Alamos Gold Intersects High-Grade Mineralization in New Area of Focus Between Eastern and Main Extensions at Island Gold
Press Release
TORONTO, May 09, 2019 — Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new results from surface and underground exploration and delineation drilling at the Island Gold Mine. Drilling in 2019 continues to extend high-grade gold mineralization across each of the Main, Western, and Eastern Extensions. All reported drill widths are true width of the mineralized zones, unless otherwise stated.
- Eastern Extension: high-grade mineralization intersected in a previously untested area between the Eastern and Main Extensions, within a 500 metre (“m”) gap between Inferred Mineral Resource blocks. This area is only 1,000 m from surface and relatively close to existing infrastructure. New highlights include:
- 46.11 g/t Au (25.81 g/t cut) over 4.67m (MH18-03);
- Main Extension: high-grade mineralization extended 65 m up-plunge (MH13-5) and 65 m down-plunge (MH17-04) from the nearest previously reported intersections. High-grade mineralization has been extended over 1,000 m east of current mine workings and remains open along strike to the east and both up and down-plunge. New highlights include:
- 71.17 g/t Au (24.53 g/t cut) over 5.10 m (MH13-5);
- 40.75 g/t Au (34.01 g/t cut) over 5.15 m (MH17-04); and
- 30.01 g/t Au (15.13 g/t cut) over 4.96 m (MH12-5).
Note: Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to 225 g/t Au for Main and Extension 1 areas, and 160 g/t Au for Extension 2 Area.
“Drill results continue to demonstrate the tremendous growth potential of the Island Gold deposit across multiple areas of focus. The Main Extension continues to grow and we see excellent potential for this to continue with more than 90% of our exploration drill holes intersecting gold mineralization along the Island Gold Main Zone. We are also particularly excited about the potential between the Main and Eastern Extensions having intersected high-grade mineralization in an area that has seen very little drilling to date. We have started to close the gap between high grade resources in both areas and see excellent potential for this to continue,” said John A. McCluskey, President and Chief Executive Officer.
2019 Drilling Program – Island Gold Mine
The focus of the 2019 exploration drilling program is to continue to expand the down-plunge and lateral extensions of the Island Gold deposit with the objective of adding new near mine Mineral Resources across the two-kilometre long Island Gold Main Zone (Figure 1).
The ongoing exploration program at Island Gold has been successful in extending high grade gold mineralization across each of the Main, Western, and Eastern Extensions. This has translated into significant growth in Mineral Reserves and Resources since the November 2017 acquisition of Island Gold as follows (Mineral Reserves and Resources as of December 31, 2018; see press release dated February 19, 2019):
- Mineral Reserves have increased 467,000 ounces before mining depletion, or 255,000 ounces net of mining depletion, to 1.0 million ounces with Mineral Reserve grades increasing 12% (3.0 million tonnes (“mt”) grading 10.28 g/t Au)
- Measured and Indicated Mineral Resources have increased 115%, or 105,000 ounces, to 196,000 ounces with grades increasing 48% (0.7 mt grading 8.77 g/t Au)
- Inferred Mineral Resources have increased 58%, or 577,000 ounces, to 1.6 million ounces with grades increasing 15% (4.2 mt grading 11.71 g/t Au)
A total of 29,832 m of drilling in 99 holes has been completed thus far in 2019. This includes 13,992 m of surface directional exploration drilling, 1,119 m of regional exploration drilling, 5,804 m of underground exploration drilling and 8,917 m of underground delineation drilling. New highlight intercepts can be found in Figures 1 to 4 and Tables 1 to 3 at the end of this news release.
The 2019 drill program includes 48,000 m of surface directional exploration drilling, 30,000 m of underground exploration drilling, 35,000 m of delineation drilling, and 917 m of exploration drift development.
Surface and Underground Exploration Drilling
Eastern Extension
Surface directional drilling within the Eastern Extension is focused on testing the area down-plunge and to the east of known Inferred Resource blocks, between the 850 m and 1150 m vertical depths, and previously reported high-grade intersections approximately 350 m further to the east (Figure 3).
Three drill holes have been completed in this area to date in 2019, with drill hole MH18-03 intersecting 46.11 g/t Au (25.81 g/t cut) over 4.67m. This intersection is 200 m down-plunge from the closest Inferred Mineral Resources in the Eastern Extension, and 300 m vertically above Inferred Mineral Resources defined in the eastern down-plunge extent of the Main Extension. Testing the potential continuity of high-grade mineralization between the Eastern and Main Extensions will be an ongoing focus in 2019 with this area having seen limited drilling to date. Two surface directional diamond drill rigs are active in this area, and will continue with 75 to 100 m spaced step-out drilling. New highlights from the surface drilling program include (E1E-Zone) (Table 1):
- 46.11 g/t Au (25.81 g/t cut) over 4.67 m (MH18-03);
- 4.45 g/t Au (4.45 g/t cut) over 10.24 m (MH18-02); and
- 6.03 g/t Au (6.03 g/t cut) over 3.65 m (MH18-01).
Main Extension
Surface directional drilling to date in 2019 has been successful in further extending gold mineralization with drill hole spacing ranging from 50 to 100 m (Figure 2). Gold mineralization has now been extended one kilometre to the east of existing mine workings. This east plunging high-grade ore shoot remains open laterally, up and down-plunge.
New highlights from the surface and underground exploration drill results include (E1E-Zone) (Tables 1 and 2):
- 71.17 g/t Au (24.53 g/t cut) over 5.10 m (MH13-5);
- 40.75 g/t Au (34.01 g/t cut) over 5.15 m (MH17-04);
- 30.01 g/t Au (15.13 g/t cut) over 4.96 m (MH12-5);
- 38.42 g/t Au (23.78 g/t cut) over 2.75 m (840-548-11);
- 17.52 g/t Au (16.97 g/t cut) over 2.81 m (MH17-03); and
- 12.91 g/t Au (12.91 g/t cut) over 4.57 m (840-548-10).
Drill hole MH13-5 (71.17 g/t Au (24.53 g/t cut) over 5.10 m), returned one of the best surface directional intersections to date in the Main Extension and also extended high-grade mineralization 65 m up-plunge from the nearest previously drilled intercept.
Drill holes MH17-03 (17.52 g/t Au (16.97 g/t cut) over 2.81m) and MH17-04 (40.75 g/t Au (34.01 g/t cut) over 5.15 m) extended high-grade gold mineralization 50 m further to the east of the nearest previously drilled intercepts, MH13 (118.58 g/t Au (53.51 g/t cut) over 6.66 m) and MH17-01 (56.60 g/t Au (50.87 g/t cut) over 5.66 m).
Drill hole MH17-05, drilled a further 50 m to the east of MH17-03 and MH17-04, also intersected gold mineralization (2.25 g/t Au over 6.72 m) within the same zone. Despite the lower grades, visible gold associated with quartz veining was observed in this interval, confirming presence of gold mineralization another 50 m further to the east.
The 2019 exploration program will continue to focus on further extending high-grade mineralization with the objective of defining additional Mineral Resources in this area. Underground exploration drilling has also commenced from the 840 level exploration drift with the objective of testing the area between the Main Extension Inferred Mineral Resources and the Eastern Extension Mineral Reserve and Resource blocks above. Three surface directional diamond drill rigs remain active in the Main Extension target area.
Western Extension
Surface drilling in the Western Extension area (Figure 4) has continued to extend high-grade mineralization laterally and down-plunge from existing Inferred Mineral Resources. Drill hole MH16-04 intersected 5.14 g/t Au (5.14 g/t cut) over 5.28 m, extending mineralization an additional 75 m from previously reported drill hole MH16-03 (152.07 g/t Au (35.74 g/t cut) over 5.00m). One surface directional diamond drill rig is active in this area. In addition, underground exploration drilling commenced from the 450 diamond drill bay in the main ramp and was successful in extending high-grade gold mineralization 50 m to the west of the existing Mineral Reserves. Highlights from the new surface and underground drill results include (C-Zone) (Tables 1 and 2):
- 31.62 g/t Au (31.62 g/t cut) over 3.22 m (450-467-85);
- 10.43 g/t Au (10.43 g/t cut) over 3.34 m (450-467-86); and
- 5.14 g/t Au (5.14 g/t cut) over 5.28 m (MH16-04).
Underground Delineation Drilling
Underground delineation drilling is also being carried out from the 450 drill bay and from the 580 and 840 levels, with the focus on converting Inferred Mineral Resources to Indicated Mineral Resources.
New highlight drill intercepts include (Table 3):
- 38.99 g/t Au (24.86 g/t cut) over 3.60 m (840-548-18);
- 35.61 g/t Au (29.75 g/t cut) over 3.31 m (840-548-03);
- 22.57 g/t Au (18.74 g/t cut) over 4.56 m (840-542-60);
- 22.44 g/t Au (22.44 g/t cut) over 4.55 m (840-548-05);
- 37.59 g/t Au (37.59 g/t cut) over 2.21 m (580-473-07);
- 13.00 g/t Au (9.60 g/t cut) over 6.38 m (840-542-61);
- 13.38 g/t Au (13.38 g/t cut) over 5.35 m (840-548-14);
- 4.88 g/t Au (4.88 g/t cut) over 7.92 m (840-542-63);
- 16.11 g/t Au (16.11 g/t cut) over 2.18 m (580-473-13); and
- 11.31 g/t Au (11.31 g/t cut) over 3.09 m (840-548-02).
The results from the infill delineation drilling within existing Inferred Mineral Resource blocks continue to confirm the continuity of the high-grade gold mineralization and are expected to support the conversion of the Mineral Resources to Mineral Reserves in these areas.
Other Zones
The Island Gold Deposit consists of a number of subparallel mineralized zones, with the majority of Mineral Reserves and Resources being defined in the C Zone and E1E Zones which constitutes the main production horizons at the Island Gold mine.
Highlights of new intersections in parallel zones and zones in which the lateral continuity is not yet established (“Unknown Zone”) include (Tables 1, 2 and 3):
- 29.13 g/t Au (29.13 g/t cut) over 2.80 m (MH17-04);
- 27.07 g/t Au (27.07 g/t cut) over 2.40 m (MH17-03);
- 17.56 g/t Au (17.56 g/t cut) over 2.50 m (840-548-14); and
- 12.38 g/t Au (12.38 g/t cut) over 2.60 m (840-548-01).
Note: Reported composite intervals are core lengths
Additional drilling will be required to further evaluate these high-grade intersections and their potential in both the footwall and hanging wall of the main C and E1E Zones.
Surface Regional Exploration Drilling
As part of the 2018 regional exploration drilling program, two drill holes were started late in 2018 and completed in 2019. This included drill hole AR-415-04 which intersected 9.31 g/t over 3.31 m, approximately 250 m west from the most westernly Inferred Mineral Resource block of the Island Gold Deposit. This gold-bearing structure has similar alteration and mineralization that is associated with gold mineralization at the Island Gold Mine within the Goudreau Deformation Zone.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101 (“NI 43-101”).
Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Chief Geologist at the Island Gold Mine and a Qualified Person within the meaning of NI 43-101.
Quality Control
Assays for the delineation and exploration drilling were completed at LabExpert in Rouyn-Noranda, Quebec. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance. Cross check assays are done on a regular basis in a second accredited laboratory. The Quality Assurance / Quality Control procedures are more completely described in the Technical Report filed on SEDAR by Richmont Mines, July 13, 2017.
Upcoming Catalysts and News Flow
- Q2 2019 – Young-Davidson and Island Gold Site Tours
- Mid-2019 – Lynn Lake Optimization Study
- H2 2019 – La Yaqui Grande EIA Approval
- H2 2019 – Cerro Pelon Construction Update
- H2 2019 – Kirazlı Construction Update
- H2 2019 – Island Gold Phase II Expansion Permit
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
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