Minera Alamos Reports 2022 Year End Financials and Operations Update
Minera Alamos Reports 2022 Year End
Financials and Operations Update
Toronto, Ontario--(Newsfile Corp. - May 2, 2023) -
Minera Alamos Inc.
(TSXV: MAI)
(the "Company"
or "Minera Alamos")
is pleased to provide selected financial highlights from its 2022 Annual Financial
Statements and MD&A filed on Sedar on May 1
st
, 2023.
2022 Operational Highlights
Total gold ounces recovered and sold in 2022 was 11,667 ounces from the Santana Project with
inventory on the pad of 6,950 ounces as at December 31, 2022.
Primary surface rights agreements were concluded for the development of the Cerro de Oro gold
project in northern Zacatecas, Mexico. The agreements allowed the Company to complete the
documentation required to formally proceed with the Cerro de Oro permitting process.
The Company announced the positive results of an independent Preliminary Economic
Assessment ("PEA") for the Cerro de Oro Project in Zacatecas, Mexico.
2023 Operational Outlook
At Santana, as outlined in January 2023 (
see operation update news release dated January 31
st
,
2023),
the Company has given priority to the acceleration of some waste removal ("pre-stripping")
activities during early 2023 in advance of the planned transition of mining activities at the Nicho
main zone.
The Company is continuing to utilize existing pad space while waiting for the pending permit
amendment approvals. During this period of waste mining, gold production slowed, as expected,
but the Company still maintained some mining and leaching activities and sold 1,295 ounces of
gold in Q1.
The Company is anticipating an increase in mining, stacking and leaching activities in Q2 relative
to Q1 utilizing the existing pad capacity at Santana. Updated operational plans have identified
approximately 4000 ounces of gold from the Nicho Norte pit which are available for short term
mining activities in the coming quarter ahead of the planned expansion of mining operations.
The planned pad expansion that would triple pad capacity will allow efficient loading of the existing
pad alongside the expanded pad area.
Exploration drilling of the Benjamin Hill, Benjamin West and the Zata zones is currently ongoing, the
results of which will allow for the longer term site planning at Santana.
In April 2023, the Company completed the documentation necessary to formally proceed with the
Cerro de Oro permitting process. The management of the remainder of the permit process will
now be handled by the Company's permitting consultants. Concurrent with the permitting, the
Company is planning additional drilling and metallurgical work that will inform the final operational
plan for the proposed mine.
Discussions continue with a number of interested lending partners to provide the modest capital
funding requirements for the development of the Cerro de Oro mine, with the goal of a definitive
lending package by mid-year, which could be drawn down for construction purposes upon final
receipt of permits.
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, 2022,
and the Management's Discussion and Analysis ("MD&A") for the year ended December 31st, 2022 (all
numbers in Canadian dollars unless otherwise stated). A copy of the Financial Statements and MD&A is
available on SEDAR at
www.sedar.com
.
Revenues (not factoring deferred revenue) totalled $21,726,211 with cost of goods sold and
depletion amounting to $13,547,284 for gross profit of $8,178,927
Income from operations of $1,197,367 compared with a loss of $4,936,977 in 2021
Net income of $5,609,393 for the year of $0.012/share compared to a net loss of $1,753,220 in
2021
Cash and Cash Equivalents of $13,153,828 compared to $7,042,790 as at December 31st 2021
Working capital as of December 31
st
, 2022 stood at $18,284,236
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 with plans to enter
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 operating team that together brought 3 mines into successful
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/164484