.26 |
571 |
31,814 |
1.12 |
1,146 |
45,958 |
1.16 |
1,717 |
MacLellan |
11,604 |
1.89 |
705 |
11,650 |
1.34 |
500 |
23,254 |
1.61 |
1,206 |
Gordon |
2,311 |
2.82 |
210 |
6,412 |
2.27 |
468 |
8,723 |
2.42 |
678 |
Total Lynn Lake |
13,916 |
2.05 |
915 |
18,061 |
1.67 |
968 |
31,977 |
1.83 |
1,884 |
Agi Dagi |
1,450 |
0.76 |
36 |
52,911 |
0.66 |
1,130 |
54,361 |
0.67 |
1,166 |
Kirazli |
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 |
44,012 |
2.16 |
3,058 |
155,373 |
1.33 |
6,644 |
199,386 |
1.51 |
9,702 |
PROVEN AND PROBABLE SILVER MINERAL RESERVES
(as at December 31, 2018) |
|
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 |
215 |
7.42 |
51 |
571 |
5.05 |
93 |
786 |
5.70 |
144 |
La Yaqui Grande |
0 |
0.00 |
0 |
15,945 |
16.63 |
8,525 |
15,945 |
16.63 |
8,525 |
Cerro Pelon |
998 |
17.20 |
552 |
2,123 |
15.05 |
1,027 |
3,121 |
15.74 |
1,579 |
MacLellan |
11,604 |
4.94 |
1,844 |
11,650 |
3.93 |
1,471 |
23,254 |
4.43 |
3,315 |
Ağı
Dağı |
1,450 |
6.22 |
290 |
52,911 |
5.39 |
9,169 |
54,361 |
5.41 |
9,459 |
Kirazli |
700 |
15.90 |
358 |
25,404 |
11.90 |
9,720 |
26,104 |
12.01 |
10,078 |
Alamos - Total |
14,968 |
6.43 |
3,095 |
108,603 |
8.59 |
30,005 |
123,571 |
8.33 |
33,100 |
Table 2: Project Life-of-Mine Mineral
Reserve Waste-to-Ore Ratios as of December
31, 2018
Project Life-of-Mine Mineral Reserve
Waste-to-Ore Ratiosas of December 31,
2018 |
Project |
Waste-to-Ore Ratio |
Mulatos Mine |
1.40 |
Cerro Pelon Pit |
2.02 |
La Yaqui Phase I Pit |
1.06 |
La Yaqui Grande Pit |
5.57 |
Ağı Dağı Pits |
1.03 |
Kirazlı Pit |
1.45 |
Lynn Lake Pits |
7.59 |
Table 3: Total Measured and Indicated
Mineral Resources as of December 31, 2018
MEASURED AND INDICATED GOLD MINERAL RESOURCES
(as at December 31, 2018) |
|
Measured Resources |
Indicated Resources |
Total Measured & 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 |
23 |
4.69 |
4 |
673 |
8.91 |
193 |
696 |
8.77 |
196 |
Mulatos |
8,074 |
1.26 |
328 |
62,870 |
1.08 |
2,193 |
70,944 |
1.11 |
2,521 |
La Yaqui |
0 |
0.00 |
0 |
1,101 |
0.93 |
33 |
1,101 |
0.93 |
33 |
Cerro Pelon |
33 |
1.83 |
2 |
146 |
1.46 |
7 |
179 |
1.56 |
9 |
Carricito |
58 |
0.82 |
2 |
1,297 |
0.82 |
34 |
1,355 |
0.83 |
36 |
Total Mulatos |
8,165 |
1.26 |
332 |
65,414 |
1.08 |
2,267 |
73,579 |
1.10 |
2,599 |
MacLellan - Open Pit |
1,986 |
1.65 |
105 |
4,700 |
1.46 |
221 |
6,686 |
1.52 |
326 |
MacLellan - Underground |
0 |
0.00 |
0 |
843 |
4.52 |
122 |
843 |
4.52 |
122 |
Gordon |
9 |
1.72 |
0 |
451 |
1.96 |
28 |
460 |
1.95 |
29 |
Burnt Timber |
0 |
0.00 |
0 |
1,021 |
1.40 |
46 |
1,021 |
1.40 |
46 |
Linkwood |
0 |
0.00 |
0 |
984 |
1.16 |
37 |
984 |
1.17 |
37 |
Total Lynn Lake |
1,994 |
1.65 |
106 |
7,999 |
1.77 |
455 |
9,993 |
1.74 |
560 |
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 |
Kirazli |
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 |
38,714 |
1.53 |
1,899 |
163,749 |
1.02 |
5,348 |
202,463 |
1.11 |
7,247 |
MEASURED AND INDICATED SILVER MINERAL
RESOURCES (as at December 31, 2018) |
|
Measured Resources |
Indicated Resources |
Total Measured & 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 |
0 |
0.00 |
0 |
1,101 |
9 |
324 |
1,101 |
9 |
324 |
Cerro Pelon |
33 |
17.05 |
18 |
146 |
19 |
91 |
179 |
19 |
109 |
MacLellan - Open Pit |
1,986 |
3.66 |
234 |
4,700 |
3.65 |
551 |
6,686 |
3.65 |
785 |
MacLellan - Underground |
0 |
0.00 |
0 |
843 |
5.98 |
162 |
843 |
5.98 |
162 |
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 |
Kirazli |
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 |
22,429 |
6.75 |
4,864 |
79,306 |
4.63 |
11,812 |
101,734 |
5.10 |
16,677 |
Table 4: Total Inferred Mineral Resources
as of December 31, 2018
INFERRED GOLD MINERAL RESOURCES (as at December
31, 2018) |
|
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 |
4,178 |
11.71 |
1,573 |
Mulatos |
8,369 |
0.92 |
248 |
La Yaqui |
229 |
0.90 |
7 |
Cerro Pelon |
70 |
0.70 |
2 |
Carricito |
900 |
0.74 |
22 |
Total Mulatos |
9,568 |
0.91 |
279 |
MacLellan - Open Pit |
1,292 |
1.36 |
56 |
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 |
46,466 |
1.11 |
1,663 |
Esperanza |
718 |
0.80 |
18 |
Ağı
Dağı |
16,760 |
0.46 |
245 |
Kirazli |
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 |
128,903 |
1.31 |
5,429 |
INFERRED SILVER MINERAL RESOURCES (as at
December 31, 2018) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
228 |
4.01 |
29 |
Cerro Pelon |
70 |
15.91 |
36 |
MacLellan - Open Pit |
1,292 |
2.43 |
101 |
MacLellan - Underground |
116 |
3.13 |
12 |
Esperanza |
718 |
15.04 |
347 |
Ağı Dağı |
16,760 |
2.85 |
1,534 |
Kirazli |
5,689 |
8.96 |
1,638 |
Çamyurt |
2,791 |
5.77 |
518 |
Alamos - Total |
27,664 |
4.74 |
4,215 |
Notes to Mineral Reserve and Resource
Tables:
- The Company’s mineral reserves and mineral resource as at
December 31, 2018 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.
|
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% |
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 |
3.45-4.24 |
96.5% |
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 Main Zone
Longitudinal – 2018 Mineral Reserves
http://www.globenewswire.com/NewsRoom/AttachmentNg/d5c261a9-1f17-4dcc-aaf9-e2e1a18c583e
Figure 2: Island Gold Mine Main Zone
Longitudinal – 2018 Mineral Resources
http://www.globenewswire.com/NewsRoom/AttachmentNg/8eb172ba-219f-482c-8f61-8aa106fbb57a
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