Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

June 01, 2009 14:20 ET

Alamos Gold Inc. Announces Record In-Pit Exploration Intercept, Additional Exploration Results, and 2009 Exploration Budget Increase

TORONTO, ONTARIO--(Marketwire - June 1, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") is pleased to announce a record intercept from the Mulatos Pit, additional drilling results from Escondida, Cerro Pelon, and Puerto del Aire ("PdA"), and that the 2009 exploration budget has been increased to $10 million. All of these projects are located in the Mulatos District of Sonora, Mexico, and are identified in Figure 1.

All historical press releases referred to in this release may be viewed on the Company's website or on SEDAR (www.sedar.com). All amounts are presented in United States dollars, unless otherwise stated.

Record In-Pit Exploration Intercept at Mulatos

The Company recently completed 3,700 metres ("m") of reverse-circulation ("RC") infill drilling over 22 holes within the Mulatos Pit to acquire additional data for the block model and further delineate the low-recovery sulphide zone present beneath the pit.

As identified in Figure 1, drill hole 09AM045, an infill hole in the northwest corner of the Mulatos Pit, produced an exceptional intercept that contained an impressive 141.77-m interval grading 7.81 grams per tonne gold ("g/t Au"), including a 33.54-m interval grading 23.19 g/t Au. This intercept is believed to be the highest grade + thickness interval (1,107 m-g/t Au) ever reported from the Mulatos District, and the lower portion of this interval is beneath the floor of the optimized Mulatos Pit.

Drill holes such as 09AM045 continue to confirm the presence of localized high-grade mineralization within the Mulatos District that is not fully quantified within the Company's resource models.

Select drilling results from the in-pit Mulatos drill program are presented in Table 1.

Additional Drilling Results from Escondida, Cerro Pelon, and Puerto del Aire

Further to the exploration results presented in the Company's February 23 and April 27, 2009 press releases, Alamos is pleased to present additional results from the Escondida, Cerro Pelon, and PdA drilling programs.

Escondida

Drilling at Escondida for 2009 is near completion and has resulted in the discovery of a new high-grade zone to the northeast and a southwest extension of the high-grade Escondida zone, which are both identified in Figure 1. These zones are not fully accounted for in the Company's 2008 reserve and resource statement, but both are expected to be incorporated into the Company's 2009 reserve and resource statement as part of the Mulatos Pit Area.

The newly discovered high-grade zone is located 100 m northeast of the faulted limit of the Main Escondida Zone and overlain by 125 to 150 m of cover. Drilling has fully delineated this zone and the drill-indicated dimensions have increased to 70 m along strike, 50 m in width, and up to 15 m thick. Although this new zone is deeper than the high-grade Escondida zone, it is expected to significantly increase the life of the milling operation that was discussed in the Company's May 21, 2009 press release.

The southwest extension is located at a depth of 70 to 80 m with drilling indicating a localized extension of the high-grade Escondida zone. Drill-indicated dimensions are 30 m along strike, 30 m in width, and up to 8 m thick. Drilling results suggest that this extension has been fully delineated. This extension is shallower than the high-grade Escondida zone and is expected to add to the mine-life of the high-grade Escondida zone.

Select drilling results from the Escondida Program are presented in Table 2 and additional assays are pending.

Cerro Pelon

At Cerro Pelon, definition and infill drilling on 25-m centres is expected to be completed by mid-June. The 2009 core drilling program has delineated a continuous oxidized zone of gold-bearing vuggy silica that is 250 m long, 30 to 80 m wide, and 70 to 150 m thick that typically grades between 2 and 3 g/t Au. Drill hole intercepts have outlined a half-arc shaped mineralized zone, with the eastern half removed by faulting, as shown in the simplified plan-and cross-sections presented in figures 2 and 3, respectively.

A resource estimate for Cerro Pelon is expected to be completed during the second half of 2009 and the majority of resources are expected to be classified within the measured and indicated categories.

Select drilling results from Cerro Pelon are presented in Table 3 and additional assays are pending.

Puerto del Aire

In our April 27, 2009 press release, the Company announced the drilling of step-out hole 09PA141 at PdA, which was collared 750 m from the Mulatos Pit (or 300 m northeast from the last mineralized intercept). From 194 m down-hole, this core hole encountered a 99-m thick zone of intense silica alteration that has characteristics similar to both the high-grade Escondida and PdA zones. The Company subsequently collared an RC step-out hole, 09PA144, 320 m to the northeast of 09PA141 (or 1,100 m from the Mulatos Pit). Starting at 290 m down-hole, this hole encountered 68 m of intense silica alteration. Both holes are identified in Figure 1. Complete assay results for both holes are expected within the next three weeks.

These two wide-spaced holes suggest the presence of a very large system of silica alteration with more than 300 m of strike length and unknown width, with similarities to both the Escondida high-grade and PdA zones. It has no surface expression and is concealed by post-mineral volcanic cover. Based on these cursory results, the Company has commenced a drill campaign with two rigs actively drilling in the vicinity of these two holes on 50 to 100-m step-outs.

Increased Mulatos Exploration Budget

In response to the Company's ongoing exploration success in the Mulatos District, the Board of Directors of Alamos has approved a 43% increase in the 2009 exploration budget from $7 million to $10 million. The increased budget will allow for the acceleration of drilling within the Mulatos District so that more data may be collected before the deadline for inclusion in the Company's 2009 resource and reserve statement.

With the increased budget, Alamos plans to drill at least 65,000 m in 2009 within the Mulatos District, which is nearly double the record amount of 36,800 m (in 203 holes) that the Company drilled in 2008. Year-to-date, over 34,500 m of drilling has been completed in more than 200 drill holes.

QA/QC Programs

Mulatos exploration programs are conducted under the supervision of Herve Thiboutot, P. Eng., Vice President Exploration of the Company, and by Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Registered Professional Geologist, Mexico Exploration Manager. Both are Qualified Persons 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 usually 1.5 m. Samples are sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia for analysis. Analytical method is fire assay with atomic adsorption finish and gravimetric finish for individual samples with a gold concentration greater than 5.0 g/t Au. Composites presented in the assay results tables include intervals at greater than 0.5 g/t Au over a 3-m minimum width, no assay are cut unless indicated.

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 neighbouring communities. Alamos is fully leveraged to increases in gold prices. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI".

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 preliminary assay results, potential mineralization, exploration results, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling and drill results on wide spacing may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. To-date, no mineral resources has been established in the Cerro Pelon target area. A mineral resource which is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

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.

To view Figure 1 - Mulatos District, please click on the following link:

http://www.alamosgold.com/Theme/Alamos/files/Mulatos%20Map.pdf


To view Figure 2 - Cerro Pelon Plan Map, please click on the following link:

http://www.alamosgold.com/Theme/Alamos/files/Pelon%20Gold%20Zone%20Map.pdf


To view Figure 3 - Cerro Pelon Cross-Section A - A', please click on the following link:

http://www.alamosgold.com/Theme/Alamos/files/Pelon%20sect%20A-A'.pdf



Table 1: In-Pit Mulatos - Select Composite Intervals
----------------------------------------------------
Include intervals at greater than 0.5 g/t Au over a 3m minimum width,
no assay cut (unless indicated)

----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INTERVAL GOLD
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
3.05 7.62 4.57 1.04
44.21 185.98 141.77 7.81
09AM045 RC 192.07 Incl. 83.34 117.38 33.54 23.19
Incl. 126.52 131.10 4.58 16.02
Incl. 157.01 161.59 4.58 9.48
----------------------------------------------------------------------------
0.00 6.10 6.10 0.77
19.81 24.38 4.57 2.42
45.73 114.33 68.60 1.62
09AM046 RC 192.07 118.90 175.30 56.40 1.88
Incl. 146.34 149.39 3.05 6.37
179.88 190.55 10.67 0.85
----------------------------------------------------------------------------
0.00 57.93 57.93 1.22
62.50 65.55 3.05 0.60
09AM047 RC 181.40 76.22 80.79 4.57 0.51
89.94 128.05 38.11 1.34
138.72 141.77 3.05 0.60
----------------------------------------------------------------------------
0.00 9.14 9.14 1.51
16.76 27.43 10.67 1.21
09AM048 RC 76.22 33.54 41.16 7.62 0.72
44.21 56.40 12.19 0.78
59.45 76.22 16.77 1.25
----------------------------------------------------------------------------
54.88 57.93 3.05 0.65
09AM049 RC 102.13 68.60 71.65 3.05 0.59
82.32 89.94 7.62 6.11
97.56 102.13 4.57 1.12
----------------------------------------------------------------------------
0.00 36.59 36.59 4.03
Incl. 19.81 25.91 6.10 11.58
39.63 65.55 25.92 3.43
Incl. 48.78 51.83 3.05 17.66
09AM050 RC 163.11 76.22 79.27 3.05 0.64
91.46 114.33 22.87 1.52
118.90 121.95 3.05 0.54
125.00 150.91 25.91 1.41
157.01 160.06 3.05 1.76
----------------------------------------------------------------------------
27.43 30.48 3.05 0.61
09AM051 RC 178.35 56.40 62.50 6.10 1.14
83.34 114.33 30.49 0.84
118.90 178.35 59.45 2.26
----------------------------------------------------------------------------
0.00 4.57 4.57 1.61
12.19 33.54 21.35 1.33
09AM052 RC 166.16 51.83 56.40 4.57 0.83
64.02 67.07 3.05 1.46
82.32 85.37 3.05 0.60
89.94 149.39 59.45 1.11
----------------------------------------------------------------------------
0.00 28.96 28.96 1.71
32.01 65.55 33.54 1.85
09AM053 RC 166.16 71.65 77.74 6.09 0.53
82.32 91.46 9.14 0.76
96.04 158.54 62.50 1.11
----------------------------------------------------------------------------
09AM054 RC 102.13 21.34 25.91 4.57 1.29
----------------------------------------------------------------------------
32.01 47.26 15.25 0.87
57.93 60.98 3.05 0.65
74.70 77.74 3.04 0.52
----------------------------------------------------------------------------
0.00 45.73 45.73 1.73
48.78 57.93 9.15 0.88
73.17 76.22 3.05 0.53
09AM055 RC 175.30 108.23 111.28 3.05 0.63
117.38 121.95 4.57 0.56
137.20 146.34 9.14 0.76
----------------------------------------------------------------------------
0.00 6.10 6.10 0.80
09AM056 RC 173.78 16.76 50.30 33.54 1.11
56.40 77.74 21.34 0.87
----------------------------------------------------------------------------
1.52 86.69 85.37 2.47
Incl. 9.14 15.24 6.10 8.20
09AM057 RC 175.30 103.66 138.72 35.06 1.29
141.77 149.39 7.62 0.68
163.11 169.21 6.10 0.64
----------------------------------------------------------------------------
0.00 28.96 28.96 2.03
09AM058 RC 175.30 114.33 118.90 4.57 3.91
----------------------------------------------------------------------------
0.00 9.14 9.14 3.16
21.34 33.54 12.20 5.61
33.54 45.73 12.19 0.81
09AM060 RC 166.16 64.02 77.74 13.72 1.14
80.79 112.80 32.01 1.16
115.85 125.00 9.15 1.82
128.05 138.72 10.67 1.04
141.77 158.54 16.77 2.35
----------------------------------------------------------------------------


Table 2: Escondida - Select Composite Intervals
Include intervals at greater than 0.5 g/t Au over a 3m minimum width,
no assay cut (unless indicated)
----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INTERVAL GOLD
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
103.66 120.43 16.77 0.85
09EE104 RC 182.93 126.52 150.91 24.39 0.84
----------------------------------------------------------------------------
126.52 152.44 25.92 0.67
09EE106 RC 199.70 155.49 172.26 16.77 1.65
----------------------------------------------------------------------------
83.34 94.51 10.67 0.74
09EE110 RC 135.67 97.56 100.61 3.05 0.67
118.90 135.67 16.77 1.53
----------------------------------------------------------------------------
135.67 138.72 3.05 0.96
09EE112 RC 169.21 141.77 149.39 7.62 1.17
----------------------------------------------------------------------------
77.74 80.79 3.05 30.25
09EE113 RC 202.74 83.84 89.94 6.10 2.00
109.76 189.02 79.26 1.03
193.60 202.74 9.14 3.11
----------------------------------------------------------------------------
51.83 62.50 10.67 4.25
09EE114 RC 83.34 Incl. 53.35 57.93 4.58 8.82
----------------------------------------------------------------------------
09EE115 RC 199.70 184.45 187.50 3.05 0.60
----------------------------------------------------------------------------
134.15 155.49 21.34 20.30
Incl. 134.15 147.87 13.72 38.48
09EE116 RC 199.70 147.87 155.49 7.62 1.00
158.54 164.63 6.09 1.39
185.98 195.12 9.14 0.59
----------------------------------------------------------------------------
169.21 173.78 4.57 0.65
09EE117 RC 224.09 192.07 198.17 6.10 1.51
204.27 216.46 12.19 0.76
----------------------------------------------------------------------------
53.35 64.02 10.67 0.68
09EE118 RC 120.43 80.79 118.90 38.11 0.87
----------------------------------------------------------------------------
109.76 112.80 3.04 0.86
09EE119 RC 182.93 129.57 155.49 25.92 0.74
158.54 175.30 16.76 0.83
178.35 182.93 4.58 1.48
----------------------------------------------------------------------------
96.04 120.43 24.39 1.31
09EE120 RC 157.01 125.00 137.20 12.20 0.71
140.24 147.87 7.63 0.68
----------------------------------------------------------------------------
73.17 79.27 6.10 146.70
09EE121 RC 108.23 83.34 105.18 21.34 0.98
----------------------------------------------------------------------------
74.70 82.32 7.62 0.80
09EE122 RC 108.23 103.66 108.23 4.57 0.75
----------------------------------------------------------------------------
73.17 82.32 9.15 30.54
Incl. 73.17 76.22 3.05 73.95
09EE123 RC 121.95 Incl. 76.22 82.32 6.10 8.83
91.46 103.66 12.20 0.95
106.71 121.95 15.24 0.76
----------------------------------------------------------------------------

97.56 120.43 22.87 0.85
09EE124 RC 135.67 128.05 134.15 6.10 0.61

----------------------------------------------------------------------------
59.45 92.99 33.54 2.03
09EE125 RC 126.52 97.56 117.38 19.82 0.76
----------------------------------------------------------------------------
45.73 64.02 18.29 1.12
09EE126 RC 135.67 70.12 91.46 21.34 0.91
97.56 114.33 16.77 0.74
117.38 131.10 13.72 0.91
----------------------------------------------------------------------------
137.20 150.91 13.71 1.06
09EE127 RC 205.79 153.96 184.45 30.49 1.07
189.02 192.07 3.05 0.60
----------------------------------------------------------------------------


Table 3: Cerro Pelon - Select Composite Intervals
Include intervals at greater than 0.5 g/t Au over a 3m minimum width,
no assay cut (unless indicated)

----------------------------------------------------------------------------
TOTAL
DRILL DRILLING DEPTH FROM TO INTERVAL GOLD
HOLE METHOD (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
3.05 33.05 30.00 0.68
09CP075 Core 64.30 36.05 52.55 16.50 0.71
----------------------------------------------------------------------------
4.57 36.59 32.02 1.30
09CP076 Core 160.06 39.63 45.73 6.10 0.77
56.40 129.57 73.17 1.00
135.76 146.34 10.67 1.37
----------------------------------------------------------------------------
3.05 12.65 9.60 4.51
09CP077 Core 37.15 16.30 28.45 12.15 2.74
----------------------------------------------------------------------------
3.00 17.50 14.50 2.14
09CP082 Core 76.90 26.65 29.70 3.05 0.62
----------------------------------------------------------------------------
09CP083 Core 137.45 3.05 36.35 33.30 1.42
----------------------------------------------------------------------------
4.80 35.95 31.15 1.40
09CP084 Core 117.80 38.00 76.65 38.65 1.16
----------------------------------------------------------------------------
6.10 14.80 8.70 3.24
09CP087 Core 111.10 60.75 64.05 3.30 2.51
69.55 78.75 9.20 1.59
----------------------------------------------------------------------------
3.00 22.15 19.15 1.10
09CP089 Core 56.30 25.60 31.30 5.70 0.87
34.35 56.30 21.95 2.34
----------------------------------------------------------------------------
10.72 40.60 29.88 1.18
09CP092 Core 129.60 45.05 74.15 29.10 1.37
----------------------------------------------------------------------------
09CP093 Core 44.50 6.10 21.50 15.40 1.85
----------------------------------------------------------------------------
09CP095 Core 49.60 3.05 19.45 16.40 2.24
----------------------------------------------------------------------------
16.40 36.85 20.45 0.97
09CP097 Core 91.15 43.85 56.05 12.20 0.71
----------------------------------------------------------------------------
09CO098 Core 87.60 11.35 67.75 56.40 1.56
----------------------------------------------------------------------------

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
    or
    Alamos Gold Inc.
    Jeremy Link
    Manager, Investor Relations
    416-368-9932