Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today announced that
the federal Environmental Impact Assessment (“EIS”) for the Lynn
Lake Gold Project (“Lynn Lake”) has been completed and a positive
Decision Statement has been issued by the Minister of Environment
and Climate Change Canada. As well, in accordance with the
Environment Act, the Province of Manitoba has issued Environment
Act Licenses for the MacLellan and Gordon sites.
“Achieving both of these important regulatory
milestones for the Lynn Lake Gold Project represents a multi-year,
collaborative effort by our team and our commitment to
environmental sustainability,” said John A. McCluskey, President
and Chief Executive Officer. “Lynn Lake is a significant
opportunity to drive the future growth of our business in Canada,
with the potential to increase our annual production to
approximately 800,000 ounces of gold per year.”
Having achieved these milestones, the Company
will continue obtaining other project related permits. The
negotiation of formal agreements with directly affected First
Nations will also continue.
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 (36.5 million tonnes (“mt”)
grading 1.75 grams per tonne of gold (“g/t Au”)). This growth along
with additional exploration success over the past several years
will be incorporated into an updated Feasibility Study which is
expected to be completed during the first half of 2023.
With a large underexplored land package with
significant potential, exploration will remain a key ongoing focus
with $5 million budgeted at the Lynn Lake Project in 2023. This
includes 8,000 metres of drilling focused on several advanced
regional targets, expansion of Mineral Reserves and Resources in
proximity to the Gordon deposit, as well as targeting and
evaluation of the Burnt Timber and Linkwood deposits. Burnt Timber
and Linkwood contain Inferred Mineral Resources totaling 1.6
million ounces grading 1.1 g/t Au (44.4 mt) as of December 31, 2022
and represent potential future upside.
The other key area of focus for 2023 is the
continued evaluation and advancement of a pipeline of prospective
exploration targets within the 58,000-hectare Lynn Lake Property
including the Tulune greenfields discovery and the Maynard
target.
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.
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 strong portfolio of
growth projects, including the Phase 3+ Expansion at Island Gold,
and the Lynn Lake project in Manitoba, Canada. Alamos employs more
than 1,900 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 Senior 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 contains or incorporates by
reference “forward looking statements” and “forward-looking
information” as defined under applicable Canadian and U.S.
securities legislation. All statements, other than statements of
historical fact, which address events, results, outcomes or
developments that Alamos Gold Inc. (“Alamos” or “the Company”)
expects to occur are, or may be deemed to be, forward-looking
statements. Forward-looking statements are generally, but not
always, identified by the use of forward-looking terminology such
as “will”, “expect”, “potential”, “continue” 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, but may not be limited to, statements, expectations and
information pertaining to: the development of the Lynn Lake Gold
Project; the Lynn Lake Gold Project’s potential to drive future
growth of the Company’s business; the potential for an increase in
the Company’s annual production of gold and the expected number of
yearly ounces of increase per year that would be attributed to the
Lynn Lake Gold Project if developed; the Company’s intent to
continue obtaining other project related permits; the expected
receipt of other project related permits; ongoing negotiations with
affected First Nations; the expected completion of an updated
Feasibility Study for the Lynn Lake Gold Project and the expected
timing of its completion; intentions with respect to exploration,
including budgets, targets and the potential future upsides
relating to intended exploration; the potential expansion of
Mineral Reserves and Resources in proximity to the Gordon deposit;
the Company’s intent to target and evaluate the Burnt Timber and
Linkwood deposits and the expected Inferred Mineral Resources and
gold grades contained therein; expected focus on the continued
evaluation and advancement of a pipeline of prospective exploration
targets surrounding the Lynn Lake property; and, other statements
that express management’s expectations or estimates of future plans
and performance, operational, geological or financial results,
estimates of amounts not yet determinable and assumptions of
management.
Alamos cautions that forward-looking statements
are necessarily based upon a number of factors and assumptions
that, while considered reasonable by Alamos 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.
Risk factors that may affect Alamos’ ability to
achieve the expectations set forth in the forward-looking
statements contained in this news release include, but are not
limited to: a decision not to develop the Lynn Lake Gold Project;
not obtaining additional requisite permits required to proceed with
the Lynn Lake Gold Project; issues arising from negotiations with
affected First Nations; delays in completing an updated Feasibility
Study for the Lynn Lake Gold Project; the actual results of
intended exploration activities; conclusions of economic and
geological evaluations; changes in project parameters as plans
continue to be refined; operations may be exposed to serious
illness, new epidemics and/or pandemics; the ongoing and potential
future impact of the COVID-19 pandemic or any other new illness,
epidemic or 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; the duration of any ongoing or new
regulatory responses to the COVID-19 pandemic or any other new
illness, epidemic or pandemic; changes in federal, provincial
and/or municipal legislation, regulations or controls; 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 jurisdictions in
which the Company does now or may in the future carry on business;
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 other risk
factors that may affect Alamos’ ability to achieve the expectations
set forth in the forward-looking statements 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.
Alamos 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
Mineral Resource and Mineral Reserve estimates
referenced in this news release are made 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 or referenced 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.
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