Alamos Gold Continues to Extend High-Grade Gold Mineralization Beyond Mineral Reserves and Resources at Puerto Del Aire, and Provides Regional Exploration Update at Mulatos
Alamos Gold Continues to Extend High-Grade Gold Mineralization Beyond
Mineral Reserves and Resources at Puerto Del Aire, and Provides Regional
Exploration Update at Mulatos
TORONTO, May 15, 2023 -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new
results from ongoing surface exploration drilling within the Mulatos District. This included further extending high-grade gold
mineralization outside of Mineral Reserves and Resources at Puerto Del Aire (“PDA”), a higher-grade underground deposit
adjacent to the Mulatos pit. Additionally, gold mineralization was intersected over a wide interval at the Capulin target, located
two-kilometres east of the former San Carlos open pit.
Puerto Del Aire (“PDA”)
• High-grade gold mineralization further extended beyond Mineral Reserves and Resources at PDA,
supporting the potential for ongoing growth of the deposit which remains open in multiple directions. This
follows a 71% increase in combined Mineral Reserves and Resources in 2022 to total 1.0 million ounces. All
reported composite widths are estimated true width of the mineralized zones. New highlights include:
• 20.95 g/t Au (11.14 g/t cut) over 14.15 m (23MUL117);
• 8.33 g/t Au (8.33 g/t cut) over 18.00 m (23MUL119);
• 14.81 g/t Au (12.34 g/t cut) over 9.10 m (23MUL112);
• 16.19 g/t Au (7.63 g/t cut) over 7.75 m (23MUL108);
• 33.14 g/t Au (33.14 g/t cut) over 3.05 m, and 10.80 g/t Au (10.80 g/t cut) over 3.00 m (23MUL098); and
• 15.49 g/t Au (13.89 g/t cut) over 6.00 m (23MUL115).
Capulin Target
• Significant interval of oxide and sulphide gold mineralization intersected in a breccia along the Capulin
Fault. Follow-up drilling is ongoing in this area to test the geometry and extent of the gold mineralization and the
breccia unit. New highlights include:
• 2.01 g/t Au (2.01 g/t cut) over 82.45 m core length, including 4.81 g/t Au over 16.40 m and 5.38 g/t Au
over 12.35 m (23REF012).
Note: Drillhole composite gold grades reported as “cut” may include higher grade samples which have been cut to 40 g/t Au.
“Our exploration success at PDA and regionally continues to demonstrate the potential within the Mulatos District. PDA has
already surpassed La Yaqui Grande in terms of the size of its Mineral Reserve base. We expect that growth to continue based
on the number of high-grade step out holes completed in 2023 and with the deposit open in multiple directions. Reflecting this
success, we’ve more than doubled the size of the exploration program at PDA since the start of the year. This growth will be
incorporated into a development plan for PDA to be completed in the fourth quarter. We see excellent potential for PDA to be
another low-cost, high-return project given its higher-grades, ongoing growth and proximity to the main Mulatos pit and existing
infrastructure,” said John A. McCluskey, President and Chief Executive Officer.
“We are also encouraged by the wide interval of significant gold mineralization intersected at the Capulin target, highlighting
the regional potential. Mulatos has a similar Reserve life today as it did 18 years ago when it first began production,
demonstrating a strong long-term track record of exploration success. Given our ongoing near mine and regional exploration
success, we expect that track record to continue well into the future,” Mr. McCluskey added.
New highlight intercepts can be found in Tables 1 and 2, and in Figures 3 and 4 at the end of this news release.
2023 Exploration Budget – Mulatos
The Company has a large exploration package covering 28,972 hectares with the majority of past exploration efforts focused
around the Mulatos mine. For 2023, a total of $21 million has been budgeted for exploration, triple the $7 million budget in
2022. This includes 35,000 metres (“m”) of surface exploration drilling at PDA, up from the initial budget of 16,000 m reflecting
the growth in Mineral Reserves and Resources in 2022 and ongoing success in 2023.
Additionally, the regional exploration budget has doubled to 34,000 m with the focus on several high priority targets including
Refugio, Halcon, Halcon West, Carricito, Bajios, and Jaspe.
Puerto Del Aire
PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit and is comprised of multiple mineralized
zones including PDA, Gap, Victor, and Estrella (Figure 2). Ongoing exploration success has driven substantial growth in the
deposit over the past two years. This included a 70% increase in Mineral Reserves to 728,000 ounces at the end of 2022 with
grades increasing 4% to 4.84 g/t Au. Mineral Reserves and Resources at PDA now total 1.0 million ounces across all
categories, up 71% from the end of 2021. Over the past two years, discovery costs at PDA have averaged $10 per ounce.
The initial focus of the surface exploration program in 2023 has been on the main PDA zone where drilling continues to extend
high-grade mineralization beyond Mineral Reserves and Resources. Given ongoing exploration success and with the deposit
open in multiple directions, there is excellent potential for further growth in Mineral Reserves and Resources. Year-to-date,
14,000 m of drilling has been completed in 45 holes at PDA. A total of 29 holes are included in this release with assays
pending on 16 holes.
Five surface drill rigs are currently in operation with the 35,000 m program expected to be completed early in the third quarter
of 2023. These results will be incorporated into a development plan for PDA which is expected to be completed in the fourth
quarter of 2023 and outline a significant mine life extension at Mulatos.
PDA is expected to be mined from underground and accessed from a ramp and development drifts off the main Mulatos pit.
This will significantly reduce the development needed to access the deposit. The existing mill at Mulatos is expected to be
expanded and upgraded to process the higher-grade ore from PDA. The mill was previously used to process underground ore
from San Carlos.
Regional Exploration Update
In the first quarter of 2023, 6,556 m of regional surface exploration drilling was completed at several targets in the Refugio,
Halcon West, and Carricito areas.
A key highlight from the results received to date include drill hole 23REF012, which was drilled in the Capulin target area. This
is located approximately two kilometres east of the former San Carlos open pit, in an area that had seen limited historical
exploration.
Drillhole 23REF012 intersected a significant interval of oxide and sulphide gold mineralization, 2.01 g/t Au (2.01 g/t cut) over
82.45 m core length including 4.81 g/t Au over 16.40 m and 5.38 g/t Au over 12.35 m in a breccia unit in the Capulin
Fault Zone. This hole is a 75 m step-out to the northwest from drillhole 17REF015, which was drilled in 2017 and intersected
1.00 g/t Au over 13.80 m. The recognition of the mineralized breccia in 23REF012 and recent mapping has triggered a re-
interpretation of the geology in this area east of the past producing San Carlos Mine. An additional drill has been mobilized to
follow-up on 23REF012, and one drill continues to test gold mineralization that was identifed in grab samples collected over a
two kilometre strike length along the Capulin Fault Zone.
Qualified Persons
Scott R.G. Parsons, P.Geo., FAusIMM, Alamos Gold’s Vice President, Exploration, has reviewed and approved the scientific
and technical information contained in this news release. Scott R.G. Parsons is a “Qualified Person” as defined by Canadian
Securities Administrators’ National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Exploration programs at Mulatos are directed and supervised by Michele Cote, P.Geo., Alamos Gold’s Chief Exploration
Geologist, Corporate. Michele Cote is a “Qualified Person” as defined by Canadian Securities Administrators’ National
Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Quality Assurance and Quality Control
Alamos Gold maintains an internal Quality Assurance / Quality Control (QA/QC) program at Mulatos to ensure sampling and
analysis of all exploration work is conducted in accordance with best practices.
Access to the Mulatos Property is controlled by security personnel. Drill core is logged and sampled at the core logging
facility within the mine site under the supervision of a Qualified Geologist. A geologist marks the individual samples for
analysis, and sample intervals, based on lithology and alteration, standards and blanks are entered into the database. The
core is cut in half using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a
micropore sample bag and sealed with a cable tie in preparation for shipment. The other half of the core is returned to the core
box and retained for future reference. The samples are placed in large heavy-duty nylon reinforced micropore bags, which are
identified and sealed before being dispatched. The core samples are picked up at the mine site and delivered to Bureau
Veritas Commodities Canada Ltd. laboratory in Hermosillo, Mexico.
Gold is analyzed by 30 grams Lead Collection Fire Assay Fusion (FA) that ends with an Atomic Absorption Spectroscopy
finish (AAS). Samples greater than 5.0 g/t Au are re-analyzed starting again with a FA process but ending with a gravimetric
finish (GRAV). Bureau Veritas is an ISO/IEC 17025 accredited laboratory and has internal quality control (“QC”) programs that
include insertion of reagent blanks, reference materials, and pulp duplicates that are in line with normal requirements, as well
as participating in yearly proficiency tests to evaluate lab performance.
The Corporation inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance.
Cross check assays are completed on a regular basis in a secondary accredited laboratory.
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 includes certain statements that constitute forward-looking information within the meaning of applicable
Canadian and U.S. securities laws ("forward-looking statements"). All statements in this news release other than statements
of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are forward-looking
statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology
such as “continue”, "expect", "plan", "estimate", “target”, “budget”, “prospective” or “potential” 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.
Such statements in this news release include, without limitation, statements with respect to planned exploration programs and
focuses, potential drilling results and related expectations, costs and expenditures, project economics, gold price
assumptions, potential mineralization, projected ore grades, changes in Mineral Resources and conversion of Inferred Mineral
Resources to Proven and Probable Mineral Reserves, expected mine life, expected Mineral Reserve life and potential
extensions thereof, expected increases in the value of operations, and other information that is based on forecasts and
projections of future operational, geological 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 that 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 Mineral 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 Mineral Reserves.
Alamos cautions that forward-looking statements are necessarily based upon several 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.
These factors and assumptions include, but are not limited to: the actual results of current exploration activities, conclusions
of economic and geological evaluations, changes in project parameters as plans continue to be refined, operations may be
exposed to widespread pandemic; 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 Mexico; changes in national and local
government legislation, controls or regulations; 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); ability to sell or deliver
gold doré bars; 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, and Mexican peso); 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;
delays in the development or updating of mine plans; changes that may be required to the intended method of accessing and
mining the deposit at Puerto Del Aire and changes related to the intended method of processing any ore from the despoit at
Puerto Del Aire; 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 Canada or Mexico 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; 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 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 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
Unless otherwise indicated, all Mineral Resource and Mineral Reserve estimates included in this news release 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.
Table 1: Puerto Del Aire – Select Composite Intervals from new Surface Exploration Drilling
Composite intervals greater than 3 g/t Au weighted average, capping values 40 g/t Au.
Hole ID Zone From (m) To (m) Core Length (m) True Width (m) Au Uncut (g/t) Au Cut (g/t) Vertical Depth (m)
23MUL127 PDA2 227.80 229.80 2.00 2.00 4.76 1059.6
23MUL119 PDA2 296.50 314.50 18.00 18.00 8.33 991.1
23MUL119 PDA2 266.50 283.55 17.05 17.05 3.52 1020.5
23MUL117 PDA2 273.50 287.65 14.15 14.15 20.95 11.14 1056.8
23MUL115 PDA2 281.60 287.60 6.00 6.00 15.49 13.89 1003.5
23MUL113 PDA2 298.20 301.20 3.00 3.00 6.01 956.5
23MUL112 PDA2 266.10 275.20 9.10 9.10 14.81 12.34 1023.2
23MUL108 PDA2 207.35 215.10 7.75 7.75 16.19 7.63 1072.4
23MUL108 PDA2 227.20 231.10 3.90 3.90 5.00 1054.5
23MUL103 PDA2 229.95 231.45 1.50 1.50 13.80 1067.7
23MUL102 PDA2 265.10 266.60 1.50 1.50 4.42 1012.3
23MUL101 PDA2 236.70 238.20 1.50 1.50 5.00 1002.9
23MUL098 PDA2 287.80 290.85 3.05 3.05 33.14 993.6
23MUL098 PDA2 272.50 275.50 3.00 3.00 10.80 1008.5
23MUL097 PDA2 229.50 230.60 1.10 1.10 4.99 1090.6
23MUL096 PDA2 243.50 247.50 4.00 4.00 3.03 1048.5
Table 2: Capulin Target – Select Composite Intervals from new Surface Exploration Drilling
Composite intervals greater than 0.5 g/t Au weighted average, capping values 40 g/t Au.
Hole ID From (m) To (m) Core Length (m) Au Uncut (g/t) Au Cut (g/t) Vertical Depth (m)
23REF012 98.75 181.20 82.45 2.01
including 98.75 115.15 16.40 4.81
including 122.65 135 12.35 5.38
Table 3: Surface drill holes; azimuth, dip, drilled length, and collar location at surface
(UTM Zone 12 NAD27)
Hole ID Azimuth (°) Dip (°) Drilled Length (m) UTM Easting (m) UTM Northing (m) UTM Elevation (m)
22MUL091 148 85 284.6 721661.4 3171789.6 1307.0
23MUL092 168 73 302.6 721837.4 3171698.6 1285.5
23MUL093 0 90 251.7 721273.4 3171771.3 1314.5
23MUL094 270 82 176.7 721353.0 3171433.6 1282.5
23MUL095 163 74 362.6 722145.0 3172045.2 1162.3
23MUL096 194 75 301.3 721837.0 3171697.9 1285.5
23MUL097 160 77 290.4 721558.8 3171750.7 1314.2
23MUL098 200 77 299.5 721942.6 3171724.7 1275.0
23MUL099 170 71 386.7 722144.5 3172045.4 1161.6
23MUL100 8 83 304.5 721719.5 3171740.7 1296.5
23MUL101 244 81 326.7 722017.2 3171797.6 1238.3
23MUL102 170 81 304.1 721943.4 3171724.8 1274.9
23MUL103 135 82 288.2 721719.2 3171738.7 1296.4
23MUL104 291 77 353.4 722050.0 3171843.8 1233.4
23MUL105 100 82 266.65 721631.5 3171752.8 1310.0
23MUL106 216 78 326.6 722016.9 3171796.4 1238.4
23MUL107 303 69 338.5 721942.9 3171723.5 1275.0
23MUL108 130 87 297.9 721748.6 3171698.7 1283.1
23MUL109 110 87 345.7 721735.0 3171825.0 1336.0
23MUL111 117 83 380.8 721970.7 3171933.9 1256.6
23MUL112 321 69 326.5 721943.1 3171723.7 1275.0
23MUL113 160 88 340.1 721967.0 3171935.0 1256.0
23MUL114 139 79 287.2 721749.0 3171697.0 1284.0
23MUL115 354 82 331.1 721899.0 3171741.0 1286.0
23MUL117 30 83 347.5 721735.0 3171825.0 1336.0
23MUL119 0 74 340.0 721899.0 3171741.0 1286.0
23MUL124 193 89.9 225.0 721664.0 3171664.0 1256.0
23MUL126 112 75.7 300.0 721563.0 3171746.0 1316.0
23MUL127 235 80.7 287.2 721841.0 3171746.0 1285.0
23REF012 50 77 201.0 724612.0 3172659.0 1208.0
Figure 1: Puerto Del Aire and Capulin Target Location Map, Mulatos District
Figure 2: Puerto Del Aire Sulphide Gold Mineralization Wireframes
Figure 3: Puerto Del Aire New Drilling Results, Plan View
Figure 4: Puerto Del Aire, Cross Section Through Long-Axis of Mineralization with New Drilling Results
Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/0c172950-6992-430b-aaba-b12f27cfbd0e
https://www.globenewswire.com/NewsRoom/AttachmentNg/6bb94f6f-9d57-4128-8f55-0ffb9daf20c2
https://www.globenewswire.com/NewsRoom/AttachmentNg/34bf849a-bf91-4388-913c-5de8de5c1b85
https://www.globenewswire.com/NewsRoom/AttachmentNg/d2d0b568-14da-4c3f-a151-62b875495257