Press release from Marketwire
Alamos Gold Reports Q3 2010 Financial Results and Provides Mulatos Operations and Exploration Update
Thursday, November 04, 2010
Alamos Gold Reports Q3 2010 Financial Results and Provides Mulatos Operations and Exploration Update06:02 EDT Thursday, November 04, 2010TORONTO, ONTARIO--(Marketwire - Nov. 4, 2010) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") reports financial and operating results for the quarter ended September 30, 2010. The Company is also providing an update on operations and exploration activities at its Mulatos Project in Sonora State, Mexico.Third Quarter 2010 Highlights:Reported earnings of $19.5 million, or $0.17 per share. Generated operating cash flow before working capital changes of $16.4 million, or $0.14 per share. Cash operating costs of $312 per ounce of gold sold ($284 YTD). Total cash costs of $372 per ounce of gold sold ($339 YTD). Reported a $12.5 million ($0.11 per share) gain on completion of a settlement agreement with Primero Mining. Announced a 17% increase in the Company's semi-annual dividend to $0.035 per share. Negotiated surface access agreements and initiated a 10,000-metre drill program at the high-priority El Carricito exploration target. Continued to obtain positive assay results at San Carlos, including the highest grade-thickness intercepts ever in the San Carlos zone with drill hole 10SC124 returning 25.9 metres grading 18.36 g/t Au. Subsequent to quarter-end, the Company:Produced 18,000 ounces of gold in October. Completed construction of the new North Mulatos Heap and commenced stacking in early November. Commissioned the new screening plant designed to increase crusher throughput by between 13% and 20%. Initiated a 2,500-metre drill program at the prospective Çamyurt exploration target in Turkey. This press release should be read in conjunction with the Company's interim consolidated financial statements for the quarter ended September 30, 2010 and associated Management Discussion and Analysis ("MD&A"), which are available from the Company's website (www.alamosgold.com), in the "Investor Centre" section under "Reports & Financial Statements", and on SEDAR (www.sedar.com).Review of Financial ResultsThe Company generated revenue of $34.3 million in the third quarter of 2010 from the sale of 28,000 ounces of gold. This represented a 17% decrease from revenues in the third quarter of 2009 of $41.3 million. The decrease in revenue is attributable to lower than budgeted production and was partially offset by higher realized gold prices in the third quarter of 2010.Earnings in the third quarter of 2010 increased 38% to $19.5 million ($0.17 per share), compared to $14.1 million ($0.13 per share) in the same period of 2009. Earnings in the third quarter benefited from a $12.5 million ($0.11 per share) one-time gain on completion of a settlement agreement with Primero Mining Corporation ("Primero Mining"). Earnings in the third quarter were also affected by stock-based compensation of $3.3 million ($0.03 per share) and a foreign exchange loss of $1.3 million ($0.01 per share).In the third quarter of 2010, the Company generated cash flows from operations before changes in non-cash working capital of $16.4 million ($0.14 per share) and cash flows from operation after changes in non-cash working capital of $11.2 million ($0.10 per share), representing decreases of 22% and 50%, respectively, when compared to the same period in 2009.Capital expenditures in the third quarter were $15.8 million, compared with $8.5 million in the same period last year. Investments in operating capital and development activities for the Company's Mexican operations were $9.3 million and $4.6 million, respectively. Investments in development activities during the third quarter for the Company's Turkish operations, which were acquired in the first quarter of 2010, were $1.9 million.During the third quarter of 2010, the Company's cash and short-term investments balances decreased by $2.9 million to $172.8 million.Key financial metrics for the third quarter of 2010 compared to the third quarter of 2009, and on a year-to-date bases to September 30, 2010 and 2009 are presented at the end of this press release in Table 1.Review of Operational ResultsThe Mulatos Mine produced 30,200 ounces during the third quarter of 2010, a decrease of 29% relative to gold production of 42,500 ounces in the comparable period of 2009. In the third quarter of 2010, cash operating costs of $312 per ounce and total cash costs (including the 5% royalty) of $372 per ounce, combined with a $1,226 average realized gold price resulted in a cash margin of $854 per ounce, an increase of 33% over the same period of last year. Crusher throughput in the third quarter of 2010 was consistent with planned levels, while lower gold production resulted in a lower than budgeted recovery ratio(1).Key operational metrics and production statistics for the third quarter of 2010 compared to the third quarter of 2009, and on year-to-date bases to September 30, 2010 and 2009 are presented at the end of this press release in tables 2 and 3.(1) "recovery ratio" is defined as the ratio of gold ounces produced divided by the number of contained ounces stacked over a specific periodFourth Quarter 2010 OutlookThe Company is expecting a significant increase in gold production in the fourth quarter of 2010 and is maintaining its production guidance of 160,000 to 175,000 ounces. As a result of higher input costs in the second half of 2010 and the strengthening of the Mexican peso relative to the Company's budgeted foreign exchange rate, the Company is increasing it's full-year cash operating cost guidance from $288 per ounce to $300 per ounce, exclusive of the 5% royalty.Production in the fourth quarter is expected to increase as a result of several factors, including: Stacking ore on the new expanded North Mulatos Heap, increased capacity of the gold recovery plant, and increased crusher throughput.The Company expects the rate of gold production and the recovery ratio to increase significantly in the fourth quarter of 2010 as gold production is derived from both ore stacked on higher lifts of the South Mulatos Heap, as well as from ore stacked on the first lift of the new North Mulatos Heap leach pad. The Company began stacking ore directly on the new liner of the North Mulatos Heap during the first week of November.Gold production is also expected to benefit from the recent addition of a second train of carbon columns to the gold recovery plant. These new columns provide additional gold-bearing solution processing capacity resulting in a modest increase in the rate of gold production.The new screening plant, as described in the Company's March 31, 2010 press release, has been installed and commissioned. The additional screening capacity is expected to result in a 13% to 20% increase in crusher throughput to the leach pad. Since commissioning in October, the Company has observed an increase in daily throughput to an average of 15,500 tonnes per day in the last week of October, compared to an average of 12,100 tonnes per day in the third quarter of 2010.With respect to the expansion of the Mulatos Pit, which will provide access to the high-grade portion of the Escondida zone, the mining contractor has been unable to make up lost time in the third quarter and is currently 18% behind schedule. The Company has extended the completion date for the project from the fourth quarter of 2011 to the first quarter of 2012. Construction of the Mulatos High-Grade Mill is planned to commence in the first quarter of 2011 and is scheduled to be completed by the end of 2011. The Company expects to begin processing ore from the high-grade portion of the Escondida zone during the first quarter of 2012. Mulatos Exploration UpdateIn the third quarter, the Company drilled over 7,650 metres ("m") in 40 holes with three reverse-circulation ("RC") rigs and one core rig. On a year-to-date basis, the Company has drilled a total of 39,500 m in 204 holes at Mulatos.Drilling activities in the third quarter continued to focus on the San Carlos and Puerto del Aire Extension ("PdA Extension") mineral resource areas, which are identified in Figure 1 at the end of this press release. By the end of the third quarter, the Company had also initiated exploration drilling on its prospective El Carricito project, located approximately 20 km southwest of the Mulatos Mine. San Carlos Activities at San Carlos during the third quarter focused on completing infill drilling, geological modelling and interpretation, metallurgical sampling, and the initiation of engineering studies in preparation for the determination of mineral resources and reserves. Drill testing for extensions of the mineralized zones ended as planned in late July with the arrival of the rainy season and the related loss of access to the project area. With water levels decreasing in the Mulatos River, drilling is expected to resume shortly.The Company recently received final assays from drill hole 10SC124, the last hole drilled in 2010, and returned a 25.92 m interval grading 18.36 grams per tonne of gold ("g/t Au"). This intercept represents the largest grade-thickness intercept at San Carlos and further demonstrates the continuity and robustness of the high-grade zone. Relevant assay results and drill hole collar data are presented in tables 4 and 5, respectively. Figure 2 identifies the location of San Carlos drill holes.The Company also recently completed the geological modelling and interpretation of the San Carlos area. The San Carlos mineralized zone, as defined by the distribution of silica alteration, has a strike of at least 400 m, an average width of 125 m, and an average thickness of 50 m. The high-grade portion of the mineralized zone, which is contained within the lower-grade mineralized envelope, is both structurally- and stratigraphically-controlled, is at least 270 m long, has an average width of 50 m, and an average thickness of 20 m. High-grade gold mineralization at San Carlos is interpreted to be spatially-related to post-mineral mafic dykes, which the Company has recently identified elsewhere in the Mulatos District and will be the focus of drill testing starting in the fourth quarter.Geologic modelling at San Carlos has revealed open mineralization at the northeast end of the trend with high-grade gold occurring in a stratigraphic unit overlying the principal host rock, a unit that was not previously known to host gold mineralization. This new zone is open in all directions and significantly expands the exploration potential of the project area.Detailed modelling of the high-grade portion of the deposit indicates that the high-grade mineralization is controlled by several en echelon structural zones, suggesting significant potential for finding additional high-grade zones.During the second and third quarters, the Company drilled four PQ-size drill holes at San Carlos for the purpose of collecting representative samples for metallurgical testing. Initial observations indicate that the gold mineralization is associated with high-specific gravity minerals, suggesting that the ore may be amenable to gravity separation and has the potential to be a future source of mill feed for the Mulatos High-Grade Mill. Final metallurgical results are expected during the first quarter of 2011.With completion of the San Carlos geological model, mineral resource estimation activities have commenced and the results will be incorporated into an updated mineral resource that will include a total of 26,980 m of drilling from 125 holes. Subject to the completion of the required engineering studies, the Company anticipates reporting mineral reserves for the first time at San Carlos during the first quarter of 2011 as part of its annual mineral reserves and resources update. Puerto del Aire Extension Year-to-date ("YTD"), more than 19,400 m have been drilled in 79 holes within the PdA Extension trend, of which 6,500 m in 34 holes were drilled in the third quarter. Relevant assay results and drill hole collar data are presented at the end of this press release in tables 6 and 7, respectively.Recent drilling activities at the PdA Extension have primarily focused on expanding the mineralized zone northeast towards and beyond the Mulatos River. Drilling at the PdA Extension in the third quarter focused on the shallower part of the mineralized zone adjacent to the western side of the Mulatos River, as shown in Figure 3 at the end of this press release. Notable recent assay results from drill holes in this area include:10PA228 18.29 m grading 1.03 g/t Au 10PA229 73.17 m grading 1.57 g/t Au Drill holes 10PA228 and 10PA229 were planned to follow-up results previously reported from drill hole 10PA199 (18.3 m grading 1.1 g/t Au and 21.4 m grading 1.2 g/t Au). The zone delineated by these three drill holes is adjacent to the Mulatos River and begins approximately 60 m below surface. The zone appears to be open to the west, although it may be discontinuous due to post-mineral faulting. A recently completed soil survey identified a gold-in-soil geochemical anomaly on the other side the Mulatos River and suggests that the PdA Extension trend may continue for at least another 400 m to the northeast.For the remainder of the year, drilling at the PdA Extension will focus on the shallower part of the mineralized zone located adjacent to the western side of the Mulatos River and on the potential new extension across the river. With water levels decreasing in the Mulatos River, the Company also expects to start drill-testing recently discovered mafic dyke swarms along the PdA Extension trend on the western and eastern sides of the Mulatos River during the fourth quarter. Mafic dykes encountered at San Carlos are interpreted to be spatially-related to high-grade gold mineralization. As a result, these new mafic dyke swarms are considered to be very prospective exploration targets. El Carricito During the third quarter, access agreements encompassing the majority of the El Carricito project area were executed. Drilling commenced with one RC rig in late September and over 1,750 m in nine holes have been completed. Road and drill pad construction is ongoing and the Company plans to add additional rigs during the fourth quarter once sufficient infrastructure has been established.El Carricito is the largest area of favorable silicic and advanced argillic alteration in the Mulatos District. This zone of alteration, which has never been drill-tested, is approximately 5.5 kilometres ("km") long, up to 2.7 km wide, and is up to 300 m thick in outcrop. Alamos geologists completed an extensive work program that included geologic mapping and rock chip and soil grid sampling in 2009. The program was successful at outlining a sizeable gold-in-soil anomaly co-incident within a portion of the silica alteration, which is shown in Figure 4 at the end of this press release. With access agreements in place, the Company has resumed geological mapping and sampling activities to begin generating additional drill targets on other areas of the El Carricito project.For the first phase of drilling at El Carricito, the Company has budgeted a minimum of 10,000 m of RC and core drilling in 2010. The Company is planning to initiate a significantly larger drilling program at El Carricito in 2011. The Company expects to report preliminary assay results by the end of November.Reminder of Q3 2010 Financial Results Conference Call and WebcastThe Company's senior management will host a conference call today, November 4, 2010 at 12:00 pm EDT to discuss the 2010 third quarter financial results, and to provide an update on the Company's operating, exploration, and development activities.Participants may join the conference call by dialing 1 (800) 355-4959 or 1 (416) 695-6623 for calls outside Canada and the United States or via webcast on the Company's website at www.alamosgold.com.A recorded playback of the conference call can be accessed after the event until November 18, 2010 by dialing 1 (800) 408-3053 or 1 (416) 695-5800 for calls outside Canada and the United States. The pass code for the conference call playback is 6137066#. The archived audio webcast will also be available on the Company's website at www.alamosgold.com.QA/QC ProgramsMulatos exploration programs are conducted under the supervision of Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Registered Professional Geologist, Alamos' Mexico Exploration Manager. Mr. Balleweg is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 0.5 to 1.5 m. Mulatos samples are sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia, Canada for analysis. Analytical method is fire assay with atomic adsorption finish and gravimetric finish for individual samples with a gold concentration greater than 5.0 g/t Au. Composites presented in the assay results tables include intervals at >0.5 g/t over a 3-m minimum width; no assays are cut unless indicated.About AlamosAlamos is an established Canadian-based gold producer that owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey. The Company employs 500 people in Mexico and Turkey and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos has over US$170 million cash on hand, is debt-free, and unhedged to the price of gold. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI".Cautionary Non-GAAP StatementsThe Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Cash flow from operating activities before changes in non-cash working capital" is a non-GAAP performance measure which could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Cash provided by (used for) operating activities" as presented on the Company's consolidated statements of cash flows. "Mining cost per tonne of ore" is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency and effectiveness at the Mine. It is determined by dividing the relevant mining and processing costs by the tonnes of ore processed in the period. "Cost per tonne of ore" is usually affected by operating efficiencies and waste-to-ore ratios in the period. "Cash operating costs per ounce" and "total cash costs per ounce" as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "cash operating costs per ounce" as determined by the Company compared with other mining companies. In this context, "cash operating costs per ounce" reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of gold sold in the period. "Cash operating costs per ounce" may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. "Total cash costs per ounce" includes "cash operating costs per ounce" plus applicable royalties. Cash operating costs per ounce and total cash costs per ounce are exclusive of exploration costs. Cautionary NoteNo stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. 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 which is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.The Company has made projections of its annual production and operating costs based on annual budget which incorporates assumptions based on mining in sequence its mineral reserves at projected rates of tonnes and grade, assessing probable costs for mining and processing activities, projecting reasonable foreign exchange rates and achieving indicated rates of gold recovery derived from laboratory testing and historical experience. These assumptions are considered reasonable in the circumstances, but may be subject to change as additional information becomes available.There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. To view "Figure 1: Mulatos Pit Area", please visit the following link: http://media3.marketwire.com/docs/alf1.pdf To view "Figure 2: San Carlos Project Area – Drill Hole Locations", please visit the following link: http://media3.marketwire.com/docs/alf2.pdf To view "Figure 3: Puerto del Aire Extension Project Area – Drill Hole Locations", please visit the following link: http://media3.marketwire.com/docs/alf3.pdf To view "Figure 4: El Carricito Gold-in-Soil Map", please visit the following link: http://media3.marketwire.com/docs/alf4.pdf Table 1: Financial HighlightsQ3 2010Q3 2009YTD 2010YTD 2009Cash provided by operating activities before changes in non-cash working capital (000)(1)$16,357$20,882$59,824$57,551Changes in non-cash working capital (000)($5,136)$1,464($4,178)$2,302Cash provided by operating activities (000)$11,221$22,346$55,646$59,853Earnings before income taxes (000)$24,459$19,389$64,918$49,777Earnings (000)$19,484$14,115$45,568$35,881Earnings per share - basic - diluted$0.17 $0.17$0.13 $0.13$0.40 $0.39$0.34 $0.33Comprehensive income (000)$20,553$14,212$46,637$36,671Weighted average number of common shares outstanding - basic - diluted115,819,000 117,328,000108,560,000 110,229,000114,874,000 116,594,000105,937,000 107,904,000Assets (2)$500,717 (2)$360,282 (2)(1) A non-GAAP measure calculated as cash provided by operating activities as presented on the consolidated statements of cash flows and adding back changes in non-cash working capital.(2) Assets are presented as at September 30, 2010 and December 31, 2009. Table 2: Production Summary & StatisticsQ3 2010Q3 2009YTD 2010YTD 2009Ounces produced (1)30,20042,500110,200130,500Ore crushed (tonnes)1,112,0001,119,0003,504,0003,259,000Grade (g/t Au)1.631.681.681.77Contained ounces stacked58,38160,439189,093185,455Ratio of ounces produced to contained ounces stacked52%70%58%70%Ore mined (tonnes)1,120,0001,155,0003,518,0003,228,000Waste mined (tonnes)1,090,000751,0002,950,0003,364,000Total mined (tonnes)2,210,0001,906,0006,468,0006,592,000Waste-to-ore ratio0.970.650.841.04Ore crushed per day (tonnes)12,10012,20012,80011,9001 - Reported gold production for Q3 and YTD 2009 has been adjusted to reflect final refinery settlement. Reported gold production for Q3 and YTD 2010 is subject to final refinery settlement and may be adjusted.Table 3: Production Costs & StatisticsQ3 2010Q3 2009YTD 2010YTD 2009Mining cost per tonne of material (ore and waste)$1.89$2.15$1.97$1.81Waste-to-ore ratio0.970.650.841.04Mining cost per tonne of ore$3.74$3.54$3.63$3.70Crushing/conveying cost per tonne of ore$2.26$1.66$2.11$1.70Processing cost per tonne of ore$3.61$2.62$2.75$2.54Mine administration cost per tonne of ore$2.05$1.88$1.98$1.70Total cost per tonne of ore$11.66$9.70$10.47$9.64Table 4: San Carlos - Select Composite Intervals1 Include intervals at >0.5 g/t Au over a 3 metres minimum width, no assay cutDrill Hole NumberDrilling Method2Total Depth (m)From(3)(m)To(3)(m)Interval(3)(m)Assay(g/t Au)10SC124RC228.66118.90Inc.118.90 Inc.128.05 158.54144.82121.95 135.67 170.7325.923.05 7.62 12.1918.3654.25 37.78 1.07Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization RC = Reverse Circulation Hole Number in bold represent intervals greater than 50 metres*grams/tonne (50gmt) Table 5: San Carlos – Drill Hole Collar DataDrill HoleTotal Depth (m)Azimuth (degree)Dip (degree)Easting NAD27-12 (m)Northing NAD27-12 (m)10SC124228.660-68722,5953,173,062Table 6: Puerto del Aire Extension - Select Composite Intervals1 Include intervals at >0.5 g/t Au over a 3 metres minimum width, no assay cutDrill Hole NumberDrilling Method2Total Depth (m)From3 (m)To3 (m)Interval3 (m)Assay3 (g/t Au)10PA222RC/CORE464.10369.42375.506.080.8410PA223RC/CORE449.50No Intervals10PA224RC198.17No Intervals10PA225RC396.34No Intervals10PA226RC185.98 178.35185.987.631.1210PA227RC396.34327.74330.793.050.6810PA228RC170.7379.27 94.51 121.9582.32 112.80 125.003.05 18.29 3.050.76 1.03 0.5610PA229RC175.3071.65144.8273.171.5710PA230RC381.10No Intervals10PA231RC330.79222.56 248.48227.13 251.524.57 3.041.67 0.8410PA232RC385.67201.22 262.20 310.98 346.04204.27 280.49 317.07 355.183.05 18.29 6.09 9.140.92 0.80 1.02 3.1110PA233RC396.34333.84 382.62338.41 385.674.57 3.051.46 0.8710PA234RC370.43205.79 224.09 236.28 259.15 291.16208.84 227.13 242.38 266.77 294.213.05 3.04 6.10 7.62 3.055.13 0.77 1.18 0.70 1.0310PA235RC253.05169.21179.8810.670.6810PA236RC239.3399.09103.664.570.7010PA240RC245.43195.12 208.84 227.13 233.23204.27 214.94 230.18 245.439.15 6.10 3.05 12.202.15 2.73 0.61 0.5410PA241RC254.57135.67 149.39 182.93 201.22141.77 152.44 196.65 204.276.10 3.05 13.72 3.051.21 0.69 0.75 0.6310PA242RC217.99121.95 150.91129.57 164.637.62 13.720.63 1.8410PA244RC114.33No IntervalsDue to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization RC = Reverse Circulation Hole Number in bold represent intervals greater than 50 metres*grams/tonne (50gmt) Table 7: Puerto del Aire Extension – Drill Hole Collar DataDrill HoleTotal Depth (m)Azimuth (degree)Dip (degree)Easting NAD27-12 (m)Northing NAD27-12 (m)10PA222464.100-90722,8043,172,03610PA223449.500-90722,8933,171,97710PA224198.170-90722,9903,172,25110PA225396.34150-70723,0093,172,19710PA226185.98150-75722,8923,172,36410PA227396.34150-70722,8843,172,22610PA228170.73330-80723,2523,172,21510PA229175.30300-60723,2513,172,21510PA230381.10315-60723,1063,172,01810PA231330.79330-80723,1743,172,15710PA232385.67330-60723,1733,172,15710PA233396.340-90722,8833,172,22710PA234370.43330-60722,8823,172,22910PA235253.050-90722,8923,172,36910PA236239.23150-60722,9593,172,37410PA240245.43330-75722,8863,172,22810PA241254.57330-85722,8613,172,32110PA242217.990-90722,7843,172,38710PA244114.33330-75722,8663,172,328FOR FURTHER INFORMATION PLEASE CONTACT: John A. McCluskeyAlamos Gold Inc.President and Chief Executive Officer(416) 368-9932ORJeremy LinkAlamos Gold Inc.Investor Relations Manager(416) 368-9932www.alamosgold.comThe TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.