Almaden Updates Feasibility Study at Ixtaca
NEWS RELEASE
March 21st, 2018
Trading Symbols:
TSX: AMM; NYSE American: AAU
www.almadenminerals.com
ALMADEN UPDATES FEASIBILITY STUDY AT IXTACA
VANCOUVER, B.C. Almaden Minerals Ltd . (“Almaden” or “the Company”; NYSE
American: AAU; TSX: AMM) is pleased to update investors on the environmental and
engineering work relating to the feasibility study (FS) at the Ixtaca gold -silver project located in
Puebla State, Mexico.
The Company has selected a team of independent engineers including SRK Consulting (U.S.),
Inc. (SRK) and Moose Mountain Technical Services (“MMTS”) to lead the FS.
Various programs currently underway include:
A resource model update to include new drill hole data;
Metallurgical test work to:
o demonstrate repeatability of metallurgical performance;
o test opportunities to further improve metallurgical performance;
Process and Infrastructure FS engineering design;
Mine planning and production optimization studies;
Further disassembly of the Rock C reek processing plant to accelerate preparations for
moving the plant to the Ixtaca site;
Construction and commissioning project management planning;
Geotechnical site investigation work; and
Water management studies.
Almaden is also in the final stage of preparing an Environmental Impact Assessment (Manifiesto
de Impacto Ambiental or “MIA”) for Ixtaca and expects to submit the MIA this year.
Morgan Poliquin, President and CEO of Almaden, stated “We are pleased to have selected SRK
and MMTS to conduct th e Ixtaca gold -silver project Feasibility Study. Along with greater detail
on the feasibility of the project, we are developing a full understanding of social, hydrologic,
hydrogeologic and geochemical conditions at the site well in advance of mining activi ty. This is
all based on the work of the independent engineers we have engaged, utilising best practices to
international standards and is peer reviewed. This understanding will help us ensure that the
potential impacts associated with eventual project development are identified and mitigated and
the opportunities for all stakeholders are capitalised upon through the project life and beyond.
Over the last year e xploration drilling has been delivering encouraging results, both in the mine
plan area and beyond, which supports our belief that sustained exploration can extend the mine
life.”
Hydrology and Geochemistry
Almaden is working closely with authorities and local communities to protect local water
resources while improving quality and availability . The current mine plan includes a water
storage reservoir to be co-operated and maintained by local residents during and after mine
operation to provide a consistent and long-term supply of water to local residents.
Rainfall in the Ixtaca vicinity falls primarily during a relatively short rainy season. With no local
water storage facilities the flash flows of water are lost to the community . Under the FS
development plan, rainwater will be captured during the rainy season in the water storage
reservoir and slowly released during the dry season , for use by both the mining operation and
local residents. Almaden is also exploring additional solutions to improve the quality of drinking
water available to residents in the context of a Social Investment Plan (see press release of
December 12, 2017). Water quality and a consistent long-term supply for local residents is one
of Almaden’s top priorities at Ixtaca and a major component of the feasibility study.
In support of this priority for the FS, Almaden and SRK will expand upon the recent (2017) pre -
feasibility study (PFS)1 through the completion of additional soil, surface water and ground water
characterization that will facilitate a more detailed facility design. The PFS and subsequent
studies include the following highlights relating to water:
Local water resources are underutilized and the mine plan will not disturb local domestic
water sources.
In the current plan, g roundwater pumping wells will not be required , according to
baseline hydrology studies and water balance models.
A robust tailings management facility (TMF) has been designed so that no process water
is discharged, i.e. the TMF will be a “zero discharge facility”.
Mine devel opment includes a water storage reservoir that, based on current water
balance planning, could supply more than 2,000 m3 per day to the local community.
The neutralizing potential present in the site rocks is sufficient to neutralize any acid
generated.
Two geochemical studies completed in 2015 and 2017 evaluated the potential for acid rock
drainage and metal leaching from the waste rock and tailings using globally -accepted
standardized methods of laboratory testing and in compliance with Mexican regulation s;
including NOM-157-SEMARNAT-2009, which establishes procedures to implement mine waste
management plans and Anexo Normative 5 of NOM -141-SEMARNAT-2003, which describes
the test methods for whole rock chemistry analysis, leach tests and acid base accounti ng. The
studies stated that “there is more than enough neutralizing potential present in the site rocks to
neutralize any acid generated ,” and also reported that laboratory testing indicates a low
potential for metal leaching. To confirm these findings and to bring the geochemical data set to
feasibility level, SRK’s scope for the geochemical characterization program in the FS will be
expanded to include additional geochemical sampling to evaluate the development rock and
tailings in greater detail.
Community and Transparency
A key component of Almaden’s work at Ixtaca continues to be engagement with people in the
region. With the receipt of the summary Social Impact Assessment late last year, Almaden has
commenced the development of a Social Investme nt Plan (“SIP”). Representatives of GMI
Consulting are currently preparing for consultations which will inform the SIP.
In recent years, with the continued advancement of engineering studies, Almaden has had the
opportunity to expand its program of social engagement in the area of the Ixtaca project, with a
special focus on providing opportunities for local stakeholders to learn about the Ixtaca project
in particular and the mining industry in general. Videos showing some of the approaches we are
using are available on the Almaden website ( www.almadenminerals.com). To date, Almaden
has:
Coordinated eight large community meetings, with total attendance at these meetings of
more than 3,300 people.
Taken a total of approximately 480 people, drawn from local communities, on 24 trips to
see an operating mine (see video on website).
Arranged 35 sessions of “Dialogos Transversales”, wherein community members are
invited to attend discussions with experts on a diverse range of issues relating to the
mining industry, such as an overview of Mexican Mining Law, Human Rights and Mining,
mineral processing, explosives, water in mining, risk management, and mine
infrastructure, among other things (see video on website).
Opened a central community office in the town of Santa Maria Zotoltepec, which is open
to community members and includes an anonymous suggestion box.
Developed a “Mobile Information Module” which allows company representatives to visit
communities and provide i nformation to communities more distant from the project . To
date 35 communities have been visited.
Employed as many local people as possible, reaching up to 75 people drawn from 5
local communities. Almaden operates the drills used at the project, and henc e can draw
and train a local workforce as opposed to bringing in external contractors.
Initiated a program of scholarships for top performing local students, with 100
scholarships granted to date to individuals from 31 different communities (57 women and
43 men).
Established several clubs, including English, reading, zumba, football, and theatre clubs,
to contribute to the vitality of local communities.
Focused on education, enabling over 4,300 people to be positively impacted by our
investments, such as rehabilitation of school-related infrastructure, donation of electronic
equipment, and scholarships for top-performing students.
About SRK and MMTS:
SRK Consulting is an independent, international consulting practice providing focused advice
and solutions to the earth and water resource industries. They offer specialist services in fields
such as due diligence, feasibility studies, permitting, operation optimization, mine waste and
water management, and mine closure. They have been involved in a wide range of projects in
most areas of the world and across the full spectrum of mineral commodities. Formed in 1974,
SRK employs more than 1,400 professionals in over 45 offices on 6 continents.
MMTS is an association of Geologists, Engineers and Technicians providing experienced
knowledge in Geology, Mine Engineering, and Metallurgical Services and Support to the mining
industry for over 15 years. Through their network of associates, they provide an integrated team
of experts and QP’s. Services range from early gr assroots exploration and development, block
model builds, resource and reserve estimates, advanced planning and studies for mine
proposals (including operational support), process design and permitting process guidance and
support. MMTS has experience work ing on coal, gold, silver, copper, molybdenum, and
tungsten deposits throughout North and South America and around the world. A list of specific
projects worked on by MMTS can be found at www.moosemmc.com.
About Ixtaca:
The proposed Ixtaca mine is antici pated to process 7,500 tonnes per day of primarily limestone
host rock with lesser amounts of shale and volcanic tuff to produce gold and silver dore. The
Pre-Feasibility Study announced in April, 2017 1 projects that the mine will employ 400 people
during construction, 430 over the mine life, and contribute on the order of US$248 million in
taxes, including approximately US$55 million to Puebla State and US$ 35 million to the local
municipality.
Since 2014, Almaden has been conducting a detailed water monitoring program in the project
area to measure the pre -mining water quality conditions and to establish a baseline against
which potential future impacts to surface water and groundwater from mini ng activity can be
evaluated. The program includes eight groundwater monitoring wells and 12 surface water
monitoring stations. As part of the FS, groundwater monitoring will be expanded with the
installation of additional wells completed under SRK’s hydro geologic study for the open pit. In
addition, the existing surface water monitoring program will be augmented to supplement the
existing database of streamflow data.
A sitewide water balance model was developed in support of the 2017 PFS to develop a wate r
management strategy that focuses on consuming all impacted water generated at the site in the
mineral extraction and beneficiation process and avoids having to treat and discharge water to
the environment or require additional external sources of water. As part of this strategy, a large
portion of the water used by the process plant is recycled water collected from the tailings
facility. Additional water required by the process plant is supplied by collection of runoff and
rainwater through the constructi on of a water supply reservoir. The current water management
strategy calls for up to 850,000 m 3 of runoff and rainwater to be released annually to the
downstream communities during and following mine operations.
Based on the results of the water balance model and water management plan, impacts on the
groundwater aquifer and surface water sources in the area are not anticipated to be significant,
as the proposed project facilities do not impact the current water supply for local communities.
In addition, the groundwater aquifer around the mine is not over -exploited according to a 2007
CONAGUA study, and additional studies found that the Water Stress Index in the region is very
low (0.029 on a scale of 0.01 to 1.0, with least stressed at 0.01 to most stresse d at 1.0). During
the FS the water balance model will be updated to include a daily simulation model based on
project design changes and additional site monitoring data and a more robust water footprint will
be developed for the mine to confirm the current outlook.
Tracey Meintjes , P.Eng., a qualified person (“QP”) under the meaning of NI 43 -101, and
Principal of MMTS, reviewed the technical information in this news release.
About Almaden:
Almaden Minerals Ltd. owns 100% of the Tuligtic project in Puebla S tate, Mexico, subject to a
2.0% NSR royalty held by Almadex Minerals Limited. Tuligtic covers the Ixtaca Gold -Silver
Deposit, which was discovered by Almaden in 2010.
1Available on SEDAR or at: http://www.almadenminerals.com/DOCUMENTS/Reports/N43-101%20-%20Ixtaca%20PFS%20-
%2017May2017.pdf
Neither the Toronto Stock Exchange (TSX) nor the NYSE American have reviewed or accepted responsibility for the adequacy or
accuracy of the contents of this news release which has been prepared by management. Except for the statements of historical fact
contained herein, certain information presented constitutes "forward -looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Such forward -looking statements, including but not
limited to, those with respect to potential expansion of mineralization, potential size of mineralized zone, and size and tim ing of
exploration and development programs, estimated project capital and other project costs and the timing of submission and re ceipt
and availability of regulatory approvals involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievement of Almaden to be materially different from any future results, performance or
achievements expressed or implied by such forward -looking statements. Such factors include, among others, risks related to
international operations and joint ventures, the actual results of current exploration activities, conclusions of economic ev aluations,
uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, environmen tal
risks and hazards, increased infrastructure and/or operating costs, labour and employment matters, and government regulation and
permitting requirements as well as those factors discussed in the section entitled "Risk Factors" in Almaden's Annual Informa tion
form and Almaden's latest Form 20 -F on file with the United States Securities and Exchange Commission in Washington, D.C.
Although Almaden 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 w ill
prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. A lmaden
disclaims any intention or obligation to update or revise any forward -looking statements, whether as a result of new inf ormation,
future events or otherwise, other than as required pursuant to applicable securities laws. Accordingly, readers should not pl ace
undue reliance on forward-looking statements.
Contact Information:
Almaden Minerals Ltd.
Tel. 604.689.7644
Email: [email protected]
http://www.almadenminerals.com/