Alamos Gold Further Extends High-Grade Mineralization at Island Gold

Alamos Gold Further Extends High-Grade Mineralization at Island Gold

TORONTO, Jan. 15, 2020 (GLOBE NEWSWIRE) — Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported new results from surface and underground exploration drilling at the Island Gold mine, further extending high-grade gold mineralization beyond existing Mineral Resources in all three areas of focus. All reported drill widths are true width of the mineralized zones, unless otherwise stated.
Main Extension Down-Plunge: high-grade mineralization extended 80 metres (“m”) east of existing Mineral Resources (MH17-12) and 50 m below the nearest previously reported intersection (MH17-07). 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:121.32 g/t Au (96.47 g/t cut) over 3.81 m (MH20-01);108.17 g/t Au (94.56 g/t cut) over 2.57 m (MH17-11);  and36.45 g/t Au (13.23 g/t cut) over 8.04 m (MH17-12).
 
Eastern Extension: high-grade mineralization intersected 170 m east of the nearest Indicated Mineral Resource (620-610-07).  This area is located 225 m above the high-grade intersections in the new area of focus. New highlights include:32.19 g/t Au (25.48 g/t cut) over 4.68 m (620-610-01); and20.18 g/t Au (20.18 g/t cut) over 3.24 m (620-610-07).
 
Gap between Main and Eastern Extensions: extended high-grade mineralization 50 m to the west in the new area of focus to now cover a lateral extent of 350 m, and confirmed the continuity of high-grade mineralization at a drill density that will support the declaration of an initial Inferred Mineral Resource. All 17 holes drilled to date in this area have intersected the E1E Zone including 12 intersecting ore grade gold mineralization. This has confirmed the E1E Zone extends vertically over 1.2 kilometres (“km”),  between  a depth of 300 m and 1,500 m in the eastern part of the deposit. New highlights include:21.28 g/t Au (21.28 g/t cut) over 9.01 m (MH18-09); and28.50 g/t Au (23.13 g/t cut) over 4.38 m (MH18-10).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.
“We had another exceptional year at Island Gold operationally, financially and through the drill bit. The operation produced 150,400 ounces of gold in 2019, achieving a new record for the fifth consecutive year, and set a new record for free cash flow. With the ongoing exploration success, we expect further growth in Island Gold’s Mineral Reserves and Resources with our year-end update. This growth will be incorporated into the Phase III expansion study which we plan to complete during the second quarter of 2020. We expect this study will showcase a larger, extremely profitable, long-life operation,” said John A. McCluskey, President and Chief Executive Officer.2019 Exploration Drilling Program – Island Gold MineThe 2019 exploration drilling program was focused on further expanding 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 program has been successful in extending high-grade gold mineralization across all three areas of focus, the Main, Western, and Eastern Extensions. This is expected to drive further growth in Mineral Reserves and Resources in the 2019 year-end update to be completed in February 2020. This is a continuation of the significant growth in Mineral Reserves and Resources already realized since the November 2017 acquisition of Island Gold.A total of 47,608 m of surface directional and 24,462 m of underground exploration drilling was completed in 2019. New highlight intercepts since August 31, 2019 can be found in Figures 1, 2, 3, and 4; and Tables 1 and 2 at the end of this news release.2020 Exploration Drilling Program – Island Gold MineA total of $21 million has been budgeted in 2020 for surface and underground exploration at Island Gold, an increase from the 2019 budget of $19 million. The focus remains on continuing to define new near mine Mineral Resources. The 2020 budget includes 46,000 m of surface directional drilling, 30,000 m of underground exploration drilling, and 900 m of underground exploration development to extend drill platforms on the 340, 620, 790, and 840 levels. A regional exploration program which includes 10,000 m of drilling is also planned in 2020, focused on evaluating and advancing exploration targets outside the main Island Gold Mine area on the 9,750-hectare Island Gold Property.Main ExtensionSurface directional drilling continues to extend gold mineralization with drill hole spacing ranging from 50 to 100 m (Figure 2).New highlights from the surface drilling program include (E1E-Zone) (Table 1):121.32 g/t Au (96.47 g/t cut) over 3.81 m (MH20-01);108.17 g/t Au (94.56 g/t cut) over 2.57 m (MH17-11);36.45 g/t Au (13.23 g/t cut) over 8.04 m (MH17-12);9.96 g/t Au (9.96 g/t cut) over 7.79 m (MH21-02);12.56 g/t Au (10.16 g/t cut) over 6.85 m (MH14-8);10.69 g/t Au (10.69 g/t cut) over 6.08 m (MH20-02);8.27 g/t Au (8.27 g/t cut) over 7.16 m (MH21-03); and9.95 g/t Au (9.95 g/t cut) over 3.60 m (MH20-03).Gold mineralization continues to be expanded above, below and east as far as 200 m from existing Inferred Mineral Resources, and over one kilometre from existing mine workings. This includes new drillholes MH17-12 (36.45 g/t Au (13.23 g/t cut) over 8.04 m) and MH17-11 (108.17 g/t Au (94.56 g/t cut) over 2.57 m) which extended high-grade gold mineralization 80 m east of existing Mineral Resources and 50 m below the previously reported drill hole MH17-07 (16.61 g/t Au (14.48 g/t cut) over 7.27 m).Drillhole MH20-02 (10.69 g/t Au (10.69 g/t cut) over 6.08 m) extended high-grade mineralization 145 m above and east of the nearest Inferred Mineral Resources.  Drillhole MH21-03 (8.27 g/t Au (8.27 g/t cut) over 7.16 m) also expanded high-grade mineralization 120 m above existing Mineral Resources. Importantly, this also closed the gap to within 145 m of the nearest intercept in the new area of focus (new drillhole MH18-09 (21.28 g/t Au (21.28 g/t cut) over 9.01 m)). This east plunging high-grade ore shoot remains open laterally, and up- and down-plunge.Underground exploration drilling is being conducted from the 620 and 840 level exploration drifts in the Main Extension area to test the continuity of known Mineral Resource and Reserve blocks.New highlights from the underground exploration drilling program in the E1E Zone include (Figure 3, Table 2):8.98 g/t Au (8.98 g/t cut) over 7.65 m (840-560-04);8.64 g/t Au (8.64 g/t cut) over 6.38 m (840-560-09);9.48 g/t Au (9.48 g/t cut) over 4.36 m (840-554-04); and11.66 g/t Au (11.66 g/t cut) over 2.76 m (840-560-11).Three surface and two underground diamond drill rigs remain active in the Main Extension target area, focused on further extending high-grade mineralization and defining additional Mineral Resources.Drilling completed  in 2019 in the eastern part of the Island Gold mine (Main Extension area, new area of focus and Eastern Extension area) has confirmed the continuity of the E1E gold zone at depth. This zone now extends from 300 m to a vertical depth of more than 1,500 m.Eastern ExtensionUnderground exploration drilling is being conducted from the 340 and 620 level exploration drifts.  Drilling from the two levels is testing an area to the east of the Mineral Reserve and Mineral Resource blocks in the Eastern Extension, between 300 m and 1,100 m vertical depths, and above Inferred Mineral Resources in the Main Extension. New highlights from the underground exploration drilling program in the E1E Zone include (Figure 3, Table 2):32.19 g/t Au (25.48 g/t cut) over 4.68 m (620-610-01);20.18 g/t Au (20.18 g/t cut) over 3.24 m (620-610-07);11.90 g/t Au (11.90 g/t cut) over 4.03 m (620-604-17);10.26 g/t (10.26 g/t cut) over 3.28 m (620-610-06); and75.79 g/t Au (12.06 g/t cut) over 2.62 m (620-604-16).New drillholes 620-610-01 (32.19 g/t Au (25.48 g/t cut) over 4.68 m) and 620-610-07 (20.18 g/t Au (20.18 g/t cut) over 3.24 m) intersected high-grade mineralization 100 m and 170 m, respectively, east of existing Indicated and Inferred Mineral Resources in the Eastern Extension. Two underground rigs remain active in the area focused on defining new near mine Mineral Resources.
New Area of Focus between the Eastern and Main ExtensionsSurface directional drilling remains focused on testing the new area of high-grade gold mineralization within the E1E Zone discovered in May 2019. This area is located between 850 m and 1,150 m vertical depths, 180 m down-plunge from known Inferred Mineral Resource blocks in the Eastern Extension, and 200 m vertically above Inferred Mineral Resources in the eastern down-plunge extent of the Main Extension (Figure 2). New highlights from the surface drilling program include (E1E-Zone) (Table 1):21.28 g/t Au (21.28 g/t cut) over 9.01 m (MH18-09);28.50 g/t Au (23.13 g/t cut) over 4.38 m (MH18-10); and9.32 g/t Au (9.32 g/t cut) over 3.81 m (MH19-04).All 17 holes drilled to date in this area have intersected the E1E Zone with 12 of the holes presenting ore grade gold mineralization (see Figure 4).
New drill holes MH18-10 (28.50 g/t Au (23.13 g/t cut) over 4.38 m) and MH18-09 (21.28 g/t Au (21.28 g/t cut) over 9.01 m) have confirmed the continuity of high-grade mineralization at a drill density which will support the declaration of an initial Inferred Mineral Resource in this new area with the year-end update. Additionally, drill hole MH19-04 ( 9.32 g/t Au (9.32 g/t cut) over 3.81 m) extended high-grade mineralization 50 m to the west to now cover a lateral extent of 350 m.Testing the extent and continuity of high-grade mineralization between the Eastern and Main Extensions will be an ongoing focus of the exploration drilling program in 2020. Two surface directional diamond drill rigs are active in this area and will continue with 75 to 100 m spaced step-out drilling. The 840 level exploration drift has been extended above the western extent of this area. This will provide underground access for infill drilling in 2020 and exploration drilling for extending high-grade mineralization.Other ZonesThe 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 Zone which constitute the main production horizons at the Island Gold mine.  Highlights of new intersections from underground exploration drilling of parallel zones and zones in which the lateral continuity is not yet established (“Unknown Zone”) include (reported composite intervals are core lengths) (Table 2):22.26 g/t Au (18.98 g/t cut) over 7.58 m (840-554-03);14.27 g/t Au (14.27 g/t cut) over 9.50 m (840-560-08);16.66 g/t Au (16.66 g/t cut) over 3.50 m (340-602-24);4.99 g/t Au (4.99 g/t cut) over 10.80 m (620-610-04);5.75 g/t Au (5.75 g/t cut) over 8.00 m (840-554-01);3.83 g/t Au (3.83 g/t cut) over 11.94 m (840-560-06);10.42 g/t Au (10.42 g/t cut) over 4.30 m (840-560-02); and4.16 g/t Au (4.16 g/t cut) over 7.63 m (340-602-37).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 ControlAssays for the surface exploration drilling program 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.About AlamosAlamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine 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”.FOR FURTHER INFORMATION, PLEASE CONTACT:
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