Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) is pleased to provide the final set of drill results from its surface drill program at its 100%-owned Ana Paula project in Guerrero, Mexico. The 3,800 metre surface diamond drill program was initiated in January 2018 and consisted of six drill holes of 600 to 700 metres each targeting the complex breccia extension below the proposed open-pit. Additionally, two 300 metre surface holes were drilled into the near surface hydrothermal breccia to test its southern extension.

The three final holes from the surface drill program (AP-18-286, AP-18-287 and AP-18-288) and one of the two additional holes (AP-18-290) returned positive results from the near surface hydrothermal breccia south of the proposed pit and on the southern edge of the alteration halo. The three surface holes (AP-18-286, AP-18-287 and AP-18-288) also intersected the complex breccia below the proposed pit.

Highlights include:

• Hole AP-18-286: 
  • Hydrothermal breccia south of the proposed pit: 0.89 g/t gold over 34.5m (from 16.3m to 50.8m)
  • Complex breccia below the proposed pit: 1.03 g/t gold over 53.7m (from 478.3m to 532.0m)
• Hole AP-18-287: 
• • Hydrothermal breccia south of the proposed pit: 1.40 g/t gold over 41.0m (from 27.0m to 68.0m)
• Hole AP-18-288:
• • Hydrothermal breccia south of the proposed pit: 1.24 g/t gold over 64.5m (from 33.1m to 97.7m)
  • Complex breccia below the proposed pit: 1.14 g/t gold over 37.7m (from 690.8m to 728.5m)
• Hole AP-18-290:
• • Hydrothermal breccia south of the proposed pit (southern extension): 1.49 g/t gold over 19.8m (from 141.8m to 161.6m)

“The final set of drill results from the surface drill program has met our objective to confirm and provide us with additional detail on the extent and continuity of the complex breccia below the proposed pit.” said Greg McCunn, Chief Executive Officer. “In addition, the information has provided us with confidence in our decision to incorporate the underground component into the project scope. The additional two holes that tested the southern extension of the hydrothermal breccia indicate there is the potential to further enhance the overall project economics by incorporating this additional breccia into the overall project design.”

The Company has initiated an extensive exploration program at Ana Paula which includes in addition to the surface drill program:

• Exploration drilling from an underground decline targeting an extension to the high-grade breccia below the proposed open pit and a skarn target below the breccia (decline construction commenced and is expected to be sufficiently advanced in Q3 2018 to enable commencement of the first phase of the underground diamond drill program);
• Geophysics reassessment on three high priority targets is underway to confirm drill targets. The targets include the North Area Target which is 150 meters north of the proposed pit, the Jacaranda Zone (Hydrothermal Zone) and the Tejacote Breccia Area.  Surface drilling is expected to commence following the completion of the geophysics reassessment; and
• Regional exploration work on the 56,000 hectare land package including an airborne magnetic survey targeting further breccia or skarn targets (ongoing in 2018).

Note on true width calculation:

For the complex breccia and surrounding halo mineralization and in the monolithic breccia (MBX), the calculation of a true width is inappropriate since these units are not tabular. For the mineralization outside of these units (i.e. sediments (SED) and intrusive (INTRS)) the true width can be estimated since the mineralization is likely following the stratigraphy.  

About Alio Gold

Alio Gold is a growth oriented gold mining company, focused on exploration, development and production in Mexico and the USA. Its principal assets include its 100%-owned and operating San Francisco Mine in Sonora, Mexico, its 100%-owned and operating Florida Canyon Mine in Nevada, USA and its 100%-owned development stage Ana Paula Project in Guerrero, Mexico. Located within the highly prospective Guerrero Gold Belt on 56,000 hectares of underexplored land the Ana Paula Project is a high-grade, high margin project currently in the definitive feasibility stage. An underground decline to provide access for an exploration drill program has been initiated. The drill program will target the continuation of the high-grade gold mineralization below the proposed pit which has the potential to significantly enhance the robust economics of the project. The Company also has a portfolio of other exploration properties located in Mexico and the USA.

Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Pierre Desautels, P. Geo, a ‘Qualified Person’ as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects who is an independent consultant to the company.