Alamos Gold Reports One of the Best Holes Drilled to Date at Puerto Del Aire (33.40 g/t Au (11.48 g/t cut) over 25.95 m true width), Further Extending High- Grade Gold Mineralization Beyond Mineral Reserves and Resources
Alamos Gold Reports One of the Best Holes Drilled to Date at Puerto Del Aire
(33.40 g/t Au (11.48 g/t cut) over 25.95 m true width), Further Extending High-
Grade Gold Mineralization Beyond Mineral Reserves and Resources
TORONTO, Feb. 02, 2023 -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new
results from ongoing surface exploration drilling at Puerto Del Aire (“PDA”), further extending high-grade gold mineralization
outside of Mineral Reserves and Resources. PDA is a higher-grade underground deposit, adjacent to the main Mulatos pit, and
is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. All reported composite widths are estimated true
width of the mineralized zones.
• Puerto Del Aire: high-grade gold mineralization extended within 200 metre (“m”) gap between Mineral
Reserves and Resources at PDA1 and PDA2 as drilling continues to close the gap between the two zones.
This includes the best hole drilled in the 2022 program and one of the best holes drilled to date at PDA
(22MUL077). New highlights include:
• PDA1 and PDA2:
◾ 33.40 g/t Au (11.48 g/t cut) over 25.95 m (22MUL077);
◾ 67.58 g/t Au (32.11 g/t cut) over 3.25 m (22MUL064);
◾ 18.33 g/t (15.83 g/t cut) Au over 6.20 m (22MUL085);
◾ 75.50 g/t Au (40.00 g/t cut) over 1.50 m (22MUL063);
◾ 36.50 g/t Au over 2.35 m (22MUL086);
◾ 60.20 g/t Au (40.00 g/t cut) over 1.40 m (22MUL065);
◾ 11.16 g/t Au over 6.75 m (22MUL090); and
◾ 6.73 g/t Au over 9.00 m (22MUL071).
Note: Drillhole composite gold grades reported as “cut” may include higher grade samples which have been cut to 40 g/t Au.
“We expect these results to drive a significant increase in Mineral Reserves at PDA in our year end update to be released later
this month. With the deposit open in multiple directions, and an expanded exploration program planned at Mulatos in 2023, we
expect this growth to continue. These results will be incorporated into an updated development plan to be released in the
second half of 2023. Given PDA’s higher grades and proximity to the Mulatos pit, we see excellent potential for this to be
another low-cost, high-return project further extending the mine life at Mulatos. Over the past 18 years, Mulatos has produced
2.5 million ounces of gold while maintaining a similar Reserve life today as it had in 2005. Given our ongoing exploration
success at PDA, and the potential within the District, we expect this trend to continue,” said John A. McCluskey, President
and Chief Executive Officer.
New highlight intercepts can be found in Table 1, and in Figures 3 and 4 at the end of this news release.
Puerto Del Aire
PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit, and is comprised of five mineralized
zones – PDA1, PDA2, Gap, Victor, and Estrella (Figure 2). In February 2022, Alamos announced an initial Mineral Reserve at
PDA totalling 428,000 ounces (2.85 million tonnes “Mt” grading 4.67 g/t Au) as part of the December 31 st, 2021 Mineral
Reserve and Mineral Resource update. In addition to the Mineral Reserve, Measured and Indicated Mineral Resources totalled
124,000 ounces (0.77 Mt grading 5.05 g/t Au). Mineral Reserves were determined based on Mineral Resource estimations that
were completed within gold mineralization wireframes that were finalized in July 2020 and April 2021, based on detailed
geological modelling (see “Mineralization Wireframe” in Figure 2).
PDA1 and PDA2
Surface exploration drilling continues to extend high-grade mineralization beyond existing Mineral Reserves and Resources
across multiple mineralized zones within PDA. This includes a number of intercepts well above the current Mineral Reserve
grade within the 200 m gap between Mineral Reserves and Resources in PDA1 and PDA2, including 22MUL077, one of the
best holes ever drilled at PDA at 33.40 g/t Au (11.48 g/t cut) over 25.95 m. These results along with previously released drilling
completed since April 2021 (see press release dated November 15, 2022) are expected to drive a significant increase in
Mineral Reserves at PDA in the year end 2022 update to be released later in February 2023. This updated Mineral Reserve and
Resource will be used as the basis for a new development plan for PDA which is expected to be completed in the second half
of 2023.
Since April 2021, 92 drill holes totalling 27,117 metres have been completed at PDA which were not included in the 2021 year
end Mineral Reserve and Resource. All drill holes were completed with the objective of expanding mineralization as either step
outs from existing Mineral Resources, or targeting areas within the previously interpreted mineralization wireframe that did not
contain a Mineral Resource due to limited drilling.
The exploration program at Mulatos is expected to ramp up significantly in 2023 with $17 million budgeted, more than double
the 2022 budget. This includes $4 million budgeted at PDA with 16,000 m of drilling focused on expanding higher-grade
Mineral Reserves and Mineral Resources with the deposit open in multiple directions.
PDA is expected to be mined from underground and accessed from a ramp and development drifts off the main Mulatos pit.
This will greatly reduce the development needed to access the deposit. The Company expects to expand and upgrade the
existing mill at Mulatos to process the higher-grade ore from PDA.
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 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 with an FA process followed by 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 on 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, Mineral Reserves and Resources, expected mine life and
potential extensions of mine life at Mulatos, expected increases in the value of operations, planned release of an updated
development plan and timing thereof, intended method of accessing and mining the deposit at Puerto Del Aire and the
intended method of processing any ore from the deposit at Puerto Del Aire, 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.
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; any ongoing or new
impacts of the COVID-19 pandemic (or any other new epidemic or pandemic) on operations and the broader market, including
the nature and duration of any ongoing or new regulatory responses; 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 and/or development 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 deposit 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)
UTM
Elevation (m)
22MUL063 PDA2 310.10 311.60 1.50 1.50 75.50 40.00 1026
22MUL063 PDA2 336.40 340.80 4.40 4.40 3.74 998
22MUL064 PDA2 200.50 202.00 1.50 1.50 4.96 1086
22MUL064 PDA2 217.90 221.15 3.25 3.25 67.58 32.11 1068
22MUL065 PDA2 250.35 254.85 4.50 4.50 5.33 1067
22MUL065 PDA2 273.50 274.90 1.40 1.40 60.20 40.00 1053
22MUL065 PDA2 307.65 309.65 2.00 2.00 3.02 1030
22MUL067 PDA2 254.40 257.40 3.00 3.00 8.50 1038
22MUL067 PDA2 297.95 300.10 2.15 2.15 9.25 997
22MUL068 PDA2 241.90 243.40 1.50 1.50 4.90 1039
22MUL069 PDA2 182.95 184.20 1.25 1.25 4.39 1084
22MUL071 PDA2 223.05 225.50 2.45 2.45 10.66 1071
22MUL071 PDA2 248.80 250.25 1.45 1.45 4.11 1046
22MUL071 PDA2 266.50 275.50 9.00 9.00 6.73 1026
22MUL072 PDA2 278.65 279.85 1.20 1.20 3.85 1043
22MUL075 PDA2 292.40 294.20 1.80 1.80 7.00 973
22MUL077 PDA2 225.65 227.60 1.95 1.95 16.60 1062
22MUL077 PDA2 237.20 263.15 25.95 25.95 33.40 11.48 1039
22MUL078 PDA2 452.65 454.10 1.45 1.45 7.90 813
22MUL083 PDA2 149.25 151.60 2.35 2.35 9.30 1201
22MUL085 PDA2 257.50 260.00 2.50 2.50 3.70 1029
22MUL085 PDA2 287.50 293.70 6.20 6.20 18.33 15.83 998
22MUL086 PDA2 253.95 260.20 6.25 6.25 3.80 1018
22MUL086 PDA2 268.35 271.05 2.70 2.70 5.30 1006
22MUL086 PDA2 280.15 282.50 2.35 2.35 36.50 994
22MUL089 PDA2 209.60 212.60 3.00 3.00 4.64 1079
22MUL089 PDA2 245.60 250.70 5.10 5.10 3.00 1044
22MUL089 PDA2 266.60 268.45 1.85 1.85 4.40 1023
22MUL090 PDA2 271.75 278.50 6.75 6.75 11.16 1063
Table 2: 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)
22MUL037 75.0 -78.0 302.7 721407 3171699 1323
22MUL062 352.0 -77.0 322.1 721734 3171823 1336
22MUL063 21.0 -85.0 361.1 721733 3171824 1336
22MUL064 40.0 -77.0 278.6 721749 3171697 1283
22MUL065 237.5 -41.0 328.5 721961 3171980 1236
22MUL066 107.0 -70.5 326.7 721664 3171789 1307
22MUL067 32.0 -74.0 362.4 721841 3171696 1285
22MUL068 80.0 -67.0 271.5 721601 3171660 1262
22MUL069 238.0 -76.0 254.1 721599 3171659 1262
22MUL070 230.0 -72.0 319.5 722045 3171843 1234
22MUL071 335.0 -73.0 362.5 721841 3171696 1285
22MUL072 275.0 -63.0 329.9 721910 3171793 1290
22MUL073 1.0 -74.0 300.0 721523 3171668 1299
22MUL074 220.0 -77.0 30.0 721967 3171937 1256
22MUL075 221.0 -74.0 348.6 721966 3171937 1256
22MUL076 90.0 -88.0 171.0 721061 3170978 1338
22MUL077 300.0 -82.0 302.6 721839 3171696 1286
22MUL078 55.0 -67.0 470.6 722045 3171843 1234
22MUL079 270.0 -75.0 252.0 721061 3170978 1338
22MUL080 340.0 -75.0 90.0 721241 3170963 1277
22MUL081 300.0 -60.0 102.0 721221 3170967 1286
22MUL082 239.0 -63.0 111.0 721031 3170832 1349
22MUL083 264.0 -34.0 222.0 721220 3170966 1286
22MUL084 64.0 -58.0 150.0 721007 3170710 1361
22MUL085 82.0 -80.0 320.5 721839 3171696 1285
22MUL086 256.0 -87.0 332.2 721942 3171725 1275
22MUL087 195.0 -71.0 330.0 722044 3171842 1234
22MUL088 178.0 -79.0 142.1 721839 3171697 1285
22MUL089 178.0 -79.0 284.2 721839 3171698 1285
22MUL090 140.0 -79.0 365.5 721768 3171803 1331
22MUL091 148.0 -85.0 284.6 721661 3171790 1307
Figure 1: Puerto Del Aire Location Map, Mulatos District
Figure 2: Puerto Del Aire Sulphide Gold Mineralization Wireframes
Figure 3: Puerto Del Aire, PDA1 and PDA2 New Drilling Results
Figure 4: Puerto Del Aire, PDA1 and PDA2
Cross Section Through Long-Axis of Mineralization with New Drilling Results
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/b3328ade-c3b8-456e-b43d-8211d99742cc
https://www.globenewswire.com/NewsRoom/AttachmentNg/c3646e8c-a2eb-4dea-ab21-69b934a48fc6
https://www.globenewswire.com/NewsRoom/AttachmentNg/e19fdaab-5b77-430c-ad44-5dabf9ea821e
https://www.globenewswire.com/NewsRoom/AttachmentNg/d046ae64-bca2-4950-9b94-41fbef0792ad