Alamos Gold Inc.

Alamos Gold Inc.

November 20, 2007 08:00 ET

Alamos Gold Announces 499,000-Ounce Gold Resource at El Victor, Mulatos District, Sonora, Mexico

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) - Alamos Gold Inc. (Alamos) (TSX:AGI) announces that a resource estimate has been recently completed on the El Victor deposit, located 1.5 kilometers northeast of the Estrella Pit, which is currently in production. The resource calculations have resulted in an increase of 499,000 measured and indicated gold ounces at a 0.5 g/t-Au cutoff grade in an area where no resource was previously attributed.

The following table summarizes the measured and indicated gold resource for the El Victor deposit at several gold cut-off grades. The resource shown in the table below complies with the definitions for measured and indicated resources as outlined by the Canadian Institute of Mining and Metallurgy (CIMM) and National Instrument 43-101 ("NI 43-101") guidelines. Differences in the calculation of contained gold ounces are due to rounding in the original spreadsheet.

Table 1. EL Victor Resource: November 2007 Model

Measured Resource Indicated Resource Total M + I Resource
Au --------------------------------------------------------------------
Cutoff Tonnes Au Au Tonnes Au Au Tonnes Au Au
(g/t) (000) (g/t) (oz) (000) (g/t) (oz) (000) (g/t) (oz)
0.4 7,785 0.95 237,611 10,562 0.90 306,054 18,347 0.92 543,665
0.5 6,584 1.04 220,186 8,675 1.00 278,816 15,259 1.02 499,002
0.6 5,401 1.15 199,302 7,021 1.11 249,598 12,422 1.12 448,900
0.7 4,318 1.27 176,706 5,718 1.21 222,442 10,036 1.24 399,148
1 2,252 1.68 121,599 2,869 1.58 146,053 5,121 1.63 267,652
1.5 854 2.47 67,764 1,005 2.31 74,585 1,860 2.38 142,349

The total number of holes used for resource estimation was 175 totaling 19,220 meters, along with 544 meters of underground rib channel samples. Grade estimates at El Victor were made using ordinary kriging and inverse distance cubed methods. High-grade samples were trimmed to 15 g/t Au before compositing. Drill hole samples were composited to 6 meters, the planned bench height, before detailed geostatistical and spatial correlation studies were completed.

The resource estimate was applied to the 800 meters of zone strike length with closely-spaced drilling, but the zone remains open to the southwest. An additional 38 reverse-circulation holes on roughly 50-meter centers (8,540 meters) have been completed since the drilling for resource estimation, extending mineralization 500 meters beyond the area of the resource estimate. A preliminary resource update based on these holes is expected in 1Q 2008, with additional underground core drilling and development planned in 2008 to further develop the resource.

Keith Blair, Manager of Applied Geoscience LLC of Reno, Nevada, prepared the resource estimate. Mr. Blair is recognized as a Qualified Person according to the requirements of NI 43-101. Block gold grade estimation was constrained by geology envelopes that were constructed using alteration distribution, known geologic controls, and anomalous gold mineralization. Gold grades were estimated using ordinary kriging and inverse distance cubed interpolation with searches oriented along known mineral controls. Gold resource classification was based on proximity to drill hole data and the number of composites used in the estimate. Measured resources within El Victor were defined as blocks within 9 meters of drill hole data and blocks within 16 meters of drill data and informed by at least 18 composites (6 holes). Indicated resources were defined as blocks between 16 to 36 meters from drill hole data and those blocks at less than 16 meters from data with less than 18 composites used in the estimate. Indicated resources also required that at least 2 drill holes were used in the estimate at the outer boundary (36 meters). Inferred resources were defined as those blocks at greater than 36 meters from drill hole data.

QA-QC Statement

The El Victor exploration programs were conducted under the direction of Ken Balleweg, P. Geol., BSc. Geological Engineering, M.S. Geology, Alamos' Vice President of Exploration and a Qualified Person as defined by NI 43-101 of the Canadian Securities Administrators. Drilling method was reverse circulation using a center return bit and underground diamond drilling using NQ thin-wall core. Sample intervals were 1.5 meters for reverse circulation drilling, and a nominal 1.5-meter interval for core, except where geologic contacts dictated shorter sample intervals. Underground channel samples were supervised by a geologist, and consist of 1.5-meter channels approximately 12 centimeters wide and 7.5 centimeters deep. Strict sampling and QA/QC protocol were followed, including the insertion of standards and blanks on a regular basis. Samples were sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Chihuahua, Chihuahua or Guadalajara, Jalisco, Mexico for analysis. Check assay work was performed at Skyline Labs in Tucson, Arizona. The analytical method is fire assay with atomic adsorption finish and gravimetric finish for individual samples with a concentration greater than 3.0 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.

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. The mineral resources estimates contained here are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable (or viable) deposit which can be legally and economically exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by the drilling results and the difference may be material. The estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations.

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.

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

These tables use 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 Toll Free: 1-866-788-8801
    Alamos Gold Inc.
    Victoria Vargas
    Investor Relations
    (416) 368-9932 x201 or Toll Free: 1-866-788-8801