Alamos Gold Announces Significant Permitting Milestone at Island Gold with Filing of Closure Plan Amendment
Alamos Gold Announces Significant Permitting Milestone at Island Gold with
Filing of Closure Plan Amendment
All amounts are in United States dollars, unless otherwise stated.
TORONTO, March 16, 2022 -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today announced the
Closure Plan Amendment for the Island Gold Mine has been filed by the Ontario Government. This represents a significant
milestone for the operation, allowing for ramp up of construction activities on the Phase III expansion, including the pre-sink of
the shaft which is expected to begin mid-2022.
As outlined in the Phase III expansion study released in July 2020, the expansion is expected to drive production
approximately 70% higher to average 236,000 ounces of gold per year at industry low mine-site all-in sustaining costs of $534
per ounce once completed in 2025. Since the completion of the study, Mineral Reserves and Resources have increased 37%
to total 5.1 million ounces of gold as of the end of 2021. 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.
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”). For further information pertaining to the 2020 Phase III
Expansion Study, please see press release titled “Alamos Gold Announces Phase III Expansion of Island Gold to 2,000 tpd”,
dated July 14, 2020, and the corresponding technical report, both available under the Company's profile on SEDAR at
www.sedar.com and on the Alamos website at www.alamosgold.com.
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
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 laws. All statements, other than statements of historical fact, which
address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward-
looking statements and are generally, but not always, identified by the use of forward-looking terminology such as "expect", “is
expected”, "will", “plan”, “planned” 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 contained in this news release are based on expectations, estimates and
projections as of the date of this news release.
Forward-looking statements in this news release include, but may not be limited to information as to strategy, plans,
expectations or future financial or operating performance such as: planned construction activities at Island Gold; progress and
timing of the Phase III Expansion at Island Gold; expectations pertaining to production growth, production costs, all-in
sustaining costs, Mineral Reserves and Resources, grades, mine life and the anticipated release of a mine plan and
optimizations intended to be incorporated therein; expected increases in mining activities; and, expectations regarding
operation value.
The Company cautions that forward-looking statements are necessarily based upon a number of 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.
Such factors and assumptions underlying the forward-looking statements in this news release, include, but are not limited to:
changes to current estimates of Mineral Reserves and Resources; 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, weather issues, labour and contractor availability and other operating or technical difficulties); operations may be
exposed to new diseases, epidemics and pandemics, including the effects and potential effects of the global COVID-19
widespread pandemic and its impact on the broader market and the trading price of the Company’s shares; provincial, state
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; government and the Company’s attempts to reduce the spread of COVID-19 which may affect
many aspects of the Company’s operations including the ability to transport personnel to and from site, contractor and supply
availability and the ability to sell or deliver gold doré bars; fluctuations in the price of gold or certain other commodities such
as, diesel fuel, natural gas and electricity; changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar,
Mexican peso and Turkish Lira); the impact of inflation; changes in the Company’s credit rating; any decision to declare a
dividend; employee and community relations; labour and contractor availability (and being able to secure the same on
favourable terms); litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs
associated with mining inputs and labour; expansion delays with the Phase III expansion project at the Island Gold mine;
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, including the risks of 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; changes in national and
local government legislation, controls or regulations (including tax and employment legislation) in jurisdictions in which the
Company does or may carry on business in the future; the costs and timing of construction and development of new deposits;
risk of loss due to sabotage, protests and other civil disturbances; disruptions in the maintenance or provision of required
infrastructure and information technology systems, the impact of global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business
opportunities that may be pursued by the Company.
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 as a result of
new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors
Alamos prepares its disclosure in accordance with the requirements of securities laws in effect in Canada. Unless otherwise
indicated, all Mineral Resource and Mineral Reserve estimates included in this document 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.
Cautionary non-GAAP Measures and Additional GAAP Measures
Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non-GAAP and
additional GAAP measures as 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 that
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 in) operating activities” as presented on the Company’s
consolidated statements of cash flows. “Free cash flow” is a non-GAAP performance measure that is calculated as cash flows
from operations net of cash flows invested in mineral property, plant and equipment and exploration and evaluation assets as
presented on the Company’s consolidated statements of cash flows and that would provide an indication of the Company’s
ability to generate cash flows from its mineral projects. “Mine site free cash flow” is a non-GAAP measure which includes cash
flow from operating activities at, less capital expenditures at each mine site. Return on Equity is defined as Earnings from
Continuing Operations divided by the average Total Equity for the current and previous year. “Mining cost per tonne of ore” and
“Cost per tonne of ore” are non-GAAP performance measures that could provide an indication of the mining and processing
efficiency and effectiveness of the mine. These measures are calculated by dividing the relevant mining and processing costs
and total 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. “Total cash costs per ounce”, “all-in sustaining costs per ounce”, and “mine-
site all-in sustaining costs” 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 these metrics as determined by the Company compared with other
mining companies. In this context, “total cash costs” reflects mining and processing costs allocated from in-process and doré
inventory associated and associated royalties with ounces of gold sold in the period. Total cash costs per ounce are exclusive
of exploration costs. “All-in sustaining costs per ounce” include total cash costs, exploration, corporate and administrative,
share based compensation and sustaining capital costs. “Mine-site all-in sustaining costs” include total cash costs,
exploration, and sustaining capital costs for the mine-site, but exclude an allocation of corporate and administrative and share
based compensation.
Additional GAAP measures that are presented on the face of the Company’s consolidated statements of comprehensive
income and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should
be evaluated in conjunction with such IFRS measures. This includes “Earnings from operations”, which is intended to provide
an indication of the Company’s operating performance, and represents the amount of earnings before net finance
income/expense, foreign exchange gain/loss, other income/loss, and income tax expense. Non-GAAP and additional GAAP
measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar
measures presented by other companies. A reconciliation of historical non-GAAP and additional GAAP measures are
available in the Company’s latest Management’s Discussion and Analysis available online on the SEDAR website at
www.sedar.com or on EDGAR at www.sec.gov and at www.alamosgold.com.