Alamos Gold Inc.

Alamos Gold Inc.

September 23, 2009 18:30 ET

Alamos Gold Inc. to Acquire Agi Dagi and Kirazli Gold Projects in Northwestern Turkey

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2009) - Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") is pleased to announce it has entered into a Memorandum of Understanding providing for Alamos to acquire 100% of the Agi Dagi and Kirazli gold projects from Fronteer Development Corp. ("Fronteer") (TSX:FRG)(NYSE Amex:FRG) and Teck Resources Limited ("Teck") (TSX:TCK.B)(NYSE:TCK), through the acquisition of certain Turkish subsidiaries held by Teck and Fronteer.

Alamos is to pay a total of US$40 million and issue a total of four million shares to the vendors in consideration for these two projects. In addition to statutory compensation that may apply to the projects, a third party has a 2% Net Smelter Return Royalty on production from the Agi Dagi project.

Fronteer and Teck have agreed to negotiate exclusively with Alamos. Completion of the transaction is subject to 60-day due diligence period, the execution of definitive agreements, and the approval of Alamos' Board of Directors and the TSX.

Agi Dagi and Kirazli are advanced-stage gold exploration projects that form part of the Biga Mineral District, a recently established gold-copper mineral district, which is located in the Biga Peninsula of northwestern Turkey. The Biga Mineral District features a growing number of high-sulfidation epithermal gold and associated porphyry copper-gold deposits, drawing comparisons to world-class districts such as Yanacocha, Pierina, and Alto Chicama in Peru.

Agi Dagi is located about 50 kilometres ("km") southeast of Canakkale near the town of Can. Kirazli is located approximately 25 km, by paved road, northwest of Agi Dagi. The region is well-serviced with electricity, transmission lines, and electrical generating facilities.

In June 2007, Fronteer published NI 43-101 compliant resources for the Agi Dagi and Kirazli gold properties. Fronteer defined three gold deposits that collectively contain measured and indicated oxide resources of 1.293 million ounces of gold and 8.4 million ounces of silver, plus inferred oxide resources of 702,000 ounces of gold, and 5.254 million ounces of silver at a cut-off of 0.5 grams of gold per tonne ("g/t Au"). These oxide resources are open for expansion and summarized in Table 1. In addition to the oxide resources, significant sulphide resources are also contained within these three deposits.

Table 1: Agi Dagi & Kirazli Oxide Resources (0.5 g/t Au cut-off)(1)
Gold Silver Contained Contained
Resource Grade Grade Gold Silver
Classification Tonnes (g/t Au) (g/t Ag) (oz Au) (oz Ag)

Measured 2,300,000 1.74 13.51 129,000 999,000
Indicated 34,800,000 1.04 6.61 1,164,000 7,401,000
Measured & Indicated 37,100,000 1.08 7.04 1,293,000 8,400,000

Inferred 19,800,000 1.10 8.25 702,000 5,254,000
(1) Certain numbers may not compute due to the effects of rounding and

Since publishing these results, Fronteer and Teck have completed an additional 81 holes of core and reverse-circulation drilling on the three main mineralized zones. Based on Alamos' initial review, it is expected that these drill results will add to the resource when incorporated into the model.

In addition to the defined gold resources, only five holes have been completed on other targets on these concessions. Alamos believes there is potential to develop additional resources at other areas on the concessions over time.

Preliminary metallurgical studies on oxide materials from all three deposits indicate average recoveries of approximately 90%, rapid leach times, and low reagent consumptions.

The combined properties have the immediate potential to be developed into low-cost oxide gold heap-leach operations. The projects include an established camp facility, available water supply, are located on the power grid, and are road accessible.

For detailed and additional information on both of these projects, please refer to Fronteer's website (, related press releases, and SEDAR filings.

Commenting on these potential acquisitions, John A. McCluskey, Alamos' President and CEO stated, "Turkey is an emerging gold producing country and it is management's opinion that it is a jurisdiction of low political risk. We feel this is evidenced by the fact that there are currently 14 mines in operation in the country, five of which are gold mines, with four other gold mines currently under development."

"These two projects represent a growing global resource of well over two million oxide ounces of gold plus a considerable amount of silver. These ounces, combined with the preliminary metallurgical studies, should result in very compelling project economics in the current gold market."

"This potential acquisition represents significant upside for Alamos shareholders as we are also acquiring a dominant land position in a mineral-rich district that contains high-sulphidation epithermal gold deposits. The Company's existing gold operations in the Mulatos District of Mexico are also based upon high-sulphidation epithermal gold deposits, from which we will be able to leverage our geological expertise and heap-leach operating and mine-building experience."

"Alamos remains focused on acquisition opportunities in politically safe jurisdictions in the Americas. Alamos management believes that the Agi Dagi and Kirazli projects represent a compelling opportunity for the Company as it begins an aggressive campaign for growth."

Conference Call

The Company's senior management will host a conference call tomorrow, September 24, 2009 at 10:00AM EDT (07:00AM PDT) to provide an overview of these two projects. A question-and-answer period will follow.

A presentation related to this potential acquisition will be available on Alamos' website by 09:00AM EDT (06:00AM PDT) at

The conference call may be accessed via webcast at, or via telephone by dialing (416) 695-9748, or toll-free at 1 (888) 280-8771 for calls from outside the Greater Toronto Area.

A replay of the call will be available from September 24, 2009 at 1:00PM EDT to Thursday, October 8, 2009 at 11:59 PM EDT, by dialing (416) 695-5800 or the toll-free access number (800) 408-3053 and entering pass code 7442208, followed by the # key. The webcast will also be archived for 180 days on the Company's website.

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration, and development activities in Mexico. The Company employs over 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 has over $140 million dollars on hand, is debt free, and is unhedged to the price of gold. 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 forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, 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 mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, 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. 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.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources:

These tables use the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

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