Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) reported new results from ongoing surface exploration drilling at Puerto Del Aire, further extending high-grade gold mineralization outside of Mineral Reserves and Resources. PDA is a higher-grade underground deposit, adjacent to the main Mulatos pit, and is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. All reported composite widths are estimated true width of the mineralized zones.

• Puerto Del Aire: high-grade gold mineralization extended within 200 metre gap between Mineral Reserves and Resources at PDA1 and PDA2 as drilling continues to close the gap between the two zones. This includes the best hole drilled in the 2022 program and one of the best holes drilled to date at PDA (22MUL077). New highlights include:
  • PDA1 and PDA2:
    • 33.40 g/t Au (11.48 g/t cut) over 25.95 m (22MUL077);
    • 67.58 g/t Au (32.11 g/t cut) over 3.25 m (22MUL064);
    • 18.33 g/t (15.83 g/t cut) Au over 6.20 m (22MUL085);
    • 75.50 g/t Au (40.00 g/t cut) over 1.50 m (22MUL063);
    • 36.50 g/t Au over 2.35 m (22MUL086);
    • 60.20 g/t Au (40.00 g/t cut) over 1.40 m (22MUL065);
    • 11.16 g/t Au over 6.75 m (22MUL090); and
    • 6.73 g/t Au over 9.00 m (22MUL071).

Note: Drillhole composite gold grades reported as “cut” may include higher grade samples which have been cut to 40 g/t Au.

“We expect these results to drive a significant increase in Mineral Reserves at PDA in our year end update to be released later this month. With the deposit open in multiple directions, and an expanded exploration program planned at Mulatos in 2023, we expect this growth to continue. These results will be incorporated into an updated development plan to be released in the second half of 2023. Given PDA’s higher grades and proximity to the Mulatos pit, we see excellent potential for this to be another low-cost, high-return project further extending the mine life at Mulatos. Over the past 18 years, Mulatos has produced 2.5 million ounces of gold while maintaining a similar Reserve life today as it had in 2005. Given our ongoing exploration success at PDA, and the potential within the District, we expect this trend to continue,” said John A. McCluskey, President and Chief Executive Officer.

New highlight intercepts can be found in Table 1, and in Figures 3 and 4 at the end of this news release.

Puerto Del Aire

PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit, and is comprised of five mineralized zones – PDA1, PDA2, Gap, Victor, and Estrella (Figure 2). In February 2022, Alamos announced an initial Mineral Reserve at PDA totalling 428,000 ounces (2.85 million tonnes “Mt” grading 4.67 g/t Au) as part of the December 31^st, 2021 Mineral Reserve and Mineral Resource update. In addition to the Mineral Reserve, Measured and Indicated Mineral Resources totalled 124,000 ounces (0.77 Mt grading 5.05 g/t Au). Mineral Reserves were determined based on Mineral Resource estimations that were completed within gold mineralization wireframes that were finalized in July 2020 and April 2021, based on detailed geological modelling (see “Mineralization Wireframe” in Figure 2).

PDA1 and PDA2

Surface exploration drilling continues to extend high-grade mineralization beyond existing Mineral Reserves and Resources across multiple mineralized zones within PDA. This includes a number of intercepts well above the current Mineral Reserve grade within the 200 m gap between Mineral Reserves and Resources in PDA1 and PDA2, including 22MUL077, one of the best holes ever drilled at PDA at 33.40 g/t Au (11.48 g/t cut) over 25.95 m. These results along with previously released drilling completed since April 2021 (see press release dated November 15, 2022) are expected to drive a significant increase in Mineral Reserves at PDA in the year end 2022 update to be released later in February 2023. This updated Mineral Reserve and Resource will be used as the basis for a new development plan for PDA which is expected to be completed in the second half of 2023.

Since April 2021, 92 drill holes totalling 27,117 metres have been completed at PDA which were not included in the 2021 year end Mineral Reserve and Resource. All drill holes were completed with the objective of expanding mineralization as either step outs from existing Mineral Resources, or targeting areas within the previously interpreted mineralization wireframe that did not contain a Mineral Resource due to limited drilling.

The exploration program at Mulatos is expected to ramp up significantly in 2023 with $17 million budgeted, more than double the 2022 budget. This includes $4 million budgeted at PDA with 16,000 m of drilling focused on expanding higher-grade Mineral Reserves and Mineral Resources with the deposit open in multiple directions.

PDA is expected to be mined from underground and accessed from a ramp and development drifts off the main Mulatos pit. This will greatly reduce the development needed to access the deposit. The Company expects to expand and upgrade the existing mill at Mulatos to process the higher-grade ore from PDA.

Qualified Persons

Scott R.G. Parsons, P.Geo., FAusIMM, Alamos Gold’s Vice President, Exploration, has reviewed and approved the scientific and technical information contained in this news release. Scott R.G. Parsons is a “Qualified Person” as defined by Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Exploration programs at Mulatos are directed by Michele Cote, P.Geo., Alamos Gold’s Chief Exploration Geologist, Corporate. Michele Cote is a “Qualified Person” as defined by Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Quality Assurance and Quality Control

Alamos Gold maintains an internal Quality Assurance / Quality Control program at Mulatos to ensure sampling and analysis of all exploration work is conducted in accordance with best practices.

Access to the Mulatos Property is controlled by security personnel. Drill core is logged and sampled at the core logging facility within the mine site under the supervision of a Qualified Geologist. A geologist marks the individual samples for analysis, and sample intervals, based on lithology and alteration, standards and blanks are entered into the database. The core is cut in half using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a micropore sample bag and sealed with a cable tie in preparation for shipment. The other half of the core is returned to the core box and retained for future reference. The samples are placed in large heavy-duty nylon reinforced micropore bags, which are identified and sealed before being dispatched. The core samples are picked up at the mine site and delivered to Bureau Veritas Commodities Canada Ltd. laboratory in Hermosillo, Mexico.

Gold is analyzed by 30 grams Lead Collection Fire Assay Fusion (FA) that ends with an Atomic Absorption Spectroscopy finish. Samples greater than 5.0 g/t Au are re-analyzed with an FA process followed by a gravimetric finish. Bureau Veritas is an ISO/IEC 17025 accredited laboratory and has internal quality control programs that include insertion of reagent blanks, reference materials, and pulp duplicates that are in line with normal requirements, as well as participating on yearly proficiency tests to evaluate lab performance.

The Corporation inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance. Cross check assays are completed on a regular basis in a secondary accredited laboratory.

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 strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 1,900 people and is committed to the highest standards of sustainable development.

Table 1: Puerto Del Aire – Select Composite Intervals from new Surface Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values 40 g/t Au.

Table 2: Surface drill holes; azimuth, dip, drilled length, and collar location at surface               
(UTM Zone 12 NAD27)

Figure 1: Puerto Del Aire Location Map, Mulatos District

Figure 2: Puerto Del Aire Sulphide Gold Mineralization Wireframes

Figure 3: Puerto Del Aire, PDA1 and PDA2 New Drilling Results

Figure 4: Puerto Del Aire, PDA1 and PDA2
Cross Section Through Long-Axis of Mineralization with New Drilling Results