Alamos drills new high-grade gold zones at Island Gold Mine; mill expansion planned

The Island Gold Mine 83 km north of Wawa, Northern Ontario. Source: Alamos Gold Inc.

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Alamos Gold Inc. [AGI-TSX, NYSE] reported new results from surface and underground exploration drilling at the 100%-owned Island Gold Mine 83 km northeast of Wawa, northern Ontario, further extending high-grade gold mineralization in all three areas of focus. All reported drill widths are true widths.

Island East Lower: High-grade mineralization intersected in the 120-metre gap between resources in the middle and lower portion of Island East. All 28 holes drilled in this area intersected the E1E Zone, including 17 intersecting ore-grade gold mineralization. This continues to confirm the vertical continuity of the E1E Zone over 1.2 km between a depth of 300 and 1,500 metres in the eastern part of the deposit. New highlights include 44.30 g/t gold (over 2.25 metres (MH21-04) and 29.05 g/t gold over 4.86 metres (620-MH2-01).

Island East Upper: High-grade mineralization intersected 200 metres east of the nearest mineral reserves (620-616-07). New highlights include 18.72 g/t gold over 3.64 metres (620-616-07) and

21.30 g/t gold over 2.24 metres (620-616-02).

Island Main: High-grade mineralization intersected 150 metres east of existing mineral reserves at the 840 level (840-566-06) and 80 metres east of existing mineral reserves at the 1,000 level (840-570-02). New highlights include 52.10 g/t gold over 10.31 metres (840-566-01) and 21.01 g/t gold over 4.26 metres (840-566-06).

Island West: High-grade gold mineralization extended 70 metres from the nearest previously reported drill hole MH16-03 (152.07 g/t gold over 5.01 m). New highlights include 25.41 g/t gold over 5.58 metres (MH22-04).

“Island Gold has seen exceptional growth over the last several years with the deposit doubling in size since we acquired it in 2017. This includes the addition of nearly one million ounces of mineral reserves and resources through our 2019 exploration program to now total 3.7 million ounces. This growth has been incorporated into a Phase 3 expansion study,” said John McCluskey, President and CEO.

The Phase 3 expansion will increase mill throughput to 2,000 tpd to produce annual gold production to 236,000 ounces, an increase of 72%, plus a 30% decrease in All-in sustaining costs to $534/oz.


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