Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

January 18, 2008 09:01 ET

Alamos Gold Inc. Announces New Gold Zone Delineated at La Yaqui Prospect, Mulatos District, Mexico

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2008) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") announces that a recently completed drill program has successfully delineated a new near-surface oxide gold zone in the La Yaqui prospect area, located 9.5 kilometers southwest of the Estrella deposit. Twenty-four reverse circulation drill holes (2,323 meters) have been drilled to date to define the zone on approximately 25-meter spacing. All holes were drilled dry with a center-return bit and had excellent sample recovery. Composite drill hole assay results are summarized in the attached table and a map of the drill hole locations is available on the Company's website at www.alamosgold.com.

Gold mineralization starts at the surface and extends to a maximum depth of 55 meters. Drill intercepts approximate the true zone thickness, with thinner intercepts reflecting a portion of the zone that has been eroded. The zone is stratiform, sub-horizontal, and hosted within a silicified fragmental volcanic unit. It occurs at the extreme southwestern end of a large silicified ridge that infers a northeast trending structural zone. The inferred structural zone is a part of a large 1.5 kilometer by 2.5 kilometer area of strong silicic alteration containing several areas of anomalous gold concentrations assessed from surface sampling. Gold mineralization in the La Yaqui zone is completely oxidized, determined both visually and by very low sulfur concentrations from geochemical analyses. Cyanide-extractable gold analyses also confirm the non-refractory nature of the La Yaqui zone, with extractions uniformly indicating 90-100% recovery on all gold-bearing intervals. Gold appears to be uniformly distributed.

The drilled area is approximately 200 meters in length and 100 meters wide, and is currently defined over a small portion of the prospective area. Grade-thickness contours indicate a primary northeast control to mineralization, and the zone remains open in this direction. Additional step-out drilling is in progress to expand the zone to the northeast and test target areas along the inferred structural zone.

The recently completed exploration program at the La Yaqui prospect represents the Company's first significant exploration spending at one of the areas accessed under recently acquired surface agreements. To date, the exploration work at La Yaqui has been successful in identifying near-surface oxide material. The Company is encouraged by the success of this program and the 2008 exploration budget includes both continued Phase 2 infill and step-out drilling at La Yaqui in the first quarter of 2008 and substantial exploration spending at district drill targets, as well as generation of new projects within the region.

The La Yaqui exploration program is under the direction of Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Alamos' Vice President of Exploration and the Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are 1.5 meters, with two splits taken and bagged on site. One split is sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia for analysis. The second split is saved in secure facilities at the on-site exploration camp. Analytical method is fire assay with atomic adsorption finish and gravimetric finish for individual samples with a gold concentration greater than 3.0 grams of gold per tonne ("g/t Au"). A 0.5 g/t Au cut-off grade was used for calculation of composite intervals, with only a single 1.5-meter interval of sub-0.5 g/t Au material allowed within a composite interval.




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DRILL
HOLE TOTAL DEPTH FROM TO INT. GOLD
(Azimuth/Inclination) (m) (m) (m) (m) (g/t)
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07YA001 111.28 0 44.21 44.21 2.73
(0/-90)
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07YA002 102.13 1.52 30.48 28.96 3.33
(0/-90) 35.06 41.16 6.1 1.50
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07YA003 86.89 0 41.16 41.16 1.90
(0/-90)
---------------------------------------------------------------------------
07YA004 102.13 1.52 36.59 35.07 1.42
(0/-90) 50.3 54.88 4.58 1.43
---------------------------------------------------------------------------
07YA005 102.13 10.67 38.11 27.44 1.10
(0/-90)
---------------------------------------------------------------------------
07YA006 102.13 16.76 22.86 6.1 0.87
(0/-90) 36.59 41.16 4.57 0.73
---------------------------------------------------------------------------
07YA007 105.18 3.05 32.01 28.96 2.27
(0/-90)
---------------------------------------------------------------------------
07YA008 105.18 1.52 27.43 25.91 1.52
(0/-90)
---------------------------------------------------------------------------
07YA009 102.13 0 10.67 10.67 1.14
(0/-90) 13.72 25.91 12.19 2.75
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07YA010 102.13 9.14 27.43 18.29 2.99
(0/-90)
---------------------------------------------------------------------------
07YA011 102.13 0 19.81 19.81 1.20
(0/-90) 22.86 30.48 7.62 1.55
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07YA012 102.13 0 16.76 16.76 2.18
(0/-90) 28.96 39.63 10.67 2.35
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07YA013 102.13 0 36.59 36.59 2.02
(0/-90)
---------------------------------------------------------------------------
07YA014 91.46 0 10.67 10.67 1.41
(0/-90)
---------------------------------------------------------------------------
07YA015 91.46 0 13.72 13.72 1.53
(0/-90)
---------------------------------------------------------------------------
07YA016 91.46 0 9.14 9.14 1.94
(0/-90) 12.19 16.76 4.57 0.93
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07YA017 91.46 12.19 15.24 3.05 1.36
(0/-90)
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07YA018 91.46 7.62 10.67 3.05 1.32
(0/-90) 15.24 32.01 16.77 1.17
35.06 38.11 3.05 2.36
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07YA019 91.46 0 4.57 4.57 1.03
(0/-90) 13.72 16.76 3.04 0.78
27.43 41.16 13.73 1.56
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07YA020 91.46 16.76 28.96 12.2 0.95
(0/-90)
---------------------------------------------------------------------------
07YA021 91.46 0 19.81 19.81 2.61
(0/-90)
---------------------------------------------------------------------------
07YA022 91.46 0 21.34 21.34 2.44
(0/-90)
---------------------------------------------------------------------------
07YA023 91.46 0 25.91 25.91 1.79
(0/-90)
---------------------------------------------------------------------------
07YA024 80.79 0 16.76 16.76 2.54
(0/-90)
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About Alamos

Alamos is a Canadian-based gold producer with operations, exploration and development activities in Mexico. The Company employs approximately 400 people in Mexico and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities. Alamos is fully leveraged to increases in gold prices. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI" and convertible debentures under the symbol "AGI.DB".

Please note: There is a map available at the following link: http://www.alamosgold.com/Theme/AlamosGold/files/Yaqui_dh_loc_map.pdf

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

The Company uses the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and 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 other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alamos Gold Inc.
    John A. McCluskey
    President and Chief Executive Officer
    (416) 368-9932 x203 or 1-866-788-8801
    or
    Alamos Gold Inc.
    Victoria Vargas
    Investor Relations
    (416) 368-9932 x201 or 1-866-788-8801
    Website: www.alamosgold.com