Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today reported its
updated Mineral Reserves and Resources as of December 31, 2020. For
a detailed summary by asset, refer to the tables below.
Highlights
- Island Gold’s Mineral Reserves and Resources increased
a combined 1.0 million ounces, net of mining depletion, at a
discovery cost of $8 per ounce, including:
° 8% increase in Proven and Probable Mineral
Reserves to 1.3 million ounces (4.2 million tonnes (“mt”)
grading 9.71 grams per tonne of gold (“g/t Au”)), net of mining
depletion° 40% increase in Inferred Mineral
Resources to 3.2 million ounces (6.9 mt grading 14.43 g/t
Au) with grades also increasing 9%, reflecting further higher grade
additions in Island East° Combined Mineral
Reserves and Resources now total 4.7 million ounces, a 27%
increase from the end of 2019 and 155% increase from the 1.8
million ounces at the time of acquisition in 2017, net of 508,000
ounces of mining depletion° Growth highlights
significant upside potential to Phase III Expansion Study,
with the 2020 Mineral Reserve and Resource additions expected to
increase already attractive economics
- Global Proven and Probable Mineral Reserves of 9.9
million ounces of gold (204 mt grading 1.50 g/t Au), up
from 9.7 million ounces at the end of 2019 with increases at Island
Gold, Young-Davidson and Lynn Lake more than offsetting 555,000
ounces of mining depletion
- Global Measured and Indicated Mineral Resources of 6.9
million ounces of gold (196 mt grading 1.09 g/t Au), down
3% reflecting the conversion to Mineral Reserves at Young-Davidson
and Lynn Lake
- Global Inferred Mineral Resources increased 16% to 7.0
million ounces of gold (132 mt grading 1.65 g/t Au), with
grades also increasing 15% driven by significantly higher grade
additions at Island Gold which totalled 910,000 ounces grading
18.59 g/t Au
- Gold price assumptions unchanged from 2019
with $1,250 per ounce used for estimating Mineral Reserves and
$1,400 per ounce used for estimating Mineral Resources
- Global exploration budget of $50 million in
2021, double the $25 million spent in 2020. Island Gold
remains the primary focus with a $25 million budget, followed by $9
million budgeted at Mulatos and $7 million at each of
Young-Davidson and Lynn Lake
“We had an excellent 2020 on the exploration front despite a
smaller than planned program due to COVID-19. We more than replaced
Global Mineral Reserves and added another million ounces of
high-grade Mineral Reserves and Resources at Island Gold,” said
John A. McCluskey, President and Chief Executive Officer.
“Island Gold is now approaching five million ounces of combined
Mineral Reserves and Resources with excellent potential for this
growth to continue with the deposit open laterally and at depth.
This growth further increases the value of the operation beyond
what was outlined in the Phase III Expansion Study this past year
and reaffirms the decision to put in a shaft,” Mr. McCluskey
added.
TOTAL MINERAL RESERVES AND RESOURCES |
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Proven and Probable Gold Mineral Reserves |
|
2020 |
2019 |
% Change |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson |
41,191 |
2.44 |
3,232 |
37,710 |
2.60 |
3,146 |
9 |
% |
-6 |
% |
3 |
% |
Island Gold |
4,197 |
9.71 |
1,310 |
3,643 |
10.37 |
1,215 |
15 |
% |
-6 |
% |
8 |
% |
Mulatos Mine |
5,447 |
0.93 |
163 |
8,806 |
0.89 |
251 |
-38 |
% |
5 |
% |
-35 |
% |
Stockpiles |
8,854 |
1.30 |
369 |
10,531 |
1.25 |
424 |
-16 |
% |
3 |
% |
-13 |
% |
La Yaqui Grande |
18,203 |
1.25 |
732 |
19,205 |
1.17 |
724 |
-5 |
% |
7 |
% |
1 |
% |
Cerro Pelon |
1,431 |
1.90 |
87 |
2,630 |
1.94 |
164 |
-46 |
% |
-2 |
% |
-47 |
% |
Total Mulatos |
33,935 |
1.24 |
1,351 |
41,172 |
1.18 |
1,563 |
-18 |
% |
5 |
% |
-14 |
% |
MacLellan |
27,820 |
1.54 |
1,382 |
23,254 |
1.61 |
1,206 |
20 |
% |
-4 |
% |
15 |
% |
Gordon |
8,723 |
2.42 |
678 |
8,723 |
2.42 |
678 |
- |
|
- |
|
- |
|
Total Lynn Lake |
36,542 |
1.75 |
2,060 |
31,977 |
1.83 |
1,884 |
14 |
% |
-4 |
% |
9 |
% |
Ağı Dağı |
54,361 |
0.67 |
1,166 |
54,361 |
0.67 |
1,166 |
- |
|
- |
|
- |
|
Kirazlı |
33,861 |
0.69 |
752 |
33,861 |
0.69 |
752 |
- |
|
- |
|
- |
|
Total Turkey |
88,222 |
0.68 |
1,918 |
88,222 |
0.68 |
1,918 |
- |
|
- |
|
- |
|
Alamos - Total |
204,087 |
1.50 |
9,870 |
202,724 |
1.49 |
9,726 |
1 |
% |
1 |
% |
1 |
% |
|
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|
|
|
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|
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|
|
Measured and Indicated Gold Mineral Resources (exclusive of
Mineral Reserves) |
Young-Davidson - Surface |
1,739 |
1.24 |
69 |
1,739 |
1.24 |
69 |
- |
|
- |
|
- |
|
Young-Davidson - Underground |
9,272 |
3.59 |
1,071 |
9,535 |
3.68 |
1,128 |
-3 |
% |
-2 |
% |
-5 |
% |
Total Young-Davidson |
11,011 |
3.22 |
1,140 |
11,273 |
3.30 |
1,197 |
-2 |
% |
-3 |
% |
-5 |
% |
Island Gold |
718 |
7.18 |
166 |
879 |
6.51 |
184 |
-18 |
% |
10 |
% |
-10 |
% |
Mulatos Mine |
71,319 |
1.10 |
2,518 |
71,319 |
1.10 |
2,518 |
- |
|
- |
|
- |
|
La Yaqui Grande |
1,237 |
0.80 |
32 |
1,321 |
1.01 |
43 |
-6 |
% |
-21 |
% |
-26 |
% |
Cerro Pelon |
282 |
1.54 |
14 |
243 |
1.41 |
11 |
16 |
% |
10 |
% |
27 |
% |
Carricito |
1,355 |
0.83 |
36 |
1,355 |
0.83 |
36 |
- |
|
- |
|
- |
|
Total Mulatos |
74,193 |
1.09 |
2,600 |
74,238 |
1.09 |
2,608 |
0 |
% |
0 |
% |
0 |
% |
Lynn Lake |
8,178 |
1.74 |
457 |
9,993 |
1.74 |
560 |
-18 |
% |
0 |
% |
-18 |
% |
Esperanza |
34,352 |
0.98 |
1,084 |
34,352 |
0.98 |
1,084 |
- |
|
- |
|
- |
|
Turkey |
55,664 |
0.60 |
1,068 |
55,664 |
0.60 |
1,068 |
- |
|
- |
|
- |
|
Quartz Mountain |
12,156 |
0.87 |
339 |
12,156 |
0.87 |
339 |
- |
|
- |
|
- |
|
Alamos - Total |
196,272 |
1.09 |
6,855 |
198,555 |
1.10 |
7,041 |
-1 |
% |
-2 |
% |
-3 |
% |
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Inferred Gold Mineral Resources |
Young-Davidson - Surface |
31 |
0.99 |
1 |
31 |
0.99 |
1 |
- |
|
- |
|
- |
|
Young-Davidson - Underground |
2,301 |
2.88 |
213 |
1,329 |
2.43 |
104 |
73 |
% |
19 |
% |
105 |
% |
Total Young-Davidson |
2,331 |
2.86 |
214 |
1,360 |
2.40 |
105 |
71 |
% |
19 |
% |
104 |
% |
Island Gold |
6,915 |
14.43 |
3,208 |
5,392 |
13.26 |
2,298 |
28 |
% |
9 |
% |
40 |
% |
Mulatos Mine |
8,122 |
0.92 |
239 |
8,122 |
0.92 |
239 |
- |
|
- |
|
- |
|
La Yaqui Grande |
243 |
1.12 |
9 |
241 |
0.88 |
7 |
1 |
% |
27 |
% |
29 |
% |
Cerro Pelon |
26 |
0.71 |
1 |
37 |
0.62 |
1 |
-30 |
% |
16 |
% |
0 |
% |
Carricito |
900 |
0.74 |
22 |
900 |
0.74 |
22 |
- |
|
- |
|
- |
|
Total Mulatos |
9,291 |
0.91 |
271 |
9,300 |
0.90 |
269 |
0 |
% |
1 |
% |
1 |
% |
Lynn Lake |
45,873 |
1.10 |
1,622 |
46,466 |
1.11 |
1,663 |
-1 |
% |
-1 |
% |
-2 |
% |
Esperanza |
718 |
0.80 |
18 |
718 |
0.80 |
18 |
- |
|
- |
|
- |
|
Turkey |
27,245 |
0.55 |
482 |
27,245 |
0.55 |
482 |
- |
|
- |
|
- |
|
Quartz Mountain |
39,205 |
0.91 |
1,147 |
39,205 |
0.91 |
1,147 |
- |
|
- |
|
- |
|
Alamos - Total |
131,579 |
1.65 |
6,962 |
129,686 |
1.43 |
5,982 |
1 |
% |
15 |
% |
16 |
% |
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Mineral Reserves
Global Proven and Probable Mineral Reserves total 9.9 million
ounces of gold as of December 31, 2020, a slight increase from 9.7
million ounces at the end of 2019. This reflected increases at
Island Gold, Young-Davidson, and Lynn Lake which more than offset
mining depletion of 555,000 ounces in 2020.
Island Gold
Island Gold was once again the largest driver of global Mineral
Reserve and Resource growth in 2020. Despite a smaller than planned
drill program due to COVID-19, Island Gold more than replaced
Mineral Reserves and delivered its largest annual increase in
Inferred Mineral Resources to date and at significantly higher
grades. Mineral Reserves increased 8% in 2020 to 1.3 million
ounces, despite the primary focus in 2020 being on Mineral Resource
growth. The increase in Mineral Reserves included the addition of
239,000 ounces which more than offset mining depletion of 144,000
ounces. Mineral Reserve grades decreased slightly to 9.71 g/t Au
due to higher grades mined in 2020 (11.18 g/t Au) as well as a
reduction in the cut-off grade reflecting lower expected costs
following the completion of the Phase III Expansion in 2025. Since
the acquisition of Island Gold in November 2017, Mineral Reserves
have increased 74%, net of depletion, with Mineral Reserve grades
increasing 6%.
Young-Davidson
Young-Davidson more than replaced mining depletion in 2020 with
Mineral Reserves increasing 3% to 3.2 million ounces. The increase
in Mineral Reserves, at slightly lower grades of 2.44 g/t Au, was
driven by a decrease in the cut-off grade in 2020, which
incorporated lower operating costs with the transition to the new
lower mine infrastructure. There has not been significant
exploration drilling completed at Young-Davidson since 2011. A
small underground exploration program was initiated in 2020 and was
successful in intersecting gold mineralization below the existing
Mineral Reserves and Resources. With the deposit open at depth and
improved underground access now available in the lower mine,
exploration activities will be expanded in 2021 with a $7 million
program planned.
Mulatos
Mineral Reserves at Mulatos decreased 212,000 ounces to 1.4
million ounces reflecting mining depletion. Combined Mineral
Reserve grades increased 5% to 1.24 g/t Au primarily due to a 7%
increase in grades at La Yaqui Grande to 1.25 g/t Au. Very limited
drilling was completed at Mulatos in 2020 due to COVID-19 with
exploration activities suspended during the second quarter and not
resuming until the fourth quarter. Exploration activities are
expected to ramp up in 2021 with a larger $9 million budget.
Lynn Lake
Mineral Reserves at Lynn Lake increased 9% to 2.1 million ounces
at slightly lower grades of 1.75 g/t Au. The increase in Mineral
Reserves reflects exploration success within and adjacent to the
MacLellan deposit. A larger $7 million budget is planned for Lynn
Lake with the focus on testing additional targets in proximity to
the MacLellan and Gordon deposits, recently identified regional
targets, and the Burnt Timber and Linkwood deposits which were not
included in the 2017 Feasibility Study.
A $1,250 per ounce gold price assumption was used in estimating
2020 Mineral Reserves, unchanged from 2019. A detailed summary of
Proven and Probable Mineral Reserves as of December 31, 2020 is
presented in Table 1 at the end of this press release.
Mineral Resources
Global Measured and Indicated Mineral Resources (exclusive of
Mineral Reserves) totaled 6.9 million ounces as of December 31,
2020. This is down 186,000 ounces, or 3%, from 2019 reflecting the
conversion of Mineral Resources to Mineral Reserves at Lynn Lake,
Young-Davidson and Island Gold.
Global Inferred Mineral Resources totaled 7.0 million ounces as
of December 31, 2020 a 16% increase from 2019. Grades also
increased 15% with both increases driven by the addition of 910,000
ounces at Island Gold at significantly higher grades.
The Company’s $1,400 per ounce gold price assumption for
estimating Mineral Resources is unchanged from 2019. Detailed
summaries of the Company’s Measured and Indicated Mineral Resources
and Inferred Mineral Resources as of December 31, 2020 are
presented in Tables 3 and 4, respectively, at the end of this press
release.
Island Gold
Island Gold’s Mineral Reserves increased to 1.3 million ounces,
an 8% increase from the end of 2019, net of mining depletion.
Mineral Reserve grades decreased 6% to 9.71 g/t Au from the end of
2019 reflecting the above noted higher grades mined during 2020 and
decrease in cut-off grade through the incorporation of lower costs
following the completion of the Phase III Expansion. The increases
in Mineral Reserves were located within Island Main and the upper
portion of Island East where the advancement of exploration drifts
in these areas over the past year improved access for drilling from
underground. (See Figure 1 at the end of this press release.)
Measured and Indicated Mineral Resources decreased 10% to
166,000 ounces while grades increased 10% to 7.18 g/t Au from the
end of 2019. The decrease reflects the conversion to Mineral
Reserves in Island Main and East.
Inferred Mineral Resources increased 40% to 3.2 million ounces
with grades increasing a further 9% to 14.43 g/t Au compared to the
end of 2019. The average grade of the 910,000 ounce increase was
18.59 g/t Au with the majority of these higher-grade additions
coming from Island East in proximity to the planned shaft location.
This represents the largest annual increase in Inferred Mineral
Resources to date and follows another substantial increase in 2019.
Over the past two years, Inferred Mineral Resources have more than
doubled with grades increasing 23%. Highlights of the 2020 increase
in Inferred Mineral Resources include:
- 95,200 ounces added
in the middle portion of Island East, closing what was previously a
300 metre (“m”) gap between high-grade Mineral Resources in Island
Main and East between depths of 850 m and 1,100 m. This area had
not seen any drilling prior to 2019. It has since grown to include
396,400 ounces grading 14.09 g/t Au and remains open both up- and
down-plunge (see Figure 2)
- 589,900 ounces were
added in the lower portion of Island East, significantly increasing
Inferred Mineral Resources in this area to 1.3 million ounces
grading 18.26 g/t Au. This included connecting the gap between it
and Mineral Resources in the middle portion of Island East.
High-grade Inferred Mineral Resources were also added down plunge
where drilling in the second half of 2020 returned some of the best
surface exploration holes to date. This large east plunging
high-grade ore shoot is located in proximity to the planned shaft
location and remains open laterally, and up- and down-plunge
- 113,600 ounces were
also added in Island West through limited drilling with much of the
2020 focus on Island East
- Inferred Mineral
Resources at Island Gold continue to convert to Mineral Reserves at
a rate of more than 83% since the 2017 acquisition. These additions
are all part of the same structure with consistent style of
mineralization as existing Mineral Reserves. As such the Company
expects this high rate of conversion to continue as exploration
drifts are advanced into these areas allowing for additional
drilling from underground
- Discovery costs
averaged an attractive $8 per ounce in 2020 and have averaged $11
per ounce over the past three years
A total of $25 million is budgeted for exploration at Island
Gold in 2021, up from $13 million spent in 2020. The focus remains
on continuing to define new near mine Mineral Resources across the
two-kilometre long Island Gold Main Zone which remains open
laterally and down-plunge. Additionally, a significantly larger
regional exploration program is planned which includes 25,000 m of
drilling with the objective of evaluating and advancing targets
within the recently expanded 15,000 hectare land package.
As outlined in the Phase III Expansion Study in July 2020,
Island Gold has a 16-year mine life based on Mineral Reserves and
Resources as of the end of 2019. The increase in Mineral Reserves
and Resources in 2020 represents upside to the Phase III mine plan
and is expected to significantly extend the mine life and further
increase the value of the operation.
Since the acquisition of Island Gold in 2017,
- Mineral Reserves have increased 1.1 million ounces
before mining depletion, or 0.6 million ounces net of mining
depletion, with Mineral Reserve grades increasing 6%
- Measured and Indicated Mineral Resources have increased
82% or 75,000 ounces, with grades increasing 21%
- Inferred Mineral Resources have increased 222%, or 2.2
million ounces, with grades increasing 42%
Young-Davidson
Mineral Reserves at Young-Davidson increased 85,000 ounces to
3.2 million ounces of gold with additions of 231,000 ounces more
than offsetting depletion of 146,000 ounces. As noted above, the
increase in Mineral Reserves at slightly lower grades of 2.44 g/t
Au was driven by a decrease in the cut-off grade, reflecting lower
costs with the transition to the more productive lower mine
infrastructure.
Based on expected underground mining rates of 8,000 tonnes per
day, the Mineral Reserve life of the Young-Davidson mine has
increased one year to approximately 14 years as of December 31,
2020.
Measured and Indicated Mineral Resources of 1.1 million ounces
decreased slightly from a year ago, reflecting the conversion of
Mineral Resource to Mineral Reserves. Inferred Mineral Resources
increased to 0.2 million ounces with grades increasing to 2.86 g/t
Au.
With the completion of the lower mine expansion, an initial
exploration drilling program was completed in 2020, yielding
encouraging results below the 1,500 m level and in proximity to the
new lower mine infrastructure. In addition to defining
mineralization within the Young-Davidson syenite, drilling also
intersected higher-grade gold mineralization in both the footwall
and hanging wall of the syenite. Additional drilling will be
required in 2021 to confirm the geometry of these structures and to
further evaluate the potential continuity of gold mineralization
within the structures.
The planned 2021 underground drilling program will test several
target areas in proximity to the existing underground
infrastructure with the deposit open at depth and to the west. A
total of $7 million is budgeted for 2021, representing the first
significant exploration program at Young-Davidson since 2011.
Mulatos
Total Mulatos District Mineral Reserves (including La Yaqui
Grande and Cerro Pelon) decreased 212,000 ounces to 1.4 million
ounces, reflecting mining depletion. Combined Mineral Reserve
grades increased 5% to 1.24 g/t Au, reflecting a 7% increase in
grades at La Yaqui Grande to 1.25 g/t Au.
The remaining Mineral Reserve life of the Mulatos District is
approximately seven years as of December 31, 2020.
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 the end of 2019.
A total of $9 million is budgeted for exploration at Mulatos in
2021 focusing on the Mulatos near-mine area as well as regional
targets including Carricito and Halcon.
Lynn Lake
Mineral Reserves at Lynn Lake increased 9%, or 176,000 ounces,
to 2.1 million ounces with grades decreasing slightly to 1.75 g/t
Au. The additions were driven by exploration success in proximity
to the MacLellan deposit, one of two deposits that were included in
the 2017 Feasibility Study.
Measured and Indicated Mineral Resources decreased 103,000
ounces to 460,000 ounces, reflecting the conversion to Mineral
Reserves with grades unchanged at 1.74 g/t Au. Inferred Mineral
Resources were largely unchanged at 1.6 million ounces grading 1.10
g/t Au with the bulk of this residing in the Burnt Timber and
Linkwood deposits which were not included in the 2017 Feasibility
Study and represent potential upside.
Kirazlı, Ağı Dağı, Çamyurt, Esperanza and Quartz Mountain
Mineral Reserves and Resources for the Kirazlı, Ağı Dağı,
Çamyurt, Esperanza and Quartz Mountain projects are unchanged from
a year ago.
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”). The
Qualified Persons for the National Instrument 43-101 compliant
Mineral Reserve and Resource estimates are detailed in the
following table.
Resources |
|
|
Jeffrey Volk, CPG, FAusIMM |
Director - Reserves and Resource,Alamos Gold Inc. |
Young-Davidson, Lynn Lake |
Raynald Vincent, P.Eng., M.G.P. |
Chief Geologist - Island Gold |
Island Gold |
Marc Jutras, P.Eng |
Principal, Ginto Consulting Inc. |
Mulatos Pits, Cerro Pelon, La Yaqui, Carricito, Esperanza, Ağı
Dağı, Kirazlı, Çamyurt, Quartz Mountain |
|
|
|
Reserves |
|
|
Chris Bostwick, FAusIMM |
VP Technical Services, Alamos Gold Inc. |
Young-Davidson, Lynn Lake |
Nathan Bourgeault, P.Eng |
Chief Engineer - Island Gold |
Island Gold |
Herb Welhener, SME-QP |
VP, Independent Mining Consultants Inc. |
Mulatos Pits, Cerro Pelon, La Yaqui, Ağı Dağı, Kirazlı |
With the exception of Mr. Volk, Mr. Bostwick, Mr. Vincent, and
Mr. Bourgeault each of the foregoing individuals are independent of
Alamos Gold.
About Alamos
Alamos 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:
Scott K.
Parsons |
Vice President, Investor
Relations |
(416) 368-9932 x 5439 |
The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-Looking
Statements
This news release includes certain statements that constitute
forward-looking information within the meaning of applicable
Canadian and U.S. securities laws ("forward-looking statements").
All statements other than statements of historical fact, which
address events, results, outcomes or developments that Alamos
expects to occur are forward-looking statements. Forward-looking
statements are generally, but not always, identified by the use of
forward-looking terminology such as “continue”, "expect", "plan",
"estimate", “target”, “budget” or “potential” or variations of such
words and phrases and similar expressions or statements that
certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved or the negative
connotation of such terms. Such statements in this news release
include statements with respect to planned exploration programs,
costs and expenditures, project economics, changes in mineral
resources and conversion of mineral resources to proven and
probable reserves, expected mine life and potential extensions
thereof, expected increases in the value of operations, 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 that 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. 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.
Alamos cautions that forward-looking statements are necessarily
based upon several factors and assumptions that, while considered
reasonable by the Company at the time of making such statements,
are inherently subject to significant business, economic, legal,
political and competitive uncertainties and contingencies. Known
and unknown factors could cause actual results to differ materially
from those projected in the forward-looking statements. These
factors and assumptions include, but are not limited to: changes to
current estimates of mineral reserves and resources; conclusions of
economic and geological evaluations; changes in project parameters
as plans continue to be refined; changes to production estimates
(which assume accuracy of projected ore grade, mining rates,
recovery timing and recovery rate estimates and may be impacted by
unscheduled maintenance, labour and contractor availability and
other operating or technical difficulties); fluctuations in the
price of gold; changes in foreign exchange rates (particularly the
Canadian dollar, Mexican peso, Turkish Lira and U.S. dollar); the
impact of inflation; employee and community relations (including
maintaining social license to operate in Turkey); litigation and
administrative proceedings; disruptions affecting operations;
availability of and increased costs associated with mining inputs
and labour; expansion delays with the Phase III Expansion Project
at the Island Gold mine; inherent risks associated with mining and
mineral processing; the risk that the Company’s mines may not
perform as planned; uncertainty with the Company’s ability to
secure additional capital to execute its business plans; the
speculative nature of mineral exploration and development, the
renewal of the Company’s mining concessions in Turkey; timely
resumption of construction and development at the Kirazlı project;
the risks of obtaining and maintaining necessary licenses, permits
and authorizations for the Company’s development and
operating assets; labour and contractor availability (and
being able to secure the same on favourable terms); contests over
title to properties; expropriation or nationalization of property;
inherent risks and hazards associated with mining including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures and cave-ins; changes in national and local
government legislation (including tax and employment legislation),
controls or regulations in Canada, Mexico, Turkey, the United
States and other jurisdictions in which the Company does or may
carry on business in the future; risk of loss due to sabotage,
protests and other civil disturbances; the impact of global
liquidity and credit availability and the values of assets and
liabilities based on projected future cash flows; risks arising
from holding derivative instruments; business opportunities that
may be pursued by the Company; operations may be exposed to new
diseases, epidemics and pandemics, including the effects and
potential effects of the global COVID-19 widespread pandemic; the
impact of the COVID-19 pandemic on the broader market and the
trading price of the Company's shares; provincial and federal
orders or mandates (including with respect to mining operations
generally or auxiliary businesses or services required for our
operations) in Canada, Mexico, the United States and Turkey; the
duration of regulatory responses to the COVID-19 pandemic; and
government’s and the Company’s attempts to reduce the spread of
COVID-19 which may affect many aspects of the Company's operations
including the ability to transport personnel to and from site,
contractor and supply availability and the ability to sell or
deliver gold dore bars.
For a more detailed discussion of such risks and other factors
that may affect the Company's ability to achieve the expectations
set forth in the forward-looking statements contained in this news
release, see the Company’s latest 40-F/Annual Information Form and
MD&A, each under the heading “Risk Factors”, available on the
SEDAR website at www.sedar.com or on EDGAR at www.sec.gov. The
foregoing should be reviewed in conjunction with the information
found in this news release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Note to U.S. Investors – Mineral Reserve and Resource
Estimates
All resource and reserve estimates included in this news release
or documents referenced in this news release have been prepared in
accordance with Canadian National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Standards"). NI
43-101 is a rule developed by the Canadian Securities
Administrators, which established standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. The terms "Mineral Reserve", "Proven
Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining
terms as defined in accordance with NI 43-101 and the CIM
Standards. Investors are cautioned not to assume that all or any
part of mineral deposits in these categories will ever be converted
into reserves. "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred Mineral Resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in very limited circumstances.
Investors are cautioned not to assume that all or any part of an
Inferred Mineral Resource exists or is economically or legally
mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations.
Table 1: Total Proven and Probable
Mineral Reserves as of December 31, 2020
PROVEN AND PROBABLE GOLD RESERVES (as at December 31,
2020) |
|
Proven Reserves |
Probable Reserves |
Total Proven and Probable |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson |
20,614 |
2.50 |
1,657 |
20,577 |
2.38 |
1,574 |
41,191 |
2.44 |
3,232 |
Island Gold |
894 |
10.95 |
315 |
3,303 |
9.37 |
995 |
4,197 |
9.71 |
1,310 |
Mulatos Main Pits |
668 |
0.97 |
21 |
4,779 |
0.92 |
142 |
5,447 |
0.93 |
163 |
Stockpiles |
8,854 |
1.30 |
369 |
0 |
0.00 |
0 |
8,854 |
1.30 |
369 |
La Yaqui Grande |
0 |
0.00 |
0 |
18,203 |
1.25 |
732 |
18,203 |
1.25 |
732 |
Cerro Pelon |
502 |
1.89 |
31 |
929 |
1.91 |
57 |
1,431 |
1.90 |
87 |
Total Mulatos |
10,024 |
1.30 |
420 |
23,911 |
1.21 |
931 |
33,935 |
1.24 |
1,351 |
MacLellan |
12,059 |
1.83 |
710 |
15,761 |
1.33 |
672 |
27,820 |
1.54 |
1,382 |
Gordon |
2,311 |
1.83 |
210 |
6,412 |
2.27 |
468 |
8,723 |
2.42 |
678 |
Total Lynn Lake |
14,370 |
1.99 |
920 |
22,172 |
1.60 |
1,140 |
36,542 |
1.75 |
2,060 |
Ağı Dağı |
1,450 |
0.76 |
36 |
52,911 |
0.66 |
1,130 |
54,361 |
0.67 |
1,166 |
Kirazlı |
670 |
1.15 |
25 |
33,191 |
0.68 |
727 |
33,861 |
0.69 |
752 |
Total Turkey |
2,120 |
0.89 |
61 |
86,102 |
0.67 |
1,857 |
88,222 |
0.68 |
1,918 |
Alamos - Total |
48,022 |
2.18 |
3,373 |
156,065 |
1.29 |
6,498 |
204,087 |
1.50 |
9,870 |
PROVEN AND PROBABLE SILVER MINERAL RESERVES (as at December
31, 2020) |
|
Proven Reserves |
Probable Reserves |
Total Proven and Probable |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
0 |
0.00 |
0 |
18,203 |
19.55 |
11,442 |
18,203 |
19.55 |
11,442 |
Cerro Pelon |
502 |
21.03 |
339 |
929 |
20.74 |
619 |
1,431 |
20.84 |
959 |
MacLellan |
12,059 |
4.94 |
1,914 |
15,761 |
3.97 |
2,011 |
27,820 |
4.39 |
3,925 |
Ağı Dağı |
1,450 |
6.22 |
290 |
52,911 |
5.39 |
9,169 |
54,361 |
5.41 |
9,459 |
Kirazlı |
670 |
16.94 |
365 |
33,191 |
9.27 |
9,892 |
33,861 |
9.42 |
10,257 |
Alamos - Total |
14,681 |
6.16 |
2,909 |
120,995 |
8.52 |
33,133 |
135,676 |
8.26 |
36,042 |
|
Table 2: Project Life-of-Mine Mineral
Reserve Waste-to-Ore Ratios as of December 31,
2020
Project Life-of-Mine Mineral Reserve Waste-to-Ore
Ratiosas of December 31, 2020 |
Project |
Waste-to-Ore Ratio |
Mulatos Mine |
2.84 |
Cerro Pelon Pit |
1.71 |
La Yaqui Grande Pit |
6.02 |
Ağı Dağı Pits |
1.03 |
Kirazlı Pit |
1.45 |
Lynn Lake Pits |
8.12 |
Table 3: Total Measured and Indicated
Mineral Resources as of December 31, 2020
MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at
December 31, 2020) |
|
Measured Resources |
Indicated Resources |
Total Measured and Indicated |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
496 |
1.13 |
18 |
1,242 |
1.28 |
51 |
1,739 |
1.24 |
69 |
Young-Davidson - Underground |
6,019 |
3.44 |
665 |
3,253 |
3.88 |
406 |
9,272 |
3.59 |
1,071 |
Total Young-Davidson |
6,515 |
3.26 |
683 |
4,495 |
3.16 |
457 |
11,011 |
3.22 |
1,140 |
Island Gold |
14 |
4.61 |
2 |
704 |
7.23 |
164 |
718 |
7.18 |
166 |
Mulatos |
8,207 |
1.25 |
329 |
63,112 |
1.08 |
2,189 |
71,319 |
1.10 |
2,518 |
La Yaqui Grande |
0 |
0.00 |
0 |
1,237 |
0.81 |
32 |
1,237 |
0.80 |
32 |
Cerro Pelon |
74 |
1.92 |
5 |
208 |
1.39 |
9 |
282 |
1.54 |
14 |
Carricito |
58 |
0.82 |
2 |
1,297 |
0.82 |
34 |
1,355 |
0.83 |
36 |
Total Mulatos |
8,339 |
1.25 |
336 |
65,854 |
1.07 |
2,264 |
74,193 |
1.09 |
2,600 |
MacLellan - Open Pit |
902 |
2.07 |
60 |
3,532 |
1.71 |
194 |
4,434 |
1.78 |
254 |
MacLellan - Underground |
0 |
0.00 |
0 |
123 |
3.54 |
14 |
123 |
3.54 |
14 |
Gordon |
105 |
1.86 |
6 |
1,511 |
2.06 |
100 |
1,617 |
2.05 |
106 |
Burnt Timber |
0 |
0.00 |
0 |
1,021 |
1.40 |
46 |
1,021 |
1.40 |
46 |
Linkwood |
0 |
0.00 |
0 |
984 |
1.16 |
37 |
984 |
1.17 |
37 |
Total Lynn Lake |
1,007 |
2.04 |
66 |
7,172 |
1.70 |
391 |
8,178 |
1.74 |
457 |
Esperanza |
19,226 |
1.01 |
622 |
15,126 |
0.95 |
462 |
34,352 |
0.98 |
1,084 |
Ağı Dağı |
553 |
0.44 |
8 |
34,334 |
0.46 |
510 |
34,887 |
0.46 |
518 |
Kirazlı |
0 |
0.00 |
0 |
3,056 |
0.42 |
42 |
3,056 |
0.43 |
42 |
Çamyurt |
513 |
1.00 |
16 |
17,208 |
0.89 |
492 |
17,721 |
0.89 |
508 |
Total Turkey |
1,066 |
0.70 |
24 |
54,598 |
0.59 |
1,044 |
55,664 |
0.60 |
1,068 |
Quartz Mountain |
214 |
0.95 |
7 |
11,942 |
0.87 |
333 |
12,156 |
0.87 |
339 |
Alamos - Total |
36,381 |
1.49 |
1,740 |
159,891 |
1.00 |
5,115 |
196,272 |
1.09 |
6,855 |
MEASURED AND INDICATED SILVER MINERAL RESOURCES (as at
December 31, 2020) |
|
Measured Resources |
Indicated Resources |
Total Measured and Indicated |
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
0 |
0.00 |
0 |
1,237 |
11 |
448 |
1,237 |
11 |
448 |
Cerro Pelon |
74 |
16.80 |
40 |
208 |
17 |
114 |
282 |
17 |
154 |
MacLellan - Open Pit |
902 |
8.55 |
248 |
3,532 |
4.64 |
527 |
4,434 |
5.44 |
775 |
MacLellan - Underground |
0 |
0.00 |
0 |
123 |
6.05 |
24 |
123 |
6.05 |
24 |
Esperanza |
19,226 |
7.25 |
4,482 |
15,126 |
9.16 |
4,455 |
34,352 |
8.09 |
8,936 |
Ağı Dağı |
553 |
1.59 |
28 |
34,334 |
2.19 |
2,417 |
34,887 |
2.18 |
2,445 |
Kirazlı |
0 |
0.00 |
0 |
3,056 |
2.71 |
266 |
3,056 |
2.71 |
266 |
Çamyurt |
513 |
5.63 |
93 |
17,208 |
6.15 |
3,404 |
17,721 |
6.14 |
3,497 |
Alamos - Total |
21,268 |
7.15 |
4,890 |
74,824 |
4.84 |
11,655 |
96,092 |
5.36 |
16,545 |
|
|
|
|
|
|
|
|
|
|
Table 4: Total Inferred Mineral Resources
as of December 31, 2020
INFERRED GOLD MINERAL RESOURCES (as at December 31,
2020) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
31 |
0.99 |
1 |
Young-Davidson - Underground |
2,301 |
2.88 |
213 |
Total Young-Davidson |
2,331 |
2.86 |
214 |
Island Gold |
6,915 |
14.43 |
3,208 |
Mulatos |
8,122 |
0.92 |
239 |
La Yaqui Grande |
243 |
1.12 |
9 |
Cerro Pelon |
26 |
0.71 |
1 |
Carricito |
900 |
0.74 |
22 |
Total Mulatos |
9,291 |
0.91 |
271 |
MacLellan - Open Pit |
1,227 |
1.11 |
44 |
MacLellan - Underground |
72 |
3.69 |
9 |
Gordon |
132 |
1.36 |
6 |
Burnt Timber |
23,438 |
1.04 |
781 |
Linkwood |
21,004 |
1.16 |
783 |
Total Lynn Lake |
45,873 |
1.10 |
1,622 |
Esperanza |
718 |
0.80 |
18 |
Ağı Dağı |
16,760 |
0.46 |
245 |
Kirazlı |
7,694 |
0.61 |
152 |
Çamyurt |
2,791 |
0.95 |
85 |
Total Turkey |
27,245 |
0.55 |
482 |
Quartz Mountain |
39,205 |
0.91 |
1,147 |
Alamos - Total |
131,579 |
1.65 |
6,962 |
INFERRED SILVER MINERAL RESOURCES (as at December 31,
2020) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
243 |
7.35 |
57 |
Cerro Pelon |
26 |
4.99 |
4 |
MacLellan - Open Pit |
1,227 |
1.98 |
78 |
MacLellan - Underground |
72 |
3.26 |
8 |
Esperanza |
718 |
15.04 |
347 |
Ağı
Dağı |
16,760 |
2.85 |
1,536 |
Kirazlı |
7,694 |
8.71 |
2,155 |
Çamyurt |
2,791 |
5.77 |
518 |
Alamos - Total |
29,531 |
4.95 |
4,703 |
Notes to Mineral Reserve and Resource
Tables:
- The Company’s Mineral Reserves and Mineral Resources as at
December 31, 2020 are classified in accordance with the Canadian
Institute of Mining Metallurgy and Petroleum’s “CIM Standards on
Mineral Resources and Reserves, Definition and Guidelines” as per
Canadian Securities Administrator’s NI 43-101 requirements.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
- Mineral Resources are exclusive of Mineral Reserves.
- Mineral Reserve cut-off grade for the Mulatos Mine, the Cerro
Pelon Pit, the La Yaqui Pit, the Kirazlı Pit and the Ağı Dağı Pit
are determined as a net of process value of $0.10 per tonne for
each model block.
- All Measured, Indicated and Inferred open pit Mineral Resources
are pit constrained with the exception of those outside the Mulatos
Main Pits on the Mulatos property which have no economic
restrictions and are tabulated by gold cut-off grade.
- With the exception of the Mulatos main open pit, Mineral
Reserve estimates assumed a gold price of $1,250 per ounce and
Mineral Resource estimates assumed a gold price of $1,400 per
ounce. As the Mulatos main open pit has a Mineral Reserve life
remaining of less than two years, a gold price of $1,400 was
used.
- Metal prices, cut-off grades and metallurgical recoveries are
set out in the table below.
|
Mineral Resources |
Mineral Reserves |
|
|
Gold Price |
Cut-off |
Gold Price |
Cut-off |
Met Recovery |
Mulatos: |
|
|
|
|
|
Mulatos Main Open Pit |
$1,400 |
0.5 |
see notes |
see notes |
>50% |
Cerro Pelon |
$1,400 |
0.3 |
$1,250 |
see notes |
75% |
La Yaqui Grande |
$1,400 |
0.3 |
$1,250 |
see notes |
75% |
Carricito |
$1,400 |
0.3 |
n/a |
n/a |
n/a |
Young-Davidson - Surface |
$1,400 |
0.5 |
$1,250 |
0.5 |
91% |
Young-Davidson - Underground |
$1,400 |
1.3 |
$1,250 |
1.7 |
91% |
Island Gold |
$1,400 |
3.5 |
$1,250 |
2.18-4.66 |
96.5% |
Lynn Lake - MacLellan |
$1,400 |
0.42 |
$1,250 |
0.47 |
91-92% |
Lynn Lake - MacLellan Underground |
$1,400 |
2.0 |
n/a |
n/a |
n/a |
Lynn Lake - Gordon |
$1,400 |
0.62 |
$1,250 |
0.69 |
89-94% |
Esperanza |
$1,400 |
0.4 |
n/a |
n/a |
60-72% |
Ağı Dağı |
$1,400 |
0.2 |
$1,250 |
see notes |
80% |
Kirazlı |
$1,400 |
0.2 |
$1,250 |
see notes |
81% |
Çamyurt |
$1,400 |
0.2 |
n/a |
n/a |
78% |
Quartz Mountain |
$1,400 |
0.21 Oxide,0.6 Sulfide |
n/a |
n/a |
65-80% |
Figure 1: Island Gold Mine Main Zone
Longitudinal – 2020 Mineral
Reserves - https://www.globenewswire.com/NewsRoom/AttachmentNg/bac0893d-38dc-44c7-96f7-5ec26975a542
Figure 2: Island Gold Mine Main Zone
Longitudinal – 2020 Mineral Resources
- https://www.globenewswire.com/NewsRoom/AttachmentNg/98787f7c-0a3d-41c4-b9d1-dba4a326d001
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