Minera Alamos Updates Progress at Guadalupe de los Reyes Gold Project, Sinaloa, Mexico TORONTO AND VANCOUVER ,
Minera Alamos Updates Progress at
Guadalupe de los Reyes Gold Project, Sinaloa,
Mexico
TORONTO
AND
VANCOUVER
,
June 18, 2018
/CNW/ -
Minera Alamos Inc. ("Minera Alamos" or
"Company") (TSX VENTURE:MAI)
is pleased to provide an update on development activities at the
Company's
Guadalupe
de los Reyes ("Guadalupe") Project,
Sinaloa
, Mexico. The Guadalupe
Project is one of three gold development projects being advanced within the Company's project
development profile, that also includes the Santana and
La Fortuna
projects, both of which are
awaiting their respective commercial production permits expected this year. The
Guadalupe
project
is one of the most significant historic gold producers in this region of
Mexico
and contains a NI 43-
101 near surface gold resource consisting of the following with significant untapped resource
potential from previously identified mineralized structures that remain undrilled:
Indicated Resource of approximately 6.8 million tonnes with an average grade of 1.73 g/t gold
for approximately 380,100 contained ounces (using a 0.5 g/t cut-off);
Inferred Resource of approximately 3.2 million tonnes with an average grade of 1.49 g/t gold for
approximately 155,200 contained ounces of gold (using a 0.5 g/t cut-off).
"The acquisition of the
Guadalupe
gold project late last year was another strategic addition to the
Company's developing production profile", said
Darren Koningen
, CEO of
Minera Alamos
. "A
significant amount of time and effort was expended by the previous owners to re-establish the
project as one of the premium advanced stage gold assets in this region of Mexico. We are
extremely fortunate to have the opportunity to leverage those efforts for the benefit of
Minera
Alamos
stakeholders. Historical records have already provided an insight into previous heap
leaching testwork completed for the project and also the activities surrounding the small scale vat
leaching facilities that can still be seen at the site. By utilizing the expertise of our operating team,
we plan to rework the overall project development and assess the potential construction of a modern
low capex gold heap leach operation."
In recent months the Company's efforts at
Guadalupe
have advanced along a number of paths
simultaneously. Updates from all phases of this work will be provided as available in the coming
months.
A local exploration office has been established in the community adjacent to the project. Work
is underway to fully review historical project data and to establish priority target areas of known
mineralization for near surface resource expansion drilling.
Mapping of the Mariposa-
Zapote
structure, which hosts the majority of the current surface
resource along strike to evaluate extensions that have not been drilled and could be priority
target areas to expand the resource.
Metallurgical samples have been collected from existing resource drill holes and are being
prepared for gold leaching optimization studies.
Engineering efforts are underway to evaluate the project area and establish locations and
preliminary designs for gold heap leaching facilities suitable for the
Guadalupe
current and
future resources.
Guadalupe
de los Reyes Project Background
Gold and silver were discovered at
Guadalupe
by the Spanish in the late 1700s and mining occurred
in the area for over 150 years up until the 1950s. The main
Guadalupe
underground operation
opened in the late 1800s and to date is the most significant source of gold production in the district.
It is estimated (historical estimates only) to have produced approximately 500-600,000 ounces of
gold and 40 million ounces of silver over its operational life at reported grades of +10 g/t Au and
+500 g/t Ag. Most of the historical production is derived from a single section of mineralized
structures over a length of approximately 2 km. At least eight other mineralized zones have been
identified at site along three structural arms of the same large regional system. In total, the system
mineralization has been mapped at surface over a total combined distance of approximately 10 km.
From the 1950s through the 1980s there was limited activity in the
Guadalupe
area other than
exploration reconnaissance studies. The one exception was a small vat leaching operation that was
constructed and operated by the local concession owner in the late 1980s. It is reported that during
this period approximately 32,000 tonnes of coarse crushed mineralized rock (5 to 6 g/t au) was
leached with cyanide in open vats.
Modern drilling was re-initiated at the
Guadalupe
project area in the 1990s and was targeted at
defining significant area of shallow and lower grade gold/silver mineralization in areas surrounding
the
Guadalupe
underground operations. Since that time, in excess of 40,000 meters of drilling (RC
and diamond) have been completed within the current project boundaries. The resource estimates
for the Project as completed by Tetra Tech Inc. (reported in accordance with CSA National
Instrument NI 43-101 resource requirements) are summarized below.
Guadalupe
de los Reyes Resources
Resource Classification
Metric Tonnes
Gold Grade (g/t)
Silver Grade (g/t)
Contained Gold (oz)
Contained Silver (oz)
Indicated
6,843,000
1.73
28.71
380,100
6,315,300
Inferred
3,200,000
1.49
34.87
155,200
3,639,000
Notes:
1.
Mineral Resources are summarized as reported in the NI 43-101 Technical Report titled "Updated Technical Report Guadalupe de los Reyes Gold Silver Project" by Tetra
Tech Inc. dated April 16, 2018
2.
To the best of knowledge, information and belief of Minera Alamos, there is no new material scientific or technical information that would make the disclosure of the
mineral resources in the Report inaccurate or misleading.
3.
Mineral Resources were calculated based on a cut-off grade of 0.5 g/t Au.
4.
No Measured Resources of Mineral Reserves of any category were identified.
5.
Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the Mineral resources will
be converted into Mineral Reserves.
Guadalupe Property Terms
Pursuant to the terms of the
October 23, 2017
Agreement, the Company is earning 100% by paying
Vista Gold a total of
US$ 6.0 million
in staged payments as follows:
US$ 1.5 million
on closing
(paid),
US$ 1.5 million
on each of the 12 and 24 month anniversary dates in order to maintain the
option and a final purchase price of
US$ 1.5 million
on or before the earlier of (i) an announcement of
a construction decision by the Company, or (ii) the 48 month anniversary of the Agreement.
Production from any open pit mining operations at the Project (the "Open Pit Royalty") will be subject
to a minimum 1% net smelter return royalty ("NSR") payable to Vista Gold which could increase up
to 2% if gold prices exceed
US$ 1,600
per ounce. This royalty is capped at
US$ 2 million
. Vista
Gold also retains the right to acquire a 49% non-carried interest in the development of underground
gold resources should the Company decide at a later date to pursue potential zones of deep
mineralization (excludes all open pit accessible mineralization).
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 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.
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.
SOURCE
Minera Alamos Inc.
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For further information:
Minera Alamos Inc.: Daren 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 09:36e 18-JUN-18