Benzinga | Jul 12, 2021 05:01PM EDT

Alamos Gold Reports Extension Of Gold Mineralization Below Mineral Reserves, Resources At Young-Davidson Project

Alamos Gold Inc. (TSX:AGI, NYSE:AGI) ("Alamos" or the "Company") today reported results from the ongoing underground exploration drilling program at Young-Davidson which has been successful at extending gold mineralization outside of Mineral Reserves and Resources.

* Gold mineralization extended 150 metres ("m") below existing Inferred Mineral Resources (YMEX21-8960-021). This follows a 220 m extension of gold mineralization in 2020 which contributed to an increase in Inferred Mineral Resources in the year-end update. New highlights include: 5.32 g/t Au (3.35 g/t cut) over 39.20 m (34.57 m true width) including 21.96 g/t Au (9.78 g/t cut) over 6.20 m (5.47 m true width) (YMEX20-8960-008)1; 5.42 g/t Au over 12.75 m (11.25 m true width) including 32.30 g/t Au over 0.65 m (0.57 m true width) (YMEX21-8960-016); and 4.36 g/t Au over 9.00 m (YMEX21-8960-021).

* High-grade mineralization intersected 200 m outside of the syenite in the hanging wall (YMEX20-8960-014), as well as in the footwall of the deposit (YMEX20-8960-011) highlighting significant near-mine exploration potential outside of the known ore body. New highlights include: 5.79 g/t Au over 13.70 m including 24.14 g/t Au over 1.85m (YMEX20-8960-014); and 8.32 g/t Au over 6.30 m (3.84 m true width) including 22.50 g/t Au over 1.20 m (0.73 m true width) (YMEX20-8960-011)1.

Note: Drillhole composite intervals reported as "cut" include higher grade samples that have been cut to 25 g/t Au. All composite intervals are reported as core length unless true width has been determined.

1 Drillhole completed in 2020 and included in year-end 2020 Mineral Reserves and Mineral Resources for Young-Davidson.

"With improved access from the lower mine, we have begun testing the potential below the existing deposit which remains open at depth and to the west. The early results are very promising, extending similar style gold mineralization below Mineral Reserves and Resources within the syenite that hosts the existing ore body. High-grade mineralization was also intersected in structures outside of the syenite in both the hanging wall and footwall. Both demonstrate the significant potential to add Mineral Reserves and Resources below the existing deposit, and at potentially higher grades within adjacent structures," said John A. McCluskey, President and Chief Executive Officer.

2021 Exploration Drilling Program -- Young-Davidson Mine

A total of $7 million is budgeted for exploration at Young-Davidson in 2021. This represents the first significant exploration program at Young-Davidson since 2011 with the focus over the last several years having been on completing the lower mine expansion, combined with the fact that Young-Davidson had a large existing Mineral Reserve base with a Reserve life of approximately 14 years as of the end of 2020. Additionally, the new lower mine infrastructure provides improved access to drill from underground at depth.

The 2021 program includes 13,000 m of underground exploration drilling and 560 m of underground exploration development to establish drill platforms on the 9220-level. The focus of the underground exploration drilling program is to expand Mineral Reserves and Resources in five target areas that have been identified within proximity to existing underground infrastructure. In addition, 7,500 m of surface drilling is planned in the second half of 2021 to test near-surface targets in proximity to Young-Davidson and on several regional targets across the property.

Underground exploration drilling is being conducted from drill bays established in the lower mine infrastructure at the 8990 and 8960 levels. A total of nine holes (6,513 m) were completed in 2020 (from the 8990 and 8960 levels). Three (plus one on-going) underground exploration holes totalling 3,182 m have been completed from the 8960 level in 2021. A second underground exploration drill is also testing exploration targets in the eastern extent of the mine from the 9470 and 9590 levels, where eleven underground exploration holes totalling 3,762 m have been completed as of June 30th.

New highlight intercepts from the 8960 level drilling can be found in Table 1 and in Figures 1 and 2 at the end of this news release.

Underground Exploration Drilling

The current program is targeting the down-plunge extension of gold mineralization within the Young-Davidson syenite which hosts the majority of the Mineral Reserves and Resources, while also testing the prospective and underexplored footwall Timiskaming sediments and hanging wall Tisdale mafic-ultramafic assemblages.

Since commencing underground exploration drilling in 2020, the program has been successful in extending syenite-hosted gold mineralization 220 m below the previous Mineral Resource (year-end 2019), contributing to an increase in Inferred Mineral Resources to 0.2 million ounces in the year-end 2020 Mineral Reserve and Resource update. Exploration drilling in 2021 has further extended syenite-hosted gold mineralization another 150 m below existing Mineral Resources and Reserves (YMEX21-8960-021).

High-grade gold mineralization was also intersected in structures both within the hanging wall ultramafic-mafic stratigraphy, and within the footwall sediments. Further drilling will be completed to evaluate the geometry and continuity of the mineralized structures. These initial exploration results outside of the Young-Davidson syenite highlight the significant near-mine exploration potential at Young-Davidson.

Drillhole YMEX20-8960-008 intersected 5.32 g/t Au (3.35 g/t cut) over 39.20 m (34.57 m true width) including 21.96 g/t Au (9.78 g/t cut) over 6.20 m (5.47 m true width) within syenite. The syenite remains open to the northwest and southeast, as well as down-dip, and within the 90 m gap above this intersection and below the Mineral Reserve and Mineral Resource above.

Drillhole YMEX20-8960-014 intersected a high-grade structure 200 m south of hanging wall contact of the syenite within ultramafic-mafic lithologies beyond the limits of any previous drilling. This structure returned 5.79 g/t over 13.70 m including 24.14 g/t Au over 1.85m.

Drillhole YMEX21-8960-016 intersected 5.42 g/t Au over 12.75 m (11.25 m true width) including 32.30 g/t Au over 0.65m (0.57 m true width) within syenite. Mineralization within the syenite remains open in this area to the southeast and down-dip.

Drillhole YMEX20-8960-011 intersected 8.32 g/t Au over 6.30 m (3.84 m true width), including 22.5 g/t over 1.20 m (0.73 m true width) in a shear zone developed within the footwall sediments, 100 m from the contact with the syenite.