Alamos Gold Inc.
TSX : AGI

Alamos Gold Inc.

February 27, 2012 06:00 ET

Alamos Gold Reports 4.98 g/t of Gold Over 50 Metres at El Victor North

TORONTO, ONTARIO--(Marketwire - Feb. 27, 2012) -

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

Alamos Gold Inc. (TSX:AGI) ("Alamos" or the "Company") reports new impressive drill results from its El Victor North exploration program.

El Victor North area is an exploration target contiguous with and north of the current El Victor portion of the Mulatos pit. The El Victor North area and the northern planned pit wall were not drilled during the definition drilling of the El Victor reserve due to a surface access conflict. Access to El Victor North was granted in July 2011 after a twelve-year hiatus.

A total of 16,200 metres in 124 holes were drilled at El Victor and El Victor North in 2011, an additional 24 drill holes have been completed to date in 2012, and drilling is ongoing. Mineralization at El Victor North is the northwestern extension of El Victor reserve mineralization and is hosted by silica alteration identical to the El Victor deposit. The El Victor North area has over 300m of strike length, is up to 100m wide, remains open to the north, and has the potential to expand reserves along the northern boundary of the Escondida to El Victor trend. The top of the zone is located approximately 36m to 56m below surface. Recent drill results have indicated the potential to extend the El Victor pit north and west of the current pit design outline.

New, previously unreleased, results from 2011 and 2012 are highlighted below and continue to demonstrate the potential of this zone:

  • 1.71 g/t Au over 44.2 metres (11EV150)
  • 4.98 g/t Au over 50.3 metres (12EV173)
  • 2.61 g/t Au over 44.2 metres (12EV176)
  • 1.59 g/t Au over 45.7 metres (12EV182)
  • 1.98 g/t Au over 54.6 metres (11VT037)

The Company recently reported highlights from the 2011 El Victor North drill campaign as follows:

  • 2.40 g/t Au over 59.5 metres (11EV119)
  • 4.72 g/t Au over 45.7 metres (11EV120)
  • 1.78 g/t Au over 29.0 metres (11EV124)
  • 1.53 g/t Au over 53.4 metres (11EV126)
  • 2.58 g/t Au over 59.5 metres (11EV132)
  • 4.27 g/t Au over 16.8 metres (11EV134)

Please refer to Figure 1 for a map of the Mulatos mine area, Figure 2 for the El Victor and El Victor North highlighted drill intercepts, and Figure 3 for all drill hole locations from recent drilling. Relevant assay results from the recent drilling at El Victor and El Victor North are presented in tables 1 and 2, for reverse circulation ("RC") and core drilling, respectively, at the end of this press release.

QA/QC Programs

Mulatos exploration programs are conducted under the supervision of Ken Balleweg, B.Sc. Geological Engineering, M.Sc. Geology, Registered Professional Geologist, Alamos' Mexico Exploration Manager. Mr. Balleweg is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 0.5 to 1.5 m. Mulatos samples are sent to ALS Chemex Inc. in Hermosillo, Mexico for sample preparation and then to Vancouver, British Columbia, Canada 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 >0.35 g/t over a 3-m minimum width with no assays cut, unless indicated.

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 $240 million cash and short-term investments, is debt-free, and unhedged to the price of gold. As of February 21, 2012, Alamos had 119,114,006 common shares outstanding (124,788,706 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.

To view "Figure 1: Mulatos mine area", please visit the following link: http://media3.marketwire.com/docs/alamos_figure1227.pdf.

To view "Figure 2: El Victor and El Victor North highlighted drill intercepts", please visit the following link: http://media3.marketwire.com/docs/alamos_figure2227.pdf.

To view "Figure 3: El Victor and El Victor North drill hole locations from recent drilling", please visit the following link: http://media3.marketwire.com/docs/alamos_figure3227.pdf.

Table 1: El Victor - Select Composite Intervals - Reverse Circulation Drilling1
Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cut
DRILL
HOLE
DRILLING
METHOD
TOTAL
DEPTH
(m)
FROM
(m)
TO
(m)
INT.
(m)
GOLD
(g/t)
11EV112 RC 91.46 0.00 21.34 21.34 0.821
11EV113 RC 157.01 No
Intervals
36.59 41.16 4.57 0.410
11EV114 RC 178.35 121.95 125.00 3.05 0.470
132.62 135.67 3.05 0.547
138.72 163.11 24.39 0.645
73.17 83.84 10.67 0.564
89.94 106.71 16.77 0.575
11EV115 RC 175.30 115.85 118.90 3.05 0.804
135.67 146.34 10.67 0.856
149.39 152.44 3.05 0.646
11EV116 RC 91.46 4.57 10.67 6.10 0.539
21.34 27.44 6.10 0.542
11EV117 RC 60.98 0.00 36.59 36.59 1.694
0.00 59.45 59.45 2.400
11EV119 RC 71.65 Inc.30.49 33.54 3.05 10.075
Inc.53.35 54.88 1.53 5.42
68.60 71.65 3.05 1.376
25.91 32.01 6.10 0.857
11EV120 RC 182.93 57.93 106.71 48.78 1.341
128.05 173.78 45.73 4.717
Inc.132.62 144.82 12.20 13.556
12.20 18.29 6.09 0.991
11EV121 RC 138.72 22.87 30.49 7.62 0.627
35.06 100.61 65.55 0.643
9.15 13.72 4.57 0.687
24.39 28.96 4.57 0.569
38.11 42.68 4.57 0.579
11EV122 RC 121.95 47.26 51.83 4.57 0.474
56.45 65.55 9.15 0.594
76.22 89.94 13.72 0.579
106.71 118.90 12.19 1.414
9.15 13.72 4.57 0.342
11EV123 RC 28.96 19.82 22.87 3.05 4.451
Inc.21.34 22.87 1.53 8.46
25.91 28.96 3.05 2.432
11EV124 RC 96.04 21.34 50.30 28.96 1.781
Inc.41.16 42.68 1.52 8.91
11EV125 RC 91.46 0.00 3.05 3.05 1.70
6.10 12.20 6.10 0.483
15.24 18.29 3.05 0.624
11EV126 RC 91.46 22.87 76.22 53.35 1.533
Inc.24.39 25.91 1.52 24.40
0.00 7.62 7.62 1.205
11EV127 RC 91.46 33.54 41.16 7.62 1.069
45.73 68.60 22.87 0.520
11EV128 RC 91.46 30.49 42.68 12.19 0.524
11EV129 RC 91.46 0.00 10.67 10.67 1.002
13.72 56.40 42.68 1.005
0.00 10.67 10.67 1.212
11EV130 RC 106.71 68.60 73.17 4.57 0.511
86.89 89.94 3.05 0.818
35.06 42.68 7.62 0.395
11EV131 RC 121.95 47.26 71.65 24.39 1.054
74.70 105.18 30.48 1.242
0.00 4.57 4.57 1.553
7.62 15.24 7.62 0.996
11EV132 RC 121.95 24.39 83.84 59.45 2.576
Inc.39.63 42.68 3.05 23.95
Inc.57.93 59.45 1.52 7.53
11EV133 RC 91.46 25.91 85.37 59.46 1.391
0.00 16.77 16.77 4.267
Inc.6.10 12.20 6.10 8.87
11EV134 RC 102.13 21.34 25.91 4.57 1.025
60.98 70.12 9.14 0.477
80.79 83.84 3.05 0.415
11EV135 RC 22.87 12.20 22.87 10.67 1.072
3.05 6.10 3.05 2.623
18.29 24.39 6.10 0.960
11EV136 RC 141.77 30.49 60.98 30.49 0.967
64.02 76.22 12.20 0.659
83.84 94.51 10.67 0.611
97.56 129.57 32.01 1.537
11EV137 RC 30.49 0.00 30.49 30.49 1.259
11EV138 RC 152.44 0.00 32.01 32.01 1.184
Inc.1.52 4.57 3.05 5.100
48.78 65.55 16.77 0.648
11EV139 RC 144.82 73.17 77.74 4.57 0.578
80.79 112.80 32.01 1.247
0.00 9.15 9.15 3.249
Inc.1.52 3.05 1.53 9.15
11EV140 RC 193.60 19.82 27.44 7.62 0.537
33.54 42.68 9.14 0.473
123.48 128.05 4.57 0.442
137.20 141.77 4.57 1.124
11EV141 RC 121.95 12.20 15.24 3.04 0.807
67.07 76.22 9.15 0.640
11EV142 RC 152.44 0.00 28.96 28.96 0.880
38.11 41.16 3.05 0.497
11EV143 RC 121.95 44.21 50.30 6.09 0.446
11EV144 RC 167.68 1.52 4.57 3.05 0.449
10.67 44.21 33.54 0.690
1.52 4.57 3.05 0.529
7.62 15.24 7.62 0.585
11EV145 RC 111.28 22.87 25.91 3.04 0.457
32.01 42.68 10.67 0.863
60.98 64.02 3.04 0.490
73.17 76.22 3.05 0.639
11EV146 RC 96.04 12.20 24.39 12.19 0.492
30.49 36.59 6.10 0.871
41.16 57.93 16.77 0.965
64.02 83.84 19.82 0.936
4.57 9.15 4.58 0.460
11EV147 RC 152.44 18.29 33.54 15.25 0.598
36.59 39.63 3.04 0.459
11EV148 RC 28.96 4.57 9.15 4.58 2.633
Inc.4.57 6.10 1.53 7.320
35.06 41.16 6.10 0.519
44.21 67.07 22.86 1.011
77.74 80.79 3.05 0.363
11EV149 RC 182.93 85.37 96.04 10.67 0.416
99.09 102.13 3.04 0.477
132.62 135.67 3.05 0.464
140.24 144.82 4.58 0.417
147.87 176.83 28.96 1.200
11EV150 RC 138.72 70.12 114.33 44.21 1.707
36.59 39.63 3.04 0.481
11EV151 RC 169.21 44.21 51.83 7.62 0.465
67.07 99.09 32.02 0.776
112.80 137.20 24.40 0.588
33.54 38.11 4.57 0.503
11EV152 RC 199.70 76.22 96.04 19.82 0.859
99.09 106.71 7.62 0.449
137.20 150.91 13.71 0.466
11EV153 RC 137.20 77.74 80.79 3.05 0.611
99.09 105.18 6.09 0.706
36.59 74.70 38.11 0.810
79.27 82.32 3.05 0.895
11EV154 RC 190.55 99.09 106.71 7.62 0.498
121.95 128.05 6.10 0.431
134.15 146.34 12.19 0.647
11EV155 RC 187.50 167.68 181.40 13.72 0.449
184.45 187.50 3.05 0.393
86.89 91.46 4.57 0.553
11EV156 RC 138.72 94.51 108.23 13.72 0.744
117.38 126.52 9.14 0.759
11EV157 RC 152.44 47.26 50.30 3.04 0.425
67.07 77.74 10.67 0.696
11EV160 RC 152.44 129.57 138.72 9.15 0.817
36.59 45.73 9.14 0.588
11EV161 RC 169.21 92.99 118.90 25.91 0.861
135.67 137.20 1.53 3.49
149.39 167.68 18.29 0.853
12EV162 RC 123.48 13.72 27.44 13.72 0.850
54.88 59.45 4.57 0.565
64.02 71.65 7.63 1.834
12EV163 RC 172.26 Inc.67.07 68.60 1.53 6.82
74.70 103.66 28.96 0.910
118.90 121.95 3.05 0.765
152.44 158.54 6.10 0.593
12EV164 RC 121.95 15.24 22.87 7.63 0.879
82.32 96.04 13.72 0.861
12EV165 RC 172.26 125.00 129.57 4.57 1.258
149.39 170.73 21.34 0.986
15.24 19.82 4.58 0.479
12EV166 RC 135.67 22.87 25.91 3.04 0.643
82.32 86.89 4.57 1.402
12EV167 RC 135.67 16.77 28.96 12.19 0.426
67.07 77.74 10.67 0.599
12EV168 RC 106.71 67.07 70.12 3.05 0.468
10.67 15.24 4.57 0.442
12EV169 RC 175.30 18.29 44.21 25.92 0.607
59.45 65.55 6.10 1.240
74.70 86.89 12.19 0.377
16.77 18.29 1.52 10.65
45.73 51.83 6.1 0.392
70.12 120.43 50.31 4.982
12EV173 RC 144.82 Inc.82.32 83.84 1.52 8.19
Inc.91.46 92.99 1.53 28.8
Inc.96.04 97.56 1.52 32.9
Inc.111.28 114.33 3.05 27.405
132.62 143.29 10.67 0.466
19.82 25.91 6.09 1.369
12EV174 RC 126.52 45.73 48.78 3.05 0.377
60.98 77.74 16.76 0.570
12EV175 RC 102.13 45.73 50.30 4.57 0.459
10.67 16.77 6.10 0.588
83.84 92.99 9.15 0.501
12EV176 RC 199.70 97.56 106.71 9.15 0.499
115.85 123.48 7.63 0.692
134.15 178.35 44.20 2.606
Inc.146.34 158.54 12.20 5.878
12EV177 RC 102.13 62.50 71.65 9.15 0.545
33.54 38.11 4.57 0.387
47.26 56.40 9.14 0.718
12EV178 RC 175.30 70.12 77.74 7.62 0.964
112.80 117.38 4.58 0.517
121.95 137.20 15.25 1.065
161.59 169.21 7.62 0.904
12EV179 RC 117.38 18.29 22.87 4.58 0.440
12EV180 RC 150.91 94.51 111.28 16.77 1.315
125.00 138.72 13.72 2.418
12EV181 RC 135.67 No
Intervals
56.40 67.07 10.67 1.403
85.37 131.10 45.73 1.587
12EV182 RC 213.41 135.67 138.72 3.05 0.496
155.49 190.55 35.06 1.855
195.12 210.37 15.25 0.510
12EV183 RC 152.44 83.84 105.18 21.34 0.699
33.54 38.11 4.57 0.528
12EV185 RC 182.93 41.16 47.26 6.1 0.385
54.88 91.46 36.58 0.783
1 Due to the exploratory nature of this program and the variable orientations of the mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
2 RC = Reverse Circulation Hole
3 Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt)
Table 2: El Victor - Select Composite Intervals - Core Drilling1
Include intervals at >0.35 g/t Au over a 3 metres minimum width, no assay cut
DRILL
HOLE
(Azimuth/Inclination)
DRILLING
METHOD
TOTAL
DEPTH
(m)
FROM
(m)
TO
(m)
INT.
(m)
GOLD
(g/t)
11VT037 DDH 54.55 0.00 54.55 54.55 1.984
11VT038 DDH 27.90 0.00 27.90 27.90 1.150
11VT039 DDH 49.70 1.00 24.04 23.04 1.296
28.54 33.40 4.86 0.446
0.00 22.04 22.04 1.180
11VT040 DDH 53.05 28.30 37.95 9.65 0.447
45.45 48.45 3.00 0.693
0.00 17.25 17.25 0.462
11VT041 DDH 48.95 30.65 35.50 4.85 1.735
44.50 47.05 2.55 0.472
11VT042 DDH 63.35 0.00 63.35 63.35 1.411
11VT043 DDH 33.10 1.50 11.65 10.15 0.837
29.45 31.60 2.15 0.978
12.00 20.25 8.25 0.495
34.05 55.80 21.75 0.652
11VT044 DDH 98.80 58.40 67.70 9.30 0.906
84.85 92.10 7.25 0.481
95.15 98.80 3.65 0.427
45.15 54.60 9.45 2.007
11VT045 DDH 78.40 Inc.50.15 51.60 1.45 5.18
68.05 71.10 3.05 0.360
72.80 78.40 5.60 0.447
3.35 11.90 8.55 0.517
30.85 41.80 10.95 2.189
11VT046 DDH 126.25 Inc.37.05 40.65 3.60 5.658
67.20 82.20 15.00 0.760
85.00 92.35 7.35 1.533
8.20 12.70 4.50 0.717
11VT047 DDH 125.00 24.95 29.45 4.50 1.232
73.75 76.75 3.00 3.330
79.15 89.15 10.00 0.411
1 Due to the exploratory nature of this program and the variable orientations of the mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
2 DDH = Diamond Drill Hole
3 Number in bold represent intervals greater than 35 metres*grams/tonne (35gmt)

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 406