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.
Highlights
- Island 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
depletion
- 46% 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
East
- Combined 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
depletion
- Global 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
depletion
- Global 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-Davidson
- Global 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 Gold
- Global 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.
TOTAL MINERAL RESERVES AND RESOURCES |
|
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|
|
|
|
|
|
|
Proven and Probable Gold Mineral Reserves |
|
2019 |
2018 |
% 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 - Surface |
100 |
1.31 |
4 |
219 |
0.83 |
6 |
-54 |
% |
57 |
% |
-28 |
% |
Young-Davidson - Underground |
37,610 |
2.60 |
3,142 |
37,720 |
2.69 |
3,256 |
0 |
% |
-3 |
% |
-4 |
% |
Total Young-Davidson |
37,710 |
2.60 |
3,146 |
37,939 |
2.67 |
3,262 |
-1 |
% |
-3 |
% |
-4 |
% |
Island Gold |
3,643 |
10.37 |
1,215 |
3,047 |
10.28 |
1,007 |
20 |
% |
1 |
% |
21 |
% |
Mulatos Mine |
8,806 |
0.89 |
251 |
15,443 |
0.87 |
434 |
-43 |
% |
1 |
% |
-42 |
% |
Stockpiles |
10,531 |
1.25 |
424 |
10,663 |
1.25 |
429 |
-1 |
% |
0 |
% |
-1 |
% |
La
Yaqui |
0 |
0.00 |
0 |
786 |
0.90 |
23 |
-100 |
% |
-100 |
% |
-100 |
% |
La Yaqui
Grande |
19,205 |
1.17 |
724 |
15,945 |
1.26 |
643 |
20 |
% |
-7 |
% |
13 |
% |
Cerro
Pelon |
2,630 |
1.94 |
164 |
3,121 |
1.88 |
189 |
-16 |
% |
3 |
% |
-13 |
% |
Total Mulatos |
41,172 |
1.18 |
1,563 |
45,958 |
1.16 |
1,717 |
-10 |
% |
2 |
% |
-9 |
% |
MacLellan |
23,254 |
1.61 |
1,206 |
23,254 |
1.61 |
1,206 |
- |
|
- |
|
- |
|
Gordon |
8,723 |
2.42 |
678 |
8,723 |
2.42 |
678 |
- |
|
- |
|
- |
|
Total Lynn Lake |
31,977 |
1.83 |
1,884 |
31,977 |
1.83 |
1,884 |
- |
|
- |
|
- |
|
Agi Dagi |
54,361 |
0.67 |
1,166 |
54,361 |
0.67 |
1,166 |
- |
|
- |
|
- |
|
Kirazli |
33,861 |
0.69 |
752 |
26,104 |
0.79 |
665 |
30 |
% |
-13 |
% |
13 |
% |
Total Turkey |
88,222 |
0.68 |
1,918 |
80,465 |
0.71 |
1,831 |
10 |
% |
-4 |
% |
5 |
% |
Alamos - Total |
202,724 |
1.49 |
9,726 |
199,386 |
1.51 |
9,702 |
2 |
% |
-1 |
% |
0 |
% |
|
|
|
|
|
|
|
|
|
|
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 |
9,535 |
3.68 |
1,128 |
11,374 |
3.53 |
1,291 |
-16 |
% |
4 |
% |
-13 |
% |
Total Young-Davidson |
11,273 |
3.30 |
1,197 |
13,113 |
3.23 |
1,361 |
-14 |
% |
2 |
% |
-12 |
% |
Island Gold |
879 |
6.51 |
184 |
696 |
8.77 |
196 |
26 |
% |
-26 |
% |
-6 |
% |
Mulatos Mine |
71,319 |
1.10 |
2,518 |
70,944 |
1.11 |
2,521 |
1 |
% |
-1 |
% |
0 |
% |
La Yaqui Grande |
1,321 |
1.01 |
43 |
1,101 |
0.93 |
33 |
20 |
% |
9 |
% |
30 |
% |
Cerro Pelon |
243 |
1.41 |
11 |
179 |
1.56 |
9 |
36 |
% |
-10 |
% |
22 |
% |
Carricito |
1,355 |
0.83 |
36 |
1,355 |
0.83 |
36 |
- |
|
- |
|
- |
|
Total Mulatos |
74,238 |
1.09 |
2,608 |
73,579 |
1.10 |
2,599 |
1 |
% |
-1 |
% |
0 |
% |
Lynn Lake |
9,993 |
1.74 |
560 |
9,993 |
1.74 |
560 |
- |
|
- |
|
- |
|
Esperanza |
34,352 |
0.98 |
1,084 |
34,352 |
0.98 |
1,083 |
- |
|
- |
|
- |
|
Turkey |
55,664 |
0.60 |
1,068 |
58,574 |
0.59 |
1,108 |
-5 |
% |
1 |
% |
-4 |
% |
Quartz Mountain |
12,156 |
0.87 |
339 |
12,156 |
0.87 |
339 |
- |
|
- |
|
- |
|
Alamos - Total |
198,555 |
1.10 |
7,041 |
202,463 |
1.11 |
7,247 |
-2 |
% |
-1 |
% |
-3 |
% |
|
|
|
|
|
|
|
|
|
|
Inferred Gold Mineral Resources |
Young-Davidson - Surface |
31 |
0.99 |
1 |
31 |
0.99 |
1 |
- |
|
- |
|
- |
|
Young-Davidson - Underground |
1,329 |
2.43 |
104 |
3,498 |
2.75 |
310 |
-62 |
% |
-12 |
% |
-66 |
% |
Total Young-Davidson |
1,360 |
2.40 |
105 |
3,528 |
2.74 |
311 |
-61 |
% |
-12 |
% |
-66 |
% |
Island Gold |
5,392 |
13.26 |
2,298 |
4,178 |
11.71 |
1,573 |
29 |
% |
13 |
% |
46 |
% |
Mulatos
Mine |
8,122 |
0.92 |
239 |
8,369 |
0.92 |
248 |
-3 |
% |
-1 |
% |
-4 |
% |
La Yaqui
Grande |
241 |
0.88 |
7 |
229 |
0.90 |
7 |
5 |
% |
-3 |
% |
0 |
% |
Cerro
Pelon |
37 |
0.62 |
1 |
70 |
0.70 |
2 |
-47 |
% |
-12 |
% |
-50 |
% |
Carricito |
900 |
0.74 |
22 |
900 |
0.74 |
22 |
- |
|
- |
|
- |
|
Total Mulatos |
9,300 |
0.90 |
269 |
9,568 |
0.91 |
279 |
-3 |
% |
-1 |
% |
-4 |
% |
Lynn Lake |
46,466 |
1.11 |
1,663 |
46,466 |
1.11 |
1,663 |
- |
|
- |
|
- |
|
Esperanza |
718 |
0.80 |
18 |
718 |
0.80 |
18 |
- |
|
- |
|
- |
|
Turkey |
27,245 |
0.55 |
482 |
25,240 |
0.54 |
438 |
8 |
% |
2 |
% |
10 |
% |
Quartz Mountain |
39,205 |
0.91 |
1,147 |
39,205 |
0.91 |
1,147 |
- |
|
- |
|
- |
|
Alamos - Total |
129,686 |
1.43 |
5,982 |
128,903 |
1.31 |
5,429 |
1 |
% |
10 |
% |
10 |
% |
Mineral Reserves
Global 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 Resources
Global 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 Gold
Exploration 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-plunge
Testing 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-Davidson
Mineral 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.
Mulatos
Total 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.
Kirazlı
Mineral 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 Mountain
Mineral Reserves and Resources for the Lynn Lake, 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, 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; development delays at the Kirazlı project or the
Young-Davidson 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 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; and business opportunities that may be pursued by the
Company.
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.
Cautionary 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. These definitions differ materially from the definitions
in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United
States Securities Act of 1933, as amended, and the Exchange Act.
Under SEC Industry Guide 7 standards, a "final" or "bankable"
feasibility study is required to report reserves, the three-year
historical average price is used in any reserve or cash flow
analysis to designate reserves and the primary environmental
analysis or report must be filed with the appropriate governmental
authority.
In addition, the terms "Mineral Resource", "Measured Mineral
Resource", Indicated Mineral Resource" and "Inferred Mineral
Resource" are defined in and required to be disclosed by NI 43-101
and the CIM Standards; however, these terms are not defined terms
under SEC Industry Guide 7 and are normally not permitted to be
used in reports and registration statements filed with the U.S.
Securities and Exchange Commission (the "SEC"). 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; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in place tonnage and grade without
reference to unit measures.
Table 1: Total Proven and Probable
Mineral Reserves as of December 31, 2019
PROVEN AND PROBABLE GOLD RESERVES (as at December 31,
2019) |
|
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 - Surface |
100 |
1.31 |
4 |
0 |
0.00 |
0 |
100 |
1.31 |
4 |
Young-Davidson - Underground |
18,993 |
2.67 |
1,628 |
18,617 |
2.53 |
1,514 |
37,610 |
2.60 |
3,142 |
Total Young-Davidson |
19,093 |
2.66 |
1,632 |
18,617 |
2.53 |
1,514 |
37,710 |
2.60 |
3,146 |
Island Gold |
786 |
13.48 |
341 |
2,857 |
9.52 |
874 |
3,643 |
10.37 |
1,215 |
Mulatos Main Pits |
1,137 |
0.95 |
35 |
7,669 |
0.88 |
216 |
8,806 |
0.89 |
251 |
Stockpiles |
10,531 |
1.25 |
424 |
0 |
0.00 |
0 |
10,531 |
1.25 |
424 |
La Yaqui Grande |
0 |
0.00 |
0 |
19,205 |
1.17 |
724 |
19,205 |
1.17 |
724 |
Cerro Pelon |
942 |
2.03 |
61 |
1,688 |
1.89 |
103 |
2,630 |
1.94 |
164 |
Total Mulatos |
12,610 |
1.28 |
520 |
28,562 |
1.14 |
1,043 |
41,172 |
1.18 |
1,563 |
MacLellan |
11,604 |
1.89 |
705 |
11,650 |
1.34 |
500 |
23,254 |
1.61 |
1,206 |
Gordon |
2,311 |
2.82 |
210 |
6,412 |
2.27 |
468 |
8,723 |
2.42 |
678 |
Total Lynn Lake |
13,916 |
2.05 |
915 |
18,061 |
1.67 |
968 |
31,977 |
1.83 |
1,884 |
Agi Dagi |
1,450 |
0.76 |
36 |
52,911 |
0.66 |
1,130 |
54,361 |
0.67 |
1,166 |
Kirazli |
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 |
48,525 |
2.22 |
3,469 |
154,200 |
1.26 |
6,257 |
202,724 |
1.49 |
9,726 |
PROVEN AND PROBABLE SILVER MINERAL RESERVES (as at December
31, 2019) |
|
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 |
0 |
0.00 |
0 |
0 |
0.00 |
0 |
0 |
0.00 |
0 |
La Yaqui Grande |
0 |
0.00 |
0 |
19,205 |
15.88 |
9,805 |
19,205 |
15.88 |
9,805 |
Cerro Pelon |
942 |
18.22 |
552 |
1,688 |
17.33 |
941 |
2,630 |
17.65 |
1,492 |
MacLellan |
11,604 |
4.94 |
1,844 |
11,650 |
3.93 |
1,471 |
23,254 |
4.43 |
3,315 |
Ağı Dağı |
1,450 |
6.22 |
290 |
52,911 |
5.39 |
9,169 |
54,361 |
5.41 |
9,459 |
Kirazli |
670 |
16.94 |
365 |
33,191 |
9.27 |
9,892 |
33,861 |
9.42 |
10,257 |
Alamos - Total |
14,666 |
6.47 |
3,051 |
118,645 |
8.20 |
31,278 |
133,311 |
8.01 |
34,328 |
Table 2: Project Life-of-Mine Mineral
Reserve Waste-to-Ore Ratios as of December
31, 2019
Project Life-of-Mine Mineral Reserve Waste-to-Ore
Ratiosas of December 31, 2019 |
Project |
Waste-to-Ore Ratio |
Mulatos Mine |
2.55 |
Cerro Pelon Pit |
2.08 |
La Yaqui Grande Pit |
5.50 |
Ağı Dağı Pits |
1.03 |
Kirazlı Pit |
1.45 |
Lynn Lake Pits |
7.59 |
Table 3: Total Measured and Indicated
Mineral Resources as of December 31, 2019
MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at
December 31, 2019) |
|
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 |
5,456 |
4.23 |
742 |
4,079 |
2.95 |
386 |
9,535 |
3.68 |
1,128 |
Total Young-Davidson |
5,952 |
3.97 |
760 |
5,321 |
2.56 |
438 |
11,273 |
3.30 |
1,197 |
Island Gold |
25 |
4.52 |
4 |
853 |
6.57 |
180 |
879 |
6.51 |
184 |
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 |
1,321 |
1.02 |
43 |
1,321 |
1.01 |
43 |
Cerro Pelon |
60 |
1.65 |
3 |
183 |
1.29 |
8 |
243 |
1.41 |
11 |
Carricito |
58 |
0.82 |
2 |
1,297 |
0.82 |
34 |
1,355 |
0.83 |
36 |
Total Mulatos |
8,325 |
1.25 |
334 |
65,913 |
1.07 |
2,274 |
74,238 |
1.09 |
2,608 |
MacLellan - Open Pit |
1,986 |
1.65 |
105 |
4,700 |
1.46 |
221 |
6,686 |
1.52 |
326 |
MacLellan - Underground |
0 |
0.00 |
0 |
843 |
4.52 |
122 |
843 |
4.52 |
122 |
Gordon |
9 |
1.72 |
0 |
451 |
1.96 |
28 |
460 |
1.95 |
29 |
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 |
1,994 |
1.65 |
106 |
7,999 |
1.77 |
455 |
9,993 |
1.74 |
560 |
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 |
Kirazli |
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 |
36,803 |
1.57 |
1,856 |
161,752 |
1.00 |
5,185 |
198,555 |
1.10 |
7,041 |
MEASURED AND INDICATED SILVER MINERAL RESOURCES (as at
December 31, 2019) |
|
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 |
1,321 |
8 |
340 |
1,321 |
8 |
340 |
Cerro Pelon |
60 |
18.80 |
36 |
183 |
17 |
101 |
243 |
18 |
137 |
MacLellan - Open Pit |
1,986 |
3.66 |
234 |
4,700 |
3.65 |
551 |
6,686 |
3.65 |
785 |
MacLellan - Underground |
0 |
0.00 |
0 |
843 |
5.98 |
162 |
843 |
5.98 |
162 |
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 |
Kirazli |
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 |
22,338 |
6.78 |
4,873 |
76,771 |
4.74 |
11,696 |
99,108 |
5.20 |
16,569 |
Table 4: Total Inferred Mineral Resources
as of December 31, 2019
INFERRED GOLD MINERAL RESOURCES (as at December 31,
2019) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Au) |
(000's) |
Young-Davidson - Surface |
31 |
0.99 |
1 |
Young-Davidson - Underground |
1,329 |
2.43 |
104 |
Total Young-Davidson |
1,360 |
2.40 |
105 |
Island Gold |
5,392 |
13.26 |
2,298 |
Mulatos |
8,122 |
0.92 |
239 |
La Yaqui Grande |
241 |
0.88 |
7 |
Cerro Pelon |
37 |
0.62 |
1 |
Carricito |
900 |
0.74 |
22 |
Total Mulatos |
9,300 |
0.90 |
269 |
MacLellan - Open Pit |
1,292 |
1.36 |
56 |
MacLellan - Underground |
116 |
3.82 |
14 |
Gordon |
615 |
1.30 |
29 |
Burnt Timber |
23,438 |
1.04 |
781 |
Linkwood |
21,004 |
1.16 |
783 |
Total Lynn Lake |
46,466 |
1.11 |
1,663 |
Esperanza |
718 |
0.80 |
18 |
Ağı Dağı |
16,760 |
0.46 |
245 |
Kirazli |
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 |
129,686 |
1.43 |
5,982 |
INFERRED SILVER MINERAL RESOURCES (as at December 31,
2019) |
|
Tonnes |
Grade |
Ounces |
|
(000's) |
(g/t Ag) |
(000's) |
La Yaqui Grande |
241 |
4.03 |
31 |
Cerro Pelon |
37 |
3.66 |
4 |
MacLellan - Open Pit |
1,292 |
2.43 |
101 |
MacLellan - Underground |
116 |
3.13 |
12 |
Esperanza |
718 |
15.04 |
347 |
Ağı Dağı |
16,760 |
2.85 |
1,536 |
Kirazli |
7,694 |
8.71 |
2,155 |
Çamyurt |
2,791 |
5.77 |
518 |
Alamos - Total |
29,649 |
4.93 |
4,704 |
Notes to Mineral Reserve and Resource
Tables:
- The Company’s Mineral Reserves and Mineral Resources as at
December 31, 2019 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.
- 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. 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 |
$1,250 |
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 |
1.9 |
91% |
Island Gold |
$1,400 |
4.0 |
$1,250 |
2.82-4.89 |
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% |
Figures accompanying this
announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/6a6dfb26-8bd3-4cde-af17-d040114229db
https://www.globenewswire.com/NewsRoom/AttachmentNg/fadfb99f-bf40-4da9-bf90-2a5094467daf
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