Minera Alamos Announces Santana Project Pit Optimization Drilling Continues to Extend Mineralization Including 284.8 metres grading 0.69 g/t Au from surface and ending in mineralization
Minera Alamos Announces Santana Project Pit
Optimization Drilling Continues to Extend
Mineralization
Including 284.8 metres grading 0.69 g/t Au from surface and
ending in mineralization
Toronto, Ontario and Vancouver, British Columbia--(Newsfile Corp. - October 4, 2021) -
Minera Alamos
Inc. (TSXV: MAI) (the "Company" or "Minera Alamos")
is pleased to provide an update on the
ongoing pit optimization drilling program at the Nicho complex (Santana gold project) in Sonora, Mexico.
In addition, the Company provides updates on various optimization initiatives and studies underway
during the ongoing ramp up of gold mining operations.
Drilling Highlights (
full assays included in table 1
)
Hole S20-145D - 55.3m grading 1.54 g/t Au from 10.5 m down hole
Hole S20-147D - 284.8 m grading 0.69 g/t Au from surface and ending in mineralization
Hole S20-148D - 277.2 m grading 0.43 g/t Au ending in mineralization
Hole S20-149D - 152.7 m grading 0.77 g/t Au from surface (inc. 56.2 m grading 1.39 g/t Au)
Hole S20-153D - 48.2 m grading 1.21 g/t Au from 10 m down hole
Hole S20-158D - 53.7 m grading 0.91 g/t Au from 111 m down hole and ending in mineralization
Hole S21-160D - 242.7 m grading 0.51 g/t Au from 41.9 m down hole
The 19 hole program (totaling 4,039m of new drilling) was initiated in late 2020 (following the easing of
Covid restrictions) and continued into 2021 running parallel to the construction of the Santana mine.
The
primary purpose was to further delineate the outer limits of the main Nicho "pipe" structure, which is
slated to be brought into operation as the current starter pit at Nicho Norte becomes further advanced.
A
number of holes were also included to follow up on the deeper mineralization located in hole S20-134D
(
see news release dated April 30
th
, 2020
) that had intersected 0.60 g/t over 247.9 m and was, at the
time, one of the few deep holes drilled below 200m depth at the Nicho zone.
The program, to date, has
been a success and demonstrated that the Nicho deposit remains open to the south and at depth.
Drilling results will be combined with those from previous campaigns into the maiden NI43-101 resource
statement for the Nicho Complex expected around the end of the year.
"In parallel with the construction and ongoing ramp up of operations at the Santana gold mine, we have
continued our exploration activities throughout this highly prospective area. The current drilling, although
designed for pit optimization work, continues to provide positive surprises, especially at depth, as we
test the outer boundaries of known mineralized zones.
As we grow our understanding of the system we
look forward to additional positive developments while we prepare to open up the larger Nicho main
zone for mining following the successful opening of the starter pit at Nicho Norte," stated Darren
Koningen, CEO.
"In addition and in parallel with mining operations, multiple operational optimization
studies are underway as we glean information from the early mining, leaching and carbon loading
activities at the Nicho Norte mine site. A full update on the operational ramp up and gold recovery will be
provided in the coming weeks."
Table 1: Drill Results From Pit Optimization Drilling Phase
Hole #
Zone
From (m)
To (m)
Interval
(m)
1,2
Au g/t
Notes
S20-143D
NICHO
6.20
163.40
157.20
0.26
including
6.20
37.40
31.20
0.66
S20-144D
NICHO
42.20
46.60
4.40
0.45
S20-145D
NICHO
13.00
68.30
55.30
1.54
S20-146D
NICHO
0.00
60.80
60.80
0.16
S20-147D
NICHO
0.00
284.80
284.80
0.69
Hole ending
in
mineralization
including
0.00
52.30
52.30
1.10
S20-148D
NICHO
7.60
284.80
277.20
0.43
Hole ending
in
mineralization
S20-149D
NICHO
0.00
152.70
152.70
0.77
including
0.00
56.20
56.20
1.39
S20-150D
NICHO
20.60
25.40
4.80
1.19
and
166.50
245.00
78.50
0.54
S20-151D
NICHO
140.20
155.00
14.80
0.46
and
184.60
200.20
15.60
0.29
S20-152D
NICHO
0.00
60.30
60.30
0.26
S20-153D
NICHO
10.00
58.20
48.20
1.21
S20-154D
NICHO
21.40
47.50
26.10
0.23
and
87.30
181.40
94.10
0.25
S20-155D
NICHO
179.80
259.60
79.80
0.26
S20-156D
NICHO
26.00
67.50
41.50
0.63
S20-157D
NICHO
92.10
234.50
142.40
0.40
S21-158D
NICHO
111.00
164.70
53.70
0.91
Hole ending
in
mineralization
S21-159D
NICHO
0.00
65.90
65.90
0.28
S21-160D
NICHO
41.90
284.60
242.70
0.51
S21-161D
NICHO
12.30
47.00
34.70
0.51
and
156.60
179.70
23.10
1.04
1
- Grades/widths of mineralized intervals represent complete "from" "to" drill depths as shown.
2
- All holes were drilled at 45-90 degree inclinations. The true widths of the mineralized zones in these areas are currently unknown.
The most southerly drill fence completed at the Nicho deposit (as shown by drill holes S20-144D, S20-
143D, S20-145D and S20-156D on Map 1 below) confirms that the mineralization remains open both
laterally and at depth.
The Company plans to complete additional holes to further test this southeast area
of the deposit.
In addition, planning is underway for additional holes aimed more specifically at
delineating the deeper zones in order to better define the source of the mineralised fluids.
Map 1: Plan view of drill holes and drill traces
To view an enhanced version of Map 1, please visit:
https://orders.newsfilecorp.com/files/4183/98443_ab37776d443298c8_002full.jpg
Santana Project Optimization
The
focus during the initial phases of mining at the Nicho Norte pit was to gain valuable operations data
(mining and processing) from the limited early material that was available from June and July's start of
operations. The following efforts are currently underway and will continue as mining operations ramp up
toward commercial production:
Blast pattern modifications to minimize the amount of drilling/explosive required to obtain optimal
rock fragmentation. The Company is aiming to reduce fragmentation levels in the unmineralized
host rock in order to reduce overall blasting costs and maximize the production of material suitable
for leach pad overliner, while maintaining high levels of fragmentation in the mineralized zones
which will reduce crushing requirements prior to gold leaching;
Analysis of existing open pit blast hole sample data to determine required quantities and spacing
of samples required for analysis in order to efficiently estimate mineral quantities and grades
produced from mining operations;
Crushing and screening campaigns utilizing run-of-mine ("ROM") material with the equipment
available at site in order to determine maximum throughput levels and optimal size settings for
different crushing phases;
Final design modifications to long-term location and arrangement of existing crushing, screening
and conveying systems (
see news release dated January 30, 2020
) in order to minimize re-
handling requirements for crushed material being loaded to the leach pad;
Mining equipment cycle time analysis to different dumping points as part of the optimization of
truck traffic between the mine, leach pad and different waste dump locations;
Modifications to optimize the overall mine contractor fleet (mix of larger articulated haulage
equipment and smaller fixed axle vehicles)
to accommodate commercial production targets;
Analysis of leach pad extraction solution flows and concentrations to confirm profiles of gold
recovery curves versus previous Santana project test plant data; and monitoring and optimization
of reagent addition rates and concentrations.
QA/QC
All diamond drill samples were collected by Minera Alamos personnel including the Company's
exploration geologists.
Drill core samples were cut in half and divided based on visual observations into
typically 1-2 m intervals.
One half of the sample was bagged for analysis and the remaining half was
logged by Minera Alamos personnel and stored for future reference.
Blanks, duplicates, and standards
were randomly inserted in the sample stream with the samples sent for analysis as part of the normal
QA/QC procedures.
All samples were prepared and analyzed for gold using fire assaying with AA/gravimetric finish in
addition to a standard 35-element ICP suite. All samples were sent for sample preparation at the Bureau
Veritas facility in Hermosillo, Mexico.
Drill collar location, azimuth and dip for drill holes included in this release are provided in the table below:
Drill Hole
Easting
1
(m)
Northing
1
(m)
Dip
2
(deg)
Azimuth
(deg)
Depth
3
(m)
Area
S20-143D
675,203
3,138,780
46
046
168
Nicho
S20-144D
675,163
3,138,739
76
046
170
Nicho
S20-145D
675,224
3,138,798
45
042
187
Nicho
S20-146D
675,147
3,138,826
47
232
123
Nicho
S20-147D
675,225
3,138,904
89
296
285
Nicho
S20-148D
675,205
3,138,886
90
188
285
Nicho
S20-149D
675,148
3,138,894
47
229
174
Nicho
S20-150D
675,245
3,138,921
89
066
312
Nicho
S20-151D
675,232
3,138,873
70
359
336
Nicho
S20-152D
675,160
3,138,802
70
227
150
Nicho
S20-153D
675,159
3,138,801
46
228
113
Nicho
S20-154D
675,201
3,138,804
89
250
243
Nicho
S20-155D
675,262
3,138,937
90
307
294
Nicho
S20-156D
675,242
3,138,816
46
046
176
Nicho
S20-157D
675,215
3,138,855
82
223
243
Nicho
S20-158D
675,329
3,139,144
60
226
165
Nicho
S20-159D
675,281
3,139,088
52
227
110
Nicho
S20-160D
675,127
3,139,008
77
225
309
Nicho
S20-161D
675,160
3,139,044
81
225
201
Nicho
1
- Collar coordinates as listed (easting, northing) are UTM values (WGS84 datum)
2
- Dip as shown in planned orientation.
Actual measured values post drilling are generally ± 3 degrees
3
- Depth as measured downhole.
(Total of 4,040m of drilling reported)
Cautionary Statement
The Company made its production decision and has started the development and production of 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.
Failure to commence production would have a material adverse impact
on the Company's ability to generate revenue and cash flow to fund operations.
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 development company poised to join the ranks of gold producers in 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 newly acquired
100%-owned Cerro de Oro oxide gold project in northern Zacatecas that has considerable past drilling
and metallurgical work completed and could enter the permitting process rapidly. The La Fortuna open
pit gold project in Durango (100%-owned) has an extremely robust and positive preliminary economic
assessment (PEA) completed and the main Federal permits in hand. Minera Alamos is built around its
operating team that together brought 3 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. Minera Alamos does not undertake to update any forward-looking
statement that may be made from time to time by Minera Alamos 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/98443