Minera Alamos 2024 Outlook and 2023 Year End Financials
Minera Alamos 2024 Outlook and 2023 Year
End Financials
Toronto, Ontario--(Newsfile Corp. - April 30, 2024) -
Minera Alamos Inc. (TSXV: MAI) (the
"Company" or "Minera Alamos")
is pleased to provide selected financial and operational highlights
from its 2023 Annual Financial Statements and MD&A filed on Sedarplus on April 29
th
, 2024.
"As was outlined early in 2023, production at Santana was slowed temporarily while the Company
awaited some permit modifications to expand operations in an efficient manner. While production was
reduced, site preparation work including the conclusion of pre-stripping activities in advance of a
transition to the Nicho Main deposit. An updated development plan for the project which was completed
late in 2023 has now been initiated and includes increased mining and stacking activities in 2024/25 as
was outlined in February this year. Decisions made through the temporary reduction in operations
allowed the Company to maintain a strong overall financial position that can support activities planned
for this year," stated Darren Koningen, CEO of Minera Alamos. "Going forward the operations team
aims to return the site to a more normal operations plan and continue site evaluations aimed at future
growth and development for the project. Notwithstanding the primary focus of Minera on its core gold
production and development assets, we are also very excited at the prospect of establishing a new
copper focused corporate entity now that we have concluded the recent acquisition of the Suaqui Verde
copper project. We see Suaqui Verde as having the potential for a low Capex development profile which
complements our existing Los Verdes copper-molybdenum deposit and provides sufficient scope for us
to consider the development of an independent copper development company.
Such a structure
provides our existing shareholders with equity exposure in a new copper focused company at a time
when such advanced copper assets are increasingly difficult to find."
2024 Operational Outlook
At Santana, the Company has completed plans to optimize the use of existing installed leach pad
capacity to boost production on a go forward basis. As outlined in a February 22
nd
release, these
plans involve mining and stacking of approximately 25,000 oz of gold over a 12-month period that
will commence in May 2024 and should see a significant improvement in gold production relative
to 2023 levels beginning in Q3 and extending through to into 2025 before an expected normalizing
of operations at Santana thereafter.
Following the conclusion of planning with the Company's existing mine contractor, their operating
fleet and infrastructure has been updated (mining and crushing) to suit the current mine plans for
the Nicho Main pit.
Blasthole drilling is underway with mining operations to follow.
The Cerro de Oro project permitting process continues with the Company supporting its permit
consultants with any follow-up requests from the permit authorities.
Engineering work continues to progress for Cerro de Oro in order to advance pre-development
activities to coincide with the ultimate receipt of permits and a construction decision for the project.
Included in 2024 will be further metallurgical optimization studies, detailed engineering design and
additional exploration drilling aimed at filling in and potentially expanding the areas of know
mineralization (as outlined in Cerro de Oro PEA report dated October 3
rd
, 2022)
The recent acquisition of the Suaqui Verde copper project will allow the Company to start a series
of internal engineering studies aimed at the best path(s) for the development of a regional copper
developer/producer focused on low capital intensity copper projects. The combination of Los
Verdes, Poteritos and Suaqui Verde allows for further consolidation of similar type assets that
could form a regional copper production "hub" in the area where the Company already maintains a
significant presence.
The Company continues to advance discussions regarding additional project opportunities that
would complement its existing gold production portfolio.
Particular emphasis remains on late-stage
development projects where the Company's experienced technical team can find creative
opportunities to fast-track a path to production and reduce overall CAPEX requirements.
Operational Highlights (2023)
At Santana, as the year commenced, priority was given to waste removal ahead of a transition to
mining activities at the Nicho Main zone. Mining was limited to the completion of the Nicho Norte
starter pit in anticipation of the opening up of the Nicho Main pit (
see news releases dated Feb
22
nd
, 2024 and April 16
th
, 2024
)
Total gold sold in 2023 was 5,041 ounces from the Santana Project with inventory on the leach pad
of an additional 5,944 ounces as at December 31
st
, 2023.
In Q1-2023, the Company announced a program aimed to extract value from its existing copper
assets, Los Verdes/Potreritos which had been the subject of significant activity prior to the
acquisition of La Fortuna and the construction of the Santana gold project.
As part of these efforts,
the Company embarked on a number of project reviews of assets which could be complementary
to the development of the Los Verdes/Potreritos deposits.
This concluded with the acquisition of
the Suaqui Verde copper project (see notes in section above)
Final documentation was submitted to the relevant government agencies to formally proceed with
the Cerro de Oro permitting process.
In August, an additional US$800,000 property option payment was made toward full ownership of
the Cerro de Oro gold project. The final remaining payment of US$1,000,000 is due in August
2024 and the Cerro de Oro project earn-in will have been completed.
The Company released its Maiden Resource Estimate for the Santana project, a first iteration of
the project's ultimate gold potential and an important step in highlighting the main Nicho zone
resources that are scheduled to be developed in 2024. Total Measured and Indicated resources
were 9,610,000 t grading 0.65 g/t gold for a contained 198,000 oz. In addition, Inferred resources
were 5,510,000 t grading 0.58 g/t gold for an additional contained 103,000 oz. This initial resource
is sufficient to support the coming years of mine operations at Santana.
In October, a US$25 million funding package was completed with Auramet International Inc. and
Auramet Capital Partners LP, for the construction of the planned Cerro de Oro gold mine,
comprising a US$15M loan and a US$10M royalty (2.75% with the ability to buy back 2%). The
Company completed an initial draw-down of USD$5M under the loan facility to be used for
detailed engineering, exploration purposes, property holding costs and deposits on long lead time
items for the Cerro de Oro project.
In December, operational planning was updated to reconfigure the existing pad capacity at the
Santana mine to allow for an improvement in operational performance in 2024/2025 while final
project permit amendments were concluded.
Selected Financial Data:
The following selected financial data is summarized from the Company's audited Financial Statements
and related notes thereto (the "Annual Financial Statements') for the year ended December 31st, 2023,
and the Management's Discussion and Analysis ("MD&A") for the year ended December 31st, 2023 (all
numbers in Canadian dollars unless otherwise stated). A copy of the Financial Statements and MD&A is
available on Sedarplus at
www.sedarplus.ca
.
Operationally, revenues (not factoring deferred revenue) totalled $13,419,899 with cost of goods
sold and depletion amounting to $12,930,025 for gross mine profit of $489,874. Unit costs for the
year ended significantly higher than previous periods due to the fixed costs of operations being
spread over fewer ounces but remained modestly positive.
Net loss of $2,855,552 for the year of $0.006/share compared to a net profit of $5,609,393 in
2022. The net loss was largely attributed to the temporary reduction in gold production in 2023 as
well as the option payment for Cerro de Oro and an increase in professional fees which were
higher due to the engagement of permitting consultants. In addition, the Company incurred more
evaluation expense in 2023 reviewing potential opportunities.
Cash and Cash Equivalents of $13,754,272 compared to $13,153,828 as at December 31
st
,
2022. Subsequent to December 31
st
, 2023 year-end, the Company received an additional
28,138,000 Mexican pesos ($2,239,000) of sales tax (IVA) from the Government of Mexico.
Working capital as of December 31
st
, 2023 stood at $19,968,100 compared to $18,284,236 as at
December 31
st
, 2022
Cautionary Statement
The Company made its production decision at the Santana gold mine without having completed a
feasibility study demonstrating economic and technical viability. As such, there may be increased
uncertainty of achieving planned production levels, estimated recovery of gold, the costs associated with
such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure.
Mr. Darren Koningen, P. Eng., Minera Alamos' CEO, is the Qualified Person responsible for the
technical content of this press release under National Instrument 43-101.
For Further Information Please Contact:
Minera Alamos Inc.
Doug Ramshaw, President
Tel: 604-600-4423
Email:
Victoria Vargas de Szarzynski, VP Investor Relations
Tel: 289-242-3599
Email:
Website:
www.mineraalamos.com
About Minera Alamos Inc.
Minera Alamos is a gold production and development Company undergoing the operational startup of its
first gold mine that produced its first gold in October 2021. The Company has a portfolio of high-quality
Mexican assets, including the 100%-owned Santana open-pit, heap-leach mine in Sonora that is
currently going through its operational ramp up. The 100%-owned Cerro de Oro oxide gold project in
northern Zacatecas has considerable past drilling and metallurgical work completed and has entered the
permitting process. The La Fortuna open pit gold project in Durango (100%-owned) has a robust and
positive preliminary economic assessment (PEA) completed and the main Federal permits in place.
Minera Alamos is built around its successful operating team that together brought three mines into
production in Mexico over the last 13 years.
The Company's strategy is to develop very low CAPEX assets while expanding the projects' resources
and continuing to pursue complementary strategic acquisitions.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking information and Minera Alamos cautions readers that
forward-looking information is based on certain assumptions and risk factors that could cause actual
results to differ materially from the expectations of Minera Alamos included in this news release. This
news release includes certain "forward-looking statements", which often, but not always, can be
identified by the use of words such as "believes", "anticipates", "expects", "estimates", "may", "could",
"would", "will", or "plan". These statements are based on information currently available to Minera
Alamos and Minera Alamos provides no assurance that actual results will meet management's
expectations. Forward-Looking statements include estimates and statements with respect to Minera
Alamos' future plans with respect to the Projects, objectives or goals, to the effect that Minera Alamos or
management expects a stated condition or result to occur and the expected timing for release of a
resource and reserve estimate on the projects. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results relating to, among other things, results of exploration, the economics of
processing methods, project development, reclamation and capital costs of Minera Alamos' mineral
properties, the ability to complete a preliminary economic assessment which supports the technical and
economic viability of mineral production could differ materially from those currently anticipated in such
statements for many reasons. Minera Alamos' financial condition and prospects could differ materially
from those currently anticipated in such statements for many reasons such as: an inability to finance
and/or complete an updated resource and reserve estimate and a preliminary economic assessment
which supports the technical and economic viability of mineral production; changes in general economic
conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation,
legislative, environmental and other judicial, regulatory, political and competitive developments;
technological and operational difficulties encountered in connection with Minera Alamos' activities; and
other matters discussed in this news release and in filings made with securities regulators. This list is not
exhaustive of the factors that may affect any of Minera Alamos' forward-looking statements. These and
other factors should be considered carefully and readers should not place undue reliance on Minera
Alamos' forward-looking statements. The Company does not undertake to update any forward-looking
statement that may be made from time to time by the Company or on its behalf, except in accordance
with applicable securities laws.
The Company does not have a feasibility study of mineral reserves, demonstrating economic and
technical viability for the Santana project, and, as a result, there may be an increased uncertainty of
achieving any particular level of recovery of minerals or the cost of such recovery, including increased
risks associated with developing a commercially mineable deposit.
Historically, such projects have a
much higher risk of economic and technical failure. Failure to commence production would have a
material adverse impact on the Company's ability to generate revenue and cash flow to fund operations.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/207383