Alamos Gold Inc.

Alamos Gold Inc.

July 25, 2005 09:11 ET

Alamos Gold Inc. Reports First Gold Pour at Mulatos Project

TORONTO, ONTARIO--(CCNMatthews - July 25, 2005) - Alamos Gold Inc. (Alamos)(TSX:AGI) announces the pouring of its first gold dore bar weighing in at 3.65 kg. (117 ounces) at its Mulatos open-pit mine in Mexico, located in the Sonora State.

Currently there are 100,000 tonnes of ore at a grade of 0.90 g/t gold stacked on the leach pad and 300,000 tonnes of broken ore at a similar grade stockpiled adjacent to the pad awaiting screening and loading. The ore has been sourced from approximately 1 million tonnes of colluvium material adjacent to the Estrella deposit and some run-of-mine development ore.

This initial gold pour is an important milestone in the construction of the Mulatos mine. In addition to the power plant, water and leaching systems and gold recovery plant undergoing commissioning, the refurbished crusher and stacking systems are on site for final assembly and civil work for the crusher is progressing. Pre-stripping of the first 3 million tonnes of material atop the Estrella deposit, consisting of 2.5 million tonnes of waste and 500,000 tonnes of ore grading 1.6 g/t has commenced at a planned rate of 30,000 tonnes per day. Once the Mulatos Project reaches commercial production the mine is expected to produce 150,000 oz. gold annually over a life span of about 10.5 years.

Alamos is sufficiently funded to complete construction of the Mulatos mine. Cash on hand is US$33 million compared with a projected cost to complete the Mulatos construction set at US$18 million.

The construction of the mine is carried out under the direction of John Van De Beuken, Vice President of Operations and Michael Carter, Mine Manger, in conjunction with the EPCM contractor, M3 Engineering.

Alamos is a Canadian gold mining company listed on the Toronto Stock Exchange with 100% ownership of the Mulatos Mine. Alamos currently holds 21,300 hectares of mining concessions near the Mulatos Mine. Ore reserves contained within the Phase I Estrella Pit are 36,368,000 tonnes at 1.637 g/t gold containing 1,914,000 ounces of gold. Alamos is currently conducting an advanced exploration program, Phase II Expansion Pit development at nearby El Salto, Mina Vieja and Escondida.

Safe Harbor Statement under the United States Private Securities Litigation Act of 1995: Statement in this release that are forward-looking, including statements relating to the future recovery of the Mulatos Project, are subject to various risks and uncertainties concerning the specific factors identified about in the Company's periodic filings with the Ontario Securities Commission and the U. S. Securities Exchange Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

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 x203
    Alamos Gold Inc.
    Victoria Vargas de Szarzynski
    Investor Relations
    (416) 368-9932 x201