Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported its
updated Mineral Reserves and Resources as of December 31, 2021. For
a detailed summary by asset, refer to the tables below.
Highlights
- Global Proven and Probable Mineral Reserves increased
4% to 10.3 million ounces of gold (202 million tonnes
(“mt”) grading 1.58 grams per tonne of gold (“g/t Au”)), with
grades also increasing 5%, reflecting higher grade additions at
Island Gold and Mulatos. Mineral Reserves were more than replaced
at all operations and by 166% of depletion
- Young-Davidson’s Mineral Reserves increased 5% to 3.4
million ounces (43.7 mt grading 2.42 g/t Au), extending
its Mineral Reserve life to 15 years
- Island Gold’s Mineral Reserves increased 2% to 1.3
million ounces (4.1 mt grading 10.12 g/t Au) with grades
increasing 4%
- Mulatos’ Mineral Reserves increased 14% to 1.5 million
ounces (29.4 mt grading 1.64 g/t Au) with a 32% increase
in grades reflecting the addition of higher-grade underground
Mineral Reserves at Puerto Del Aire (“PDA”), which is adjacent to
the main Mulatos pit
- Island Gold continues to grow with Mineral Reserves and
Resources increasing 8%, net of depletion, to now total 5.1 million
ounces. This represents a 176% increase from the 1.8
million ounces at the time of acquisition in 2017, net of 654,000
ounces of mining depletion
- Mineral Reserves and Resources increased across all
categories, including a 2% increase in Mineral Reserves to
1.3 million ounces and an 8% increase in Inferred Mineral Resources
to 3.5 million ounces (7.9 mt grading 13.59 g/t Au)
- Updated mine plan to be released mid-2022,
incorporating the 37%, or 1.4 million ounce, increase in high-grade
Mineral Reserves and Resources since the completion of the Phase
III Expansion study in July 2020
- Global Measured and Indicated Mineral Resources of 4.5
million ounces of gold (128 mt grading 1.10 g/t Au), down
from 6.9 million ounces reflecting the conversion to Mineral
Reserves at PDA and Young-Davidson, as well as a reduction of
non-pit constrained Mineral Resources from the Mulatos Main Pit
area
- Global Inferred Mineral Resources of 7.0 million ounces
of gold (125 mt grading 1.74 g/t Au), up slightly from
2020 with grades increasing 6% reflecting high-grade additions at
Island Gold
- Gold price assumptions unchanged from 2020
with $1,250 per ounce used for estimating Mineral Reserves and
$1,400 per ounce used for estimating Mineral Resources
- Global exploration budget
of $40 million in 2022, including $22 million budgeted at
Island Gold, $7 million at Mulatos, $5 million at Young-Davidson
and $3 million at Lynn Lake
“We had a very successful year on the exploration front,
increasing Mineral Reserves at each of our operations and improving
the quality of our global Mineral Reserve with higher grade
additions. We have extended the mine lives at Young-Davidson and
Mulatos, and also expect to extend Island Gold’s mine life as part
of the updated mine plan to be released mid-year. With the 37%
increase in Mineral Reserves and Resources since the completion of
the Phase III expansion study in 2020, including higher-grade
additions in proximity to the planned shaft, we expect the updated
mine plan will demonstrate continued value growth at Island Gold,”
said John A. McCluskey, President and Chief Executive Officer.
Proven and Probable Gold Mineral Reserves |
|
2021 |
2020 |
% 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 |
43,690 |
2.42 |
3,394 |
41,191 |
2.44 |
3,232 |
6 |
% |
-1 |
% |
5 |
% |
Island Gold |
4,112 |
10.12 |
1,338 |
4,197 |
9.71 |
1,310 |
-2 |
% |
4 |
% |
2 |
% |
Mulatos Mine |
3,125 |
1.16 |
117 |
5,447 |
0.93 |
163 |
|
|
|
Stockpiles |
4,947 |
1.64 |
260 |
8,854 |
1.30 |
369 |
|
|
|
La Yaqui
Grande |
18,448 |
1.25 |
742 |
18,203 |
1.25 |
732 |
|
|
|
PDA |
2,849 |
4.67 |
428 |
0 |
0.00 |
0 |
|
|
|
Cerro
Pelon |
0 |
0.00 |
0 |
1,431 |
1.90 |
87 |
|
|
|
Total Mulatos |
29,369 |
1.64 |
1,547 |
33,935 |
1.24 |
1,351 |
-13 |
% |
32 |
% |
14 |
% |
MacLellan |
27,820 |
1.54 |
1,382 |
27,820 |
1.54 |
1,382 |
|
|
|
Gordon |
8,723 |
2.42 |
678 |
8,723 |
2.42 |
678 |
|
|
|
Total Lynn Lake |
36,542 |
1.75 |
2,060 |
36,542 |
1.75 |
2,060 |
- |
|
- |
|
- |
|
Ağı Dağı |
54,361 |
0.67 |
1,166 |
54,361 |
0.67 |
1,166 |
|
|
|
Kirazlı |
33,861 |
0.69 |
752 |
33,861 |
0.69 |
752 |
|
|
|
Total Turkey |
88,222 |
0.68 |
1,918 |
88,222 |
0.68 |
1,918 |
- |
|
- |
|
- |
|
Alamos - Total |
201,936 |
1.58 |
10,257 |
204,087 |
1.50 |
9,870 |
-1 |
% |
5 |
% |
4 |
% |
|
|
|
|
|
|
|
|
|
|
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 |
7,076 |
3.81 |
867 |
9,272 |
3.59 |
1,071 |
|
|
|
Total Young-Davidson |
8,815 |
3.30 |
936 |
11,011 |
3.22 |
1,140 |
-20 |
% |
3 |
% |
-18 |
% |
Island Gold |
1,096 |
8.12 |
286 |
718 |
7.18 |
166 |
53 |
% |
13 |
% |
73 |
% |
Mulatos Mine |
4,934 |
1.01 |
161 |
71,319 |
1.10 |
2,518 |
|
|
|
La Yaqui Grande |
1,150 |
0.87 |
32 |
1,237 |
0.80 |
32 |
|
|
|
PDA |
765 |
5.05 |
124 |
- |
- |
- |
|
|
|
Cerro Pelon |
0 |
0.00 |
0 |
282 |
1.54 |
14 |
|
|
|
Carricito |
1,355 |
0.83 |
36 |
1,355 |
0.83 |
36 |
|
|
|
Total Mulatos |
8,204 |
1.34 |
353 |
74,193 |
1.09 |
2,600 |
-89 |
% |
23 |
% |
-86 |
% |
Lynn Lake |
8,178 |
1.74 |
457 |
8,178 |
1.74 |
457 |
- |
|
- |
|
- |
|
Esperanza |
34,352 |
0.98 |
1,084 |
34,352 |
0.98 |
1,084 |
- |
|
- |
|
- |
|
Turkey |
55,664 |
0.60 |
1,068 |
55,664 |
0.60 |
1,068 |
- |
|
- |
|
- |
|
Quartz Mountain |
12,156 |
0.87 |
339 |
12,156 |
0.87 |
339 |
- |
|
- |
|
- |
|
Alamos - Total |
128,465 |
1.10 |
4,524 |
196,272 |
1.09 |
6,855 |
-35 |
% |
1 |
% |
-34 |
% |
|
|
|
|
|
|
|
|
|
|
Inferred Gold Mineral Resources |
Young-Davidson - Surface |
31 |
0.99 |
1 |
31 |
0.99 |
1 |
|
|
|
Young-Davidson - Underground |
2,062 |
3.02 |
200 |
2,301 |
2.88 |
213 |
|
|
|
Total Young-Davidson |
2,093 |
2.99 |
201 |
2,331 |
2.86 |
214 |
-10 |
% |
5 |
% |
-6 |
% |
Island Gold |
7,906 |
13.59 |
3,454 |
6,915 |
14.43 |
3,208 |
14 |
% |
-6 |
% |
8 |
% |
Mulatos
Mine |
507 |
0.92 |
15 |
8,122 |
0.92 |
239 |
|
|
|
La Yaqui
Grande |
234 |
1.07 |
8 |
243 |
1.12 |
9 |
|
|
|
PDA |
83 |
5.14 |
14 |
- |
- |
- |
|
|
|
Cerro
Pelon |
0 |
0.00 |
0 |
26 |
0.71 |
1 |
|
|
|
Carricito |
900 |
0.74 |
22 |
900 |
0.74 |
22 |
|
|
|
Total Mulatos |
1,724 |
1.06 |
59 |
9,291 |
0.91 |
271 |
-81 |
% |
17 |
% |
-78 |
% |
Lynn Lake |
45,873 |
1.10 |
1,622 |
45,873 |
1.10 |
1,622 |
- |
|
- |
|
- |
|
Esperanza |
718 |
0.80 |
18 |
718 |
0.80 |
18 |
- |
|
- |
|
- |
|
Turkey |
27,245 |
0.55 |
482 |
27,245 |
0.55 |
482 |
- |
|
- |
|
- |
|
Quartz Mountain |
39,205 |
0.91 |
1,147 |
39,205 |
0.91 |
1,147 |
- |
|
- |
|
- |
|
Alamos - Total |
124,764 |
1.74 |
6,982 |
131,579 |
1.65 |
6,962 |
-5 |
% |
6 |
% |
0 |
% |
Mineral Reserves
Global Proven and Probable Mineral Reserves total 10.3 million
ounces of gold as of December 31, 2021, a 4% increase from 9.9
million ounces at the end of 2020 with grades also increasing 5%.
This reflected increases at all three operations with Mineral
Reserves more than replacing mining depletion of 582,000 ounces in
2021.
This included a 5% increase in Mineral Reserves at
Young-Davidson to 3.4 million ounces, net of depletion, with grades
largely unchanged at 2.42 g/t Au. The increase resulted from
delineation drilling and the successful conversion of existing
Mineral Resources.
Island Gold’s Mineral Reserve base increased 2%, net of
depletion, to 1.3 million ounces. This marked the ninth consecutive
year Mineral Reserves have increased, a trend that is expected to
continue given Island Gold’s large and growing high-grade Mineral
Resource base. The Mineral Reserve grade also increased 4% to 10.12
g/t Au with the successful conversion of higher-grade Mineral
Resources in Island East.
Mulatos’ Mineral Reserves increased 14% to 1.5 million ounces
with the declaration of a new higher-grade underground Mineral
Reserve at PDA. This also drove a 32% increase in grades with the
addition more than offsetting the depletion of lower grade open pit
and stockpiled ore. PDA is adjacent to the Mulatos pit and will be
accessed from an underground drift from within the pit. The
higher-grade ore from PDA is expected to be processed through the
existing mill at Mulatos that was previously utilized for
higher-grade underground ore from San Carlos. The PDA deposit will
be an ongoing exploration focus with good further growth
potential.
A $1,250 per ounce gold price assumption was used in estimating
2021 Mineral Reserves, unchanged from 2020. A detailed summary of
Proven and Probable Mineral Reserves as of December 31, 2021 is
presented in Table 1 at the end of this press release.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c5982ea4-549e-46ad-8dff-978205aad06d
Mineral Resources
Global Measured and Indicated Mineral Resources (exclusive of
Mineral Reserves) total 4.5 million ounces as of December 31, 2021.
This is down from 6.9 million ounces from the end of 2020 with the
majority of the decrease related to the conversion to Mineral
Reserves at Mulatos and the reduction of non-pit constrained
Mineral Resources from the Mulatos Main Pit area, most of which
being contained in sulphides. With that portion of the operation
nearing the end of its mine life, a detailed review of all
remaining Mineral Resources was performed and it was determined
that a significant portion would not convert to Mineral Reserves
without alternative processing methods or higher gold prices.
Global Inferred Mineral Resources total 7.0 million ounces as of
December 31, 2021, up slightly from 2020. Grades increased 6%
reflecting a further increase in high-grade Mineral Resources at
Island Gold and decrease in lower grade Mineral Resources at
Mulatos.
The Company’s $1,400 per ounce gold price assumption for
estimating Mineral Resources is unchanged from 2020. Detailed
summaries of the Company’s Measured and Indicated Mineral Resources
and Inferred Mineral Resources as of December 31, 2021 are
presented in Tables 3 and 4, respectively, at the end of this press
release.
Island Gold
Island Gold achieved another significant milestone with its
high-grade Mineral Reserve and Resource increasing to 5.1 million
ounces across all categories, net of mining depletion. This marked
the sixth consecutive year combined Mineral Reserves and Resources
have grown with grades also increasing over that time frame. This
included a 394,000 ounce, or 8% increase in Mineral Reserves and
Resources from 2020.
Mineral Reserves increased 2% to 1.3 million ounces in 2021, net
of mining depletion. This marked the ninth consecutive year Mineral
Reserves have increased even with the primary exploration focus the
last several years being on Mineral Resource growth. Mineral
Reserve additions totaled 173,000 ounces, which more than offset
mining depletion of 145,000 ounces.
Mineral Reserve grades also increased 4% to 10.12 g/t Au,
reflecting new additions and the conversion of higher-grade Mineral
Resources in the Island East area. This more than offset the higher
grades mined and depleted in 2021 of 10.35 g/t Au. Since the
acquisition of Island Gold in November 2017, Mineral Reserves have
increased 78%, net of depletion, with Mineral Reserve grades
increasing 10%.
The majority of the increase in Mineral Reserves came through
both the discovery and conversion of Mineral Resources in the gap
between high-grade Mineral Reserves and Resources in the upper and
middle portions of Island East. A total of 206,400 ounces were
added in this area with grades averaging 12.57 g/t Au. Given the
proximity to existing underground development, there is potential
to bring this higher-grade ore into the mine plan over the next
three years, providing further near-term production upside
potential (see Figure 1 at the end of this press release).
Measured and Indicated Mineral Resources increased 73% to
286,000 ounces with grades also increasing 13% to 8.12 g/t Au from
the end of 2020. Inferred Mineral Resources increased 8% to 3.5
million ounces with grades decreasing 6% to 13.59 g/t Au compared
to the end of 2020. A total of 478,000 ounces were added in the
lower portion of Island East in proximity to the planned shaft.
This addition more than offset the conversion to Mineral Reserves
for a net increase of 245,000 ounces. The 6% decrease in grades
reflected the conversion of significantly higher-grade Mineral
Resources to Reserves in Island East as well as slightly lower,
high-grade additions. Highlights of the 2021 increase in Inferred
Mineral Resources include:
- 424,400 ounces added
in the lower portion of Island East, further increasing the size of
this high-grade block to 2.0 million ounces grading 15.48 g/t Au.
These additions are all located in proximity to the planned shaft
location providing a significant source of higher-grade ore earlier
in the mine life. Several of the best holes ever drilled at Island
Gold have come from this high-grade ore shoot which remains open
laterally, and down-plunge
- A new Inferred
Mineral Resource block totaling 39,400 ounces was also discovered
130 metres (“m”) down-plunge from Mineral Resources in Island East
and beyond the most easterly dyke. This also extended Mineral
Resources more than 270 m to a depth of 1,750 m. This high-grade
block remains open laterally and both up- and down-plunge
highlighting the significant potential for further Mineral Resource
growth
- Inferred Mineral
Resources at Island Gold continue to convert to Mineral Reserves at
a rate of more than 90% since the 2017 acquisition. These additions
are all part of the same structure with consistent style of
mineralization as existing Mineral Reserves. As such, the Company
expects this high rate of conversion to continue as exploration
drifts are advanced into these areas, allowing for additional
drilling from underground
- Discovery costs
averaged an attractive $11 per ounce over the past three years
A total of $22 million is budgeted for exploration at Island
Gold in 2022. The surface and underground exploration drilling
program will continue to test the lateral and down-plunge
extensions of Island East, as well as increasingly focus on Island
Main and West. The program includes 30,000 m of surface directional
drilling and 30,000 m of underground exploration drilling. A 6,500
m regional exploration drilling program is also planned, focused on
evaluating and advancing exploration targets outside the Island
Gold Deposit on the 14,929-hectare Island Gold property.
Significant growth and upside to Phase III Expansion
Study
The Phase III Expansion Study released in July 2020 was based on
Mineral Reserves and Resources at the end of 2019 which totaled 3.7
million ounces across all categories. Since then, Mineral Reserves
and Resources have increased 37%, or 1.4 million ounces at similar
grades highlighting the significant ongoing growth of the deposit
as well as upside to the Phase III expansion study. This growth
will be incorporated into an updated mine plan which is expected to
be released mid-2022. The optimized mine plan is also expected to
incorporate higher-grade additions in proximity to the planned
shaft bottom earlier in the mine life, further increasing the value
of the operation.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/96625636-b953-417c-b4b9-bf42fdc7e90c
Young-Davidson
Mineral Reserves at Young-Davidson increased 5% to 3.4 million
ounces of gold, net of mining depletion. This marked the second
consecutive year that mining depletion was more than replaced,
extending the already long Mineral Reserve life by another year. A
total of 376,000 ounces were added, primarily in the lower mine
through the successful conversion of Mineral Resources. This more
than offset mining depletion of 214,000 ounces. Mineral Reserve
grades were largely unchanged at 2.42 g/t Au.
Based on expected underground mining rates of 8,000 tonnes per
day, the Mineral Reserve life of the Young-Davidson mine has
increased by one year to approximately 15 years as of December 31,
2021. This is up from a 13 year Mineral Reserve life as of two
years ago with the operation having maintained at least a 13 year
Reserve life since 2011 through a strong track record of Mineral
Resource conversion. With the deposit open at depth and to the
west, there is excellent potential to extend the Mineral Reserve
life further.
Measured and Indicated Mineral Resources of 0.9 million ounces
decreased from 1.1 million ounces one year ago, reflecting the
conversion of Mineral Resources to Mineral Reserves. Grades
increased slightly to 3.30 g/t Au. Inferred Mineral Resources
decreased slightly to 0.2 million ounces with grades increasing to
2.99 g/t Au.
A total of $5 million is budgeted for exploration at
Young-Davidson in 2022. The focus will be on following up on the
success of the 2020 and 2021 programs which extended gold
mineralization below existing Mineral Reserves and Resources and
intersected higher grades in the hanging wall and footwall of the
deposit. The drilling completed in 2021 was the first significant
exploration program at Young-Davidson since 2011 and highlights the
significant potential below the existing deposit which remains open
at depth and to the west.
The 2022 program includes 21,600 m of underground exploration
drilling, and 500 m of underground exploration development to
extend drill platforms on the 9220, 9095, and 9025-levels. The
focus of the underground exploration drilling program will be to
expand Mineral Resources in six target areas that have been
identified within proximity to existing underground infrastructure.
In addition, 3,500 m of surface drilling is planned to test
near-surface targets across the 5,600 hectare Young-Davidson
Property.
Mulatos
Total Mulatos District Mineral Reserves (including La Yaqui
Grande) increased 14% to 1.5 million ounces, net of mining
depletion, with grades also increasing 32% to 1.64 g/t Au. The
increase reflects the declaration of a new higher-grade Mineral
Reserve at PDA, which more than offset mining depletion of lower
grade ore from the Mulatos pits and stockpiles.
PDA is a higher-grade underground deposit located adjacent to
the Main Mulatos pit. The deposit is expected to be mined from
underground and accessed from a development drift off the Main
Mulatos pit. This will greatly reduce the development needed to
access the deposit. The higher-grade ore from PDA will be processed
through the existing mill at Mulatos that was previously used to
process underground ore from San Carlos. The deposit has good
exploration upside potential and will be a focus of an ongoing
drill program in 2022. This will be incorporated into an updated
development plan which expected will be finalized over the next
year.
The remaining Mineral Reserve life of the Mulatos District is
approximately six years as of December 31, 2021 (excluding
PDA).
Measured and Indicated Mineral Resources at Mulatos totaled to
0.4 million ounces, down from 2.6 million ounces at the end of
2020. This reflected the conversion of Mineral Resources to
Reserves at PDA, as well as a larger reduction in non-pit
constrained Mineral Resources at the Mulatos Mine pit area as noted
above. Inferred Mineral Resources also decreased to 0.1 million
ounces from 0.3 million ounces at the end of 2020.
A total of $7 million is budgeted at Mulatos for exploration in
2022. This includes 17,000 m of drilling focused on regional
targets including Carricito, and Halcon, Halcon West, and Refugio.
Further work including drilling and mapping is planned at Los
Venados to follow up on low sulphidation mineralization identified
in 2021.
Several regional exploration targets have been identified from a
property-wide VTEM geophysical survey that was completed in late
2018. A focus of the 2022 regional exploration program will be to
further evaluate these targets through systematic mapping,
sampling, and ground geophysics with the objective of defining
drill targets.
Lynn Lake
Mineral Reserves and Resources at Lynn Lake are unchanged from a
year ago with the primary focus over the past year on advancing the
project, including completing the permitting process.
A total of $3 million is budgeted for exploration at the Lynn
Lake project in 2022. This includes 5,000 m of drilling focused on
continuing to test exploration targets in proximity to the Gordon
and MacLellan deposits with the objective of adding to Mineral
Resources. Since the completion of the 2017 Feasibility Study on
the Lynn Lake Project, exploration success around the Gordon and
MacLellan deposits have driven a 27% increase in Mineral Reserves
to 2.1 million ounces of gold.
The exploration program will also further evaluate the Burnt
Timber and Linkwood deposits, including defining and testing
exploration targets with the objective of expanding Mineral
Resources at both deposits. The Burnt Timber and Linkwood deposits
contained Inferred Mineral Resources totaling 1.6 million ounces
grading 1.1 g/t Au (44 mt) as of December 31, 2021 and represent
potential upside to the 2017 Feasibility Study.
The other key area of focus for 2022 is the continued evaluation
and advancement of the new greenfields discovery, Tulune (see press
release December 16, 2021), and a pipeline of prospective
exploration targets within the 58,000-hectare Lynn Lake
Property.
Kirazlı, Ağı Dağı, Çamyurt, Esperanza and Quartz Mountain
Mineral Reserves and Resources for the Kirazlı, Ağı Dağı,
Çamyurt, Esperanza and Quartz Mountain projects are unchanged from
a year ago.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Senior 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.
Mineral Resources QP |
Company |
Project |
Jeffrey Volk, CPG, FAusIMM |
Director - Reserves and Resource,Alamos Gold Inc. |
Young-Davidson, Lynn Lake |
Raynald Vincent, P.Eng., M.G.P. |
Exploration Superintendent - Island Gold |
Island Gold |
Marc Jutras, P.Eng |
Principal, Ginto Consulting Inc. |
Mulatos Pits, PDA, La Yaqui, Carricito, Esperanza, Ağı Dağı,
Kirazli, Çamyurt, Quartz Mountain |
Mineral Reserves
QP |
Company |
Project |
Chris Bostwick, FAusIMM |
SVP Technical Services, Alamos Gold Inc. |
Young-Davidson, Lynn Lake, PDA Underground |
Nathan Bourgeault, P.Eng |
Chief Engineer - Island Gold |
Island Gold |
Herb Welhener, SME-QP |
VP, Independent Mining Consultants Inc. |
Mulatos Pits, La Yaqui, Ağı Dağı, Kirazli |
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 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 regarding Forward-Looking
Statements
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”, "expect", "plan", "estimate", “target”, “budget”,
“prospective” 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. Such statements in this news release include, without
limitation, statements with respect to planned exploration programs
and focuses, potential drilling results and related expectations,
costs and expenditures, project economics, gold price assumptions,
potential mineralization, projected ore grades, changes in Mineral
Resources and conversion of Inferred Mineral Resources to Proven
and Probable Mineral Reserves, expected mine life, expected Mineral
Reserve life and potential extensions thereof, expected increases
in the value of operations, 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 that forward-looking statements are necessarily
based upon several 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.
These factors and assumptions include, but are not limited to:
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 the Company’s 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); ability to sell or deliver
gold doré bars; 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
(including but not limited to the investment treaty claim announced
on April 20, 2021 against the Republic of Turkey by the Company’s
wholly-owned Netherlands subsidiaries, Alamos Gold Holdings
Coöperatief U.A. and Alamos Gold Holdings B.V.); disruptions
affecting operations; availability of and increased costs
associated with mining inputs and labour; delays with the Federal
and/or Provincial permitting process for the Lynn Lake Project;
delays with the Phase III Expansion Project at the Island Gold
mine; delays in the development or updating of mine plans; changes
that may be required to the intended method of accessing and mining
the deposit at Puerto Del Aire and changes related to the intended
method of processing any ore from the despoit at Puerto Del Aire;
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. The litigation
against the Republic of Turkey, described above, results from the
actions of the Turkish government in respect of the Company’s
projects in the Republic of Turkey. Such litigation is a mitigation
effort and may not be effective or successful. If unsuccessful, the
Company’s projects in Turkey may be subject to resource nationalism
and further expropriation; the Company may lose any remaining value
of its assets and gold mining projects in Turkey and its ability to
operate in Turkey. Even if successful, there is no certainty as to
the quantum of any damages award or recovery of all, or any, legal
costs. Any resumption of activities in Turkey, or even retaining
control of its assets and gold mining projects in Turkey can only
result from agreement with the Turkish government. The investment
treaty claim described above may have an impact on foreign direct
investment in the Republic of Turkey which may result in changes to
the Turkish economy, including but not limited to high rates of
inflation and fluctuation in the Turkish Lira which may also affect
the Company’s relationship with the Turkish government, the
Company’s ability to effectively operate in Turkey, and which may
have a negative effect on overall anticipated project values.
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 and risk factors and assumptions
found in this news release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether written or oral, or
whether as a result of new information, future events or otherwise,
except as required by applicable law.
Note to U.S. Investors – Mineral Reserve and Resource
Estimates
Unless otherwise indicated, all Mineral Resource and Mineral
Reserve estimates included in this news release have been prepared
in accordance with 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. Mining disclosure in the United States
was previously required to comply with SEC Industry Guide 7 (“SEC
Industry Guide 7”) under the United States Securities Exchange Act
of 1934, as amended. The U.S. Securities and Exchange Commission
(the “SEC”) has adopted final rules, 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 (“Regulation S-K 1300”)
which became mandatory for U.S. reporting companies beginning with
the first fiscal year commencing on or after January 1, 2021. Under
Regulation S-K 1300, 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.
Investors are cautioned that while the above terms are
“substantially similar” to CIM Definitions, there are differences
in the definitions under Regulation S-K 1300 and the CIM Standards.
Accordingly, there is no assurance any mineral reserves or mineral
resources that the Company may report as “proven mineral reserves”,
“probable mineral reserves”, “measured mineral resources”,
“indicated mineral resources” and “inferred mineral resources”
under NI 43-101 would be the same had the Company prepared the
mineral reserve or mineral resource estimates under the standards
adopted under Regulation S-K 1300. U.S. investors are also
cautioned that while the SEC recognizes “measured mineral
resources”, “indicated mineral resources” and “inferred mineral
resources” under Regulation S-K 1300, investors should not assume
that any part or all of the mineralization in these categories will
ever be converted into a higher category of mineral resources or
into mineral reserves. Mineralization described using these terms
has a greater degree of uncertainty as to its existence and
feasibility than mineralization that has been characterized as
reserves. Accordingly, investors are cautioned not to assume that
any measured mineral resources, indicated mineral resources, or
inferred mineral resources that the Company reports are or will be
economically or legally mineable.
Table 1: Total Proven and Probable
Mineral Reserves as of December 31, 2021
PROVEN AND PROBABLE GOLD RESERVES (as at December 31,
2021) |
|
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 |
21,451 |
2.44 |
1,681 |
22,239 |
2.40 |
1,713 |
43,690 |
2.42 |
3,394 |
Island Gold |
834 |
9.33 |
250 |
3,278 |
10.33 |
1,088 |
4,112 |
10.12 |
1,338 |
Mulatos Main Pits |
367 |
1.18 |
14 |
2,758 |
1.16 |
103 |
3,125 |
1.16 |
117 |
Stockpiles |
4,947 |
1.64 |
260 |
0 |
0.00 |
0 |
4,947 |
1.64 |
260 |
La Yaqui Grande |
409 |
0.87 |
11 |
18,039 |
1.26 |
731 |
18,448 |
1.25 |
742 |
PDA |
532 |
4.96 |
85 |
2,318 |
4.61 |
343 |
2,849 |
4.67 |
428 |
Total Mulatos |
6,255 |
1.84 |
370 |
23,115 |
1.58 |
1,177 |
29,369 |
1.64 |
1,547 |
MacLellan |
12,059 |
1.83 |
710 |
15,761 |
1.33 |
672 |
27,820 |
1.54 |
1,382 |
Gordon |
2,311 |
2.82 |
210 |
6,412 |
2.27 |
468 |
8,723 |
2.42 |
678 |
Total Lynn Lake |
14,370 |
1.99 |
920 |
22,172 |
1.60 |
1,140 |
36,542 |
1.75 |
2,060 |
Ağı Dağı |
1,450 |
0.76 |
36 |
52,911 |
0.66 |
1,130 |
54,361 |
0.67 |
1,166 |
Kirazlı |
670 |
1.15 |
25 |
33,191 |
0.68 |
727 |
33,861 |
0.69 |
752 |
Total Turkey |
2,120 |
0.89 |
61 |
86,102 |
0.67 |
1,857 |
88,222 |
0.68 |
1,918 |
Alamos - Total |
45,030 |
2.27 |
3,283 |
156,906 |
1.38 |
6,975 |
201,936 |
1.58 |
10,257 |
PROVEN AND PROBABLE SILVER MINERAL RESERVES (as at December
31, 2021) |
|
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 Grande |
0 |
0.00 |
0 |
18,039 |
19.51 |
11,315 |
18,039 |
19.51 |
11,315 |
MacLellan |
12,059 |
4.94 |
1,914 |
15,761 |
3.97 |
2,011 |
27,820 |
4.39 |
3,925 |
Ağı Dağı |
1,450 |
6.22 |
290 |
52,911 |
5.39 |
9,169 |
54,361 |
5.41 |
9,459 |
Kirazlı |
670 |
16.94 |
365 |
33,191 |
9.27 |
9,892 |
33,861 |
9.42 |
10,257 |
Alamos - Total |
14,179 |
5.64 |
2,569 |
119,902 |
8.40 |
32,387 |
134,081 |
8.11 |
34,956 |
Table 2: Project Life-of-Mine Mineral
Reserve Waste-to-Ore Ratios as of December
31, 2021
Project Life-of-Mine Mineral Reserve Waste-to-Ore
Ratios as of December 31, 2021 |
Project |
Waste-to-Ore Ratio |
Mulatos Mine |
4.16 |
La Yaqui Grande Pit |
5.18 |
Ağı Dağı Pits |
1.03 |
Kirazlı Pit |
1.45 |
Lynn Lake Pits |
8.12 |
Table 3: Total Measured and Indicated
Mineral Resources as of December 31, 2021
MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at
December 31, 2021) |
|
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 |
4,168 |
3.30 |
442 |
2,908 |
4.54 |
425 |
7,076 |
3.81 |
867 |
Total Young-Davidson |
4,665 |
3.07 |
460 |
4,150 |
3.56 |
476 |
8,815 |
3.30 |
936 |
Island Gold |
20 |
4.92 |
3 |
1,076 |
8.18 |
283 |
1,096 |
8.12 |
286 |
Mulatos |
645 |
1.21 |
25 |
4,289 |
0.99 |
136 |
4,934 |
1.01 |
161 |
La Yaqui Grande |
0 |
0.00 |
0 |
1,150 |
0.87 |
32 |
1,150 |
0.87 |
32 |
PDA |
128 |
5.48 |
23 |
637 |
4.97 |
102 |
765 |
5.05 |
124 |
Carricito |
58 |
0.82 |
2 |
1,297 |
0.82 |
34 |
1,355 |
0.83 |
36 |
Total Mulatos |
831 |
1.85 |
50 |
7,373 |
1.28 |
304 |
8,204 |
1.34 |
353 |
MacLellan - Open Pit |
902 |
2.07 |
60 |
3,532 |
1.71 |
194 |
4,434 |
1.78 |
254 |
MacLellan - Underground |
0 |
0.00 |
0 |
123 |
3.54 |
14 |
123 |
3.54 |
14 |
Gordon |
105 |
1.86 |
6 |
1,511 |
2.06 |
100 |
1,617 |
2.05 |
106 |
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 |
1,007 |
2.04 |
66 |
7,172 |
1.70 |
391 |
8,178 |
1.74 |
457 |
Esperanza |
19,226 |
1.01 |
622 |
15,126 |
0.95 |
462 |
34,352 |
0.98 |
1,084 |
Ağı Dağı |
553 |
0.44 |
8 |
34,334 |
0.46 |
510 |
34,887 |
0.46 |
518 |
Kirazlı |
0 |
0.00 |
0 |
3,056 |
0.42 |
42 |
3,056 |
0.43 |
42 |
Çamyurt |
513 |
1.00 |
16 |
17,208 |
0.89 |
492 |
17,721 |
0.89 |
508 |
Total Turkey |
1,066 |
0.70 |
24 |
54,598 |
0.59 |
1,044 |
55,664 |
0.60 |
1,068 |
Quartz Mountain |
214 |
0.95 |
7 |
11,942 |
0.87 |
333 |
12,156 |
0.87 |
339 |
Alamos - Total |
27,029 |
1.42 |
1,232 |
101,437 |
1.01 |
3,293 |
128,465 |
1.10 |
4,524 |
MEASURED AND INDICATED SILVER MINERAL RESOURCES (as at
December 31, 2021) |
|
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 |
0 |
0.00 |
0 |
1,150 |
11.92 |
441 |
1,150 |
11.92 |
441 |
MacLellan - Open Pit |
902 |
8.55 |
248 |
3,532 |
4.64 |
527 |
4,434 |
5.44 |
775 |
MacLellan - Underground |
0 |
0.00 |
0 |
123 |
6.05 |
24 |
123 |
6.05 |
24 |
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 |
0 |
0.00 |
0 |
3,056 |
2.71 |
266 |
3,056 |
2.71 |
266 |
Çamyurt |
513 |
5.63 |
93 |
17,208 |
6.15 |
3,404 |
17,721 |
6.14 |
3,497 |
Alamos - Total |
21,194 |
7.12 |
4,850 |
74,529 |
4.81 |
11,533 |
95,723 |
5.32 |
16,384 |
Table 4: Total Inferred Mineral Resources
as of December 31, 2021
INFERRED GOLD MINERAL RESOURCES (as at December 31,
2021) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
31 |
0.99 |
1 |
Young-Davidson - Underground |
2,062 |
3.02 |
200 |
Total Young-Davidson |
2,093 |
2.99 |
201 |
Island Gold |
7,906 |
13.59 |
3,454 |
Mulatos |
507 |
0.92 |
15 |
La Yaqui Grande |
234 |
1.07 |
8 |
PDA |
83 |
5.14 |
14 |
Carricito |
900 |
0.74 |
22 |
Total Mulatos |
1,724 |
1.06 |
59 |
MacLellan - Open Pit |
1,227 |
1.11 |
44 |
MacLellan - Underground |
72 |
3.69 |
9 |
Gordon |
132 |
1.36 |
6 |
Burnt Timber |
23,438 |
1.04 |
781 |
Linkwood |
21,004 |
1.16 |
783 |
Total Lynn Lake |
45,873 |
1.10 |
1,622 |
Esperanza |
718 |
0.80 |
18 |
Ağı Dağı |
16,760 |
0.46 |
245 |
Kirazlı |
7,694 |
0.61 |
152 |
Çamyurt |
2,791 |
0.95 |
85 |
Total Turkey |
27,245 |
0.55 |
482 |
Quartz Mountain |
39,205 |
0.91 |
1,147 |
Alamos - Total |
124,764 |
1.74 |
6,982 |
INFERRED SILVER MINERAL RESOURCES (as at December 31,
2021) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
234 |
7.54 |
57 |
MacLellan - Open Pit |
1,227 |
1.98 |
78 |
MacLellan - Underground |
72 |
3.26 |
8 |
Esperanza |
718 |
15.04 |
347 |
Ağı
Dağı |
16,760 |
2.85 |
1,536 |
Kirazlı |
7,694 |
8.71 |
2,155 |
Çamyurt |
2,791 |
5.77 |
518 |
Alamos - Total |
29,496 |
4.95 |
4,699 |
Notes to Mineral Reserve and Resource
Tables:
- The Company’s Mineral Reserves and Mineral Resources as at
December 31, 2021 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 La
Yaqui Pit, 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 the Mulatos main open pit, 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. As the Mulatos main open pit has a Mineral Reserve life
remaining of less than two years, a gold price of $1,400 was
used.
- Metal prices, cut-off grades and metallurgical recoveries are
set out in the table below.
|
Mineral Resources |
Mineral Reserves |
|
|
Gold Price |
Cut-off |
Gold Price |
Cut-off |
Met Recovery |
Mulatos: |
|
|
|
|
|
Mulatos Main Open Pit |
$1,400 |
0.5 |
see notes |
see notes |
>50% |
PDA Underground |
$1,400 |
2.5 |
$1,250 |
3.0 |
85% |
La Yaqui |
$1,400 |
0.3 |
$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 |
1.5 |
91% |
Island Gold |
$1,400 |
4.0 |
$1,250 |
2.89-4.22 |
96.5% |
Lynn Lake - MacLellan |
$1,400 |
0.42 |
$1,250 |
0.47 |
91-92% |
Lynn Lake - MacLellan UG |
$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% |
Kirazli |
$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 – 2021 Mineral Reserves
https://www.globenewswire.com/NewsRoom/AttachmentNg/1480eccc-5235-48b4-a06c-654e247c7661
Figure 2: Island Gold Mine Main Zone
Longitudinal – 2021 Mineral Resources
https://www.globenewswire.com/NewsRoom/AttachmentNg/b52ea55a-89b3-44ba-aa32-bffa5c21bba1
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