Press release from Marketwire
Alamos Gold Receives Positive Metallurgical Test Results for San Carlos and Provides Mulatos Exploration Update
Tuesday, June 21, 2011
Alamos Gold Receives Positive Metallurgical Test Results for San Carlos and Provides Mulatos Exploration Update06:00 EDT Tuesday, June 21, 2011TORONTO, ONTARIO--(Marketwire - June 21, 2011) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") announces positive results from metallurgical testing conducted on the high-grade ore at San Carlos. The results indicate that the high-grade ore is amenable to gravity separation, capable of providing an additional source of mill feed to the gravity plant that the Company is currently constructing to process the high-grade ore at Escondida. The Company has also completed 32,400 metres ("m") of drilling in 155 holes to-date in 2011 as part of its planned exploration drilling program at the Mulatos district. Locations of the exploration targets at Mulatos are shown in figures 1 and 2. San Carlos Metallurgical Test Results Two high-grade composite samples from the 2010 core drilling program at San Carlos were submitted for metallurgical testing. Testing was optimized to replicate the gravity plant that the Company is currently constructing to process the high-grade ore at Escondida. Initial test results revealed that the high-grade ore at San Carlos is amenable to gravity separation and can be processed economically through the gravity plant. Approximately 57% and 69% of the contained gold in the two composites were recovered through gravity separation, and ultimate recovery rates were 70% and 78% respectively, when the tailings were leached with cyanide. These levels of ultimate recovery are 15% to 20% higher than leaching the high-grade ore at San Carlos alone. The potential to improve these recovery rates exists and will be evaluated in the next phase of testing. Using an anticipated cut-off grade of 3.0 grams of gold per tonne ("g/t Au") for the gravity plant, "in-pit" mineral reserves at San Carlos total 398,000 tonnes grading 6.69 g/t Au. Outside the pit limit, measured and indicated mineral resources total 195,000 tonnes grading 4.99 g/t Au. The Company believes the high-grade San Carlos reserves and resources could potentially double the mill feed for the gravity plant. San Carlos Exploration Update The Company initiated a drill program in February 2011 to test for new high-grade resources. The Company has since drilled 7,400 m in 21 holes. Assay results are presented in Table 1 and the Mulatos pit locations are presented in Figure 2. Notable assay results from recent drilling include:•11SC1264.57 m at 19.54 g/t Au16.77 m at 1.28 g/t Au•11SC12736.59 m at 4.37 g/t Au•11SC1289.14 m at 30.45 g/t Au13.71 m at 19.09 g/t Au•11SC13813.72 m at 5.80 g/t Au3.05 m at 22.56 g/t Au•11SC1393.04 m at 3.37 g/t Au•11SC14412.20 m at 1.09 g/t AuDrill holes 126, 127, and 128 are infill and step-out holes drilled on the northeast edge of the resource area. The results from these holes confirm the continuity of the high-grade mineralization towards the northeast. The remaining holes reflect intercepts from additional en echelon structural high-grade zones discovered to the northeast of the main San Carlos resource. The Company identified at least two additional sub-parallel structures, located up to 600 m from the resource area, with surface mapping indicating the potential for additional zones to the northeast. The new zones are located at the same elevation as the existing mineralization but under significant overburden and are potentially amenable to underground mining. Additional wide-spaced drilling is planned to define the extent of the new mineralized zones. The recent San Carlos drill program has identified high-grade gold mineralization in the stratigraphic units above the main district host-rock stratigraphy, which was previously thought to be barren of gold mineralization. This mineralization represents a late-stage high-grade event, overprinting the main Mulatos low-grade gold mineralization, similar to the relationship at the Escondida deposit. This concept in conjunction with recent mapping has resulted in the identification of several new near-mine high-grade targets for future drill testing. En echelon structures and stratigraphic units hosting high-grade gold mineralization in the San Carlos area are illustrated in Figure 3. El Carricito Exploration Update Step-out drilling at El Carricito continues in 2011 testing geochemical and geologic targets and expanding on significant intercepts from previous drilling. The Company drilled 12,400 m in 56 drill holes to-date and relevant assay results are presented in tables 2 and 3. Drilling has focused on delineating and expanding mineralization identified at Cerro Carricito and Cerro Colorado, two areas of thick, laterally extensive, low-grade gold mineralization on the western side of the property. Approximate drill-hole locations are illustrated on Figure 4. The Company has drill-tested only a relatively small area of the target considering the large size of the El Carricito. Most of the holes drilled at El Carricito have intersected wide intercepts of oxidized silicic alteration containing anomalous gold concentrations. The host rocks are porphyritic, rhyodacite, dacite, and fragmental volcanic rocks similar to those hosting the Mulatos deposit. Substantial multi-phase hydrothermal breccias are also present, as well as mafic dykes similar to those associated with the San Carlos deposit. Notable recent assay results at a 0.10 g/t Au cut-off from the ongoing drill program include:•11CR0299.15 m at 0.66 g/t Au•11CR0457.62 m at 0.82 g/t Au•11CR04613.77 m at 0.47 g/t Au•11CR04771.65 m at 0.52 g/t Au•11CR0496.10 m at 1.02 g/t Au10.67 m at 0.55 g/t Au•11CR06512.20 m at 0.44 g/t Au•11CR06815.25 m at 0.52 g/t Au•11CR06912.20 m at 0.97 g/t Au•11CR07112.19 m at 0.89 g/t Au•11CR07221.34 m at 0.49 g/t Au•11CR07348.78 m at 0.31 g/t AuFollowing interpretation of results to-date, and a field review by an internationally recognized epithermal specialist, significant effort is being put into a detailed mapping of the Cerro Carricito and Cerro Colorado areas on the western side of the project area, where alteration zonation, gold distribution, and multi-element geochemical anomalies indicate proximity to the structural feeder and center of the system. The geologic work is leading towards a predictive model that explains the distribution of gold intercepts at El Carricito. A new area of gold-anomalous vuggy silica has been recently identified based on this model between the Cerro Colorado and Cerro Carricito areas and new drill roads and sites are being constructed. Two reverse circulation drill rigs are operating at El Carricito with a core drill rig to be relocated to the area to provide additional geological information and compare the grade of core intercepts to those of reverse circulation drilling. QA/QC Programs Mulatos 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 >0.35 g/t over a 3-m minimum width with no assays 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 nearly 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 $195 million cash on hand, is debt-free, and unhedged to the price of gold. As of May 31, 2011, Alamos had 116,978,006 common shares outstanding (125,254,906 shares fully diluted), which are traded on the Toronto Stock Exchange under the symbol "AGI" To view Figure 1: Project Locations – Mulatos District, please visit the following link: http://media3.marketwire.com/docs/agifigure1.pdf To view Figure 2: Project Locations – Mulatos Pit Area, please visit the following link: http://media3.marketwire.com/docs/agifigure2.pdf To view Figure 3: San Carlos Extension Project Area, please visit the following link: http://media3.marketwire.com/docs/AGI-FG3.pdf To view Figure 4: El Carricito – Drill Hole Locations with Areas of Interest, please visit the following link: http://media3.marketwire.com/docs/agifigure4.pdf Table 1: San Carlos - Select Composite Intervals1 Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cutDrill Hole NumberDrilling Method2Total Depth (m)From3 (m)To3 (m)Interval (m) Assay3 (g/t Au)152.44157.014.5719.54170.73187.5016.771.2811SC126RC251.52198.17208.8410.671.35211.89219.517.621.28236.28239.333.053.37135.67172.2636.594.3711SC127RC230.18175.30182.937.630.62201.22207.326.101.00217.99225.617.620.77117.38126.529.1430.4511SC128RC233.23Inc.117.38121.954.5758.33137.20150.9113.7119.09Inc.137.20143.296.0941.4011SC129RC263.72195.12184.108.40.206205.79213.417.620.6611SC131RC303.35No Intervals 11SC132RC330.79219.51222.563.050.66227.13230.183.050.7711SC133RC301.83 No Intervals 11SC135RC382.62300.30310.9810.680.83329.27338.419.142.70327.74330.793.051.9011SC136RC452.74333.84336.893.051.45346.04349.093.050.67378.05382.624.570.36260.67271.3410.670.4711SC137RC458.84282.01292.6810.670.77295.73298.783.053.80266.77280.4913.725.80283.54292.689.140.3711SC138RC431.40306.40309.453.0522.56358.23379.5721.340.98382.62387.204.581.94402.44407.014.570.64172.26175.303.043.37179.88184.454.570.4711SC139RC275.91196.65199.703.052.33204.27207.323.050.37222.56230.187.621.1411SC140RC352.13169.21172.263.050.67182.93190.557.621.9111SC141RC379.57271.34277.446.101.11272.87277.444.570.8711SC142RC394.82288.11295.737.621.22307.93314.026.090.5411SC143RC474.09No Intervals 301.83309.457.620.4011SC144RC458.84317.07329.2712.201.09332.32335.373.052.60(1)Due to the exploratory nature of this program and the variable orientations of the mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization(2)RC = Reverse Circulation Hole(3)Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt)Table 2: El Carricito - Select Composite Intervals1 Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cutDrill Hole NumberDrilling Method2Total Depth (m)From (m)To (m)Interval (m)Assay (g/t Au)311CR025RC243.90No Intervals11CR026RC198.17No Intervals11CR027RC260.67No Intervals11CR028RC198.17No Intervals11CR029RC243.90178.35182.934.581.1811CR030RC182.93No Intervals11CR031RC260.67No Intervals11CR032RC259.15172.26176.834.570.8211CR033RC324.70214.94217.993.050.82224.09227.133.040.7511CR034RC228.66No Intervals11CR035RC243.90208.84211.893.051.0511CR036RC355.18No Intervals11CR037RC283.543.056.103.050.55263.72269.826.100.3911CR038RC274.39173.78176.833.050.9811CR039RC257.62No Intervals11CR040RC228.66No Intervals11CR041RC213.41No Intervals11CR042RC318.60No Intervals11CR043RC243.9094.5197.563.050.8411CR044RC260.67134.15141.777.620.5011CR045RC243.9094.51102.137.620.81192.07196.654.580.5511CR046RC291.16153.96158.544.580.8411CR047RC243.90102.13114.3312.200.88126.52143.2916.770.9811CR048RC260.67No Intervals11CR049RC198.17100.61105.184.571.33121.95125.003.051.4311CR050RC243.90No Intervals11CR051RC182.93No Intervals11CR052RC243.90No Intervals11CR053RC213.41No Intervals11CR054RC243.9082.3288.416.090.50138.72143.294.570.4225.9132.016.100.4711CR055RC213.4174.7083.849.140.8088.4199.0910.680.4711CR056RC182.93No Intervals11CR057RC243.9092.9999.096.100.6511CR058RC182.93No Intervals11CR059RC199.7027.4430.493.050.7583.8494.5110.670.6311CR060RC213.41No Intervals11CR061 RC48.78No Intervals11CR062 RC57.93No Intervals11CR063RC274.39No Intervals11CR064RC92.9942.6845.733.050.6811CR065RC181.4051.8357.936.100.6911CR066RC274.39No Intervals11CR067RC213.41No Intervals11CR068RC248.4810.6718.297.621.0211CR069RC214.947.6219.8212.200.9711CR070RC243.90No Intervals11CR071RC182.9310.6718.297.621.2011CR072RC111.2815.2428.9613.720.6550.3059.459.150.4162.5067.074.570.3811CR073RC198.1774.7077.743.040.7686.8989.943.050.45129.57132.623.050.90(1)Due to the exploratory nature of the program and the variable orientations of the mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization (2)RC = Reverse Circulation Hole (3) Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt) Table 3: El Carricito - Select Composite Intervals1Include intervals at >0.10 g/t Au over a 3 metres minimum width, no assay cutDrill Hole NumberDrilling Method2Total Depth(m)From (m)To (m)Interval (m)Assay (g/t Au)3140.24147.877.630.1210CR025RC243.90166.16184.4518.290.16199.70225.6125.920.1711CR026RC198.174.5712.207.630.1111CR027RC260.67193.60228.6635.060.1711CR028RC198.17103.66125.0021.340.11100.61112.8012.190.1111CR029RC243.90163.11170.137.620.13176.83185.989.150.6611CR030RC182.939.1527.4418.290.1011CR031RC260.67211.89230.1818.290.1044.2157.9313.720.1896.04103.667.620.20129.57134.154.580.1511CR032RC259.15144.82164.6319.810.13170.73185.9815.250.40192.07220.127.116.1105.79213.417.620.12181.40184.453.050.15193.60198.174.570.1411CR033RC324.70214.94228.1613.220.42240.85254.5713.720.21298.78324.7025.920.1611CR034RC228.6638.1142.684.570.15182.93185.983.050.15214.94222.567.620.1765.5579.2713.720.1511CR035RC243.9086.6992.996.300.20102.13112.8010.670.15202.74214.9412.200.3611CR036RC355.18No Intervals3.056.103.050.5511CR037RC283.54198.17201.223.050.23251.52283.5432.020.1811CR038RC274.39169.21185.9816.770.36190.55193.603.050.3211CR039RC257.62No Intervals137.22152.4415.240.1211CR040RC228.66161.59166.164.570.41190.55193.603.050.1111CR041RC213.41132.62141.779.150.11157.01160.063.050.2011CR042RC318.60No Intervals71.6574.703.050.1911CR043RC243.9094.5199.094.580.59152.44158.546.100.19225.61236.2810.670.1111CR044RC260.67126.52149.3922.870.2594.51102.137.620.8211CR045RC243.90129.57158.5428.970.20169.21198.1728.960.20214.94224.099.150.13138.72143.294.570.1111CR046RC291.16153.96169.2113.720.47175.30181.404.570.1753.3564.0210.670.1268.6073.174.570.1411CR047RC243.9077.74149.3971.650.52155.49166.1610.670.13170.73181.4010.670.1611CR048RC260.67No Intervals22.8735.0612.190.1964.0218.104.22.1681CR049RC198.1776.2286.8910.670.17100.61106.716.101.02115.85126.5210.670.55134.15160.0625.850.1611CR050RC243.90134.15147.8713.720.27150.91161.5910.680.1711CR051RC182.93No Intervals56.4065.559.150.1370.1285.3715.250.1711CR052RC243.90109.76114.334.570.30164.63204.2739.640.19239.33243.904.570.1335.0639.634.570.1611CR053RC213.41118.90123.484.580.14131.10135.674.580.14144.82150.916.090.1111CR054RC243.9051.83105.1853.350.22131.10150.9119.810.1911CR055RC213.4119.8264.0244.200.2074.70120.4345.730.3611CR056RC182.93 No Intervals 24.3950.3025.910.1911CR057RC243.9064.0271.657.630.2289.94106.7116.770.35112.80123.4810.680.2011CR058RC182.93 No Intervals 11CR059RC199.7024.3948.7824.390.2573.17106.7133.540.3811CR060RC213.41 No Intervals 11CR061RC48.7842.6847.264.580.2711CR062RC57.93 No Intervals 11CR063RC274.39 No Intervals 11CR064RC92.9939.6370.1230.490.1782.3292.9910.670.1511CR065RC181.4050.3062.5012.200.4476.2279.673.050.1511CR066RC274.39 No Intervals 11CR067RC213.41 No Intervals 4.5719.8215.250.5611CR068RC248.4841.1644.213.050.1180.7985.374.580.1111CR069RC214.947.6219.8212.200.9785.3789.944.570.1311CR070RC243.90 No Intervals 11CR071RC182.936.1018.2912.190.8413.7235.0621.340.4911CR072RC111.2850.3077.7427.440.1583.3489.946.100.1711CR073RC198.1748.7897.5648.780.31118.90134.1515.250.32(1)Due to the exploratory nature of this program and the variable orientations of the mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization (2)RC = Reverse Circulation Hole (3)Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt) FOR FURTHER INFORMATION PLEASE CONTACT: John A. McCluskeyAlamos Gold Inc.President and Chief Executive Officer(416) 368-9932ORAllan CandelarioAlamos Gold Inc.Investor Relations(416) 368-9932 x 206The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.