Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported new
results from surface exploration drilling at the Island Gold Mine,
further extending high-grade gold mineralization. All reported
drill widths are true width of the mineralized zones, unless
otherwise stated.
- Eastern Extension: additional high-grade mineralization
intersected in the previously untested area between the Eastern and
Main Extensions. All five intersections drilled to date in this
recently discovered area have intersected ore grade gold
mineralization. This area is located within a 500 metre
(“m”) gap between Inferred Mineral Resource blocks, and is only
1,000 m from surface and relatively close to existing
infrastructure. New highlights include:
- 102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05);
and
- 31.66 g/t Au (31.66 g/t cut) over 2.95 m
(MH18-04);
- Main Extension: high-grade mineralization extended 90 m
east from the nearest previously reported intersection
(MH17-01). High-grade mineralization has been extended
over 1,000 m east of current mine workings and remains open along
strike to the east and both up and down-plunge. New highlights
include:
- 24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06);
and
- 6.01 g/t Au (6.01 g/t cut) over 9.97 m
(MH13-6).
Note: Drillhole composite intervals reported as
“cut” may include higher grade samples which have been cut to 225
g/t Au for Main and Extension 1 areas, and 160 g/t Au for Extension
2 Area.
“Island Gold continues to be a tremendous
success story on all fronts. We just received the Phase II
expansion permit this past month and ongoing exploration success
continues to support strong potential for additional growth in
mineral reserves and resources and a Phase III expansion of the
operation. We’re extending high-grade mineralization across all
three areas of focus and see excellent potential within the
recently discovered area between the Main and Eastern Extensions
where we are continuing to close the gap between high-grade
resources,” said John A. McCluskey, President and Chief Executive
Officer.
2019 Drilling Program – Island Gold
Mine
The focus of the 2019 exploration drilling
program is to continue to expand the down-plunge and lateral
extensions of the Island Gold deposit with the objective of adding
new near mine Mineral Resources across the two-kilometre long
Island Gold Main Zone (Figure 1).
The ongoing exploration program at Island Gold
has been successful in extending high grade gold mineralization
across each of the Main, Western, and Eastern Extensions. This has
translated into significant growth in Mineral Reserves and
Resources since the November 2017 acquisition of Island Gold.
A total of 17,873 m of surface directional
exploration drilling has been completed to date in 2019. New
highlight intercepts can be found in Figures 1 and 2 and Table 1 at
the end of this news release.
The 2019 drill program includes 48,000 m of
surface directional exploration drilling, 30,000 m of underground
exploration drilling, 35,000 m of delineation drilling, and 917 m
of exploration drift development.
Surface Exploration
Drilling
Eastern Extension
Surface directional drilling within the Eastern
Extension is focused on testing the new area of high-grade gold
mineralization within the E1E Zone that was discovered in May 2019.
This area is located down-plunge from known Inferred Resource
blocks, between the 850 m and 1,150 m vertical depths, and
previously reported high-grade intersections approximately 350 m
further to the east (Figure 2). New highlights from the surface
drilling program include (E1E-Zone) (Table 1):
- 102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05);
and
- 31.66 g/t Au (31.66 g/t cut) over 2.95 m
(MH18-04).
To date, five drill holes have been completed in
this area with all intersecting ore-grade gold mineralization. This
includes new drill holes MH18-05, which intersected 102.74
g/t Au (58.62 g/t cut) over 3.94 m and MH18-04
intersecting 31.66 g/t Au (31.66 g/t cut) over 2.95
m. These new intersections are located 120 m and 50 m
west, respectively from previously reported drill hole MH18-03
which intersected 46.11 g/t Au (25.81 g/t cut) over 4.67m (see
Press Release dated May 9, 2019).
These drill hole intersections are approximately
200 m down-plunge from the closest Inferred Mineral Resources in
the Eastern Extension, and 300 m vertically above Inferred Mineral
Resources defined in the eastern down-plunge extent of the Main
Extension. Testing the potential continuity of high-grade
mineralization between the Eastern and Main Extensions will be an
ongoing focus in 2019 with this area having seen limited drilling
to date. Two surface directional diamond drill rigs are active in
this area, and will continue with 75 to 100 m spaced step-out
drilling.
Main Extension
Surface directional drilling to date in 2019 has
been successful in continuing to extend gold mineralization with
drill hole spacing ranging from 50 to 100 m (Figure 2).
New highlights from the surface drilling program
include (E1E-Zone) (Table 1):
- 24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06);
and
- 6.01 g/t Au (6.01 g/t cut) over 9.97 m
(MH13-6).
New drillhole MH17-06 (24.08 g/t Au (14.21 g/t
cut) over 6.27 m) has extended high-grade gold mineralization 90 m
east from the nearest previously reported drill hole intersection
from MH17-01 (56.60 g/t Au (50.87 g/t cut) over 5.66 m). Gold
mineralization has been extended one kilometre to the east of
existing mine workings. This east plunging high-grade ore shoot
remains open laterally, up and down-plunge.
The 2019 exploration program will continue to
focus on further extending high-grade mineralization with the
objective of defining additional Mineral Resources in this area.
Three surface directional diamond drill rigs remain active in the
Main Extension target area.
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
Assays for the surface exploration drilling
program were completed at LabExpert in Rouyn-Noranda, Quebec. The
Corporation inserts at regular intervals quality control (QC)
samples (blanks and reference materials) to monitor laboratory
performance. Cross check assays are done on a regular basis in a
second accredited laboratory. The Quality Assurance / Quality
Control procedures are more completely described in the Technical
Report filed on SEDAR by Richmont Mines, July 13, 2017.
Upcoming Catalysts and News
Flow
- Q2 2019 – Young-Davidson and Island Gold Site Tours
- Mid-2019 – Lynn Lake Optimization Study
- H2 2019 – Island Gold Exploration Update
- H2 2019 – La Yaqui Grande EIA Approval
- H2 2019 – Cerro Pelon Construction Update
- H2 2019 – Kirazlı Construction Update
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 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 "expects", “believe", "anticipate", "plan",
“forecast”, "estimate", "intend", “budget” 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. Forward-looking statements in
this news release include the statements with respect to planned
exploration programs, costs and expenditures, changes in Mineral
Resources and conversion of Mineral Resources to Proven and
Probable Mineral Reserves, 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.
Alamos cautions readers not to place undue
reliance on the forward-looking statements which are not guarantees
of future events as a number of factors could cause results,
conditions, actions or events to differ materially from the
targets, outlooks, expectations, goals, estimates or intentions
expressed in the forward-looking statements. These factors include,
but are not limited to: risks related to obtaining and maintaining
necessary permits, licenses and authorizations required to carry
out planned exploration or development work, the actual results of
current exploration activities, conclusions of economic and
geological evaluations, changes in project parameters as plans
continue to be refined, employee and community relations,the
speculative nature of mineral exploration and development, contests
over title to properties, changes in national and local government
legislation, control and regulations and and fluctuations of the
price of gold and foreign exchange rates as well as those factors
discussed in the section entitled "Risk Factors" in Alamos' latest
Annual Information Form and MD&A, 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.
All amounts are in United States dollars, unless
otherwise stated.
All of the forward-looking statements made in
this news release are qualified by these cautionary statements.
Cautionary Note to U.S. Investors –
Mineral Reserve and Resource Estimates
All Mineral 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 the Securities Exchange Commission (the “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. SEC. Investors are cautioned not to assume that
all or any part of mineral deposits in these categories will ever
be converted into Mineral 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;
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: Island Gold – Previously
Unreleased Select Composite Intervals from Surface Exploration
Drilling
Composite intervals greater than 3 g/t Au
weighted average, capping values: Main
Island and Extension 1 areas @ 225 g/t Au; Extension 2 Area @ 160
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) |
MH18-04 |
E1E |
Eastern Ext |
1153.00 |
1157.20 |
4.20 |
2.95 |
31.66 |
31.66 |
1031 |
MH18-05 |
E1E |
Eastern Ext |
1137.30 |
1142.20 |
4.90 |
3.94 |
102.74 |
58.62 |
1036 |
MH13-6 |
E1E |
Main Ext |
1526.80 |
1537.60 |
10.80 |
9.97 |
6.01 |
6.01 |
1268 |
MH17-06 |
E1E |
Main Ext |
1499.00 |
1505.40 |
6.40 |
6.27 |
24.08 |
14.21 |
1214 |
Table 2: Surface exploration drill holes;
azimuth, dip, drilled length, and collar location at surface (UTM
NAD83).
Hole ID |
Azimuth (°) |
Dip (°) |
Drilled Length (m) |
UTM Easting |
UTM Northing |
UTM Elevation (m) |
Comments |
MH13-6 |
336 |
-72 |
688 |
692074 |
5351046 |
389 |
Cut from MH13-5 at 1116m |
MH17-06 |
334 |
-73 |
982 |
692320 |
5351076 |
395 |
Cut from MH17-01 at 766m |
MH18-04 |
339 |
-75 |
1046 |
691886 |
5351456 |
400 |
Cut from MH18-01 at 412m |
MH18-05 |
339 |
-75 |
840 |
691886 |
5351456 |
400 |
Cut from MH18-01 at 407m |
MH16-06 |
337 |
-73 |
789 |
691002 |
5350845 |
387 |
Cut from MH16-01 at 681m |
Note: UTM mine surface elevation 382 m
Two photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/ddec0976-dc0f-41dd-9c60-e012bf25ef94
https://www.globenewswire.com/NewsRoom/AttachmentNg/67cb99f2-3c81-4f41-b734-9060f69d8eb1
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