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Minera Alamos Inc
Symbol MAI
Shares Issued 150,481,268
Close 2018-05-03 C$ 0.12
Market Cap C$ 18,057,752
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Minera Alamos to start drilling at Los Verdes/Santana

2018-05-03 11:58 ET - News Release

Mr. Doug Ramshaw reports

MINERA ALAMOS TO COMMENCE DRILLING AIMED AT EXPANDING AREAS OF DEFINED GOLD MINERALIZATION AT SANTANA/LOS VERDES PROPERTY, SONORA, MEXICO

Minera Alamos Inc. is nearing completion for the commencement of its new exploration drill program at the now combined Los Verdes/Santana gold project in Sonora, Mexico.

The phase 1 drill program consisting of up to 20 holes with a combined metreage of approximately 3,000 metres is anticipated to begin in the next month and will prioritize areas associated with the extension of the Nicho Main deposit to the northwest and southeast, as well as additional holes at Nicho Norte testing continuity into the contiguous Los Verdes claims (Nicho Norte is currently undergoing bulk heap leaching tests to determine optimal crushing sizes for the potential development of a commercial heap-leach mining operation).

Previous drilling programs at the Santana project outlined significant gold mineralization associated with hydrothermal breccias hosted by stocks and batholithic intrusions (approximately 500 metres by 300 m) in the Nicho Main zone target area. Drill holes were shallow and the mineralization appears to remain open both at depth and along strike. In addition, a number of other mineralized satellite targets were identified within the project area via surface sampling and limited drilling. The most significant of these to date is the Nicho Norte area located approximately 500 m northwest of the Nicho Main zone and which is the subject of continuing heap-leach test mining activities. Similar gold mineralization was once again drilled via shallow holes over a strike length of approximately 200 m right up to the limits of the then owner's (Corex Gold) northern claim boundary. The identified mineralization appears to extend northward onto the contiguous Minera Alamos Los Verdes concessions and testing these extensions will be one of the primary objectives of the current exploration program.

The company's current exploration program will be the first drilling campaign at the project since the Nicho deposit was delineated in 2009 to 2011. During that time, 25,000 metres of total drilling were completed; approximately half occurred within the Main zone area, returning significant intervals of disseminated gold mineralization such as those illustrated within a typical cross-section:

  • 87 m grading 1.04 grams per tonne gold;
  • 47.5 m grading 0.80 g/t gold.

Mineralization extends from surface and appears to remain open at depth. A portion of the currently budgeted drill program will be aimed at confirming the vertical continuity of the deposits.

"The opportunity to combine the two respective project areas within Minera Alamos immediately provides near-term gold exploration upside by allowing the previously identified Nicho gold structures to be followed onto the southern end of the company's Los Verdes concessions," stated Doug Ramshaw, president of Minera Alamos. "These concessions were known to be the subject of historical gold activity and recent surface work by our exploration group has confirmed the presence of Nicho-style geology across the concession boundaries. In addition to targeting lateral extensions, the current program will also allow the company to confirm the deeper vertical potential of the deposits. We look forward to providing updates on the progress and results from the drill program over the coming months."

Santana gold project

The main mineralized zones of the Santana project exhibit strong, low-sulphidation alteration characterized by pervasive and structurally controlled sericite-quartz-calcite alteration, with associated disseminated iron oxides, quartz vein stockworks and clay alteration. Numerous historical pits and small mines are also evident. The alteration is hosted in intermediate flows, tuffs, and comagmatic dikes and plugs. Gold and silver mineralization is controlled by both lithologic and structural features and presents itself at the Nicho Main and Norte zones as mineralized elliptical subvertical hydrothermal breccias. Full historical information pertaining to the exploration campaigns by the now wholly owned subsidiary Corex Gold can be found on SEDAR.

Drilling at the Nicho Norte satellite deposit returned similar results to those in the Main zone area but progress was stopped at the property boundary with the Los Verdes claims to the north. All indications from recent site mapping efforts in the field suggest that mineralization extends into the Los Verdes concession areas. Significant intervals of disseminated gold mineralization were encountered during the previous drill campaigns such as those illustrated within a typical cross-section:

  • 93 m grading 1.03 g/t gold;
  • 75 m grading 0.78 g/t gold.

About Minera Alamos Inc.

Minera Alamos is an advanced-stage exploration and development company. Its growing portfolio of high-quality Mexican projects includes the La Fortuna open-pit gold project in Durango and the Guadalupe de los Reyes gold/silver project in Sinaloa. The company is well financed to conduct its planned exploration and development activities, and it continues to pursue additional project acquisitions in Latin America.

Darren Koningen, PEng, Minera Alamos's chief executive officer, is the qualified person responsible for the technical content of this press release under National Instrument 43-101. Mr. Koningen has supervised and approved the preparation of the scientific and technical disclosures in this news release.

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