Alamos Gold Inc.

Alamos Gold Inc.

June 18, 2009 09:54 ET

Alamos Gold Inc.: High-Grade Discovery Within a New Mineralized Zone

TORONTO, ONTARIO--(Marketwire - June 18, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") announces that step-out drilling to the northeast of the Mulatos Pit, and on-trend with the Puerto del Aire ("PdA") zone, has confirmed the presence of a new gold-mineralized zone. Drilling within this zone has also resulted in a new high-grade discovery. As a result of these discoveries, the Company has increased the number of reverse-circulation ("RC") drilling rigs working in this area from two to three.

New Mineralized Zone

The Company's June 1, 2009 press release noted that two step-out holes had been drilled to the northeast of both the Mulatos Pit and the last mineralized intercept at PdA. Inspection of the core and cuttings revealed the presence of a very large system of intense silica alteration concealed by post-mineral volcanic cover that had characteristics similar to both the high-grade Escondida and PdA zones that warranted additional drilling.

Assay results from five wide-spaced holes have confirmed that the zones of intense silica alteration are mineralized with gold and established a new mineralized zone that appears to be parallel to the Escondida - El Victor trend and may also be an extension of PdA.

This mineralized zone is open in all directions and appears to have a minimum drill-indicated strike length of 320 metres ("m"), a width of at least 110 m, and ranges in thickness from 40 m to 115 m. Typically, mineralization begins about 200 m below surface and appears to grade in the one to two grams of gold per tonne ("g/t Au") range, with localized high-grade zones.

Based upon the Company's exploration experience and growing knowledge base, the discovery of this mineralized zone has significantly increased the Company's high-potential exploration ground and adds to the Company's growing inventory of high-priority exploration targets.

Preliminary uncapped assay results and relevant drill hole collar data are presented in tables 1 and 2, respectively. Drill hole locations are presented in Figure 1. Additionally, several other holes were collared, but were abandoned due to poor ground conditions.

New High-Grade Discovery

Contained within the mineralized zone discussed above, drill hole 09PA144 has yielded a new high-grade discovery. Drill hole 09PA144 encountered 50.30 m of high-grade mineralization grading 10.06 g/t Au, including a 16.77-m interval grading 27.16 g/t Au. The nearest drill hole, 09PA150, which is located 55 m to the south of drill hole 09PA144, encountered 3.04 m of high-grade material grading 14.66 g/t Au within a 19.81-m interval grading 2.77 g/t Au.

This high-grade zone occurs near the top of the silicified interval, similar to the Escondida high-grade zone, but appears to be a new type of mineralization within the Mulatos District. That is, the altered silica is extremely cryptocrystalline, sulfide-deficient, and has no associated copper, arsenic, or silver.

Drilling at the New Zone to be Accelerated

As a result of these initial drill results, the number of drilling rigs allocated to this new mineralized zone has been increased from two to three. Near-term drilling will initially focus on defining the limits of the new high-grade discovery, in-fill drilling between the areas of known mineralization, and expanding the limits of this new zone with the intention of finding additional zones of high-grade mineralization.

Drilling resumed on June 16 after a short break for field crews and additional results will be released periodically.

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 over 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 has over $120 million United States dollars on hand, is debt free, and unhedged. 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.

Figure 1: Drill Hole Location Map is available at the following web link:

Table 1: New Mineralized Zone - Select Composite Intervals

Include intervals at greater than 0.5 g/t Au over a 3m minimum width, no assay cut (unless indicated)

HOLE METHOD (m) (m) (m) (m) (g/t)
09PA141 Core 306.45 192.07 202.40 10.33 1.47
216.45 304.88 88.43 1.57
09PA144 RC 362.80 288.11 338.41 50.30 10.06
Incl. 294.21 310.98 16.77 27.16
09PA146 RC 379.48 265.18 278.89 13.72 0.934
283.46 326.14 42.67 1.136
338.33 370.33 32.00 1.101
373.38 379.48 6.10 1.592
9PA147 RC 294.21 248.48 251.52 3.05 0.875
256.10 269.82 13.72 0.792
277.44 289.63 12.20 0.790
09PA148 RC 321.65 No Significant Intervals
09PA150 RC 342.99 268.22 288.04 19.81 2.77
Incl. 272.80 275.84 3.04 14.66
291.08 298.70 7.62 1.606
326.14 332.23 6.096 1.384

Table 2: Drill Hole Collar Data

HOLE (m) (m) (degrees) (degrees)
09PA141 721,720 3,171,738 330 -70
09PA144 721,999 3,171,898 0 -90
09PA146 721,736 3,171,827 0 -90
09PA147 721,650 3,171,970 150 -65
09PA148 721,924 3,171,972 0 -90
09PA150 721,986 3,171,848 0 -90

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