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 down-plunge in
Island East. All reported drill widths are true width of the
mineralized zones, unless otherwise stated.
• |
Island East: high-grade gold mineralization extended up to
100 metres (“m”) down-plunge from the nearest Inferred Mineral
Resource block over significantly greater widths. The two
new intersections indicate the zone has widened in this area with
true widths three to four times greater than the 5.3 m average
width of the large Inferred Mineral Resource block up-plunge
(719,800 ounces grading 18.74 grams per tonne of gold (“g/t Au”)
(1.2 million tonnes) as of December 31, 2019). New highlights
include: |
|
• |
28.97 g/t Au (26.89 g/t cut) over 21.76 m (MH25-04);
and |
|
• |
15.38 g/t Au (14.19 g/t cut) over 15.02 m
(MH25-03). |
Note: Drillhole composite intervals reported as
“cut” may include higher grade samples which have been cut to 160
g/t Au for Island East Area.
“These new high-grade results over much greater
widths include the best surface exploration hole ever drilled at
Island Gold and further extend mineralization from one of the
highest grade portions of the ore body. They not only demonstrate
the significant potential for additional growth in Mineral Reserves
and Resources but further validate our decision to install a shaft
as part of the Phase III Expansion,” said John A. McCluskey,
President and Chief Executive Officer.
2020 Surface Exploration Drilling
Program – Island Gold Mine
Exploration activities at Island Gold remain
focused on continuing to define new near mine Mineral Resources and
building on the success of the 2019 drilling program. After being
temporarily suspended on March 25, 2020, due to the COVID-19
pandemic, the surface directional diamond drilling program resumed
in early June with three drill rigs currently drilling.
A total of 16,660 m of surface directional
diamond drilling has been completed as of September 15, 2020. New
highlight intercepts can be found in Table 1 and in Figures 1
and 2, at the end of this news release.
Island East
Surface directional drilling continues to extend
gold mineralization with drill hole spacing ranging from 50 m to
100 m (Figures 1 and 2).
New highlights from the surface drilling program
include (E1E-Zone) (Table 1):
- 28.97 g/t Au (26.89 g/t cut) over 21.76 m (MH25-04);
and
- 15.38 g/t Au (14.19 g/t cut) over 15.02 m
(MH25-03).
Drillholes MH25-03 and MH25-04 intersected wide,
high-grade gold mineralization 40 m and 100 m, respectively
down-plunge from the high-grade Inferred Mineral Resource block
which contained 719,800 ounces, grading 18.74 g/t Au (1.2 million
tonnes) as of December 31, 2019. These intercepts have true widths
approximately three to four times greater than the 5.3 m average
width of this Inferred Mineral Resource block indicating the zone
has widened in the area of these holes. Using the cut weighted gold
grade for metal factor calculation, drillhole MH25-04 is the best
surface directional hole drilled to date at Island Gold in terms of
gold content for a drill hole intersect.
As previously reported on July 13, 2020,
drillholes 620-MH2-01 (29.05 g/t Au (26.67 g/t cut) over 4.86 m)
and MH21-04 (44.30 g/t Au (44.30 g/t cut) over 2.25m) have also
extended high-grade mineralization up-plunge from this Inferred
Mineral Resource block within the 120 m gap between the middle and
lower portion of Island East. Both areas will continue to be an
exploration focus for the remainder of the year with the deposit
open laterally, up- and down-plunge.
These results continue to confirm the E1E Zone
extends vertically over 1.2 km, between a depth of 300 m and 1,500
m in the eastern part of the deposit.
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 August 31, 2020.
About Alamos
Alamos is a Canadian-based intermediate gold
producer with diversified production from three operating mines in
North America. This includes the Young-Davidson and Island Gold
mines in northern Ontario, Canada and the Mulatos mine in Sonora
State, Mexico. Additionally, the Company has a significant
portfolio of development stage projects in Canada, Mexico, Turkey,
and the United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons |
|
Vice
President, Investor Relations |
|
(416)
368-9932 x 5439 |
|
All amounts are in United States dollars, unless otherwise
stated.
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release includes certain statements
that constitute forward-looking information within the meaning of
applicable Canadian and U.S. securities laws ("forward-looking
statements"). All statements in this news release, other than
statements of historical fact, which address events, results,
outcomes or developments that Alamos expects to occur are
forward-looking statements. Forward-looking statements are
generally, but not always, identified by the use of forward-looking
terminology such as “continue”, “focus”, "estimate", or “potential”
or variations of such words and phrases and similar expressions or
statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved
or the negative connotation of such terms. In particular, this news
release contains forward-looking statements including, without
limitation, with respect to the 2020 surface exploration drilling
program at the Island Gold mine, the estimation of Mineral
Resources, exploration results, potential mineralization, changes
in Mineral Resources and Mineral Reserves, Island Gold’s Phase III
expansion and other information that is based on forecasts and
projections of future operational, geological or financial results,
estimates of amounts not yet determinable and assumptions of
management.
Exploration results that include geophysics,
sampling, and drill results on wide spacings may not be indicative
of the occurrence of a mineral deposit. Such results do not provide
assurance that further work will establish sufficient grade,
continuity, metallurgical characteristics and economic potential to
be classed as a category of Mineral Resource. A Mineral Resource
that is classified as "Inferred" or "Indicated" has a great amount
of uncertainty as to its existence and economic and legal
feasibility. It cannot be assumed that any or part of an "Indicated
Mineral Resource" or "Inferred Mineral Resource" will ever be
upgraded to a higher category of Mineral Resource. Investors are
cautioned not to assume that all or any part of mineral deposits in
these categories will ever be converted into Proven and Probable
Mineral Reserves.
Forward-looking statements are necessarily based
upon a number of factors and assumptions that, while considered
reasonable by management at the time of making such statements, are
inherently subject to significant business, economic, technical,
legal, political and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements,
and undue reliance should not be placed on such statements and
information.
Such factors and assumptions underlying the
forward-looking statements in this news release include: the actual
results of current exploration activities, conclusions of economic
and geological evaluations, changes in project parameters as plans
continue to be refined, operations may be exposed to widespread
pandemic; the impact of the COVID-19 pandemic on the broader
market; provincial and federal orders or mandates (including with
respect to mining operations generally or auxiliary businesses or
services required for our operations) in Canada, Mexico, the United
States and Turkey; the duration of regulatory responses to the
COVID-19 pandemic; changes in national and local government
legislation, controls or regulations, failure to comply with
environmental and health and safety laws and regulations; labour
and contractor availability (and being able to secure the
same on favourable terms); disruptions in the maintenance or
provision of required infrastructure and information technology
systems; fluctuations in the price of gold or certain other
commodities such as, diesel fuel, natural gas, and electricity;
operating or technical difficulties in connection with mining or
development activities, including geotechnical challenges and
changes to production estimates (which assume accuracy of projected
ore grade, mining rates, recovery timing and recovery rate
estimates and may be impacted by unscheduled maintenance; changes
in foreign exchange rates (particularly the Canadian dollar, U.S.
dollar, Mexican peso and Turkish Lira); the impact of inflation;
employee and community relations; litigation and administrative
proceedings; disruptions affecting operations; availability of and
increased costs associated with mining inputs and labour; inherent
risks and hazards associated with mining and mineral processing
including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures and cave-ins; the risk that
the Company’s mines may not perform as planned; uncertainty
with the Company's ability to secure additional capital to execute
its business plans; the speculative nature of mineral exploration
and development, risks in obtaining and maintaining necessary
licenses, permits and authorizations, contests over title to
properties; expropriation or nationalization of property; political
or economic developments in Canada, Mexico, the United States,
Turkey and other jurisdictions in which the Company may carry on
business in the future; increased costs and risks related to the
potential impact of climate change; the costs and timing of
construction and development of new deposits; risk of loss due to
sabotage, protests and other civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; and business
opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the Company’s latest 40-F/Annual
Information Form and Management’s Discussion and Analysis, each
under the heading “Risk Factors” available on the SEDAR website at
www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be
reviewed in conjunction with the information found in this news
release.
The Company disclaims any intention or
obligation to update or revise any forward-looking statement,
whether written or oral, or whether as a result of new information,
future events or otherwise, except as required by applicable
law.
Cautionary Note to U.S. Investors –
Mineral Reserve and Resource Estimates
All 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. The United States Securities and
Exchange Commission (the “SEC”) permits mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce.
Alamos may use certain terms, such as “Measured Mineral Resources”,
“Indicated Mineral Resources”, “Inferred Mineral Resources” and
“Probable Mineral Reserves” which differ materially from the
definitions in SEC Industry Guide 7 under the United States
Securities Exchange Act of 1934, as amended. 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. 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 “Mineral
Reserves” by SEC standards as in place tonnage and grade without
reference to unit measures.
The SEC has adopted final rules, effective
February 25, 2019, to replace SEC Industry Guide 7 with new mining
disclosure rules under sub-part 1300 of Regulation S-K of the U.S.
Securities Act (the “SEC Modernization Rules”).
The SEC Modernization Rules replace the historical property
disclosure requirements included in SEC Industry Guide 7. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “Measured Mineral Resources”, “Indicated
Mineral Resources” and “Inferred Mineral Resources”. In addition,
the SEC has amended its definitions of “Proven Mineral Reserves”
and “Probable Mineral Reserves” to be substantially similar to
international standards. The SEC Modernization Rules will become
mandatory for U.S. reporting companies beginning with the first
fiscal year commencing on or after January 1, 2021.
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 @ 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) |
MH25-03 |
E1E |
Island East |
1564.20 |
1580.45 |
16.25 |
15.02 |
15.38 |
14.19 |
1377 |
MH25-04 |
E1E |
Island East |
1570.55 |
1593.73 |
23.18 |
21.76 |
28.97 |
26.89 |
1418 |
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 (m) |
UTM Northing (m) |
UTM Elevation (m) |
Comments |
MH23-04 |
333 |
-72 |
728 |
692006 |
5351562 |
395 |
Cut from MH23-03 at 628 m |
MH25-02 |
335 |
-80 |
979 |
692314 |
5351074 |
398 |
Cut from MH25-01 at 715 m |
MH25-03 |
335 |
-80 |
668 |
692314 |
5351074 |
398 |
Cut from MH25-02 at 1029 m |
MH25-04 |
335 |
-80 |
854 |
692314 |
5351074 |
398 |
Cut from MH25-02 at 793 m |
Note: UTM mine surface elevation 382 m
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4ef01997-0949-4953-a5fc-3389bea319a2
https://www.globenewswire.com/NewsRoom/AttachmentNg/b5b50bcd-740d-4a2f-90d6-6a206a52a4c2
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