Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

September 16, 2011 06:00 ET

Alamos Gold Reports a 19% Increase in Measured and Indicated Resources at Agi Dagi and Kirazli and Provides an Exploration Update on Camyurt

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2011) -

(All amounts are expressed in United States dollars, unless otherwise stated)

Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") reports an updated resource estimate for the Agi Dagi and Kirazli projects ("ADK") in Turkey, as part of the ongoing preliminary feasibility study, and provides an exploration update at Camyurt.

ADK 2011 Pre-Feasibility Mineral Resource Update

The Company has increased mineral resources in Turkey as compared to the year-end 2010 resource estimate. Specifically:


--  Measured and indicated mineral resources increased 19% to 1.96 million
    ounces of gold from 1.65 million ounces at December 31, 2010.
--  Inferred mineral resources increased 10% to 0.46 million ounces of gold
    from 0.42 million ounces at December 31, 2010.
--  The updated measured and indicated mineral resource estimate represents
    a 115% increase when compared to the March 2010 scoping study.

The updated mineral resource estimate was prepared as part of the ongoing preliminary feasibility study and is based on a 0.2 grams per tonne of gold ("g/t Au") cut-off. This resource update incorporates additional drilling conducted between September 30, 2010 and March 31, 2011. Drilling subsequent to March 31, 2011 will be included in the 2011 year-end global mineral reserve and resource statement. The updated resource estimate does not include the Camyurt project.

Measured and indicated resources at Agi Dagi and Kirazli increased 19% to 1.96 million ounces of gold, reflecting a 19% increase in tonnes and no change in the average gold grade compared to the 2010 year-end estimate. This increase is largely due to the conversion of inferred resources into the measured and indicated categories, the addition of new resources through infill and expansion drilling, and an increase in the gold price assumption used for resource pit optimization from US$1,025 to US$1,150 per ounce. Measured and indicated mineral resources for Agi Dagi and Kirazli are presented in tables 1 and 2 at the end of this press release.

Inferred resources increased 10% to 0.46 million ounces of gold compared to the year-end 2010 disclosure of 0.42 million ounces. The updated resource estimate represents a 14% increase in tonnage and a 4% decrease in the average gold grade compared to the 2010 year-end estimates. Inferred mineral resources for Agi Dagi and Kirazli are presented in tables 3 and 4 at the end of this press release.

The Company acquired the Agi Dagi and Kirazli projects in early 2010 and published a scoping study in March 2010, which outlined indicated oxide resources of 0.91 million ounces and 0.44 million inferred ounces of gold. The updated resource estimate represents a 115% increase in measured and indicated resources as compared to the indicated oxide resource estimate published in the scoping study.

The mineral resource update excludes all sulphide ounces, as most sulphide ounces are not optimized into the pits due to lower gold extraction rates and higher operating costs.

The proven and probable reserves for both Agi Dagi and Kirazli will be calculated as part of the ongoing preliminary feasibility study due for completion in late 2011. An updated mineral resource estimate will also be prepared for the year-end 2011 global mineral reserve and resource statement, incorporating all new drilling data generated between March 31, 2011 and September 30, 2011.

Figure 1 show the project areas and target locations.

Camyurt Update

The Camyurt project is located approximately three kilometres ("km") southeast of the Company's development-stage Agi Dagi project. To-date in 2011, the Company has completed approximately 7,250 metres ("m") of a planned 10,000 m drill program at Camyurt. The Company believes that Camyurt has demonstrated the potential to develop into a stand- alone project.

Notable assay results from recent drilling include:


-  11-CYD-14A   59.0 m at 1.25 grams of g/t Au
                61.5 m at 2.29 g/t Au
-  11-CYD-22    46.7 m at 2.60 g/t Au
-  11-CYD-24    38.1 m at 0.93 g/t Au
                37.5 m at 1.38 g/t Au
-  11-CYD-28    36.5 m at 3.17 g/t Au
-  11-CYD-30    36.4 m at 1.41 g/t Au
-  11-CYD-32   140.5 m at 1.25 g/t Au
-  11-CYD-34    81.5 m at 1.25 g/t Au
-  11-CYD-35    89.6 m at 1.76 g/t Au

The drill-hole locations are displayed in Figure 2, with relevant assay results presented in Table 5 at the end of this press release.

During the last quarter, the Company focused on systematic drilling at 50 to 100-metre line- spacing. The Camyurt mineralized envelope is defined for over 1,100 metres along strike, with additional potential to extend mineralization to the northeast. The steeply dipping oxidized body starts at surface, has been vertically delineated to a minimum of 150 metres, remaining open at depth, and can reach up to 150 metres in thickness.

The Company currently has three core drill rigs operating on the Camyurt target continuing the resource definition program. An initial resource estimate at Camyurt is planned to be included as part of the Company's year-end 2011 global mineral reserve and resource statement to be published in the first quarter of 2012.

Qualified Person(s)

The Qualified Person for the National Instrument 43-101 compliant mineral resource for the Agi Dagi and Kirazli projects was Marc Jutras, P. Eng., M.A.Sc., Director of Mineral Resources for Alamos. Resource pit optimization was completed by Herb Welhener, Vice President of Independent Mining Consultants of Tucson, Arizona, working in conjunction with the Company's exploration and operations' staff. Mr. Jutras and Mr. Welhener are recognized as Qualified Persons according to the requirements of National Instrument 43-101 of the Canadian Securities Administrators.

Exploration programs at Agi Dagi and Kirazli are directed by Dominique Fournier, M.Sc., PhD. in Geology, Alamos' Exploration Manager and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Drilling, sampling, QA/QC protocols and analytical methods for individual resource areas are as outlined in the in the Agi Dagi and Kirazli Preliminary Economic Assessment which are all available at www.sedar.com.

About Alamos

Alamos is an established Canadian-based gold producer that owns and operates the Mulatos Mine in Mexico, and has exploration and development activities in Mexico and Turkey. The Company employs nearly 500 people in Mexico and Turkey 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 $200 million cash on hand, is debt-free, and unhedged to the price of gold. As of August 31, 2011, Alamos had 118,115,106 common shares outstanding (124,941,306 shares fully diluted), which 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:

This press release uses 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 pre-feasibility 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.


Table 1: Measured and Indicated Mineral Resources - Agi Dagi Project

----------------------------------------------------------------------------
                         Measured and Indicated Mineral Resources(1)
----------------------------------------------------------------------------

Cut-off Grade         Tonnes       Grade       Grade   Contained   Contained
(g/t Au)              (000s)    (g/t Au)    (g/t Ag)   Ounces Au    Ounce Ag
----------------------------------------------------------------------------
1.00                   6,782        2.28       13.18     496,618   2,874,934
0.80                  10,309        1.81       10.09     599,032   3,345,046
0.60                  17,227        1.36        7.28     750,507   4,031,520
0.40                  32,610        0.94        5.15     987,133   5,394,921
0.20                  66,323        0.61        3.59   1,299,266   7,648,072
0.10                  94,522        0.47        2.95   1,423,551   8,976,235
----------------------------------------------------------------------------

(1)  Measured and indicated resource for the Agi Dagi project, which include
     the Baba, Deli, and Fire Tower zones, are pit constrained with cut-off
     determined as a net of process value of $0.10 per tonne, for each model
     block. The determination was based on a US$1,150 per ounce gold price
     and a US$22.50 per ounce silver price, a June 2011 resource model,
     average pit slope angle of 38 degrees, and estimated costs and
     recoveries based on the ongoing pre-feasibility study specifications.
     The resources were then tabulated by gold cut-off grade.

Table 2: Measured and Indicated Mineral Resources - Kirazli Project

----------------------------------------------------------------------------
                          Measured and Indicated Mineral Resources(1)
----------------------------------------------------------------------------
Cut-off Grade         Tonnes       Grade       Grade   Contained   Contained
 (g/t Au)             (000s)    (g/t Au)    (g/t Ag)   Ounces Au   Ounces Ag
----------------------------------------------------------------------------
1.00                   4,323        2.49       21.28     346,396   2,957,664
0.80                   5,049        2.26       19.67     366,699   3,192,563
0.60                   7,943        1.69       16.21     431,698   4,140,674
0.40                  15,358        1.10       11.43     545,315   5,643,233
0.20                  27,060        0.76        8.92     660,528   7,762,855
0.10                  33,132        0.65        8.49     692,113   9,049,019
----------------------------------------------------------------------------

(1)  Measured and indicated resource for the Kirazli project are pit
     constrained with cut-off determined as a net of process value of $0.10
     per tonne, for each model block. The determination was based on a
     US$1,150 per ounce gold price and a US$22.50 per ounce silver price, a
     July 2011 resource model, average pit slope angle of 38 degrees, and
     estimated costs and recoveries based on the ongoing pre-feasibility
     study specifications. The resources were then tabulated by gold cut-
     off grade.

Table 3: Inferred Mineral Resources - Agi Dagi Project

----------------------------------------------------------------------------
                                 Inferred Mineral Resources(1)
----------------------------------------------------------------------------

Cut-off Grade         Tonnes        Grade      Grade   Contained   Contained
 (g/t Au)             (000s)     (g/t Au)   (g/t Ag)   Ounces Au   Ounces Ag
----------------------------------------------------------------------------
1.00                   1,298        2.69       22.16     112,293     924,772
0.80                   2,473        1.82       12.10     144,758     962,140
0.60                   4,752        1.28        7.32     195,678   1,118,494
0.40                   9,720        0.87        4.43     271,523   1,383,429
0.20                  22,341        0.53        2.71     383,383   1,945,179
0.10                  33,448        0.40        2.10     432,314   2,259,464
----------------------------------------------------------------------------

(1)  Inferred resource for the Agi Dagi project, which include the Baba,
     Deli, and Fire Tower zones, are pit constrained with cut-off
     determined as a net of process value of $0.10 per tonne, for each
     model block. The determination was based on a US$1,150 per ounce gold
     price and a US$22.50 per ounce silver price, a June 2011 resource
     model, average pit slope angle of 38 degrees, and estimated costs and
     estimated costs and recoveries based on the ongoing pre-feasibility
     study specifications. Resources were then tabulated by gold cut-off
     grade.

Table 4: Inferred Mineral Resources - Kirazli Project

----------------------------------------------------------------------------
                                 Inferred Mineral Resources(1)
----------------------------------------------------------------------------

Cut-off Grade         Tonnes       Grade       Grade   Contained   Contained
 (g/t Au)             (000s)    (g/t Au)    (g/t Ag)   Ounces Au   Ounces Ag
----------------------------------------------------------------------------
1.00                     386        1.71       28.38      21,222     352,207
0.80                     528        1.49       23.42      25,294     397,575
0.60                   1,058        1.09       17.40      37,035     592,044
0.40                   2,326        0.76       14.15      56,807   1,058,394
0.20                   4,108        0.56       11.21      73,612   1,480,766
0.10                   5,260        0.47       10.51      79,396   1,777,809
----------------------------------------------------------------------------

(1)  Inferred resource for the Kirazli project are pit constrained with cut-
     off determined as a net of process value of $0.10 per tonne, for each
     model block. The determination was based on a US$1,150 per ounce gold
     price and a US$22.50 per ounce silver price, a June 2011 resource
     model, average pit slope angle of 38 degrees, and estimated costs and
     estimated costs and recoveries based on the ongoing pre-feasibility
     study specifications. Resources were then tabulated by gold cut-off
     grade.

            Table 5: Camyurt - Selected Composite Intervals(1)
Include intervals at greater than 0.2 g/t Au over a 3 metres minimum width,
                      no assay cut (unless indicated)


---------------------------------------------------------------------------
Drill Hole     Drilling  Total Depth   From     To       Interval     Assay
Number           Method          (m)    (m)    (m)        (m)(2) (g/t Au)(2)
---------------------------------------------------------------------------
11-CYD-14A
N310 degrees /             124.60 to 130.10 189.10          59.00      1.25
 -50 degrees       Core       311.00 202.00 208.00           6.00      0.52
                                     219.70 281.20          61.50      2.29
---------------------------------------------------------------------------
11-CYD-21          Core       250.90            No composite
N310 degrees /
 -50 degrees
---------------------------------------------------------------------------
                                      15.80  19.90           4.10      0.65
11-CYD-22          Core       242.50  29.50  67.00          37.50      0.62
N310 degrees /                        71.30 118.00          46.70      2.66
 -50 degrees                         153.30 165.50          12.20      0.35
                                     215.50 218.60           3.10      0.36
                                     230.60 236.70           6.10      6.31
---------------------------------------------------------------------------
11-CYD-23
N310 degrees /     Core       178.00   0.00  11.50          11.50      0.80
 -50 degrees                          66.50  69.50           3.00      0.25
---------------------------------------------------------------------------
11-CYD-24                              0.00  38.10          38.10      0.93
N310 degrees /     Core       304.60  51.60  63.60          12.00      0.24
 -50 degrees                          69.20 110.40          41.20      0.81
                                     114.90 152.40          37.50      1.38
---------------------------------------------------------------------------
                                       0.00  12.00          12.00      0.35
11-CYD-25                             16.50  25.80           9.30      0.25
N310 degrees /                        46.20  49.20           3.00      0.45
 -50 degrees       Core       179.60  61.50  70.50           9.00      0.47
                                      76.50  79.50           3.00      0.46
                                     108.00 121.80          13.80      1.15
                                     171.50 179.60           8.10      0.36
---------------------------------------------------------------------------
11-CYD-26          Core       299.60 244.60 259.60          15.00      0.36
N310 degrees /
 -67 degrees
---------------------------------------------------------------------------
11-CYD-27          Core       209.80   0.00   3.10           3.10      0.55
N310 degrees /
 -50 degrees
---------------------------------------------------------------------------
11-CYD-28
N310 degrees /     Core       236.70  32.90  58.60          25.70      0.44
 -50 degrees                         124.00 160.50          36.50      3.17
---------------------------------------------------------------------------
11-CYD-29                              0.00   6.60           6.60      0.82
N310 degrees /                        17.60  49.00          31.40      0.53
 -50 degrees       Core       236.50  94.70  97.70           3.00      1.12
                                     166.60 194.40          28.30      0.59
                                     199.40 236.50          37.10      0.75
---------------------------------------------------------------------------
11-CYD-30
N130 degrees /     Core       270.60 110.50 115.00           4.50      0.91
 -50 degrees                         131.40 167.80          36.40      1.41
---------------------------------------------------------------------------
11-CYD-31
N310 degrees /     Core       231.90   1.00  24.10          23.10      0.44
 -50 degrees       (PQ)               59.50  66.00           6.50      0.68
---------------------------------------------------------------------------
11-CYD-32          Core               12.60  17.70           5.10      0.41
N310 degrees /     (PQ)       212.20  31.10  45.50          14.40      0.20
 -67 degrees                          53.20  57.70           4.50      0.36
                                      71.70 212.20         140.50      1.25
---------------------------------------------------------------------------
11-CYD-33
N310 degrees /     Core              100.00 105.50           5.50      1.37
 -50 degrees       (PQ)       197.20 113.00 116.20           3.20      0.38
                                     120.80 134.00          13.20      1.34
---------------------------------------------------------------------------
11-CYD-34          Core
N130 degrees /     (PQ)       150.80   0.00  12.00          12.00      0.36
 -65 degrees                          20.10 101.30          81.20      1.25
---------------------------------------------------------------------------
                                      29.50  34.00           4.50      0.60
11-CYD-35          Core       231.40  44.50  52.00           7.50      0.51
                   (PQ)               62.50 152.10          89.60      1.76
                                     162.60 213.60          51.00      0.87
---------------------------------------------------------------------------
11-CYD-36          Core
N310 degrees /     (PQ)       149.00            No composite
 -50 degrees
---------------------------------------------------------------------------

(1)  Due to the exploratory nature of this program and the variable
     orientations of the high-grade mineralized zones, the intersections
     presented herein may not necessarily represent the true width of
     mineralization

(2)  Results in bold represent intervals greater than 20
     metres x grams/tonne (20gmt)

To view Figure 1: Agi Dagi and Kirazli Project Location and Known Gold Occurrences, please visit the following link:

http://media3.marketwire.com/docs/agi1.jpg

To view Figure 2: Camyurt Alteration and Drill Hole Location Map, please visit the following link:

http://media3.marketwire.com/docs/agi2.jpg

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.
    Allan Candelario
    Investor Relations
    (416) 368-9932 x 206