Alamos Gold Inc.

Alamos Gold Inc.

January 08, 2008 09:02 ET

Alamos Gold Inc. Increases Quarterly Production by 43% in Q4 2007

TORONTO, ONTARIO--(Marketwire - Jan. 8, 2008) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") announces that gold production for the fourth quarter 2007 was approximately 31,100 ounces. Gold production in the fourth quarter of 2007 increased 43% over the 21,674 ounces produced in the third quarter, a period in which gold production was adversely affected by record rainfall. The Company exceeded its fourth quarter production target of 30,000 ounces of gold by 1,100 ounces. Quarterly production benefited from improved crusher throughput, averaging 13,000 tonnes per day, up 41% from the third quarter 2007 average of 9,200 tonnes per day.

The Company also achieved increased gold sales in 2007 of 108,296 ounces, 17,076 ounces or 19% higher than the 91,220 ounces of gold sold in 2006. Unaudited revenue for 2007 was $74 million compared with $54.7 million for 2006, an increase of 35%. The Company benefited from both increased gold sales and higher gold prices in 2007 compared with 2006.

The following table sets out gold production in Q3 and Q4 2007 (fourth quarter production is subject to final refinery settlements):

Q3 October November December Q4
Gold production (oz) 21,674 9,200 10,050 11,850 31,100

Strong cash flows from operations combined with the recovery of outstanding tax receivables enabled the Company to repay the $7 million balance outstanding on its bank debt in the fourth quarter. The Company reports that it recovered approximately $6 million in Mexican value-added tax receivables in the fourth quarter.

The Company also announces that certain initiatives which are expected to improve gold recoveries are progressing. The Company is currently evaluating the effects of solution pH, solution flow rates and cement agglomeration on gold recoveries. Interim data from column tests at an independent facility indicated that gold recoveries improved when crushed ore was agglomerated with cement. The Company will assess all test results and recommendations when the final report is received. A second initiative involves placing ore on the leach pad using a leach pad stacking/conveying system, which is expected to be operational in the first quarter of 2008.

2007 Year-end Results

Alamos will report its fourth quarter and year-end 2007 results on Tuesday, March 11th, 2008, after market close. The Company will host a conference call on Wednesday, March 12th, 2008 at 11:00 a.m. (EST).

Live Conference Call:
Local Access: 416-641-6121
Toll-Free Access: 1-866-225-9256

Instant Replay Access information:

Local Access: 416-695-5800
Toll-Free Access: 1-800-408-3053
Passcode: 3247816
Expiry Date: March 26th, 2008

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".

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. These forward-looking statements include, but are not limited to, statements with respect to anticipated commencement dates of mining production, mining and procession of mined ore, achieving projected recovery rates anticipated production rates and mine life, operating efficiencies, costs and expenditures and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

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' AIF (Form 20-F as filed with the United States Securities and Exchange Commission). 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.

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
    Alamos Gold Inc.
    Victoria Vargas
    Investor Relations
    (416) 368-9932 x201 or 1-866-788-8801