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Alamos Gold Reports Mineral Reserves and Resources for the Year-Ended 2019

All amounts are in United States dollars, unless otherwise stated.TORONTO, Feb. 18, 2020 (GLOBE NEWSWIRE) — Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its updated Mineral Reserves and Resources as of December 31, 2019. For a detailed summary of Mineral Reserves and Resources by project, refer to the tables below.
HighlightsIsland Gold’s Mineral Reserves and Resources increased by a combined 921,000 ounces, net of mining depletion, including:21% increase in Proven and Probable Mineral Reserves to 1.22 million ounces (3.6 million tonnes (“mt”) grading 10.37 grams per tonne of gold (“g/t Au”)), net of mining depletion46% increase in Inferred Mineral Resources to 2.30 million ounces (5.4 mt grading 13.26 g/t Au) with grades also increasing 13% reflecting higher grade additions in Island EastCombined Mineral Reserves and Resources now total 3.70 million ounces, double the 1.84 million ounces at the time of acquisition in 2017, net of 364,000 ounces of mining depletionGlobal Proven and Probable Mineral Reserves of 9.73 million ounces of gold (203 mt grading 1.49 g/t Au), up slightly from 9.70 million ounces at the end of 2018 with increases primarily at Island Gold offsetting 576,000 ounces of mining depletionGlobal Measured and Indicated Mineral Resources of 7.04 million ounces of gold (199 mt grading 1.10 g/t Au), down 3% reflecting the conversion to Mineral Reserves at  Young-DavidsonGlobal Inferred Mineral Resources increased 10% to 5.98 million ounces of gold (130 mt grading 1.43 g/t Au), with grades also increasing 10% driven by the 725,000 ounce increase at Island GoldGlobal exploration budget of $36 million in 2020, a 24% increase from the $29 million spent in 2019. This includes $21 million at Island Gold focused on defining additional near mine Mineral Reserves and Resources, $7 million budgeted at Mulatos and $5 million budgeted at Lynn Lake“We had another tremendous year at Island Gold on all fronts with the asset continuing to evolve into a world class ore body. Over the past two years we have added more than two million ounces of Mineral Reserves and Resources, before mining depletion, with the deposit now approaching four million ounces in all categories. We see strong potential for this growth to continue with the deposit open laterally and down-plunge across multiple areas of focus,” said John A. McCluskey, President and Chief Executive Officer.
“The majority of this growth is being incorporated into a Phase III expansion study of Island Gold supporting what we expect will be a larger, increasingly profitable, long-life operation in one of the best mining jurisdictions in the world,” Mr. McCluskey added.Mineral ReservesGlobal Proven and Probable Mineral Reserves total 9.73 million ounces of gold as of December 31, 2019. This is up slightly from 9.70 million ounces at the end of 2018 with increases at Island Gold, Young-Davidson, La Yaqui Grande and Kirazlı offsetting mining depletion of 576,000 ounces in 2019.Island Gold continues to be the driver of Mineral Reserve and Resource growth within Alamos with another significant increase in high-grade ounces. Mineral Reserves increased 21% in 2019 to 1.2 million ounces despite the focus being on extending high-grade mineralization and adding near mine Mineral Resources. A total of 361,000 ounces of Mineral Reserves were added, more than offsetting mining depletion of 153,000 ounces. Mineral Reserve grades also increased slightly to 10.37 g/t Au with higher grade additions more than offsetting the higher grades mined in 2019. Since the acquisition of Island Gold in November 2017, Mineral Reserves have increased 62%, net of depletion, with Mineral Reserve grades also increasing 13%.Young-Davidson’s Mineral Reserve of 3.15 million ounces decreased 116,000 ounces from 2018 with mining depletion partially offset by an increase in Mineral Reserves in the lower mine. The additions were driven by conversion of existing Mineral Resources through stope definition drilling below current mining horizons. This contributed to a slight decrease in the Mineral Reserve grade to 2.60 g/t Au, from 2.67 g/t Au, at the end of 2018. No exploration drilling has been conducted at Young-Davidson since 2013 given the large Mineral Reserve base and the costly nature of drilling from surface. With the deposit open at depth and access now available to drill from the bottom of the mine, this will be an increasing focus going forward.Mineral Reserves at Mulatos decreased 154,000 ounces to 1.56 million ounces with mining depletion partially offset by an 81,000 ounce increase at La Yaqui Grande. The majority of the exploration activities conducted in 2019 were focused on earlier stage work. The 2020 exploration budget has been increased to $7 million at Mulatos with more drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito.Mineral Reserves at Kirazlı increased 87,000 ounces to 0.75 million ounces reflecting the conversion of existing Mineral Resources. The conversion was the result of an optimized pit design which incorporated lower costs than utilized in the 2017 Feasibility Study, reflecting the weaker Turkish Lira and lower mining costs confirmed with the 2019 mining contract.A $1,250 per ounce gold price assumption was used in estimating 2019 Mineral Reserves, unchanged from 2018. A detailed summary of Proven and Probable Mineral Reserves as of December 31, 2019 is presented in Table 1 at the end of this press release.Mineral ResourcesGlobal Measured and Indicated Mineral Resources (exclusive of Mineral Reserves) totaled 7.0 million ounces as of December 31, 2019. This is down 206,000 ounces, or 3%, from 2018 largely reflecting the conversion of Mineral Resources to Reserves at Young-Davidson and Kirazlı.Global Inferred Mineral Resources totaled 6.0 million ounces as of December 31, 2019, a 10% increase from 2018 with grades also increasing 10%. This was driven by the addition of  725,000 high-grade ounces at Island Gold.     The Company’s $1,400 per ounce gold price assumption for estimating Mineral Resources is unchanged from 2018. Detailed summaries of the Company’s Measured and Indicated Mineral Resources and Inferred Mineral Resources as of December 31, 2019 are presented in Tables 3 and 4, respectively, at the end of this press release.Island GoldExploration drilling at Island Gold continues to successfully extend high-grade mineralization and add near mine Mineral Resources across the down-plunge and lateral extensions of the Island Gold deposit. This was particularly successful in the eastern portion of the deposit (“Island East”) where the bulk of the 2019 Mineral Resource growth occurred, including in the new area of focus.Island Gold’s Mineral Reserves increased to 1.2 million ounces, a 208,000 ounce or 21% increase from the end of 2018, net of mining depletion. This included a 361,000 ounce increase in Mineral Reserves, less mining depletion of 153,000 ounces, in 2019. Mineral Reserve grades also increased 1% to 10.37 g/t Au from the end of 2018 with the higher grade additions more than offsetting the higher grades mined in 2019 of 12.28 g/t Au. All of the gains were made within the Island Main and Island East portions of the deposit. (See Figure 1 at the end of this press release.)Based on throughput rates of 1,200 tonnes per day (“tpd”), Island Gold has a current Mineral Reserve life of approximately eight years. With ongoing exploration success, an already large Mineral Resource base, and strong track record of conversion to Mineral Reserves, the Company expects Island Gold’s ultimate mine life will be significantly longer.Measured and Indicated Mineral Resources decreased 6% to 184,000 ounces with grades also decreasing to 6.51 g/t Au from the end of 2018 reflecting the conversion to Mineral Reserves, primarily in the upper portion of Island East.Inferred Mineral Resources increased 46%, or 725,000 ounces, to 2.3 million ounces with grades also increasing 13% to 13.26 g/t Au compared to the end of 2018. The strong increase in Mineral Resources and grade were driven by higher grade additions in Island East, including:An initial Inferred Mineral Resource of 301,000 ounces grading 16.06 g/t Au in the new area of focus. This area is located 180 m down-plunge from Mineral Reserves in Island East and had not seen any drilling prior to 2019. All 17 holes drilled to date in this area have intersected the Island Gold Main Zone with this area open both up- and down-plunge (see Figure 2)A 443,000 ounce increase in Inferred Mineral Resources, 200 m down-plunge from the new area of focus in the lower portion of Island East. This area now contains 720,000 ounces grading 18.74 g/t Au. This east plunging high-grade ore shoot remains open laterally, and up- and down-plungeTesting the continuity of high-grade mineralization between the Mineral Reserves in the upper portion of Island East to Mineral Resources in the lower portion will be an ongoing focus of both surface and underground exploration drilling in 2020.Since the acquisition of Island Gold in 2017,Mineral Reserves have increased 827,000 ounces before mining depletion, or 463,000 ounces net of mining depletion, with Mineral Reserve grades increasing 13%Measured and Indicated Mineral Resources have increased 102% or 93,000 ounces, with grades increasing 10%Inferred Mineral Resources have increased 131%, or 1,302,000 ounces, with grades increasing 30%Reflecting the ongoing exploration success, the 2020 exploration budget at Island Gold has been increased to $21 million, up from $17 million spent in 2019. The ongoing focus remains on adding near-mine Mineral Resources and extending high-grade mineralization in the Western, Main and Eastern portions of the Island Gold deposit with each open laterally and down-plunge.Young-DavidsonMineral Reserves at Young-Davidson decreased 116,000 ounces to 3.2 million ounces of gold. This reflects mining depletion of 203,000 ounces, partially offset by an increase of 88,000 ounces in the lower mine through the conversion of existing Mineral Resources. The conversion of the Mineral Resources was at lower grades contributing to a slight decrease in the Mineral Reserve grade to 2.60 g/t Au from 2.67 g/t Au. Exploration has not been a priority the last several years given the large existing Mineral Reserve base and with the focus on completing the lower mine expansion. With the lower mine expansion expected to be completed in June 2020 and underground drill platforms now available at depth, exploration activities are expected to resume in 2020. With the deposit open at depth and to the west, Young-Davidson has excellent exploration potential.  Measured and Indicated Mineral Resources of 1.2 million ounces and Inferred Mineral Resources of 0.1 million ounces both decreased slightly from a year ago, in part reflecting the conversion of Mineral Resources to Reserves. The Company expects to continue converting Mineral Resources to Reserves through additional stope definition and infill drilling.Based on expected underground mining rates, the remaining Mineral Reserve life of the Young-Davidson mine is approximately 13 years as of December 31, 2019.MulatosTotal Mulatos District Mineral Reserves (including La Yaqui Grande and Cerro Pelon) decreased 154,000 ounces to 1.6 million ounces with grades increasing slightly to 1.18 g/t Au. This reflects mining depletion partially offset by additions at La Yaqui Grande.Mineral Reserves at La Yaqui Grande increased 13% to 724,000 ounces with Mineral Reserve grade decreasing 7% to 1.17 g/t Au. The increase was driven by an optimization of the open pit design which brought additional ounces into the mine plan, at slightly lower grades. La Yaqui Grande’s higher grades (relative to the Mulatos Mine) are expected to support lower cost production than currently from the Mulatos Mine. The Company expects to finalize the project economics for La Yaqui Grande and make a construction decision during the second quarter of 2020.The remaining Mineral Reserve life of the Mulatos District is approximately six years as of December 31, 2019.Measured and Indicated Mineral Resources of 2.6 million ounces and Inferred Mineral Resources of 0.3 million ounces at Mulatos are largely unchanged from a year ago.The 2020 exploration budget for Mulatos has increased to $7 million and includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late 2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics.KirazlıMineral Reserves at Kirazlı increased 13%, or 87,000 ounces, to 752,000 ounces with grades decreasing 13% to 0.69 g/t Au. The increase was driven by an optimization of the open pit design through the application of lower mining contract rates and updated pit slope parameters.Measured and Indicated Mineral Resources decreased reflecting the conversion to Mineral Reserves. Inferred Mineral Resources increased reflecting a larger Mineral Resource pit resulting from the new optimization parameters.Lynn Lake, Ağı Dağı, Çamyurt, Esperanza and Quartz MountainMineral Reserves and Resources for the Lynn Lake, Ağı Dağı, Çamyurt, Esperanza and Quartz Mountain projects are unchanged from a year ago.Qualified PersonsChris 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”). The Qualified Persons for the National Instrument 43-101 compliant Mineral Reserve and Resource estimates are detailed in the following table.With the exception of Mr. Volk, Mr. Bostwick, Mr. Vincent, and Mr. Bourgeault each of the foregoing individuals are independent of Alamos Gold.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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