Alamos Gold Continues to Intersect High-Grade Mineralization in New Area of Focus Between Eastern and Main Extensions at Island Gold
Alamos Gold Continues to Intersect High-Grade Mineralization in New Area of
Focus Between Eastern and Main Extensions at Island Gold
TORONTO, June 10, 2019 -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new
results from surface exploration drilling at the Island Gold Mine, further extending high-grade gold mineralization. All reported
drill widths are true width of the mineralized zones, unless otherwise stated.
• Eastern Extension: additional high-grade mineralization intersected in the previously untested area between
the Eastern and Main Extensions. All five intersections drilled to date in this recently discovered area have
intersected ore grade gold mineralization. This area is located within a 500 metre (“m”) gap between Inferred
Mineral Resource blocks, and is only 1,000 m from surface and relatively close to existing infrastructure. New highlights
include:
• 102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05); and
• 31.66 g/t Au (31.66 g/t cut) over 2.95 m (MH18-04);
• Main Extension: high-grade mineralization extended 90 m east from the nearest previously reported
intersection (MH17-01). High-grade mineralization has been extended over 1,000 m east of current mine workings and
remains open along strike to the east and both up and down-plunge. New highlights include:
• 24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06); and
• 6.01 g/t Au (6.01 g/t cut) over 9.97 m (MH13-6).
Note: Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to 225 g/t Au for
Main and Extension 1 areas, and 160 g/t Au for Extension 2 Area.
“Island Gold continues to be a tremendous success story on all fronts. We just received the Phase II expansion permit this
past month and ongoing exploration success continues to support strong potential for additional growth in mineral reserves
and resources and a Phase III expansion of the operation. We’re extending high-grade mineralization across all three areas of
focus and see excellent potential within the recently discovered area between the Main and Eastern Extensions where we are
continuing to close the gap between high-grade resources,” said John A. McCluskey, President and Chief Executive Officer.
2019 Drilling Program – Island Gold Mine
The focus of the 2019 exploration drilling program is to continue to expand the down-plunge and lateral extensions of the Island
Gold deposit with the objective of adding new near mine Mineral Resources across the two-kilometre long Island Gold Main
Zone (Figure 1).
The ongoing exploration program at Island Gold has been successful in extending high grade gold mineralization across each
of the Main, Western, and Eastern Extensions. This has translated into significant growth in Mineral Reserves and Resources
since the November 2017 acquisition of Island Gold.
A total of 17,873 m of surface directional exploration drilling has been completed to date in 2019. New highlight intercepts can
be found in Figures 1 and 2 and Table 1 at the end of this news release.
The 2019 drill program includes 48,000 m of surface directional exploration drilling, 30,000 m of underground exploration
drilling, 35,000 m of delineation drilling, and 917 m of exploration drift development.
Surface Exploration Drilling
Eastern Extension
Surface directional drilling within the Eastern Extension is focused on testing the new area of high-grade gold mineralization
within the E1E Zone that was discovered in May 2019. This area is located down-plunge from known Inferred Resource blocks,
between the 850 m and 1,150 m vertical depths, and previously reported high-grade intersections approximately 350 m further
to the east (Figure 2). New highlights from the surface drilling program include (E1E-Zone) (Table 1):
• 102.74 g/t Au (58.62 g/t cut) over 3.94 m (MH18-05); and
• 31.66 g/t Au (31.66 g/t cut) over 2.95 m (MH18-04).
To date, five drill holes have been completed in this area with all intersecting ore-grade gold mineralization. This includes new
drill holes MH18-05, which intersected 102.74 g/t Au (58.62 g/t cut) over 3.94 m and MH18-04 intersecting 31.66 g/t Au
(31.66 g/t cut) over 2.95 m . These new intersections are located 120 m and 50 m west, respectively from previously reported
drill hole MH18-03 which intersected 46.11 g/t Au (25.81 g/t cut) over 4.67m (see Press Release dated May 9, 2019).
These drill hole intersections are approximately 200 m down-plunge from the closest Inferred Mineral Resources in the Eastern
Extension, and 300 m vertically above Inferred Mineral Resources defined in the eastern down-plunge extent of the Main
Extension. Testing the potential continuity of high-grade mineralization between the Eastern and Main Extensions will be an
ongoing focus in 2019 with this area having seen limited drilling to date. Two surface directional diamond drill rigs are active in
this area, and will continue with 75 to 100 m spaced step-out drilling.
Main Extension
Surface directional drilling to date in 2019 has been successful in continuing to extend gold mineralization with drill hole
spacing ranging from 50 to 100 m (Figure 2).
New highlights from the surface drilling program include (E1E-Zone) (Table 1):
• 24.08 g/t Au (14.21 g/t cut) over 6.27 m (MH17-06); and
• 6.01 g/t Au (6.01 g/t cut) over 9.97 m (MH13-6).
New drillhole MH17-06 (24.08 g/t Au (14.21 g/t cut) over 6.27 m) has extended high-grade gold mineralization 90 m east from
the nearest previously reported drill hole intersection from MH17-01 (56.60 g/t Au (50.87 g/t cut) over 5.66 m). Gold
mineralization has been extended one kilometre to the east of existing mine workings. This east plunging high-grade ore shoot
remains open laterally, up and down-plunge.
The 2019 exploration program will continue to focus on further extending high-grade mineralization with the objective of defining
additional Mineral Resources in this area. Three surface directional diamond drill rigs remain active in the Main Extension
target area.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s 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”).
Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Chief Geologist at the Island
Gold Mine and a Qualified Person within the meaning of NI 43-101.
Quality Control
Assays for the surface exploration drilling program were completed at LabExpert in Rouyn-Noranda, Quebec. The Corporation
inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance.
Cross check assays are done on a regular basis in a second accredited laboratory. The Quality Assurance / Quality Control
procedures are more completely described in the Technical Report filed on SEDAR by Richmont Mines, July 13, 2017.
Upcoming Catalysts and News Flow
• Q2 2019 – Young-Davidson and Island Gold Site Tours
• Mid-2019 – Lynn Lake Optimization Study
• H2 2019 – Island Gold Exploration Update
• H2 2019 – La Yaqui Grande EIA Approval
• H2 2019 – Cerro Pelon Construction Update
• H2 2019 – Kirazlı Construction Update
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines
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 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 "expects", “believe", "anticipate", "plan", “forecast”, "estimate", "intend", “budget” 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. Forward-looking statements in this
news release include the statements with respect to planned exploration programs, costs and expenditures, changes in
Mineral Resources and conversion of Mineral Resources to Proven and Probable Mineral Reserves, 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 readers not to place undue reliance on the forward-looking statements which are not guarantees of future
events as a number of factors could cause results, conditions, actions or events to differ materially from the targets, outlooks,
expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not
limited to: risks related to obtaining and maintaining necessary permits, licenses and authorizations required to carry out
planned exploration or development work, the actual results of current exploration activities, conclusions of economic and
geological evaluations, changes in project parameters as plans continue to be refined, employee and community relations,the
speculative nature of mineral exploration and development, contests over title to properties, changes in national and local
government legislation, control and regulations and and fluctuations of the price of gold and foreign exchange rates as well as
those factors discussed in the section entitled "Risk Factors" in Alamos' latest Annual Information Form and MD&A, 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 found in this news release. The Company disclaims any
intention or obligation to update or revise any forward-looking statement, whether written or oral, or whether as a result of new
information, future events or otherwise, except as required by applicable law.
All amounts are in United States dollars, unless otherwise stated.
All of the forward-looking statements made in this news release are qualified by these cautionary statements.
Cautionary Note to U.S. Investors – Mineral Reserve and Resource Estimates
All Mineral Resource and Reserve estimates included in this news release or documents referenced in this news release have
been prepared in accordance with Canadian 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. The terms "Mineral Reserve", "Proven Mineral Reserve" and
"Probable Mineral Reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards.
These definitions differ materially from the definitions in the Securities Exchange Commission (the “SEC”) Industry Guide 7
("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act. Under SEC
Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical
average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority.
In addition, the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral
Resource" are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not
defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements
filed with the U.S. SEC. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will
ever be converted into Mineral Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to
assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of
"contained ounces" in a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Table 1: Island Gold – Previously Unreleased Select Composite Intervals from Surface Exploration Drilling
Composite intervals greater than 3 g/t Au weighted average, capping values:
Main Island and Extension 1 areas @ 225 g/t Au; Extension 2 Area @ 160 g/t Au.
Hole ID Zone Target
Area
From
(m) To (m) Core Length
(m)
True Width
(m)
Au Uncut
(g/t)
Au Cut
(g/t)
Vertical Depth
(m)
MH18-
04 E1E Eastern Ext 1153.00 1157.20 4.20 2.95 31.66 31.66 1031
MH18-
05 E1E Eastern Ext 1137.30 1142.20 4.90 3.94 102.74 58.62 1036
MH13-6 E1E Main Ext 1526.80 1537.60 10.80 9.97 6.01 6.01 1268
MH17-
06 E1E Main Ext 1499.00 1505.40 6.40 6.27 24.08 14.21 1214
Table 2: Surface exploration drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83).
Hole ID Azimuth
(°)
Dip
(°)
Drilled Length
(m)
UTM
Easting
UTM
Northing
UTM Elevation
(m) Comments
MH13-6 336 -72 688 692074 5351046 389
Cut from MH13-5 at
1116m
MH17-
06 334 -73 982 692320 5351076 395
Cut from MH17-01 at
766m
MH18-
04 339 -75 1046 691886 5351456 400
Cut from MH18-01 at
412m
MH18-
05 339 -75 840 691886 5351456 400
Cut from MH18-01 at
407m
MH16-
06 337 -73 789 691002 5350845 387
Cut from MH16-01 at
681m
Note: UTM mine surface elevation 382 m
Two photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/ddec0976-dc0f-41dd-9c60-e012bf25ef94
https://www.globenewswire.com/NewsRoom/AttachmentNg/67cb99f2-3c81-4f41-b734-9060f69d8eb1