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Minera Alamos Inc
Symbol MAI
Shares Issued 443,538,353
Close 2021-10-04 C$ 0.53
Recent Sedar Documents

Minera Alamos drills 284.8 m of 0.69 g/t Au at Santana

2021-10-04 09:11 ET - News Release

Mr. Doug Ramshaw reports

MINERA ALAMOS ANNOUNCES SANTANA PROJECT PIT OPTIMIZATION DRILLING CONTINUES TO EXTEND MINERALIZATION

Minera Alamos Inc. has provided an update on the continuing pit optimization drilling program at the Nicho complex (Santana gold project) in Sonora, Mexico. In addition, the company provides updates on various optimization initiatives and studies under way during the continuing ramp-up of gold mining operations.

Drilling highlights (full assays included in an attached table):

  • Hole S20-145D -- 55.3 metres (m) grading 1.54 grams per tonne (g/t) gold (Au) from 10.5 m downhole;
  • Hole S20-147D -- 284.8 m grading 0.69 g/t Au from surface and ending in mineralization;
  • Hole S20-148D -- 277.2 m grading 0.43 g/t Au ending in mineralization;
  • Hole S20-149D -- 152.7 m grading 0.77 g/t Au from surface (including 56.2 m grading 1.39 g/t Au);
  • Hole S20-153D -- 48.2 m grading 1.21 g/t Au from 10 m downhole;
  • Hole S20-158D -- 53.7 m grading 0.91 g/t Au from 111 m downhole and ending in mineralization;
  • Hole S21-160D -- 242.7 m grading 0.51 g/t Au from 41.9 m downhole.

The 19-hole program (totaling 4,039 m of new drilling) was initiated in late 2020 (following the easing of COVID restrictions) and continued into 2021 running parallel to the construction of the Santana mine. The primary purpose was to further delineate the outer limits of the main Nicho pipe structure, which is slated to be brought into operation as the current starter pit at Nicho Norte becomes further advanced. A number of holes were also included to follow up on the deeper mineralization located in hole S20-134D (see news release dated April 30, 2020) that had intersected 0.60 g/t over 247.9 m and was, at the time, one of the few deep holes drilled below 200 m depth at the Nicho zone. The program, to date, has been a success and demonstrated that the Nicho deposit remains open to the south and at depth. Drilling results will be combined with those from previous campaigns into the maiden National Instrument 43-101 resource statement for the Nicho complex expected around the end of the year.

"In parallel with the construction and ongoing ramp-up of operations at the Santana gold mine, we have continued our exploration activities throughout this highly prospective area. The current drilling, although designed for pit optimization work, continues to provide positive surprises, especially at depth, as we test the outer boundaries of known mineralized zones. As we grow our understanding of the system, we look forward to additional positive developments while we prepare to open up the larger Nicho main zone for mining following the successful opening of the starter pit at Nicho Norte," stated Darren Koningen, chief executive officer. "In addition and in parallel with mining operations, multiple operational optimization studies are under way as we glean information from the early mining, leaching and carbon-loading activities at the Nicho Norte mine site. A full update on the operational ramp-up and gold recovery will be provided in the coming weeks."

The most southerly drill fence completed at the Nicho deposit confirms that the mineralization remains open both laterally and at depth. The company plans to complete additional holes to further test this southeast area of the deposit. In addition, planning is under way for additional holes aimed more specifically at delineating the deeper zones in order to better define the source of the mineralized fluids.

Santana project optimization

The focus during the initial phases of mining at the Nicho Norte pit was to gain valuable operations data (mining and processing) from the limited early material that was available from June and July's start of operations. The following efforts are currently under way and will continue as mining operations ramp-up toward commercial production:

  • Blast pattern modifications to minimize the amount of drilling/explosive required to obtain optimal rock fragmentation. The company is aiming to reduce fragmentation levels in the unmineralized host rock in order to reduce overall blasting costs and maximize the production of material suitable for leach pad overliner, while maintaining high levels of fragmentation in the mineralized zones which will reduce crushing requirements prior to gold leaching;
  • Analysis of existing open-pit blast hole sample data to determine required quantities and spacing of samples required for analysis in order to efficiently estimate mineral quantities and grades produced from mining operations;
  • Crushing and screening campaigns utilizing run-of-mine (ROM) material with the equipment available at site in order to determine maximum throughput levels and optimal size settings for different crushing phases;
  • Final design modifications to long-term location and arrangement of existing crushing, screening and conveying systems (see news release dated Jan. 30, 2020) in order to minimize rehandling requirements for crushed material being loaded to the leach pad;
  • Mining equipment cycle time analysis to different dumping points as part of the optimization of truck traffic between the mine, leach pad and different waste dump locations;
  • Modifications to optimize the overall mine contractor fleet (mix of larger articulated haulage equipment and smaller fixed axle vehicles) to accommodate commercial production targets;
  • Analysis of leach pad extraction solution flows and concentrations to confirm profiles of gold recovery curves versus previous Santana project test plant data; and monitoring and optimization of reagent addition rates and concentrations.

Quality assurance/quality control (QA/QC)

All diamond drill samples were collected by Minera Alamos staff, including the company's exploration geologists. Drill core samples were cut in half and divided based on visual observations into typically one-metre to two-metre intervals. One-half of the sample was bagged for analysis and the remaining half was logged by Minera Alamos staff and stored for future reference. Blanks, duplicates and standards were randomly inserted in the sample stream with the samples sent for analysis as part of the normal QA/QC procedures.

All samples were prepared and analyzed for gold using fire assaying with AA (atomic absorption)/gravimetric finish in addition to a standard 35-element ICP (inductively coupled plasma) suite. All samples were sent for sample preparation at the Bureau Veritas facility in Hermosillo, Mexico.

Drill collar location, azimuth and dip for drill holes included in this release are provided in an attached table.

Cautionary statement

The company made its production decision and has started the development and production of the Santana gold mine without having completed a feasibility study demonstrating economic and technical viability. As such, there may be increased uncertainty of achieving planned production levels, estimated recovery of gold and the costs associated with such recovery, including increased risks associated with developing a commercially minable deposit. Historically, such projects have a much higher risk of economic and technical failure. Failure to commence production would have a material adverse impact on the company's ability to generate revenue and cash flow to finance operations.

Mr. Koningen, PEng, Minera's chief executive officer, 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 development company poised to join the ranks of gold producers in 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 newly acquired 100-per-cent-owned Cerro de Oro oxide gold project in northern Zacatecas that 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 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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