Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

April 27, 2009 14:03 ET

Alamos Gold Inc. Provides an Update of Exploration Activities at Mulatos; Reports Additional High Grade Mineralization at Escondida

TORONTO, ONTARIO--(Marketwire - April 27, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") is pleased to provide an update of its exploration activities in the Mulatos district of Sonora, Mexico.

Exploration activities at Mulatos in the first quarter of 2009 have progressed at an unprecedented pace with three core and three reverse-circulation ("RC") rigs active throughout the year. In January, the Company commenced an aggressive drill program aimed at upgrading and further defining near-mine and district-wide resource targets. Over 27,000 metres of drilling have been completed in 178 drill holes this year. This compares to total drilling of 36,800 metres in 203 holes for the entire 2008 year, which was in itself a record year of drilling for the Company.

The mineralized zones currently under evaluation are as summarized below and their locations are presented in Figures 1 and 2. As a result of our 2008 Reserve and Resource Statement, the Mulatos Pit includes the existing Estrella Pit, where the Company is currently mining, plus the Mina Vieja, El Salto, Escondida and Puerto del Aire deposits.



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Zone Location Stage
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Escondida Northern portion of Mulatos Pit Resource definition
& development

Gap Northeast of Mulatos Pit Resource definition

Puerto del Aire Adjacent to northeast side of Resource definition
Mulatos Pit & development

Cerro Pelon 2.5-kilometres southwest of Resource definition
current leach pad facilities

El Carricito 15 kilometres southwest of Early stage prospect
Mulatos Pit
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Escondida

The Company discovered the Escondida deposit, including the high-grade Escondida Hanging Wall Zone ("EHWZ"), in late 2005. A technical report assessing the economics of milling high-grade ore from Escondida is expected to be released shortly.

The current infill drilling program at Escondida is aimed at providing systematic drill coverage on 25-metre centres. In addition to improving confidence in the existing gold resource, this program has confirmed that the high-grade EHWZ extends to the southwest and has identified a new zone of similar high-grade mineralization to the northeast of the EHWZ. The discovery of this new northeast high-grade zone highlights the potential for additional discoveries for the Company to develop both near the existing mine and throughout the Mulatos district.

The southwest extension of the high-grade EHWZ is located in an area where previous drill coverage was insufficient. The dimensions of this new extension are approximately 30 metres along strike, 30 metres wide, 10 metres thick, and it is still open along strike towards the south. The southwest extension is closer to surface than the EHWZ, at a depth of 80 metres, and is expected to further improve the mining economics at Escondida.

To date, four drill holes have been completed in the area of the southwest extension of the high-grade EHWZ with visible gold found in two of the holes. Assay results have been received for drill hole 09EE109, which contained an uncut 12.20-metre interval grading 43.70 grams of gold per tonne ("g/t Au"); all other assay results are pending. In addition, all of the Escondida extension drill holes have intersected the lower-grade Main Escondida mineralized zone.

The new high-grade northeast zone is located approximately 100 metres northeast of the fault bounded EHWZ. As a result of faulting and the presence of a topographic high, this new zone is deeper than the EHWZ and is overlain by 125 to 150 metres of cover. The drill-indicated dimensions of this new high grade zone are approximately 70 metres along strike, 45 metres wide, 10 metres thick, and appears to be more structurally controlled than the EHWZ. This new zone is presently outlined by drill holes 09EE063 (21.35 metres at 16.49 g/t Au), 09EE081 (16.77 metres at 9.69 g/t Au), 09EE095 (24.39 metres at 37.68 g/t Au - uncut), and 09EE097 (9.15 metres at 9.42 g/t Au).

Assay results from the 2009 Escondida infill drill program are presented in Table 1.

Gap

Core drilling on 50-metre spacings was conducted in the Gap zone in the first quarter of 2009 to obtain additional information for geological modelling and resource delineation. Infill drilling on 25-metre centres, using RC rigs, is planned once the drilling rigs complete the infill drilling program at Escondida. The objective of the drill program at Gap is to convert the inferred resources to the measured and indicated categories. Assay results received in 2009 are presented in Table 2.

In addition, a comprehensive review of 2007 drill data in the El Victor area indicated that an area between El Victor and Gap requires additional drilling, particularly in the higher-grade upper portion of the zone. Drilling this area has become a high priority given that the resource models currently show that this area between El Victor and Gap is not mineralized. Thus, favorable drill results in this area could extend the El Victor resource into the Gap zone and potentially extend the Victor pit design further to the southwest. The planned infill drilling program is also anticipated to confirm the continuity between the Escondida, Gap, El Victor, and San Carlos areas, outlining a single 2.1-kilometre, southwest to northeast trending mineralized horizon.

Puerto del Aire

The Puerto del Aire resource area is adjacent to the northeast side of the Mulatos Pit, with a minor fault offset, from the Estrella deposit that is currently being mined. Puerto del Aire is subparallel to and approximately 400 metres south of the Escondida to San Carlos mineralized trend. Drilling during 2009 focused on extending the zone 450 metres from the Estrella deposit to the northeast, outlining a northeastward-plunging zone of vuggy silica alteration that is up to 80 metres thick below the post-mineral volcanic cover. Assay results available since the beginning of the year were presented previously in the Company's February 23, 2009 press release, which is available on the Company's website or on SEDAR (www.sedar.com).

More recently, a step-out core drill hole collared 300 metres northeast from the last mineralized intercept (and 800 metres from the Mulatos Pit) encountered a 99-metre thick zone of intense silica alteration having characteristics similar to both the EHWZ and the Puerto del Aire zone. Assay results from this hole are pending and a second 80-metre offset hole is currently underway.

Cerro Pelon

Definition and infill drilling on 25-metre centres continues in 2009 at Cerro Pelon. The drilling program is expected to be completed in early May, and will be followed by data compilation and geological modelling. An initial resource estimate for Cerro Pelon is planned to be completed during the second half of 2009, with the majority of resources expected to be classified in the measured and indicated categories.

Cerro Pelon remains 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 deposit was discovered in 2008 following a program of geological mapping and geochemical sampling, once again demonstrating the potential to find additional deposits in the district.

Recent horizontal and up-dip core drilling has been successful in establishing continuity between the two gold-bearing breccia zones. Previous deeper RC drilling results had not established this continuity. Drill results indicate that Cerro Pelon is roughly 250 metres long, varies in width from 30 to 80 metres and is 70 to 150 metres thick. Drill hole intercepts at the 1,415-metre ASL level shows a roughly arcuate shape joining the gold zones, resembling a half arc, with the eastern half removed by faulting. The arcuate shape may reflect a vent edifice and appears to explain the spatial distribution of gold-hosting breccias in drill holes. Significant assay results received to date are presented in Table 3.

El Carricito

Reconnaissance geologic mapping and sampling continues at El Carricito, and the 2009 objectives are to generate drill targets that could be tested before year-end. The area covered by geological mapping has been extended to approximately 80% of the El Carricito concession and additional soil geochemical sampling is ongoing over areas of intense argillic and silicic alteration on the western side of the concession.

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 and both have approved this release. 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 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 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 metres minimum width. No assays 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 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".

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 "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 parametres 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 the Figure 1 - Mulatos Area Targets map, please visit the following link: http://media3.marketwire.com/docs/Figure1_mulatos.pdf.

To view the Figure 2 - Regional Targets map, please visit the following link: http://media3.marketwire.com/docs/Figure2_Regionaltargets.pdf.



Table 1: Escondida - Select Composite Intervals
-----------------------------------------------
Include intervals at greater than 0.5 g/t Au over a 3m minimum width,
no assay cut (unless indicated)
----------------------------------------------------------------------------
DRILL DRILLING TOTAL
HOLE METHOD DEPTH FROM TO INTERVAL GOLD
(Azimuth/Inclination) (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
201.22 204.27 3.05 0.73
09EE057 RC 233.23 207.32 211.89 4.57 0.72
0 degrees/-90 degrees 222.56 227.13 4.57 1.44
----------------------------------------------------------------------------
09EE059 RC 199.70 176.83 179.88 3.05 1.18
0 degrees/-90 degrees
----------------------------------------------------------------------------
09EE061 132.62 150.91 18.29 0.66
0 degrees/-90 degrees RC 187.50 173.78 187.50 13.72 0.83
----------------------------------------------------------------------------
126.52 147.87 21.35 16.49
Inc. 128.05 141.77 13.72 24.62
150.91 153.96 3.05 0.82
09EE063 RC 213.41 157.01 164.63 7.62 0.82
0 degrees/-90 degrees 167.68 170.73 3.05 0.87
173.78 195.12 21.34 0.70
202.74 210.37 7.63 0.62
----------------------------------------------------------------------------
09EE065 175.30 189.02 13.72 0.74
0 degrees/-90 degrees RC 213.41 198.17 201.22 3.05 1.07
----------------------------------------------------------------------------
09EE068 185.98 192.07 6.09 0.73
0 degrees/-90 degrees RC 214.94 202.74 208.84 6.10 2.47
----------------------------------------------------------------------------
09EE072
0 degrees/-90 degrees RC 213.41 163.11 166.16 3.05 1.43
----------------------------------------------------------------------------
160.06 163.11 3.05 0.52
09EE078 RC 213.41 181.40 190.55 9.15 0.56
320 degrees/-82 degrees 193.60 199.70 6.10 0.91
----------------------------------------------------------------------------
09EE080
0 degrees/-90 degrees RC 196.65 167.68 173.78 6.10 0.99
----------------------------------------------------------------------------
09EE081 141.77 158.54 16.77 9.69
140 degrees/-82 degrees RC 213.41 Inc. 143.29 153.96 10.67 14.45
187.50 192.07 4.57 0.88
----------------------------------------------------------------------------
09EE083
0 degrees/-90 degrees RC 182.93 164.63 172.26 7.63 0.64
----------------------------------------------------------------------------
09EE086
320 degrees/-80 degrees RC 199.70 173.78 181.40 7.62 0.58
----------------------------------------------------------------------------
09EE087 RC 221.04 204.27 213.41 9.14 0.63
320 degrees/-80 degrees
----------------------------------------------------------------------------
09EE089 RC 163.11 147.87 163.11 15.24 0.79
0 degrees/-90 degrees
----------------------------------------------------------------------------
137.20 140.24 3.04 3.53
09EE090 147.87 150.91 3.04 2.44
140 degrees/-80 degrees RC 182.93 155.49 163.11 7.62 2.25
166.16 170.73 4.57 1.45
176.83 182.93 6.10 1.58
----------------------------------------------------------------------------
140.24 152.44 12.20 1.00
09EE093 157.01 163.11 6.10 1.29
320 degrees/-80 degrees RC 213.41 175.30 184.45 9.15 0.76
187.50 192.07 4.57 0.63
----------------------------------------------------------------------------
169.21 193.60 24.39 37.68
(uncut)
09EE095 RC 228.66 169.21 193.60 24.39 10.62
320 degrees/-80 degrees (cut to
120 g/t)
211.89 224.09 12.20 0.77
----------------------------------------------------------------------------
150.91 157.01 6.10 0.53
09EE097 164.63 173.78 9.15 9.42
140 degrees/-80 degrees RC 208.84 Inc. 166.16 170.73 4.57 17.40
184.45 190.55 6.10 0.70
----------------------------------------------------------------------------
09EE099 150.91 166.16 15.25 1.24
0 degrees/-90 degrees RC 205.79 170.73 181.40 10.67 1.00
----------------------------------------------------------------------------
112.80 121.95 9.15 3.89
09EE100 Inc. 117.38 120.43 3.05 7.32
0 degrees/-90 degrees RC 211.89 134.15 140.24 6.09 0.61
152.44 185.98 33.54 1.00
----------------------------------------------------------------------------
09EE101 102.13 123.48 21.35 0.73
0 degrees/-90 degrees RC 182.93 126.52 150.91 24.39 0.86
157.01 163.11 6.10 1.45
----------------------------------------------------------------------------
105.18 117.38 12.20 2.95
09EE103 Inc. 106.71 109.76 3.05 7.58
320 degrees/-80 degrees RC 211.89 123.48 138.72 15.24 1.00
147.87 198.17 50.30 1.25
----------------------------------------------------------------------------
09EE105 77.74 85.37 7.63 4.76
0 degrees/-90 degrees RC 160.06 91.46 94.51 3.05 0.72
114.33 160.06 45.73 1.27
----------------------------------------------------------------------------
118.90 126.52 7.62 1.06
09EE108 131.10 143.29 12.19 0.75
320 degrees/-80 degrees RC 190.55 155.49 161.59 6.10 0.95
164.63 185.98 21.35 0.83
----------------------------------------------------------------------------
09EE109 83.84 96.04 12.20 43.70
0 degrees/-90 degrees RC 96.04 (uncut)
83.84 96.04 12.20 24.95
(cut to
120 g/t)
----------------------------------------------------------------------------



Table 2: Gap - Select Composite Intervals
-----------------------------------------
Include intervals at greater than 0.5 g/t Au over a 3m minimum width,
no assay cut (unless indicated)
----------------------------------------------------------------------------
DRILL DRILLING TOTAL
HOLE METHOD DEPTH FROM TO INTERVAL GOLD
(Azimuth/Inclination) (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
140.24 147.87 7.63 1.88
150.91 161.59 10.68 0.95
08EE050 169.21 193.60 24.39 1.57
325 degrees/-70 degree CORE 305.00 204.27 208.84 4.57 0.62
216.46 225.61 9.15 0.61
231.71 257.62 25.91 0.80
260.67 272.00 11.33 1.75
----------------------------------------------------------------------------
144.20 152.44 8.24 4.35
Inc. 147.87 152.44 4.57 6.85
08EE051 181.40 193.60 12.2 0.87
325 degrees/-70 degrees CORE 248.35 196.65 202.74 6.09 0.97
205.79 216.46 10.67 0.61
219.51 222.56 3.05 0.63
----------------------------------------------------------------------------
08EE054 CORE 199.60 178.35 187.50 9.15 0.64
0 degrees/-90 degrees
----------------------------------------------------------------------------
08EE055 161.59 184.45 22.86 4.37
325 degrees/-70 degrees CORE 192.15 Inc. 165.25 167.68 2.43 31.02
----------------------------------------------------------------------------



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)
----------------------------------------------------------------------------
DRILL DRILLING TOTAL
HOLE METHOD DEPTH FROM TO INTERVAL GOLD
(Azimuth/Inclination) (m) (m) (m) (m) (g/t)
----------------------------------------------------------------------------
25.91 33.54 7.63 0.60
08CP060 RC 118.90 41.16 45.73 4.57 0.60
150 degrees/-70 degrees 48.78 54.88 6.10 0.77
----------------------------------------------------------------------------
08CP063 0.00 50.85 50.85 1.49
240 degrees/0 degrees CORE 121.00 53.90 62.00 8.10 0.73
----------------------------------------------------------------------------
08CP065 6.10 21.34 15.24 0.93
0 degrees/-90 degrees RC 121.95 24.38 65.55 41.17 1.71
----------------------------------------------------------------------------
08CP066 CORE 107.10 0.00 64.70 64.70 1.28
240 degrees/+25 degrees
----------------------------------------------------------------------------
0.00 101.45 101.45 1.35
08CP067 110.30 122.50 12.20 0.75
240 degrees/-25 degrees CORE 166.75 125.55 142.35 16.80 0.86
145.40 148.45 3.05 0.59
----------------------------------------------------------------------------
0.00 62.00 62.00 1.35
08CP069 68.10 80.00 11.90 0.86
240 degrees/-70 degrees CORE 171.80 85.20 91.00 5.80 1.26
104.30 126.05 21.75 0.66
----------------------------------------------------------------------------
09CP072 RC 80.79 76.22 80.79 4.57 0.67
60 degrees/-70 degrees
----------------------------------------------------------------------------
41.16 45.73 4.57 0.57
09CP074 RC 163.11 51.83 59.45 7.62 0.78
0 degrees/-90 degrees 157.01 160.06 3.05 0.75
----------------------------------------------------------------------------
6.10 94.10 88.00 1.68
09CP079 CORE 186.90 97.15 106.30 9.15 0.60
0 degrees/-90 degrees 112.40 121.00 8.60 0.70
----------------------------------------------------------------------------
09CP081 3.05 51.83 48.78 1.53
165 degrees/-70 degrees RC 121.95 59.45 80.79 21.34 2.33
----------------------------------------------------------------------------
09CP085 0.00 27.15 27.15 6.98
240 degrees/-25 degrees CORE 111.10 30.30 95.85 65.55 1.23
101.95 106.55 4.60 0.91
----------------------------------------------------------------------------
1.52 50.30 48.78 1.43
57.93 74.70 16.77 6.41
09CP090 79.27 89.94 10.67 0.82
330 degrees/-70 degrees RC 181.40 94.51 99.09 4.58 0.94
118.90 135.67 16.77 1.29
172.26 181.40 9.14 0.54
----------------------------------------------------------------------------
4.57 62.50 57.93 1.48
09CP094 RC 114.33 73.17 92.99 19.82 0.94
10 degrees/-50 degrees 96.04 112.8 16.76 1.14
----------------------------------------------------------------------------
09CP096
0 degrees/-50 degrees RC 120.43 0.00 92.99 92.99 1.15
----------------------------------------------------------------------------
09CP099 6.10 15.24 9.14 0.57
290 degrees/-50 degrees RC 166.16 88.41 121.95 33.54 2.12
----------------------------------------------------------------------------
09CP111 129.57 135.67 6.10 0.69
250 degrees/-50 degree RC 208.84 138.72 155.49 16.77 0.68
----------------------------------------------------------------------------
67.07 70.12 3.05 0.62
09CP112 RC 230.18 86.89 123.48 36.59 1.60
240 degrees/-70 degrees 178.35 181.40 3.05 0.60
----------------------------------------------------------------------------

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
    or
    Alamos Gold Inc.
    Jamie Porter
    Vice President, Finance
    416-368-9932