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Alamos Gold Extends High-Grade Gold Mineralization 300 Metres Down-Plunge from Mineral Resources in Island Gold East

·19 min read

Figure 1 - Island Gold Mine Longitudinal

Figure 1 - Island Gold Mine Longitudinal
Figure 1 - Island Gold Mine Longitudinal
Figure 1 - Island Gold Mine Longitudinal

Figure 2 - Island Gold Mine East Area Detailed Longitudinal – Surface Directional Drilling Results

Figure 2 - Island Gold Mine East Area Detailed Longitudinal – Surface Directional Drilling Results
Figure 2 - Island Gold Mine East Area Detailed Longitudinal – Surface Directional Drilling Results
Figure 2 - Island Gold Mine East Area Detailed Longitudinal – Surface Directional Drilling Results

Figure 3 - Island Gold Mine East Area Detailed Longitudinal – Underground Drilling Results

Figure 3 - Island Gold Mine East Area Detailed Longitudinal – Underground Drilling Results
Figure 3 - Island Gold Mine East Area Detailed Longitudinal – Underground Drilling Results
Figure 3 - Island Gold Mine East Area Detailed Longitudinal – Underground Drilling Results

TORONTO, Nov. 11, 2021 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new results from surface and underground exploration drilling at the Island Gold mine, further extending high-grade gold mineralization in the middle and lower portions of Island East. All reported drill widths are true width of the mineralized zones, unless otherwise stated.

  • Island East Lower: high-grade gold mineralization significantly extended up to 300 metres (“m”) down-plunge from existing Inferred Mineral Resources in Island East (MH27-02). This confirms high-grade mineralization extends east of the most easterly diabase dyke in a previously untested area. This is the deepest hole drilled to date at Island Gold confirming high-grade gold mineralization extends well beyond Mineral Resources to a depth of more than 1,700 m. Wide, high-grade gold mineralization was also extended 50 m beyond the nearest Inferred Mineral Resource block and down-plunge from previously reported drill hole MH25-08 (71.21 g/t Au (39.24 g/t cut) over 21.33 m), the best hole drilled to date at Island Gold. New highlights include:

    • 15.86 g/t Au (10.74 g/t cut) over 16.04 m (MH25-10);

    • 15.76 g/t Au (15.76 g/t cut) over 10.82 m (MH25-11); and

    • 11.90 g/t Au (11.90 g/t cut) over 4.60 m (MH27-02).

  • Island East Middle: underground exploration drilling continues to extend high-grade gold mineralization within the gap between Mineral Reserves and Resources in the upper and middle portions of Island East. New highlights include:

    • 12.03 g/t Au (12.03 g/t cut) over 8.26 m (840-602-23);

    • 9.65 g/t Au (9.65 g/t cut) over 7.16 m (840-608-09);

    • 14.24 g/t Au (13.88 g/t cut) over 3.77 m (840-602-29); and

    • 11.39 g/t Au (11.39 g/t cut) over 2.50 m (840-618-01A).

Note: Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to 185 g/t Au for the Island East Area.

“Ongoing exploration success at Island Gold continues to demonstrate the significant potential for further growth in Mineral Reserves and Resources. This included intersecting high-grade mineralization 300 metres beyond existing Mineral Resources in the deepest hole drilled to date at Island Gold. These results are in proximity to the planned shaft and highlight the tremendous upside potential beyond what was outlined in the Phase III Expansion study,” said John A. McCluskey, President and Chief Executive Officer.

New highlight intercepts can be found in Tables 1 and 2, and in Figures 1 to 3 at the end of this news release.

Island East

Surface Directional Drilling

Surface directional drilling continues to extend high-grade gold mineralization beyond Mineral Resource blocks in the lower portions of Island East (Figures 1 and 2). New highlights from the drilling program include (E1E-Zone) (Table 1):

  • 15.86 g/t Au (10.74 g/t cut) over 16.04 m (MH25-10);

  • 15.76 g/t Au (15.76 g/t cut) over 10.82 m (MH25-11);

  • 11.90 g/t Au (11.90 g/t cut) over 4.60 m (MH27-02); and

  • 9.07 g/t Au (9.07 g/t cut) over 2.12 m (MH27-01).

Drill holes MH25-10 (15.86 g/t Au (10.74 g/t cut) over 16.04 m) and MH25-11 (15.76 g/t Au (15.76 g/t cut) over 10.82 m) intersected wide, high-grade mineralization 50 m and 45 m beyond the nearest Inferred Mineral Resource block in Island East. These drill holes continue to extend gold mineralization down-plunge from drillhole MH25-08 (71.21 g/t Au (39.24 g/t cut) over 21.33 m), the best hole ever drilled at Island Gold, and drillhole MH25-04 (28.97 g/t Au (27.96 g/t cut) over 21.76 m) (both previously released; see press release dated June 15, 2021).

In addition, drill holes MH27-02 (11.90 g/t Au (11.90 g/t cut) over 4.60 m) and MH27-01 (9.07 g/t Au (9.07 g/t cut) over 2.12 m) intersected high-grade mineralization 300 m and 235 m from the nearest Inferred Mineral Resource block in Island East. Drillhole MH27-02 is the deepest hole drilled to date at Island Gold, intersecting high-grade mineralization at a depth of 1,717 m, well below existing Mineral Resources which extend to a depth of approximately 1,500 m. This also extended high-grade mineralization to within 200 m of the former Trillium Mining mineral tenure, reinforcing the strategic merit of acquiring Trillium and this property in December 2020.

Drill holes MH27-02 and MH27-01 targeted the main Island Gold zone to the east of a north-south trending diabase dyke which was emplaced along a pre-existing fault. The current geological interpretation, based on the initial holes, is that the zone appears to be displaced across the fault approximately 140 m to the north and closer to the planned shaft bottom. Additional drilling will be completed to confirm these intersections are within the same structure with the results to date highlighting the significant potential for further Mineral Reserve and Resource growth well below and down-plunge from existing Mineral Resources, and in closer proximity to planned infrastructure.

Underground Exploration Drilling

Underground drilling from the 840-level exploration drift continues to extend high-grade mineralization and close the gap between Mineral Reserves and Resources in the upper and middle portions of Island East (between depths of 800 m and 1,000 m) (Figure 3). New highlights include (E1E-Zone) (Table 2):

  • 12.03 g/t Au (12.03 g/t cut) over 8.26 m (840-602-23);

  • 9.65 g/t Au (9.65 g/t cut) over 7.16 m (840-608-09);

  • 14.24 g/t Au (13.88 g/t cut) over 3.77 m (840-602-29); and

  • 11.39 g/t Au (11.39 g/t cut) over 2.50 m (840-618-01A).

Other Zones

The Island Gold Deposit consists of a number of subparallel mineralized zones, with the majority of Mineral Reserves and Resources defined in the C Zone and E1E-Zone which constitute the main production horizons at the Island Gold Mine. Highlights of new intersections from underground and surface exploration drilling of parallel zones and zones in which the lateral continuity is not yet established (“Unknown Zone”) include (reported composite intervals are core lengths) (Tables 1 and 2):

  • 39.64 g/t Au (20.27 g/t cut) over 3.00 m (840-602-21); and

  • 10.28 g/t Au (10.28 g/t cut) over 7.05 m (840-530-02);

Qualified Persons

Scott R.G. Parsons, P.Geo., FAusIMM, Alamos Gold’s Vice President, Exploration, has reviewed and approved the scientific and technical information contained in this news release. Scott R.G. Parsons is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101 (“NI 43-101”).

Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Exploration Superintendent at the Island Gold Mine and a Qualified Person within the meaning of NI 43-101.

Quality Control

Alamos Gold maintains an internal QA/QC program at the Island Gold Mine to ensure sampling and analysis of all exploration work is conducted in accordance with best practices.

Access to the Island Gold Mine is controlled by security personnel. Drill core is logged and sampled at the core logging facility within the mine site under the supervision of a Qualified Geologist. A geologist marks the individual samples for analysis, and sample intervals, sample numbers, standards and blanks are entered into the database. The core is cut in half using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a plastic sample bag and sealed with zip ties in preparation for shipment. The other half of the core is returned to the core box and retained for future reference. The samples are placed in large heavy-duty nylon reinforced Fabrene bags, which are identified and sealed before being placed on pallets. The core samples are picked up at the mine site and delivered to AGAT laboratory in Thunder Bay, Ontario.

Gold is analyzed by a 50 grams fire assay with an Atomic Absorption (AA) finish. Samples greater than 6.5 g/t Au are re-analyzed using gravimetric finish methods. AGAT is a certified laboratory and has internal quality control (“QC”) programs that include insertion of reagent blanks, reference materials, and pulp duplicates.

The Corporation inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance. Cross check assays are completed on a regular basis in a secondary accredited laboratory. The QA/QC procedures are more completely described in the Technical Report filed on SEDAR August 31, 2020.

About Alamos

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Scott K. Parsons

Vice President, Investor Relations

(416) 368-9932 x 5439

All amounts are in United States dollars, unless otherwise stated.

The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Cautionary Note

This news release includes certain statements that constitute forward-looking information within the meaning of applicable Canadian and U.S. securities laws ("forward-looking statements"). All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as “continue”, “focus”, "estimate", or “potential” or variations of such words and phrases and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. In particular, this news release contains forward-looking statements including, without limitation, with respect to surface and underground exploration drilling at the Island Gold mine, the estimation of Mineral Resources, exploration results, potential mineralization, changes in Mineral Resources and Mineral Reserves, Island Gold’s Phase III expansion and other information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "Inferred" or "Indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "Indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of Mineral Resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.

Such factors and assumptions underlying the forward-looking statements in this news release include: the actual results of current exploration activities, conclusions of economic and geological evaluations, changes in project parameters as plans continue to be refined, operations may be exposed to widespread pandemic; the impact of the COVID-19 pandemic on the broader market; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for our operations) in Canada, Mexico, the United States and Turkey; the duration of regulatory responses to the COVID-19 pandemic; changes in national and local government legislation, controls or regulations, failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance; changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, Mexican peso and Turkish Lira); the impact of inflation; employee and community relations; litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays with the Phase III Expansion Project at the Island Gold mine; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; the risk that the Company’s mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, risks in obtaining and maintaining necessary licenses, permits and authorizations, contests over title to properties; expropriation or nationalization of property; political or economic developments in Canada, Mexico, the United States, Turkey and other jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of construction and development of new deposits; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and business opportunities that may be pursued by the Company.

For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the Company’s latest 40-F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors” available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information found in this news release.

The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by applicable law.

Cautionary Note to U.S. Investors – Mineral Reserve and Resource Estimates

All resource and reserve estimates included in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a Mineral Resource is permitted disclosure under Canadian regulations.

Table 1: Island Gold – Previously Unreleased Select Composite Intervals from Surface and Underground Directional Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values:
Island East @ 185 g/t Au.

Hole ID

Zone

Target Area

From (m)

To (m)

Core Length (m)

True Width (m)

Au Uncut (g/t)

Au Cut (g/t)

Vertical Depth (m)

MH25-10

E1E

Island East

1622.60

1641.20

18.60

16.04

15.86

10.74

1497

MH25-11

E1E

Island East

1642.07

1654.00

11.93

10.82

15.76

15.76

1532

MH27-01

E1E

Island East

1764.90

1767.60

2.70

2.12

9.07

9.07

1641

MH27-02

E1E

Island East

1824.45

1829.90

5.45

4.60

11.90

11.90

1717

840-530-02

Unknown

Main Island

155.75

162.80

7.05

--

10.28

10.28

990


Table 2: Island Gold – Previously Unreleased Select Composite Intervals from Underground Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values:
Island East @ 185 g/t Au.

Hole ID

Zone

Target Area

From (m)

To (m)

Core Length (m)

True Width (m)

Au Uncut (g/t)

Au Cut (g/t)

Vertical Depth (m)

340-580-15

E1E

Island East

185.70

190.30

4.60

2.34

5.20

5.20

432

840-584-04

E1E

Island East

151.40

156.10

4.70

3.37

5.77

5.77

883

840-584-05

E1E

Island East

208.20

214.50

6.30

3.82

4.62

4.62

961

840-590-03

E1E

Island East

227.90

232.60

4.70

2.31

7.52

7.52

989

840-590-07

E1E

Island East

174.55

177.70

3.15

2.20

12.01

12.01

929

840-602-21

E1E

Island East

169.15

176.00

6.85

4.04

6.04

6.04

942

840-602-23

E1E

Island East

146.10

157.80

11.70

8.26

12.03

12.03

911

840-602-24

E1E

Island East

208.00

213.10

5.10

2.11

3.44

3.44

983

840-602-28

E1E

Island East

184.30

189.00

4.70

3.48

4.67

4.67

959

840-602-29

E1E

Island East

153.00

161.80

8.80

3.77

14.24

13.88

920

840-608-09

E1E

Island East

148.32

156.34

8.02

7.16

9.65

9.65

903

840-618-01A

E1E

Island East

150.10

152.60

2.50

2.50

11.39

11.39

801

840-602-21

Unknown

Island East

183.00

186.00

3.00

--

39.64

20.27

949


Table 3: Surface and underground directional drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83)

Hole ID

Azimuth (°)

Dip (°)

Drilled Length (m)

UTM Easting (m)

UTM Northing (m)

UTM Elevation (m)

Comments

MH25-09

335

-80

712

692314

5351074

398

Cut from MH25-08 at 1037 m

MH25-10

335

-80

866

692314

5351074

398

Cut from MH25-09 at 1077 m

MH25-11

335

-80

1127

692314

5351074

398

Cut from MH25-06 at 699 m

MH26-04

339

-79

813

692210

5351208

394

Cut from MH26-03 at 933 m

MH26-05

339

-79

1142

692210

5351208

394

Cut from MH26-04 at 642 m

MH27-01

338

-76

2075

692344

5354146

392

MH27-02

338

-76

949

692344

5351146

392

Cut from MH27-01 at 1051 m

MH28-01B

253

-84

1651

692681

5351670

397

Cut from MH28-01A at 350 m

620-623-08

124

-55

558

691707

5352177

-209

620-623-09

124

-45

508

691707

5352177

-209

740-471-43A

110

-66

428

690297

5351608

-369

Cut from 740-471-43 at 408 m

840-530-01

178

-67

587

690848

5351794

-469

840-530-02

148

-63

630

690851

5351796

-466

Note: UTM mine surface elevation 382 m


Table 4: UG Exploration drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83).

Hole ID

Azimuth (°)

Dip (°)

Drilled Length (m)

UTM Easting (m)

UTM Northing (m)

UTM Elevation (m)

340-580-15

169

-43

228

691267

5352110

72

340-580-16

148

40

117

691267

5352109

76

340-580-17

179

37

120

691266

5352109

75

620-623-13

152

-14

210

691707

5352177

-207

840-584-04

161

-17

246

691378

5351957

-457

840-584-05

154

-34

282

691378

5351957

-457

840-584-06

149

-21

238

691378

5351957

-457

840-590-02

152

-6

207

691441

5351957

-455

840-590-03

144

-41

270

691442

5351957

-456

840-590-07

151

-32

249

691441

5351957

-455

840-602-19

166

-18

192

691562

5351985

-453

840-602-21

151

-38

246

691560

5351985

-454

840-602-23

151

-30

213

691561

5351985

-453

840-602-24

166

-44

267

691560

5351985

-454

840-602-28

171

-42

246

691562

5351985

-452

840-602-29

173

-32

213

691560

5351985

-453

840-608-09

164

-27

198

691619

5352009

-452

840-618-01A

159

11

256

691696

5352056

-449

840-618-06

145

-31

282

691697

5352056

-451

Note: UTM mine surface elevation 382 m

Figure 1: Island Gold Mine Longitudinal is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/cfdbd081-4f7b-4a22-9c8d-ea96f837fe26

Figure 2: Island Gold Mine East Area Detailed Longitudinal – Surface Directional Drilling Results is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/11670b92-9c85-4189-a9c0-a3989d133d6d

Figure 3: Island Gold Mine East Area Detailed Longitudinal – Underground Drilling Results is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/c014af72-9c94-4ca9-bc62-818f4b5318cf


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