Alamos Gold Reports Q2 2010 Financial Results and Provides Mulatos Exploration Update
TORONTO, ONTARIO -- (Marketwire) -- 08/05/10 -- (All amounts are expressed in United States dollars, unless otherwise stated)
Alamos Gold Inc. (TSX: AGI) ('Alamos' or the 'Company') reports financial and operating results for the quarter ended June 30, 2010. The Company is also providing an exploration update for its Mulatos Project and comments on the Company's outlook for the second half of 2010.
Second Quarter 2010 Highlights:
- Revenues of $47.5 million on gold sales of 39,688 ounces.
- Reported earnings of $12.1 million, or $0.11 per share.
- Reported Adjusted Earnings of $17.2 million, or $0.15 per share.
- Operating cash flows after working capital changes totalled $20.9 million,
or $0.18 per share.
- Cash operating costs of $283 per ounce of gold sold ($275 YTD).
- Total cash costs of $341 per ounce of gold sold ($328 YTD).
- Cash and short-term investment balances of $175.7 million as at June 30,
2010.
- Continued to obtain positive drill assays at San Carlos, including the
highest grade-thickness intercepts ever in the San Carlos zone with infill
drill holes 10SC120 and 10SC109 returning 29.0 metres grading 15.02 g/t Au
and 37.5 m grading 11.61 g/t Au, respectively.
- Paid an inaugural dividend of $0.03 per share.
This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended June 30, 2010 and associated Management Discussion and Analysis ('MD&A'), which are available from the Company's website (www.alamosgold.com), in the 'Investor Centre' section under 'Reports & Financial Statements', and on SEDAR (www.sedar.com).
Review of Financial Results
Revenue in the second quarter of 2010 was $47.5 million on sales of 39,688 ounces of gold, representing a 13% increase over revenue of $42.0 million in the second quarter of 2009. The increase in revenues is attributable to a 30% increase in the average realized gold price.
Earnings in the second quarter of 2010 decreased 7% to $12.1 million ($0.11 per share), compared to $13.0 million ($0.12 per share) in the same period of 2009. The reduction in quarterly earnings relative to prior periods is mainly attributed to higher stock-based compensation of $5.3 million and a lower foreign exchange gain of $0.2 million. After considering these items, Adjusted Earnings were $17.2 million ($0.15 per share).
In the second quarter of 2010, the Company generated cash flows from operations before changes in non-cash working capital of $21.5 million ($0.19 per share) and after changes in non-cash working capital of $20.9 million ($0.18 per share), representing increases of 1% and 2%, respectively, when compared to the same period in 2009.
Capital expenditures in the second quarter were $15.3 million, compared with $5.7 million in the same period last year. Investments in operating capital and development activities for the Company's Mexican operations were $7.7 million and $4.8 million, respectively. Investments in development activities for the Company's Turkish operations, which were acquired in the first quarter of 2010, were $2.8 million.
During the second quarter of 2010, the Company's cash and short-term investments balance increased by $11.4 million to $175.6 million.
Key financial metrics for the second quarter of 2010 compared to the second quarter of 2009, and on a year-to-date bases to June 30, 2010 and 2009 are presented at the end of this press release in Table 1.
Review of Operational Results
The Mulatos Mine produced 38,400 ounces during the second quarter of 2010, a decrease of 9% relative to gold production of 42,000 ounces in the comparable period of 2009. Year-to-date gold production of 80,000 ounces is in-line with the Company's full year 2010 production guidance of 160,000 to 175,000 ounces, while year-to-date total cash cost per ounce of $328 is below the budgeted level of $338.
In the second quarter of 2010, low cash operating cost of $283 per ounce and total cash cost (including the 5% royalty) of $341 per ounce, combined with a $1,197 realized average gold price per ounce, resulted in a cash margin of $856 per ounce, an increase of 43% over the same period last year. Operations continue to benefit from positive reconciliations relative to the block model and operational improvements made by the Company in prior periods continue to result in low per unit costs despite a strengthening Mexican peso relative to the dollar.
Crusher throughput in the second quarter of 2010 was consistent with planned levels, while higher than budgeted mined grade contributed to a lower than budgeted recovery ratio(1) due to less ounces being produced than were stacked during the quarter. Lower gold production in the quarter is attributable to two factors: Increased solution percolation time due to the height of the heap leach pad, and the onset of drought conditions in mid-June that reduced solution flow until mid-July.
Key operational metrics and production statistics for the second quarter of 2010 compared to the second quarter of 2009, and on a year-to-date bases to June 30, 2010 and 2009 are presented at the end of this press release in tables 2 and 3.
Second Half 2010 Outlook
The Company expects quarterly gold production to increase in the second half of the year and for the recovery ratio to increase to budgeted levels as a result of increased gold production derived from ore stacked on the new expanded leach pad area, an expansion of the gold recovery plant, and an increase in throughput to the leach pad.
During the first and second quarters of 2010, ore was stacked on the second and third lifts of the heap, increasing the percolation time required for the gold-bearing solution to report to the gold recovery plant. Leach pad expansion activities have been underway throughout the first half of 2010 and the Company plans to begin stacking ore directly on the new liner during the fourth quarter of 2010. This is expected to reduce percolation times and increase quarterly production rates accordingly.
Gold production in the second half is also expected to benefit from the addition of a second train of carbon columns for the gold recovery plant that is expected to be completed during the third quarter of this year. Additional columns will provide additional gold-bearing solution processing capacity, which will help mitigate production timing issues caused by dilution as a result of the rainy season.
The Company is in the process of constructing a new screening plant, which is expected to be completed during the fourth quarter 2010. The additional screening is expected to result in a 13% to 20% increase in crusher throughput to the leach pad.
With respect to the expansion of the Mulatos Pit, which will provide access to the high-grade portion of the Escondida zone, the mining contractor was unable to make up lost time in the second quarter and is now 15% behind schedule. The contractor has procured three additional trucks and a new loader, all of which are on-site. The Company continues to evaluate whether the contractor will be able to meet the development schedule for completion by the end of 2011, or whether the completion target date will be moved to early 2012.
As a result of changes to the schedule for removing the waste overlying the Escondida zone, construction of the Mulatos High-Grade Mill, which will initially process high-grade ore from the Escondida zone, is now planned to commence in the first quarter of 2011. The mill is still scheduled to be complete by the end of 2011 and the estimated cost remains unchanged at $17.5 million, which includes a 20% contingency. The mill is expected to produce at least 55,000 ounces per year for a minimum of two years from the Escondida zone starting in 2012.
The Company is maintaining its production guidance of 160,000 to 175,000 ounces at a cash operating cost of $288 per ounce plus a 5% royalty.
Mulatos Exploration Update
At the Company's Mulatos Project in Mexico, three reverse-circulation ('RC') drilling rigs and one core drill rig have collectively drilled over 31,850 metres ('m') in 164 holes in 2010. In the second quarter, drilling activities continued to focus on the San Carlos and Puerto del Aire Extension ('PdA Extension') mineral resource areas, which are identified in Figure 1 at the end of this press release.
San Carlos
In 2010, the Company has completed over 13,985 m of infill and extension drilling in 65 holes at San Carlos. The infill drilling portion of the program was recently completed and the extension drilling program was suspended in mid-July due to the onset of the rainy season and corresponding difficult access.
The San Carlos mineralized zone, as defined by the distribution of silica alteration, has a strike length of at least 400 m, an average width of approximately 125 m, and an average thickness of approximately 50 m. The high-grade portion of the mineralized zone, which is contained within the lower-grade mineralized envelope, is both structurally- and stratigraphically-controlled, is at least 270 m long, has an average width of approximately 50 m, and an average thickness of 20 m. The San Carlos zone remains open towards the east-northeast.
Drilling continues to demonstrate the continuity and robustness of the San Carlos zone, as demonstrated by the assay results presented below. Of particular interest are holes 10SC109 and 10SC120, which are the two largest grade-thickness intercepts from San Carlos to date.
- 10SC098: 12.2 m grading 6.61 grams/tonne gold ('g/t Au')
- 10SC107: 42.7 m grading 6.07 g/t Au (including 18.3 m grading 11.33 g/t
Au)
- 10SC109: 37.5 m grading 11.61 g/t Au (including 16.9 m grading 24.65 g/t
Au)
- 10SC113: 24.4 m grading 5.94 g/t Au
- 10SC115: 16.8 m grading 4.88 g/t Au
- 10SC120: 29.0 m grading 15.02 g/t Au (including 12.2 m 34.61 g/t Au)
All of the holes listed above, except 10SC115, were infill and extension drill holes targeting the high-grade portion of the San Carlos zone. Additional assay results and drill hole collar data are presented in tables 4 and 5, respectively, at the end of this press release. Drill hole locations are presented in Figure 2 at the end of this press release.
With respect to drill hole 10SC115, it was drilled some 150 m north and off trend from the high-grade portion of the San Carlos zone. This area, which was also intercepted in drill hole 10SC099 (6.1 m grading 5.65 g/t Au and 10.7 m grading 2.36 g/t Au), is interpreted by the Company to represent a new, sub-parallel, trend of high-grade mineralization that will be a high-priority exploration target when drilling resumes.
The Company also completed four PQ size core holes during the second quarter for metallurgical testing. Analyses to date has indicated that the gold mineralization is associated with high-specific gravity minerals, suggesting that the ore may be amenable to gravity separation and has the potential to be a future source of mill feed for the Mulatos High-Grade Mill.
Drilling at San Carlos is planned to resume in the fall after the rainy season has passed. In the interim, mineral resource modelling and estimation activities have commenced. Exploration results obtained at San Carlos since November of 2009 will be incorporated in the next year-end mineral reserve and resource statement.
Puerto del Aire Extension
In 2010, more than 11,600 m have been drilled in 41 holes as part of the PdA Extension drill program. Relevant assay results and drill hole collar data are presented in tables 6 and 7, respectively. Drill hole locations from the PdA Extension drill program are presented in Figure 3 at the end of this release.
Recent drilling activities at the PdA Extension have primarily focused on expanding the mineralized zone towards the northeast and infill drilling a new higher-grade zone discovered in the first quarter of 2010.
This new higher-grade zone was initially intercepted in drill hole 10PA192 (18.3 m grading 2.70 g/t Au) and then by drill holes 10PA204 (15.3 m grading 4.08 g/t Au) and 10PA218 (14.5 m grading 3.04 g/t Au), which are interpreted to have intersected lateral extensions of this higher-grade zone. These three holes have outlined a higher-grade zone with a strike length of approximately 200 m, an average thickness of approximately 15 m, and an average width of more than 50 m. Four additional holes have been drilled to test for eastward extensions of this zone over a strike length of 150 m. Assay results from these holes are pending.
The depth of this higher-grade zone likely precludes open-pit mining and the Company has begun to internally assess the viability of mining this zone using underground methods. During this assessment period, the Company will conduct preliminary metallurgical testing and engineering analyses to determine the economic potential of the zone before determining whether or not to recommence drilling.
For the remainder of the year, drilling at the PdA Extension will focus on the shallower part of the mineralized zone located adjacent to the western side of the Mulatos River. Exploration at the PdA Extension will also focus on drill-testing anomalies within close proximity to recently discovered mafic dykes swarms. Mafic dykes encountered at San Carlos are interpreted to be spatially related to high-grade gold mineralization, and are thus considered to be very prospective high-priority exploration targets.
Reminder of Q2 2010 Financial Results Conference Call and Webcast
The Company's senior management will host a conference call today, August 5, 2010 at 12:00 pm EDT to discuss the 2010 second quarter financial results, and to provide an update of the Company's operating, exploration, and development activities.
Participants may join the conference call by dialling 1 (800) 355-4959 or 1 (416) 695-6623 for calls outside Canada and the United States or via webcast on the Company's website at www.alamosgold.com.
A recorded playback of the conference call can be accessed after the event until August 19, 2010 by dialling 1 (800) 408-3053 or 1 (416) 695-5800 for calls outside Canada the United States. The pass code for the conference call playback is 4271620#. The archived audio webcast will also be available on the Company's website at www.alamosgold.com.
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 greater than 0.5 g/t (Mulatos) over a 3-m minimum width, no assays are 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 US$170 million cash on hand, is debt-free, and unhedged to the price of gold. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol 'AGI'.
Cautionary Non-GAAP Statements
The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. 'Cash flow from operating activities before changes in non-cash working capital' is a non-GAAP performance measure which could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to 'Cash provided by (used for) operating activities' as presented on the Company's consolidated statements of cash flows. 'Mining cost per tonne of ore' is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency and effectiveness at the Mine. It is determined by dividing the relevant mining and processing costs by the tonnes of ore processed in the period. 'Cost per tonne of ore' is usually affected by operating efficiencies and waste-to-ore ratios in the period. 'Cash operating costs per ounce' and 'total cash costs per ounce' as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of 'cash operating costs per ounce' as determined by the Company compared with other mining companies. In this context, 'cash operating costs per ounce' reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of gold sold in the period. 'Cash operating costs per ounce' may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. 'Total cash costs per ounce' includes 'cash operating costs per ounce' plus applicable royalties. Cash operating costs per ounce and total cash costs per ounce are exclusive of exploration costs. 'Adjusted Earnings' is a non-GAAP performance measure which could provide an indication of the underlying operating performance of the Company. It excludes the following from earnings: Impairment charges related to property, plant and equipment; Gains/losses on acquisitions/dispositions; Foreign currency translation gains/losses; Unrealized gains/losses on non-hedge derivative instruments; and Stock based compensation.
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.
The Company has made projections of its annual production and operating costs based on annual budget which incorporates assumptions based on mining in sequence its mineral reserves at projected rates of tonnes and grade, assessing probable costs for mining and processing activities, projecting reasonable foreign exchange rates and achieving indicated rates of gold recovery derived from laboratory testing and historical experience. These assumptions are considered reasonable in the circumstances, but may be subject to change as additional information becomes available.
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.
(1) 'recovery ratio' is defined as the ratio of gold ounces produced divided by the number of contained ounces stacked over a specific period
To view the figures associated with this release, please visit the following links:
Figure 1: Mulatos Pit Area
Figure 2: San Carlos Project Area - Drill Hole Locations
Figure 3: Puerto del Aire Extension Project Area - Drill Hole Locations
Table 1: Financial Highlights
Q2 2010 Q2 2009 YTD 2010 YTD 2009
Cash provided by operating
activities before changes
in non-cash working capital
(000)(1) $21,511 $21,228 $43,470 $36,670
Changes in non-cash working
capital (000) ($619) ($790) $955 $837
Cash provided by operating
activities (000) $20,892 $20,438 $44,425 $37,507
Earnings before income taxes
(000) $19,579 $18,921 $40,458 $30,389
Earnings (000) $12,078 $12,969 $26,083 $21,767
Earnings per share
- basic $0.11 $0.12 $0.23 $0.21
- diluted $0.10 $0.12 $0.22 $0.20
Comprehensive income (000) $12,078 $13,109 $26,083 $22,460
Weighted average number of
common shares outstanding
- basic 114,965,000 107,604,000 114,448,000 104,603,000
- diluted 116,732,000 110,439,000 116,239,000 106,722,000
Assets (2) $475,245(2) $300,990(2)
(1) A non-GAAP measure calculated as cash provided by operating activities
as presented on the consolidated statements of cash flows and adding
back changes in non-cash working capital.
(2) Assets are presented as at June 30, 2010 and June 30, 2009.
Table 2: Production Summary & Statistics (1,2)
Production Summary Q2 2010 Q2 2009 YTD 2010 YTD 2009
Ounces produced (1) 38,400 42,000 80,000 88,000
Ore crushed (tonnes) 1,202,000 1,072,000 2,392,000 2,140,000
Grade (g/t Au) 1.64 1.92 1.70 1.82
Contained ounces stacked 63,400 66,269 130,700 124,884
Ratio of ounces produced to
contained ounces stacked 61% 63% 61% 70%
Ore mined (tonnes) 1,188,000 1,026,000 2,398,000 2,073,000
Waste mined (tonnes) 1,117,000 1,081,000 1,860,000 2,613,000
Total mined (tonnes) 2,305,000 2,107,000 4,258,000 4,686,000
Waste-to-ore ratio 0.94 1.05 0.78 1.26
Ore crushed per day (tonnes) 13,200 11,800 13,200 11,800
(1) - Reported gold production for Q2 and YTD 2009 has been adjusted to
reflect final refinery settlement. Reported gold production for Q2 and
YTD 2010 is subject to final refinery settlement and may be adjusted.
Table 3: Production Costs & Statistics
Costs Per Tonne Summary Q2 2010 Q2 2009 YTD 2010 YTD 2009
Mining cost per tonne of
material (ore and waste) $1.89 $1.93 $2.02 $1.67
Waste-to-ore ratio 0.94 1.05 0.78 1.26
Mining cost per tonne of ore $3.66 $3.97 $3.58 $3.78
Crushing/conveying cost per
tonne of ore $2.31 $1.65 $2.04 $1.72
Processing cost per tonne of ore $2.24 $2.74 $2.34 $2.50
Mine administration cost per
tonne of ore $2.05 $1.65 $1.95 $1.61
Total cost per tonne of ore $10.26 $10.01 $9.91 $9.61
Table 4: San Carlos - Select Composite Intervals(1)
Include intervals at greater than 0.5 g/t Au over a 3 metres minimum width,
no assay cut
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Drill Hole Drilling Total Interval Assay(3)(g/t
Number Method(2) Depth (m) From(3)(m) To(3)(m) (3)(m) Au)
----------------------------------------------------------------------------
10SC082 Core 241.60 97.80 105.10 7.30 7.38
163.60 169.05 5.45 0.82
171.25 175.55 4.30 0.83
181.55 188.55 7.00 1.70
----------------------------------------------------------------------------
10SC083 Core 187.50 66.63 69.68 3.05 6.38
77.95 81.00 3.05 13.09
83.80 102.39 18.59 1.32
123.67 135.80 12.13 0.75
148.05 158.69 10.64 3.45
----------------------------------------------------------------------------
10SC097 RC 152.44 27.44 33.54 6.10 0.54
48.78 65.55 16.77 0.89
68.60 71.65 3.05 0.91
79.27 83.84 4.57 0.67
86.89 103.66 16.77 0.74
112.80 128.05 15.25 0.69
----------------------------------------------------------------------------
10SC098 RC 137.20 0.00 3.05 3.05 0.83
9.15 21.34 12.19 6.61
25.91 33.54 7.63 0.69
----------------------------------------------------------------------------
10SC099 RC 304.88 195.12 201.22 6.10 5.65
204.27 214.94 10.67 2.36
----------------------------------------------------------------------------
10SC100 RC 199.70 33.54 36.59 3.05 0.62
68.60 71.65 3.05 0.61
77.74 83.84 6.10 0.80
92.99 125.00 32.01 1.10
128.05 153.96 25.91 1.45
157.01 163.11 6.10 0.86
166.16 185.98 19.82 1.06
----------------------------------------------------------------------------
10SC101 Core 95.80 36.80(4) 42.80(4) 6.00(4) 28.59(4)
45.84 50.40 4.56 2.19
58.45 65.90 7.45 2.81
73.50 87.57 14.07 1.70
----------------------------------------------------------------------------
10SC102 RC 260.67 190.55 201.22 10.67 1.03
219.51 222.56 3.05 0.51
231.71 234.76 3.05 0.83
239.33 243.90 4.57 0.55
----------------------------------------------------------------------------
10SC103 RC 321.65 242.38 248.48 6.10 0.57
288.11 291.16 3.05 1.39
----------------------------------------------------------------------------
10SC104 RC 282.01 167.68 175.30 7.62 0.74
178.35 182.93 4.58 0.58
185.98 199.70 13.72 0.66
----------------------------------------------------------------------------
10SC105 RC 349.09 288.11 292.68 4.57 1.25
298.78 301.83 3.05 1.07
304.88 310.98 6.10 0.86
----------------------------------------------------------------------------
10SC107 RC 224.09 115.85 158.54 42.69 6.07
Inc.117.38 135.67 18.29 11.33
202.74 211.89 9.15 0.63
----------------------------------------------------------------------------
10SC108 RC 96.04 13.72 19.82 6.10 0.73
51.83 59.45 7.62 0.76
----------------------------------------------------------------------------
10SC109 Core 172.55 110.34 147.80 37.46 11.61
Inc.114.24 131.10 16.86 24.65
----------------------------------------------------------------------------
10SC110 RC 379.57 315.55 320.12 4.57 0.57
330.79 335.37 4.58 0.71
344.51 349.09 4.58 2.40
----------------------------------------------------------------------------
10SC111 RC 239.33 9.15 28.96 19.81 0.81
33.54 38.11 4.57 0.84
57.93 64.02 6.09 0.71
71.65 76.22 4.57 0.91
91.46 102.13 10.67 0.57
106.71 137.20 30.49 1.24
163.11 185.98 22.87 0.96
189.02 202.74 13.72 0.79
213.41 217.99 4.58 0.72
221.04 225.61 4.57 0.62
----------------------------------------------------------------------------
10SC112 RC 205.79 13.72 36.59 22.87 2.76
42.68 50.30 7.62 0.85
53.35 56.40 3.05 0.79
62.50 73.17 10.67 0.60
77.74 80.79 3.05 0.79
123.47 126.52 3.05 0.61
138.72 141.77 3.05 0.60
144.82 150.91 6.09 0.80
----------------------------------------------------------------------------
10SC113 RC 275.91 179.88 204.27 24.39 5.94
Inc.181.40 187.50 6.10 11.69
Inc.190.55 195.12 4.57 11.49
250.00 256.10 6.10 0.86
----------------------------------------------------------------------------
10SC114 RC 199.70 103.66 106.71 3.05 0.64
118.90 123.48 4.58 0.49
----------------------------------------------------------------------------
10SC115 RC 342.99 230.18 242.38 12.20 2.09
250.00 266.77 16.77 4.88
306.40 318.60 12.20 0.91
----------------------------------------------------------------------------
10SC116 RC 381.10 221.04 224.09 3.05 6.28
233.23 245.43 12.20 1.57
----------------------------------------------------------------------------
10SC117 RC 333.84 192.07 199.70 7.63 1.15
----------------------------------------------------------------------------
10SC118 RC 326.22 242.38 245.43 3.05 0.68
----------------------------------------------------------------------------
10SC119 RC 160.06 117.38 120.43 3.05 1.15
----------------------------------------------------------------------------
10SC120 RC 153.96 91.46 120.43 28.97 15.02
Inc.92.99 105.18 12.19 34.61
141.77 147.87 6.10 1.20
----------------------------------------------------------------------------
10SC121 RC 182.93 No
Intervals
----------------------------------------------------------------------------
10SC123 RC 243.90 167.68 179.88 12.20 3.53
202.74 214.94 12.20 0.86
----------------------------------------------------------------------------
(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) RC equals Reverse Circulation Hole
(3) Number in bold represent intervals greater than 50 metres(i)grams/tonne
(50gmt)
(4) Include stope fill from 37.85 to 41.80 metres; in situ interval grading
156 g/t Au from 36.80 to 37.85 metres
Table 5: San Carlos - Drill Hole Collar Data
----------------------------------------------------------------------------
Total Depth Azimuth Dip Easting Northing
Drill Hole (m) (degree) (degree) NAD27-12 (m) NAD27-12 (m)
----------------------------------------------------------------------------
10SC082 241.6 0 -47 722,512 3,173,101
----------------------------------------------------------------------------
10SC083 187.5 0 -90 722,517 3,173,096
----------------------------------------------------------------------------
10SC097 152.44 180 -70 722,416 3,173,021
----------------------------------------------------------------------------
10SC098 137.20 0 -50 722,413 3,173,065
----------------------------------------------------------------------------
10SC099 304.88 0 -70 722,740 3,173,136
----------------------------------------------------------------------------
10SC100 199.70 180 -50 722,416 3,173,020
----------------------------------------------------------------------------
10SC101 95.80 0 -45 722,457 3,173,053
----------------------------------------------------------------------------
10SC102 260.67 0 -65 722,740 3,173,037
----------------------------------------------------------------------------
10SC103 321.65 0 -78 722,806 3,173,100
----------------------------------------------------------------------------
10SC104 282.01 0 -75 722,737 3,173,038
----------------------------------------------------------------------------
10SC105 349.09 0 70 722,805 3,173,101
----------------------------------------------------------------------------
10SC107 224.09 0 -45 722,545 3,173,014
----------------------------------------------------------------------------
10SC108 96.04 350 -50 722,391 3,172,984
----------------------------------------------------------------------------
10SC109 172.55 0 -90 722,571 3,173,086
----------------------------------------------------------------------------
10SC110 379.57 0 -60 722,848 3,173,080
----------------------------------------------------------------------------
10SC111 239.33 170 -50 722,393 3,172,984
----------------------------------------------------------------------------
10SC112 205.79 170 -70 722,393 3,172,985
----------------------------------------------------------------------------
10SC113 275.91 0 -45 722,598 3,173,004
----------------------------------------------------------------------------
10SC114 199.70 180 -50 722,482 3,172,988
----------------------------------------------------------------------------
10SC115 342.99 0 -58 722,805 3,173,102
----------------------------------------------------------------------------
10SC116 381.10 0 -45 722,737 3,173,040
----------------------------------------------------------------------------
10SC117 333.84 0 -60 722,692 3,173,141
----------------------------------------------------------------------------
10SC118 323.17 130 -80 722,604 3,173,375
----------------------------------------------------------------------------
10SC119 160.06 0 -70 722,483 3,172,947
----------------------------------------------------------------------------
10SC120 153.96 0 -63 722,542 3,173,085
----------------------------------------------------------------------------
10SC121 182.93 0 -60 722,513 3,173,151
----------------------------------------------------------------------------
10SC123 243.90 0 -49 722,595 3,173,062
----------------------------------------------------------------------------
Table 6: Puerto del Aire Extension - Select Composite Intervals(1)
Include intervals at greater than 0.5 g/t Au over a 3 metres minimum width,
no assay cut
----------------------------------------------------------------------------
Drill Hole Drilling Total Interval(3) Assay(3)
Number Method(2) Depth (m) From(3)(m) To(3)(m) (m) (g/t Au)
----------------------------------------------------------------------------
10PA217 RC 321.65 282.01 285.06 3.05 0.90
309.45 312.50 3.05 1.47
----------------------------------------------------------------------------
10PA218 RC/Core 482.85 401.45 406.00 4.55 0.87
447.54 450.32 2.78 0.70
466.72 481.19 14.47 3.04
Inc.469.76 475.84 6.08 5.71
----------------------------------------------------------------------------
10PA219 RC/Core 479.90 No assay results for core tail yet
----------------------------------------------------------------------------
10PA221 RC/Core 408.60 No assay results for core tail yet
----------------------------------------------------------------------------
(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) RC equals Reverse Circulation Hole
(3) Number in bold represent intervals greater than 50 metres(i)grams/tonne
(50gmt)
Table 7: Puerto del Aire Extension - Drill Hole Collar Data
----------------------------------------------------------------------------
Total Depth Azimuth Easting Northing
Drill Hole (m) (degree) Dip (degree) NAD27-12 (m) NAD27-12 (m)
----------------------------------------------------------------------------
10PA217 321.65 0 -90 722,172 3,171,858
----------------------------------------------------------------------------
10PA218 482.85 150 -75 722,805 3,172,034
----------------------------------------------------------------------------
10PA219 479.90 150 -65 722,805 3,172,034
----------------------------------------------------------------------------
10PA221 408.60 330 -80 722,976 3,171,939
----------------------------------------------------------------------------
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Alamos Gold Inc.
John A. McCluskey
President and Chief Executive Officer
(416) 368-9932
Alamos Gold Inc.
Jeremy Link
Investor Relations Manager
(416) 368-9932