Alamos Gold Inc.

Alamos Gold Inc.

May 06, 2008 18:42 ET

Alamos Gold Inc. Provides Operations and Corporate Updates; Announces Notice of Release of First Quarter 2008 Results and Annual and Special Meeting

TORONTO, ONTARIO--(Marketwire - May 6, 2008) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") is pleased to report continued positive operating and corporate developments. The Company also announces that it will release its financial results for the first quarter of 2008 on Thursday, May 15, 2008, after market close. In addition, the Company announces that its Annual and Special Meeting of Shareholders will be held at 4:30PM on Thursday, May 15th, 2008 at the Toronto Stock Exchange - Gallery at the Exchange Tower, 130 King Street West, Toronto, Ontario.

Operations Update

Gold production

Record monthly gold production at the Mulatos mine in the month of April 2008 exceeded 12,000 ounces. Monthly gold production in 2008 has demonstrated continued improvement, increasing from 10,700 ounces in January to 12,115 ounces in April 2008.

Construction projects

The new conveying and stacking system was commissioned in April 2008 and has been successfully operating since the start of May The conveying and stacking system is expected to contribute to higher gold recoveries.

Other key construction projects including the new warehouse, truck shop, laboratory, camp improvements and leach pad expansion are substantially complete and are expected to significantly benefit future mining operations.

Corporate Update

Financial position

The Company has generated strong cash flows from operations throughout the first four months of 2008. As a result of high available cash balances, the Company has undertaken to reduce the majority of its interest-bearing debt. The Company recently elected to call for redemption all convertible debentures outstanding as at April 28, 2008. Accordingly, the CDN$1.5 million convertible debenture liability was redeemed through the issuance of 258,677 common shares of the Company and the repayment of CDN$0.1 million. As a result, the Company had no outstanding convertible debenture liability at April 30, 2008.

In addition, the Company has issued a notice to its creditor of its intention to repay $5.5 million or approximately 70% of its capital lease obligation.

Appointment of Vice-President, Corporate Development

The Company is pleased to announce the appointment of Dr. Charles Tarnocai to the Company's management team as Vice-President, Corporate Development. Dr. Tarnocai brings a wealth of experience and technical expertise to the Company. In his previous roles as Chief Geologist for Oro Silver and as Senior Project Geologist and Technical Specialist for Placer Dome Exploration, Dr. Tarnocai was responsible for evaluations of advanced stage projects and acquisitions throughout North America, with a particular focus on Mexico. Dr. Tarnocai was a key member in the team involved in the Cortez Hills discovery on the Battle Mountain trend in Nevada. Dr. Tarnocai has significant experience with the Mulatos deposit from his involvement as Technical Specialist and Advisor prior to the development of the Mulatos mine. Dr. Tarnocai holds a Ph.D. in Geology from University of Ottawa and a Bachelor of Science (Geology) from Brock University.

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 gold production, gold recoveries, cash flows from operations, available cash balances, outstanding convertible debentures, capital lease obligations and/or 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 past expected production or future anticipated production, which may be subject to final refinery settlement or audit, estimates of costs of production and operating margins, projected recovery rates, anticipated future production rates and mine life, operating efficiencies, mining rates, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, cash flows from operations and available cash balances and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These statements may be subject to change, and any changes could be material.

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.

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.
    Victoria Vargas
    Investor Relations
    (416) 368-9932 x201