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Minera Alamos Inc
Symbol MAI
Shares Issued 448,246,353
Close 2022-06-21 C$ 0.55
Market Cap C$ 246,535,494
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Minera Alamos receives Cerro de Oro surface rights

2022-06-21 12:09 ET - News Release

Mr. Darren Koningen reports

MINERA ALAMOS ANNOUNCES SURFACE RIGHTS AGREEMENTS EXECUTED FOR ADVANCEMENT OF CERRO DE ORO GOLD PROJECT

Minera Alamos Inc. is in receipt of surface rights agreements for its Cerro de Oro gold project in northern Zacatecas, Mexico. The agreements, finalized at meetings held last week, will allow the company to finish remaining activities necessary for the permit application submission for the project. This will incorporate all the engineering, geological and other geotechnical work completed to date that collectively represent the plan to develop the Cerro de Oro gold project into the company's second operating gold mine.

The surface rights for the development of the Cerro de Oro project cover adjacent areas located in the Melchor Ocampo municipality (Zacatecas) and the Ejido San Pedro de Ocampo (Coahuila) and allow for all activities necessary for the construction and subsequent operation of the Cerro de Oro gold mine.

  • Total surface area of 816 hectares (656 ha in municipality and 160 ha in Ejido area), which is in excess of that required for the initial project development activities and allows for future growth should the current resources be expanded;
  • Use of area agreement for a period of up to 25 years with annual rental payments;
  • Commitments from the company for limited social works in both the municipality and Ejido areas. The company has also agreed that qualified residents from both the Ejido and the municipality areas will have preference for employment once the mine is operational.

"We are delighted to have concluded the process of securing these surface rights. Due to the presence of both municipal and Ejido areas the overall process was longer than originally anticipated and we appreciate everyone's patience. While the surface discussions were ongoing the company was able to complete the bulk of the engineering work required for the project development and can now move quickly to pull together the final submission of our permit applications for a new gold mine to be constructed at Cerro de Oro," stated Darren Koningen, chief executive officer. "We look forward to the development of an exciting new gold mining area that will provide future economic benefits to all our local, regional and government stakeholders. With these surface rights negotiations complete we can now also turn our attention to other planned work programs for the project in the second half of 2022 including metallurgical optimizations, expansion and infill drilling, and regional discovery-led exploration."

Work activities planned at the Cerro de Oro project area for the remainder of 2022, in addition to those related to the project development permit submission:

  • Additional metallurgical test work aimed at optimizing operating parameters including crush size versus gold recovery relationships;
  • Infill and local resource expansion drilling around the vicinity of the known Cerro de Oro resources;
  • Continuing regional exploration within the larger concession area surrounding the Cerro de Oro resource aimed at defining other areas of exposed gold mineralization for follow-up drilling;
  • Identification and securing of long lead equipment items necessary for the mine development;
  • Further mine schedule development optimizations in conjunction with mine contractor discussions;
  • Project financing discussions with lenders that have expressed interest in financing options for the development of a gold mine at Cerro de Oro.

Mr. Koningen, PEng, Minera Alamos's CEO, is the qualified person responsible for the technical content of this press release under National Instrument 43-101.

About Minera Alamos Inc.

Minera Alamos is a gold production and development company undergoing the operational start-up 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-per-cent-owned Santana open-pit, heap-leach mine in Sonora that is currently going through its operational ramp-up. The 100-per-cent-owned Cerro de Oro oxide gold project in northern Zacatecas has considerable past drilling and metallurgical work completed and could enter the permitting process rapidly. The La Fortuna open-pit gold project in Durango (100 per cent owned) has an extremely robust and positive preliminary economic assessment (PEA) completed and the main federal permits in hand. Minera Alamos is built around its operating team that together brought three mines into successful production in Mexico over the last 13 years.

The company's strategy is to develop very low capital expenditure assets while expanding the projects' resources and continuing to pursue complementary strategic acquisitions.

We seek Safe Harbor.

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