Mr. John McCluskey reports
ALAMOS GOLD EXPANDS EL VICTOR NORTH, REPORTING 6.43 G/T AU OVER 35 METRES AND PROVIDES 2011 GLOBAL MINERAL RESERVE AND RESOURCE UPDATE
Alamos Gold Inc. has released positive drill results from the El Victor North exploration program, continuing to expand the El Victor deposit. In addition, the company is reporting mineral reserves and resources for the Mulatos mine in Mexico and mineral resources for the Agi Dagi and Kirazli projects in Turkey as at Dec. 31, 2011. All currency amounts are expressed in United States dollars, unless otherwise stated.
El Victor North exploration update
Recent drill results at El Victor North continue to expand the mineralized zone north and west of the current El Victor pit design outline. The El Victor North area is an exploration target contiguous with and north of the current El Victor portion of the Mulatos pit. Results from the El Victor North drill program have been encouraging to date and continue to demonstrate the potential of this zone. Previously unreleased results from recent drilling are highlighted below:
-
12EV171 -- 35.1 metres of 6.43 grams per tonne of gold (g/t Au);
-
12EV187 -- 71.6 metres of 1.96 g/t Au;
-
12EV190 -- 82.3 metres of 1.45 g/t Au;
-
12EV192 -- 62.5 metres of 1.17 g/t Au;
-
12EV195 -- 30.5 metres of 0.92 g/t Au;
-
12EV196 -- 36.6 metres of 1.30 g/t Au.
These most recent intercepts lie outside of the current pit design, and are expected to add significantly to the El Victor resource. The El Victor North area has over 300 metres of strike length, is up to 100 metres wide, remains open to the north and has the potential to expand reserves along the northern boundary of the Escondida to El Victor trend. The top of the zone is located approximately 36 metres to 56 metres below surface. High-grade assay drill results indicate the potential for a subparallel mineralized trend of the Escondida high-grade zone.
Please refer to an image on the company's website for all drill hole locations from recent drilling. Relevant assay results from the recent reverse circulation (RC) drilling and core drilling at El Victor are presented in the associated tables.
2011 global mineral reserve and resource statement
Key highlights from the 2011 global mineral reserve and resource update include:
-
Proven and probable mineral reserves of 2.39 million ounces of gold at
Mulatos, replacing mineral reserves mined out in 2011;
-
Increased measured and indicated mineral resources by 6 per cent to 4.98 million
ounces of gold, including a 35-per-cent year-over-year increase in measured and
indicated resources at the Agi Dagi and Kirazli projects in Turkey;
- Reported inferred mineral resources of 960,000 ounces of gold.
The mineral resource estimate for the company's Turkish projects excludes results for Camyurt. The company plans to release an initial mineral resource update for Camyurt separately within the next month in order to incorporate all existing drill results.
Mineral reserves
In 2011, the company successfully replaced mined out mineral reserves at Mulatos with total proven and probable reserves of 2.39 million ounces of gold at year-end. The replacement of reserve ounces is attributable to the addition of new ounces at El Victor, conversion of pit-contained mineral resources to mineral reserves, as well as the use of a $1,150-per-ounce gold price assumption compared with $875 in 2010. A detailed summary of proven and probable mineral reserves for the Mulatos mine as at Dec. 31, 2011, is presented on the company's website.
Based on the 2012 budgeted average throughput rate at the Mulatos mine of 17,000 tonnes per day (tpd) and a projected 500 tpd rate for the high-grade mill, the overall expected life of the Mulatos mine remains at approximately nine years as at Dec. 31, 2011. The life-of-mine waste-to-ore ratios as of Dec. 31, 2011, for the Mulatos mine and nearby satellite deposits are summarized in the associated table.
Mineral resources
Globally, the company's measured and indicated mineral resources, which are reported exclusive of mineral reserves, increased 6 per cent to 4.98 million ounces as of Dec. 31, 2011, compared with the Dec. 31, 2010, mineral resource statement. Over the same period, the company's inferred mineral resources decreased slightly to 960,000 ounces from 970,000 ounces.
Mulatos mine (Mexico)
Measured and indicated mineral resources at Mulatos, which are reported at a 0.5 g/t Au cut-off, increased slightly to 2.77 million ounces and inferred resources decreased slightly to 510,000 ounces at Dec. 31, 2011, compared with the prior year. The slight increase in measured and indicated mineral resources and the slight decrease of inferred mineral resources are primarily attributable to the conversion of inferred mineral resources into the measured and indicated categories. The reported mineral resources also benefited from the delineation of new resources through infill drilling and extension drilling.
A detailed summary of measured and indicated mineral resources and inferred mineral resources for Mulatos is presented on the company's website.
A map detailing the planned Mulatos pit area is presented on the company's website. The locations of the Cerro Pelon and La Yaqui mineral reserve areas, as well as other regional targets within the Mulatos district, are shown in an image on the company's website.
Agi Dagi and Kirazli (Turkey)
Measured and indicated mineral resources at Agi Dagi and Kirazli, which are reported at a 0.2 g/t Au cut-off, increased 35 per cent to 2.22 million ounces of gold compared with the mineral resources reported in December, 2010, and increased 13 per cent from the mineral resources reported in September, 2011. In addition, measured and indicated resources of silver increased 9 per cent to 16.87 million ounces compared with the resource update in September, 2011. The increase in measured and indicated mineral resources is a result of the extensive drill program undertaken in 2011 resulting in the conversion of inferred mineral resources into the indicated category.
Inferred mineral resources at Agi Dagi and Kirazli increased 8 per cent to 450,000 ounces. The inferred mineral ounces reported are exclusive of ounces attributable to the Camyurt project, which will be reported separately once the estimation is complete. The company expects to release the initial resource estimate for Camyurt within the next month.
Detailed summaries of the measured and indicated mineral resources for Agi Dagi and Kirazli are presented on the company's website. Inferred mineral resources for Agi Dagi and Kirazli are presented on the company's website.
Additionally, the company is currently completing a preliminary feasibility study for the Agi Dagi and Kirazli projects that will include updated mineral resource estimates for both projects to account for additional drilling carried out in late 2011 and early 2012.
Qualified persons
The independent qualified person for the National Instrument 43-101-compliant mineral reserve estimate is Herb Welhener, vice-president of Independent Mining Consultants Inc. of Tucson, Ariz., working in conjunction with the company's exploration and operations staff. Marc Jutras, PEng, MASc, director of mineral resources for Alamos, prepared or supervised the mineral resource estimation for the Mulatos mine, the Agi Dagi and Kirazli projects. Tom Stubens, senior geologist at Micon International Ltd., prepared the mineral resource estimation for the Baba and Fire Tower areas of the Agi Dagi project. Mark Odell, principal, Practical Mining LLC, was responsible for the presentation of the underground minable reserves in the Escondida and Gap area. Mr. Welhener, Mr. Jutras, Mr. Stubens and Mr. Odell are recognized as qualified persons according to the requirements of National Instrument 43-101 of the Canadian securities administrators, and consent to the presentation of this press release.
Exploration programs at Mulatos are directed by Ken Balleweg, PGeo, BSc, geological engineering, MSc, geology, Alamos's exploration manager, Mexico, a qualified person as defined by National Instrument 43-101 of the Canadian securities administrators.
Exploration programs at Agi Dagi and Kirazli are directed by Dr. Charles Tarnocai, PhD in geology, Alamos's vice-president of exploration and corporate development, a qualified person as defined by National Instrument 43-101 of the Canadian securities administrators.
Drilling, sampling, QA/QC (quality assurance/quality control) protocols and analytical methods for individual resource areas are as outlined in the respective news releases for these areas, in the 2004 Mulatos feasibility study, and in the Agi Dagi and Kirazli 2010 preliminary economic assessment, which are available at SEDAR.
SELECT COMPOSITE INTERVALS -- REVERSE CIRCULATION DRILLING
Drill Total From To Intercept Gold
hole depth (m) (m) (m) (g/t)
(m)
11EV080 111.28 27.44 36.59 9.15 1.312
47.26 80.79 33.53 0.430
11EV083 135.67 1.52 27.44 25.92 0.863
36.59 47.26 10.67 0.561
11EV084 137.20 28.96 33.54 4.58 0.474
38.11 80.79 42.68 0.706
11EV091 137.20 1.52 6.10 4.58 0.495
11EV098 126.52 32.01 67.07 35.06 0.735
11EV103 152.44 83.84 86.89 3.05 0.436
11EV118 91.46 No
intervals
11EV158 152.44 No
intervals
11EV159 137.20 No
intervals
12EV170 10.67 12.20 1.53 5.950
137.20 15.24 18.29 3.05 0.428
51.83 60.98 9.15 0.502
12EV171 150.91 74.70 88.41 35.06 6.434
Including 85.37 96.04 10.67 17.98
12EV172 32.01 35.06 3.05 0.397
135.67 68.60 73.17 4.57 0.794
82.32 89.94 7.62 0.605
41.16 53.35 12.19 0.414
12EV184 99.09 102.13 3.04 1.119
137.20 108.23 111.28 3.05 2.493
114.33 118.90 4.57 0.422
126.52 131.10 4.58 0.329
12EV186 182.93 53.35 57.93 4.58 0.865
36.59 108.23 71.64 1.957
12EV187 205.79 115.85 118.90 3.05 0.402
123.48 132.62 9.14 0.497
138.72 141.77 3.05 0.444
12EV188 59.45 62.50 3.05 0.465
182.93 67.07 71.65 4.58 0.484
94.51 100.61 6.10 0.560
57.93 68.60 10.67 0.532
12EV189 79.27 86.89 7.62 0.518
163.11 89.94 97.56 7.62 0.541
100.61 111.28 10.67 0.659
120.43 140.24 19.81 0.492
68.60 150.91 82.31 1.449
12EV190 208.84 100.61 102.13 1.52 15.45
Including 153.96 158.54 4.58 0.679
192.07 199.70 7.63 0.970
71.65 80.79 9.14 0.489
12EV191 199.70 92.99 105.18 12.19 0.417
157.01 163.11 6.10 0.386
170.73 173.78 3.05 0.841
57.93 60.98 3.05 0.485
12EV192 199.70 68.60 89.94 21.34 0.987
92.99 106.71 13.72 0.855
114.33 176.83 62.50 1.171
12EV193 73.17 76.22 3.05 0.558
138.72 79.27 82.32 3.05 0.459
100.61 121.95 21.34 1.001
12EV194 208.84 67.07 80.79 13.72 0.831
12EV195 190.55 70.12 73.17 3.05 0.858
86.89 117.38 30.49 0.918
35.06 41.16 6.10 0.572
12EV196 213.41 53.35 89.94 36.59 1.321
102.13 123.48 21.35 0.914
137.20 144.82 7.62 0.447
12EV197 169.21 111.28 118.90 7.62 0.707
121.95 128.05 6.10 0.589
83.84 96.04 12.20 1.360
115.85 121.95 6.10 0.876
12EV198 169.21 125.00 128.05 3.05 1.294
131.10 137.20 6.10 0.703
144.82 147.87 3.05 0.460
44.21 48.78 4.57 0.465
12EV199 152.44 74.70 79.27 4.57 0.436
88.41 103.66 15.25 0.427
112.80 118.90 6.10 0.661
12EV200 152.44 No
intervals
12EV201 59.45 No
intervals
25.91 35.06 9.15 0.474
12EV202 175.30 50.30 56.40 6.10 0.547
89.94 96.04 6.10 1.06
115.85 120.43 4.58 0.689
12EV203 160.06 No
intervals
12EV204 56.40 No
intervals
12EV205 138.72 No
intervals
12EV206 152.44 No
intervals
12.20 16.77 4.57 2.547
12EV207 144.82 48.78 67.07 18.29 0.665
71.65 76.22 4.57 0.334
12EV208 138.72 71.65 74.70 3.05 0.502
12EV210 138.72 42.68 51.83 9.15 1.267
12EV212 141.77 94.51 99.09 4.58 0.422
Note
Includes intervals at greater than 0.35 g/t Au over a three-metre
minimum width, no assay cut.
SELECT COMPOSITE INTERVALS -- CORE DRILLING
Total
Drill depth From To Intercept Gold
hole (m) (m) (m) (m) (g/t)
8.20 11.20 3.00 0.442
18.25 21.25 3.00 0.484
11VT033 239.15 113.90 122.60 8.70 0.397
145.75 148.20 2.45 0.474
150.80 158.45 7.65 0.382
162.95 169.95 7.00 0.516
0.00 12.00 12.00 1.262
11VT035 71.45 15.05 30.30 15.25 0.571
33.30 52.75 19.45 0.868
62.10 69.60 7.50 0.964
Note
Includes intervals at greater than 0.35 g/t Au over a three-metre
minimum width, no assay cut.
MULATOS PROJECT AREA LIFE-OF-MINE WASTE-TO-ORE RATIOS AS OF DEC. 31, 2011
Project Waste-to-ore ratio
Mulatos mine (1) 0.74
Cerro Pelon pit 2.13
La Yaqui pit 0.16
San Carlos pit 5.34
Note
(1) The life-of-mine waste-to-ore ratio for the Mulatos mine incorporates
the Estrella, Escondida, Puerto del Aire, El Salto, Mina Vieja and El
Victor areas. San Carlos open-pit waste-to-ore ratio is presented
separately.
INFERRED MINERAL RESOURCES AS OF DEC. 31, 2011 -- MULATOS PROJECT AREA
Inferred resources (1,2) as of Dec. 31, 2011
Cut-off grade Tonnes Grade Contained
(g/t Au) (thousands) (g/t Au) ounces Au
2.00 794 3.14 80,207
1.50 1,848 2.33 138,669
1.00 3,880 1.74 217,561
0.70 8,043 1.27 327,780
0.50 17,432 0.90 506,031
0.30 37,488 0.63 755,141
Notes
(1) The updated mineral resource estimate for the Mulatos mine
incorporates the Estrella, Escondida, Puerto del Aire, El Salto, Mina
Vieja, El Victor and San Carlos areas.
(2) Inferred mineral resources have no economic restrictions and are
tabulated by gold cut-off grade.
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