Minera Alamos Expands Santana Gold Project Permits to Accommodate Commercial Scale Operations
Minera Alamos Expands Santana Gold Project
Permits to Accommodate Commercial Scale
Operations
TORONTO
and
VANCOUVER
,
July 26, 2018
/CNW/ -
Minera Alamos Inc. ("Minera Alamos" or
the "Company") (TSX VENTURE:MAI)
is pleased to announce that it has completed the
environmental studies required to amend the scope of the existing Santana gold project test mining
permits and submitted them for approvals to the relevant Mexican mining regulatory agency
(SEMARNAT). Acceptance of the permit expansion will provide the Company with the flexibility to
transform the operation from bulk mining testwork to a commercial scale gold mine once a
production decision is made.
"Since the closing of the transaction between
Minera Alamos
and Corex Gold in April the Company
has aggressively advanced the Santana project's engineering work culminating in our recent
submission for these permits. We have received extremely positive community support for our plans
and based on currently available information we anticipate the receipt of final approvals later this
year." stated
Darren Koningen
, CEO. "Construction could begin in Q1 2019 with Santana the first
of three planned operations in our development pipeline."
Bulk test mining operations at the Santana project are currently governed by a temporary
environment/change of land use permit (MIA-ETJ) that was issued by SEMARNAT in 2016. The
current permits cover changes made to a limited area of the project site which was consistent with
the scope of the test activities. Included as part of the recently submitted environmental expansion
studies are early stage designs for commercial-scale production. The Company has received all
necessary formal sign-offs from the local community (
Ejido
) to proceed with the proposed changes.
Summary of Santana Bulk Leaching Activities
For the past 18 months the Santana project has been undergoing continuous bulk heap-leach testing
activities. An initial phase utilized coarse crushing (<3") with a second phase involving fine crushing
(<1/2" to 5/8") and agglomeration prior to leaching. While the use of fine crushing appeared to
improve the gold leach kinetics, ultimate gold recoveries for both phases were relatively consistent
(~0.65 g/t Au extracted) over the range of crush sizes that were tested. In total, approximately
35,000 tonnes of mineralized material has now been placed on the test leach pads and the results of
the bulk test work fully support the on-going development of the project with a goal towards
commercial scale operation.
Drilling Update
Drilling has commenced at Santana (
see news release dated
May 3
rd
, 2018
) following the receipt of
successful community approvals associated with combining
Minera Alamos'
Los Verdes contiguous
on strike claim into the Santana plan of development. Updates to this 20-hole,
3000 m
, program will
be provided in due course.
Cautionary Note
The Company advises that it has not made a production decision and that although it is advancing
the project towards such a decision it does not have a feasibility study of mineral reserves,
demonstrating economic and technical viability, 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. There is no
guarantee that production decision will be made or, that if it is, production will begin as anticipated
or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company's ability to
generate revenue and cash flow to fund operations.
About
Minera Alamos
Minera Alamos
is an advanced stage exploration and development company. Its growing portfolio of
high-grade Mexican projects includes the
La Fortuna
open pit gold project in Durango and the
Guadalupe de los Reyes gold/silver project in
Sinaloa
as well as the now combined Santana/Los
Verdes gold-copper project in
Sonora
. The Company is well financed to conduct all of its planned
exploration and development activities and continues to pursue additional project acquisitions in
Latin
America
.
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. Mr. Koningen has
supervised the preparation of, and approved the scientific and technical disclosures in this news
release.
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 Santana Gold Project, timing for and
ability to finance any such plans, any future production decision for the Santana Gold Project, the
results of the current leaching and drill programs, 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 Santana Gold Project. 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 (including the Santana Gold Project), 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.
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.
Figure 1 - Santana proposed gold heap leach operations site arrangement (CNW Group/Minera
Alamos Inc.)
SOURCE
Minera Alamos Inc.
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For further information:
Minera Alamos Inc.: Darren Koningen, CEO, Tel: 416-306-0990, Email:
[email protected], Website: www.mineraalamos.com; Doug Ramshaw, President, Tel:
236-521-0429, Email: [email protected]
CO: Minera Alamos Inc.
CNW 14:38e 26-JUL-18