Minera Alamos drills long gold intersections at Santana

Mining activity at Nicho Norte

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Minera Alamos Inc. [MAI-TSXV] has released additional drill results from its Phase 2 drill program at the Santana gold project, Sonora, Mexico. The new holes were intended primarily to evaluate the southwest and southerly extensions of the Nicho main zone as the company works to fully define the outer limits of the proposed Nicho pit. A deeper hole (S20-134) was also drilled to test the geological structures at vertical depths below most of the previous drilling completed at Nicho. Both objectives met with success as the company continued to expand the known mineralization to the south-southwest while also demonstrating the depth potential of the Nicho pipe system with hole S20-134 finishing in strong mineralization at 314.7 metres (downhole).

Drilling highlights:

Hole S19-132 intersected 143.7 metres of 0.50 g/t gold. Hole S20-134 cut 247.9 metres of 0.60 g/t gold (ending in mineralization). Known area of Nicho mineralization were expanded by 50 to 100 metres to the south-southwest across an east-west fence of drill holes covering 150 to 200 metres of strike extent;

Completion of hole S20-134 to a vertical depth in excess of 300 metres which delineated the longest and deepest gold mineralization encountered to date in the Nicho zone (remains open).

“This initial phase of our ongoing drill activities at the Santana Project was intended primarily to confirm the margins of the Nicho mineralization as we work to optimize open-pit modelling for the pending start of mining operations. Rather than closing off the limits of the deposit in this area we have demonstrated significant potential for further expansion to the south and southwest,” stated Darren Koningen, CEO. “Furthermore, hole S20-134 delineated the longest and deepest interval of mineralization ever drilled at Nicho extending down to a vertical depth of greater than 300 metres. This is well below the limits of the majority of previous drilling activity that focused on the definition of near-surface mineralization down to a depth of approximately 150 metres.

“The fact the hole remained in mineralization when it was stopped and has yet to encounter the deep gold-bearing intrusive material that we believe is the source of the gold is an extremely exciting development for the project. We look forward to using the recent information to update our models for the deposit and to prepare new rounds of drilling aimed not only at continuing to expand the growing mineralized area at Nicho but also to define the potential of a number of other Nicho-style breccia systems previously identified within the Santana project boundaries.”

Hole S19-127 was drilled at an inclination of 50ᵒ on the northwest margin of the Nicho Zone and was intended to provide additional definition of the limit of the mineralization in this area for the planning of the Nicho open-pit operations. The drill hole encountered multiple zones of minor mineralization with the exception of a deeper interval grading 0.58 g/t gold over 17.7 metres.

Six holes (S19-128 to S19-133) were drilled to further define the southwest extensions to Nicho identified in 2018 and to test the outer margins of the Nicho mineralized breccia pipe to the south. Total mineralized intervals for each hole ranged from 35 to 101 metres with average gold grades of 0.29 to 0.75 g/t. The application of a typical open-pit heap leach cut-off grade of 0.15 g/t gold results in composited mineralized intervals ranging from 10 to 73 m with gold grades of 0.72 to 1.4 g/t. Given the success of this step-out program the company will be evaluating opportunities for further expansion of the Nicho deposit to the south and southwest.

Hole S20-134 (-75ᵒ) was collared close to the previously interpreted eastern extents of the Nicho zone mineralization and intended to probe the deeper geological structures below the previously drilled areas. The application of a typical open-pit heap leach cut-off grade of 0.15 g/t gold results in 121 metres of 1.2 g/t gold. Additional assays at Nicho and Divisadero are pending.

The Mexican federal government has extended the closure of all non-essential businesses until May 30, 2020. Minera Alamos is preparing to resume construction activities at the Santana Project on or about May 18, 2020. The Mexican federal government has created strict hygiene and health protocols to protect personnel, which Minera has and will continue to follow. There are no known cases of COVID-19 infection at any of the company’s operations, projects or corporate offices.

Minera expects drilling to resume follow up on areas identified by the success of holes outlined in this release and also to finalize plans to drill other breccia pipes on the property. Details of the additional drilling outside of the Nicho area will be reported in a future news release.

Minera Alamos has a 100% interest in the Santana open-pit, heap leach development project in that is under construction, and s expected to have its first gold production in late 2020 or early 2021. The 100%-owned La Fortuna open-pit gold project in Durango has a PEA completed and is nearing the end of the permitting process. A construction decision on La Fortuna could be made in late 2020 or early 2021.


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