Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

February 23, 2009 10:48 ET

Alamos Gold Inc. Provides Exploration Update; Announces Appointment of Vice President Exploration and Director, Mineral Resources

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") provides an update of its ongoing exploration drill programs at its regional Cerro Pelon target, located approximately 2.5 kilometres southwest of the Company's existing Mulatos mine leach pad facilities, and Puerto del Aire, situated immediately east of the existing open pit.

The Company is also pleased to announce that it has added depth of its management team through the addition of a new Vice President of Exploration, and a Director of Mineral Resources, reflecting a shift to a planned increase in the level of exploration outside of the Mulatos district as the Company positions itself for its next stage of growth. The Company's current Vice President of Exploration, Ken Balleweg, will remain as Exploration Manager for the Company.

Cerro Pelon

Cerro Pelon is a high-priority exploration target for the Company given its proximity to existing mining operations, the presence of oxidized, gold-bearing vuggy silica at surface, and the geologic similarity to the Mulatos deposit. The upper 70 to 100 metres of the zone is completely oxidized, determined both visually and by very low sulphide-sulfur concentrations from geochemical analyses. Definition drilling is in progress and nearing completion at Cerro Pelon. A total of 104 drill holes representing 14,464 metres of drilling (35 core holes and 69 reverse-circulation ("RC") holes), have been completed to-date.

The Company began exploration activities at Cerro Pelon in 2008. A soil geochemical grid was completed and combined with road-cut channel sampling to identify a well-developed soil gold anomaly. Phase 1 exploration drilling in the third quarter of 2008 resulted in the delineation of a new gold zone, the results of which were announced in a press release dated September 8, 2008.

Phase II exploration drilling is ongoing with two core and one RC drill rigs. Select composite results from the second phase of drilling are presented in Table 1 below. A complete list of composite results from drilling to date is available on the Company's website at www.alamosgold.com.

The mineralized zone was predominantly drilled dry with a center-return RC bit and had excellent sample recovery. An innovative method of core drilling using two underground rigs capable of drilling horizontal and shallow angle holes from the surface is also being utilized to define the zone in the topographically challenging area. Drill hole intercepts do not reflect true zone thickness, due to having to drill angle holes where the topography permits drill site construction.




Table 1: Cerro Pelon - Select Composite Intervals from Phase II Drilling
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DRILL
HOLE TOTAL
(Azimuth/ DEPTH FROM TO INT. GOLD
Inclination) (m) (m) (m) (m) (g/t Au)
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-----------------------------------------------------------------
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08CP056 169.2 77.7 93.0 15.3 1.75
(300/-60)
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08CP059 100.6 53.4 97.6 44.2 1.74
(190/-70)
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08CP062 122.0 6.1 56.4 50.3 1.17
(330/-50)
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08CP064 182.9 1.5 131.1 129.6 2.42
(130/-50)
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08CP065 122.0 24.4 65.6 41.2 1.71
(0/-90)
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08CP068 202.2 74.7 97.6 22.9 10.08
(0/-90)
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08CP071 126.5 62.5 126.6 64.0 1.34
(60/-50)
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08CP076 160.1 56.4 129.6 73.2 1.01
(130/-70)
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08CP078 166.1 4.6 163.1 158.5 1.55
(130/-82)
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08CP080 122.0 7.6 79.3 71.7 2.81
(165/-50)
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Gold mineralization occurs in strongly oxidized structural and depositional breccias. Two distinct breccia zones are being defined. The northern zone is approximately 150 metres in strike along a northeast trend, 50 to 60 metres wide and up to 30 metres thick. The southern zone has a northwest trend with approximately 90 metres of strike length, 75 metres of width and extending to 150 metres of depth. The zones are bounded by post-mineral faults to the north, east, and west. Drilling is in progress to test for mineralization between the two zones. Preliminary cyanide-extractable analyses from the oxidized portion of the zone indicate over 90% gold recovery, suggesting the zone is non-refractory in nature.

Puerto del Aire

The Puerto del Aire resource area is located directly northeast of the Mulatos pit, with minor fault offset from mineralization in the current pit. Puerto del Aire is subparallel to, and 230 metres south of, the Escondida to San Carlos mineralized trend. To date, drilling has extended the zone 450 metres to the northeast of the pit, outlining a lenticular northeastward plunging zone of vuggy silica alteration up to 80 metres thick below post-mineral volcanic cover. At present, two diamond drill rigs and two RC rigs are completing definition drilling, and testing for mineralization extensions between the Puerto del Aire, Gap, and Escondida zones.

The Company has been conducting exploration drilling at Puerto del Aire since early 2007. In the latter part of 2008, the Company announced a measured resource estimate at Puerto del Aire of 4,190,000 tonnes grading 1.13 g/t Au for a total of 152,556 contained ounces; an indicated resource estimate of 4,716,000 tonnes grading 1.05 g/t Au for a total of 158,831 contained ounces and an inferred resource of 5,935,000 tonnes grading 1.03 g/t Au for a total of 197,000 contained ounces. Resources are reported at a 0.5 g/t Au cut-off. The measured and indicated resource is largely confined to drilling within 260 metres of the existing open pit, whereas the inferred resource is located in the remaining 190 metres of the zone. Drilling in 2009 has concentrated on infill and step-out drilling in the inferred portion of the resource. An updated reserve and resource update for Puerto del Aire will be announced in conjunction with the Company's global reserve and resource update expected in March 2009.

Table 2 below highlights recent select composite results from drilling on the northeast extension of Puerto del Aire. A complete list of composite results received to date is available at the Company's website at www.alamosgold.com.



Table 2: Puerto del Aire - Select Composite Intervals
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DRILL
HOLE TOTAL
(Azimuth/ DEPTH FROM TO INT.(2) GOLD
Inclination) (m) (m) (m) (m) (g/t Au)
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08PA064 270.0 207.3 260.7 53.4 1.40
(0/-90)
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08PA067 243.9 205.8 234.8 29.0 1.86
(330/-60)
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08PA072 323.2 242.4 266.8 24.4 5.08
(180/-70)
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08PA080 256.1 190.6 251.5 61.0 3.50
(330/-70)
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08PA090 182.9 88.4 103.7 15.3 6.15
(330/-80) 106.7 125.0 18.3 6.83
147.9 157.0 9.1 4.08
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08PA094 243.9 135.7 157.0 21.3 1.95
(330/-80)
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08PA103 213.4 147.9 167.7 19.8 2.71
(0/-90)
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08PA104 243.9 157.0 167.7 10.7 3.30
(330/-85)
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08PA109 224.1 134.2 143.3 9.1 6.45
(330/-68)
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08PA110 228.7 163.1 193.6 30.5 3.59
(330/-80)
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08PA111 213.4 149.4 184.5 35.1 2.04
(330/-85)
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08PA112 228.7 134.2 175.3 41.2 2.04
(150/-80)
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08PA114 272.9 218.0 272.9 54.9 1.92
(0/-90)
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09PA119 245.4 195.1 207.3 12.2 5.26
(330/-80) 213.4 234.8 21.4 2.22
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(2) interval width does not necessarily reflect true thickness



Appointment of Vice President of Exploration

The Company is pleased to announce the appointment of Herve Thiboutot, P.Eng. to the position of Vice President of Exploration effective March 1, 2009. Mr. Thiboutot has over 27 years experience as a geological engineer working for both major and mid-tier mining companies. Most recently, Mr. Thiboutot was CEO and VP Exploration for Oro Silver Resources, a junior exploration company based in Vancouver. Before joining Oro Silver Resources, Mr. Thiboutot was Project Manager, Geology for Goldcorp's Eleonore project in Northern Quebec. Prior to these engagements, Mr. Thiboutot enjoyed a 24-year career with Placer Dome Inc., where he held numerous positions involving increased responsibilities from Geologist, Project Geologist, Project Manager, Country Manager and Exploration Manager in a number of diverse countries including Canada, the United States, Tanzania, Niger, Venezuela and Mexico, among others. Mr. Thiboutot is fluent in Spanish and brings a wealth of experience in all aspects of exploration from generating, negotiating and managing projects, to corporate, community and government relations, and liasing with project and mine development engineers. Mr. Thiboutot has a B. Sc. in Geological Engineering from Laval University in Quebec and is a member inf good standing of the Ordre des Ingenieurs de Quebec.

Appointment of Director of Mineral Resources

The Company is also pleased to announce that Marc Jutras, M.Sc.A, P.Eng. will join the Company effective April 1, 2009 in the position of Director of Mineral Resources. Mr. Jutras has over 24 years of experience in the field of mineral resource estimation. Mr. Jutras has spent the last two years as Vice-President of Evaluation for BC Gold Corp. Prior to this position, Mr. Jutras worked at Placer Dome Inc. for over 16 years as Senior Geostatistician. In this role, he was involved in developing mineral resource estimates for pre-feasibility and feasibility studies for mineral projects worldwide. Mr. Jutras has significant experience in the mineral resource estimation of precious metals such as gold, silver and the platinum group elements, as well as base metals, particularly copper at both open pit and underground mines.

Mr. Jutras holds a Master's degree in geostatistics from the Ecole Polytechnique of Montreal and a Bachelor's degree in geological engineering from the University of Quebec in Chicoutimi. He is a member in good standings of the Association of Professional Engineers and Geoscientists of British Columbia and of the Ordre des Ingenieurs de Quebec.

QA/QC Programs

Mulatos exploration programs are conducted under the direction of Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Registered Professional Geologist, Alamos' Exploration Manager 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 metres. 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 3.0 g/t Au. A 0.5 g/t Au cut-off grade is used for calculation of composite intervals.

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration and development activities in Mexico. The Company employs approximately 450 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 spacings 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 or "indicated" or "inferred" 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 to not 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 or 1-866-788-8801
    Website: www.alamosgold.com