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Minera Alamos Announces Santana Project Pit Optimization Drilling Continues to Extend Mineralization

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Minera Alamos Announces Santana Project Pit Optimization Drilling Continues to Extend Mineralization






Including 284.8 metres grading 0.69 g/t Au from surface and ending in mineralization



Minera Alamos Inc. (TSX-V: MAI) is pleased to provide an update on the ongoing pit optimization drilling program at the Nicho complex (Santana gold project) in Sonora, Mexico. In addition, the Company provides updates on various optimization initiatives and studies underway during the ongoing ramp up of gold mining operations.


Drilling Highlights (full assays included in table 1)


  • Hole S20-145D – 55.3m grading 1.54 g/t Au from 10.5 m down hole
  • Hole S20-147D – 284.8 m grading 0.69 g/t Au from surface and ending in mineralization
  • Hole S20-148D – 277.2 m grading 0.43 g/t Au ending in mineralization
  • Hole S20-149D – 152.7 m grading 0.77 g/t Au from surface (inc. 56.2 m grading 1.39 g/t Au)
  • Hole S20-153D – 48.2 m grading 1.21 g/t Au from 10 m down hole
  • Hole S20-158D – 53.7 m grading 0.91 g/t Au from 111 m down hole and ending in mineralization
  • Hole S21-160D – 242.7 m grading 0.51 g/t Au from 41.9 m down hole


The 19 hole program (totaling 4,039m of new drilling) was initiated in late 2020 (following the easing of Covid restrictions) and continued into 2021 running parallel to the construction of the Santana mine. The primary purpose was to further delineate the outer limits of the main Nicho “pipe” structure, which is slated to be brought into operation as the current starter pit at Nicho Norte becomes further advanced. A number of holes were also included to follow up on the deeper mineralization located in hole S20-134D (see news release dated April 30th, 2020) that had intersected 0.60 g/t over 247.9 m and was, at the time, one of the few deep holes drilled below 200m depth at the Nicho zone. The program, to date, has been a success and demonstrated that the Nicho deposit remains open to the south and at depth. Drilling results will be combined with those from previous campaigns into the maiden NI43-101 resource statement for the Nicho Complex expected around the end of the year.


“In parallel with the construction and ongoing ramp up of operations at the Santana gold mine, we have continued our exploration activities throughout this highly prospective area. The current drilling, although designed for pit optimization work, continues to provide positive surprises, especially at depth, as we test the outer boundaries of known mineralized zones. As we grow our understanding of the system we look forward to additional positive developments while we prepare to open up the larger Nicho main zone for mining following the successful opening of the starter pit at Nicho Norte,” stated Darren Koningen, CEO. “In addition and in parallel with mining operations, multiple operational optimization studies are underway as we glean information from the early mining, leaching and carbon loading activities at the Nicho Norte mine site. A full update on the operational ramp up and gold recovery will be provided in the coming weeks.”



Table 1: Drill Results From Pit Optimization Drilling Phase


Hole # Zone From (m) To (m) Interval (m)1,2 Au g/t Notes
S20-143D NICHO 6.20 163.40 157.20 0.26  
including 6.20 37.40 31.20 0.66  
S20-144D NICHO 42.20 46.60 4.40 0.45  
S20-145D NICHO 13.00 68.30 55.30 1.54  
S20-146D NICHO 0.00 60.80 60.80 0.16  
S20-147D NICHO 0.00 284.80 284.80 0.69 Hole ending in mineralization
including 0.00 52.30 52.30 1.10  
S20-148D NICHO 7.60 284.80 277.20 0.43 Hole ending in mineralization
S20-149D NICHO 0.00 152.70 152.70 0.77  
including 0.00 56.20 56.20 1.39  
S20-150D NICHO 20.60 25.40 4.80 1.19  
and 166.50 245.00 78.50 0.54  
S20-151D NICHO 140.20 155.00 14.80 0.46  
and 184.60 200.20 15.60 0.29  
S20-152D NICHO 0.00 60.30 60.30 0.26  
S20-153D NICHO 10.00 58.20 48.20 1.21  
S20-154D NICHO 21.40 47.50 26.10 0.23  
and 87.30 181.40 94.10 0.25  
S20-155D NICHO 179.80 259.60 79.80 0.26  
S20-156D NICHO 26.00 67.50 41.50 0.63  
S20-157D NICHO 92.10 234.50 142.40 0.40  
S21-158D NICHO 111.00 164.70 53.70 0.91 Hole ending in mineralization
S21-159D NICHO 0.00 65.90 65.90 0.28  
S21-160D NICHO 41.90 284.60 242.70 0.51  
S21-161D NICHO 12.30 47.00 34.70 0.51  
and 156.60 179.70 23.10 1.04  


1 – Grades/widths of mineralized intervals represent complete “from” “to” drill depths as shown.
2 – All holes were drilled at 45-90 degree inclinations. The true widths of the mineralized zones in these areas are currently unknown.


The most southerly drill fence completed at the Nicho deposit (as shown by drill holes S20-144D, S20-143D, S20-145D and S20-156D on Map 1 below) confirms that the mineralization remains open both laterally and at depth. The Company plans to complete additional holes to further test this southeast area of the deposit. In addition, planning is underway for additional holes aimed more specifically at delineating the deeper zones in order to better define the source of the mineralised fluids.


Map 1: Plan view of drill holes and drill traces

Santana Project Optimization


The focus during the initial phases of mining at the Nicho Norte pit was to gain valuable operations data (mining and processing) from the limited early material that was available from June and July’s start of operations. The following efforts are currently underway and will continue as mining operations ramp up toward commercial production:


  • Blast pattern modifications to minimize the amount of drilling/explosive required to obtain optimal rock fragmentation. The Company is aiming to reduce fragmentation levels in the unmineralized host rock in order to reduce overall blasting costs and maximize the production of material suitable for leach pad overliner, while maintaining high levels of fragmentation in the mineralized zones which will reduce crushing requirements prior to gold leaching;
  • Analysis of existing open pit blast hole sample data to determine required quantities and spacing of samples required for analysis in order to efficiently estimate mineral quantities and grades produced from mining operations;
  • Crushing and screening campaigns utilizing run-of-mine (“ROM”) material with the equipment available at site in order to determine maximum throughput levels and optimal size settings for different crushing phases;
  • Final design modifications to long-term location and arrangement of existing crushing, screening and conveying systems (see news release dated January 30, 2020) in order to minimize re-handling requirements for crushed material being loaded to the leach pad;
  • Mining equipment cycle time analysis to different dumping points as part of the optimization of truck traffic between the mine, leach pad and different waste dump locations;
  • Modifications to optimize the overall mine contractor fleet (mix of larger articulated haulage equipment and smaller fixed axle vehicles) to accommodate commercial production targets;
  • Analysis of leach pad extraction solution flows and concentrations to confirm profiles of gold recovery curves versus previous Santana project test plant data; and monitoring and optimization of reagent addition rates and concentrations.




All diamond drill samples were collected by Minera Alamos personnel including the Company’s exploration geologists. Drill core samples were cut in half and divided based on visual observations into typically 1-2 m intervals. One half of the sample was bagged for analysis and the remaining half was logged by Minera Alamos personnel and stored for future reference. Blanks, duplicates, and standards were randomly inserted in the sample stream with the samples sent for analysis as part of the normal QA/QC procedures.


All samples were prepared and analyzed for gold using fire assaying with AA/gravimetric finish in addition to a standard 35-element ICP suite. All samples were sent for sample preparation at the Bureau Veritas facility in Hermosillo, Mexico.


Drill collar location, azimuth and dip for drill holes included in this release are provided in the table below:


Drill Hole Easting1
S20-143D 675,203 3,138,780 46 046 168 Nicho
S20-144D 675,163 3,138,739 76 046 170 Nicho
S20-145D 675,224 3,138,798 45 042 187 Nicho
S20-146D 675,147 3,138,826 47 232 123 Nicho
S20-147D 675,225 3,138,904 89 296 285 Nicho
S20-148D 675,205 3,138,886 90 188 285 Nicho
S20-149D 675,148 3,138,894 47 229 174 Nicho
S20-150D 675,245 3,138,921 89 066 312 Nicho
S20-151D 675,232 3,138,873 70 359 336 Nicho
S20-152D 675,160 3,138,802 70 227 150 Nicho
S20-153D 675,159 3,138,801 46 228 113 Nicho
S20-154D 675,201 3,138,804 89 250 243 Nicho
S20-155D 675,262 3,138,937 90 307 294 Nicho
S20-156D 675,242 3,138,816 46 046 176 Nicho
S20-157D 675,215 3,138,855 82 223 243 Nicho
S20-158D 675,329 3,139,144 60 226 165 Nicho
S20-159D 675,281 3,139,088 52 227 110 Nicho
S20-160D 675,127 3,139,008 77 225 309 Nicho
S20-161D 675,160 3,139,044 81 225 201 Nicho


1 – Collar coordinates as listed (easting, northing) are UTM values (WGS84 datum)
2 – Dip as shown in planned orientation. Actual measured values post drilling are generally ± 3 degrees
3 – Depth as measured downhole. (Total of 4,040m of drilling reported)


Cautionary Statement


The Company made its production decision and has started the development and production of the Santana gold mine without having completed a feasibility study demonstrating economic and technical viability. As such, there may be increased uncertainty of achieving planned production levels, estimated recovery of gold, the costs associated with such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. Failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations.


Mr. Darren Koningen, P. Eng., Minera Alamos’ CEO, is the Qualified Person responsible for the technical content of this press release under National Instrument 43-101.



About Minera Alamos Inc.


Minera Alamos is a gold development company poised to join the ranks of gold producers in 2021. The Company has a portfolio of high-quality Mexican assets, including the 100%-owned Santana open-pit, heap-leach mine in Sonora that is currently going through its operational ramp up. The newly acquired 100%-owned Cerro de Oro oxide gold project in northern Zacatecas that has considerable past drilling and metallurgical work completed and could enter the permitting process rapidly. The La Fortuna open pit gold project in Durango (100%-owned) has an extremely robust and positive preliminary economic assessment (PEA) completed and the main Federal permits in hand. Minera Alamos is built around its operating team that together brought 3 mines into production in Mexico over the last 13 years.


The Company’s strategy is to develop very low capex assets while expanding the projects’ resources and continuing to pursue complementary strategic acquisitions.


Posted October 4, 2021

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