The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Alamos Gold Reports 4.98 g/t of Gold Over 50 Metres at El Victor North

Monday, February 27, 2012

Alamos Gold Reports 4.98 g/t of Gold Over 50 Metres at El Victor North06:00 EST Monday, February 27, 2012TORONTO, ONTARIO--(Marketwire - Feb. 27, 2012) - (All amounts are expressed in United States dollars, unless stated otherwise)Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") reports new impressive drill results from its El Victor North exploration program.El Victor North area is an exploration target contiguous with and north of the current El Victor portion of the Mulatos pit. The El Victor North area and the northern planned pit wall were not drilled during the definition drilling of the El Victor reserve due to a surface access conflict. Access to El Victor North was granted in July 2011 after a twelve-year hiatus.A total of 16,200 metres in 124 holes were drilled at El Victor and El Victor North in 2011, an additional 24 drill holes have been completed to date in 2012, and drilling is ongoing. Mineralization at El Victor North is the northwestern extension of El Victor reserve mineralization and is hosted by silica alteration identical to the El Victor deposit. The El Victor North area has over 300m of strike length, is up to 100m wide, remains open to the north, and has the potential to expand reserves along the northern boundary of the Escondida to El Victor trend. The top of the zone is located approximately 36m to 56m below surface. Recent drill results have indicated the potential to extend the El Victor pit north and west of the current pit design outline.New, previously unreleased, results from 2011 and 2012 are highlighted below and continue to demonstrate the potential of this zone:1.71 g/t Au over 44.2 metres (11EV150) 4.98 g/t Au over 50.3 metres (12EV173) 2.61 g/t Au over 44.2 metres (12EV176) 1.59 g/t Au over 45.7 metres (12EV182) 1.98 g/t Au over 54.6 metres (11VT037) The Company recently reported highlights from the 2011 El Victor North drill campaign as follows:2.40 g/t Au over 59.5 metres (11EV119) 4.72 g/t Au over 45.7 metres (11EV120) 1.78 g/t Au over 29.0 metres (11EV124) 1.53 g/t Au over 53.4 metres (11EV126) 2.58 g/t Au over 59.5 metres (11EV132) 4.27 g/t Au over 16.8 metres (11EV134) Please refer to Figure 1 for a map of the Mulatos mine area, Figure 2 for the El Victor and El Victor North highlighted drill intercepts, and Figure 3 for all drill hole locations from recent drilling. Relevant assay results from the recent drilling at El Victor and El Victor North are presented in tables 1 and 2, for reverse circulation ("RC") and core drilling, respectively, at the end of this press release.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 >0.35 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 $240 million cash and short-term investments, is debt-free, and unhedged to the price of gold. As of February 21, 2012, Alamos had 119,114,006 common shares outstanding (124,788,706 shares fully diluted), which are traded on the Toronto Stock Exchange under the symbol "AGI".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.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 mine area", please visit the following link: http://media3.marketwire.com/docs/alamos_figure1227.pdf.To view "Figure 2: El Victor and El Victor North highlighted drill intercepts", please visit the following link: http://media3.marketwire.com/docs/alamos_figure2227.pdf.To view "Figure 3: El Victor and El Victor North drill hole locations from recent drilling", please visit the following link: http://media3.marketwire.com/docs/alamos_figure3227.pdf.Table 1: El Victor - Select Composite Intervals - Reverse Circulation Drilling1Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cutDRILLHOLEDRILLING METHODTOTALDEPTH (m)FROM (m)TO (m)INT.(m)GOLD(g/t)11EV112RC91.460.0021.3421.340.82111EV113RC157.01No Intervals36.5941.164.570.41011EV114RC178.35121.95125.003.050.470132.62135.673.050.547138.72163.1124.390.64573.1783.8410.670.56489.94106.7116.770.57511EV115RC175.30115.85118.903.050.804135.67146.3410.670.856149.39152.443.050.64611EV116RC91.464.5710.676.100.53921.3427.446.100.54211EV117RC60.980.0036.5936.591.6940.0059.4559.452.40011EV119RC71.65Inc.30.4933.543.0510.075Inc.53.3554.881.535.4268.6071.653.051.37625.9132.016.100.85711EV120RC182.9357.93106.7148.781.341128.05173.7845.734.717Inc.132.62144.8212.2013.55612.2018.296.090.99111EV121RC138.7222.8730.497.620.62735.06100.6165.550.6439.1513.724.570.68724.3928.964.570.56938.1142.684.570.57911EV122RC121.9547.2651.834.570.47456.4565.559.150.59476.2289.9413.720.579106.71118.9012.191.4149.1513.724.570.34211EV123RC28.9619.8222.873.054.451Inc.21.3422.871.538.4625.9128.963.052.43211EV124RC96.0421.3450.3028.961.781Inc.41.1642.681.528.9111EV125RC91.460.003.053.051.706.1012.206.100.48315.2418.293.050.62411EV126RC91.4622.8776.2253.351.533Inc.24.3925.911.5224.400.007.627.621.20511EV127RC91.4633.5441.167.621.06945.7368.6022.870.52011EV128RC91.4630.4942.6812.190.52411EV129RC91.460.0010.6710.671.00213.7256.4042.681.0050.0010.6710.671.21211EV130RC106.7168.6073.174.570.51186.8989.943.050.81835.0642.687.620.39511EV131RC121.9547.2671.6524.391.05474.70105.1830.481.2420.004.574.571.5537.6215.247.620.99611EV132RC121.9524.3983.8459.452.576Inc.39.6342.683.0523.95Inc.57.9359.451.527.5311EV133RC91.4625.9185.3759.461.3910.0016.7716.774.267Inc.6.1012.206.108.8711EV134RC102.1321.3425.914.571.02560.9870.129.140.47780.7983.843.050.41511EV135RC22.8712.2022.8710.671.0723.056.103.052.62318.2924.396.100.96011EV136RC141.7730.4960.9830.490.96764.0276.2212.200.65983.8494.5110.670.61197.56129.5732.011.53711EV137RC30.490.0030.4930.491.25911EV138RC152.440.0032.0132.011.184Inc.1.524.573.055.10048.7865.5516.770.64811EV139RC144.8273.1777.744.570.57880.79112.8032.011.2470.009.159.153.249Inc.1.523.051.539.1511EV140RC193.6019.8227.447.620.53733.5442.689.140.473123.48128.054.570.442137.20141.774.571.12411EV141RC121.9512.2015.243.040.80767.0776.229.150.64011EV142RC152.440.0028.9628.960.88038.1141.163.050.49711EV143RC121.9544.2150.306.090.44611EV144RC167.681.524.573.050.44910.6744.2133.540.6901.524.573.050.5297.6215.247.620.58511EV145RC111.2822.8725.913.040.45732.0142.6810.670.86360.9864.023.040.49073.1776.223.050.63911EV146RC96.0412.2024.3912.190.49230.4936.596.100.87141.1657.9316.770.96564.0283.8419.820.9364.579.154.580.46011EV147RC152.4418.2933.5415.250.59836.5939.633.040.45911EV148RC28.964.579.154.582.633Inc.4.576.101.537.32035.0641.166.100.51944.2167.0722.861.01177.7480.793.050.36311EV149RC182.9385.3796.0410.670.41699.09102.133.040.477132.62135.673.050.464140.24144.824.580.417147.87176.8328.961.20011EV150RC138.7270.12114.3344.211.70736.5939.633.040.48111EV151RC169.2144.2151.837.620.46567.0799.0932.020.776112.80137.2024.400.58833.5438.114.570.50311EV152RC199.7076.2296.0419.820.85999.09106.717.620.449137.20150.9113.710.46611EV153RC137.2077.7480.793.050.61199.09105.186.090.70636.5974.7038.110.81079.2782.323.050.89511EV154RC190.5599.09106.717.620.498121.95128.056.100.431134.15146.3412.190.64711EV155RC187.50167.68181.4013.720.449184.45187.503.050.39386.8991.464.570.55311EV156RC138.7294.51108.2313.720.744117.38126.529.140.75911EV157RC152.4447.2650.303.040.42567.0777.7410.670.69611EV160RC152.44129.57138.729.150.81736.5945.739.140.58811EV161RC169.2192.99118.9025.910.861135.67137.201.533.49149.39167.6818.290.85312EV162RC123.4813.7227.4413.720.85054.8859.454.570.56564.0271.657.631.83412EV163RC172.26Inc.67.0768.601.536.8274.70103.6628.960.910118.90121.953.050.765152.44158.546.100.59312EV164RC121.9515.2422.877.630.87982.3296.0413.720.86112EV165RC172.26125.00129.574.571.258149.39170.7321.340.98615.2419.824.580.47912EV166RC135.6722.8725.913.040.64382.3286.894.571.40212EV167RC135.6716.7728.9612.190.42667.0777.7410.670.59912EV168RC106.7167.0770.123.050.46810.6715.244.570.44212EV169RC175.3018.2944.2125.920.60759.4565.556.101.24074.7086.8912.190.37716.7718.291.5210.6545.7351.836.10.39270.12120.4350.314.98212EV173RC144.82Inc.82.3283.841.528.19Inc.91.4692.991.5328.8Inc.96.0497.561.5232.9Inc.111.28114.333.0527.405132.62143.2910.670.46619.8225.916.091.36912EV174RC126.5245.7348.783.050.37760.9877.7416.760.57012EV175RC102.1345.7350.304.570.45910.6716.776.100.58883.8492.999.150.50112EV176RC199.7097.56106.719.150.499115.85123.487.630.692134.15178.3544.202.606Inc.146.34158.5412.205.87812EV177RC102.1362.5071.659.150.54533.5438.114.570.38747.2656.409.140.71812EV178RC175.3070.1277.747.620.964112.80117.384.580.517121.95137.2015.251.065161.59169.217.620.90412EV179RC117.3818.2922.874.580.44012EV180RC150.9194.51111.2816.771.315125.00138.7213.722.41812EV181RC135.67No Intervals56.4067.0710.671.40385.37131.1045.731.58712EV182RC213.41135.67138.723.050.496155.49190.5535.061.855195.12210.3715.250.51012EV183RC152.4483.84105.1821.340.69933.5438.114.570.52812EV185RC182.9341.1647.266.10.38554.8891.4636.580.7831Due 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 mineralization2RC = Reverse Circulation Hole3Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt)Table 2: El Victor - Select Composite Intervals - Core Drilling1Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cutDRILL HOLE (Azimuth/Inclination)DRILLINGMETHODTOTAL DEPTH (m)FROM(m)TO(m)INT.(m)GOLD(g/t)11VT037DDH54.550.0054.5554.551.98411VT038DDH27.900.0027.9027.901.15011VT039DDH49.701.0024.0423.041.29628.5433.404.860.4460.0022.0422.041.18011VT040DDH53.0528.3037.959.650.44745.4548.453.000.6930.0017.2517.250.46211VT041DDH48.9530.6535.504.851.73544.5047.052.550.47211VT042DDH63.350.0063.3563.351.41111VT043DDH33.101.5011.6510.150.83729.4531.602.150.97812.0020.258.250.49534.0555.8021.750.65211VT044DDH98.8058.4067.709.300.90684.8592.107.250.48195.1598.803.650.42745.1554.609.452.00711VT045DDH78.40Inc.50.1551.601.455.1868.0571.103.050.36072.8078.405.600.4473.3511.908.550.51730.8541.8010.952.18911VT046DDH126.25Inc.37.0540.653.605.65867.2082.2015.000.76085.0092.357.351.5338.2012.704.500.71711VT047DDH125.0024.9529.454.501.23273.7576.753.003.33079.1589.1510.000.4111Due 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 mineralization2DDH = Diamond Drill Hole3Number 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 406The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.