TORONTO AND VANCOUVER, June 18,
2018 /CNW/ - Minera Alamos Inc. ("Minera Alamos" or
"Company") (TSX VENTURE:MAI) is pleased to provide an update on
development activities at the Company's Guadalupe de los Reyes ("Guadalupe") Project,
Sinaloa, Mexico. The
Guadalupe Project is one of three gold development projects being
advanced within the Company's project development profile, that
also includes the Santana and La
Fortuna projects, both of which are awaiting their
respective commercial production permits expected this year.
The Guadalupe project is one of
the most significant historic gold producers in this region of
Mexico and contains a NI 43-101
near surface gold resource consisting of the following with
significant untapped resource potential from previously identified
mineralized structures that remain undrilled:
- Indicated Resource of approximately 6.8 million tonnes with an
average grade of 1.73 g/t gold for approximately 380,100 contained
ounces (using a 0.5 g/t cut-off);
- Inferred Resource of approximately 3.2 million tonnes with an
average grade of 1.49 g/t gold for approximately 155,200 contained
ounces of gold (using a 0.5 g/t cut-off).
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"The acquisition of the Guadalupe gold project late last year was
another strategic addition to the Company's developing production
profile", said Darren Koningen, CEO
of Minera Alamos. "A
significant amount of time and effort was expended by the previous
owners to re-establish the project as one of the premium advanced
stage gold assets in this region of Mexico. We are extremely
fortunate to have the opportunity to leverage those efforts for the
benefit of Minera Alamos
stakeholders. Historical records have already provided an
insight into previous heap leaching testwork completed for the
project and also the activities surrounding the small scale vat
leaching facilities that can still be seen at the site. By
utilizing the expertise of our operating team, we plan to rework
the overall project development and assess the potential
construction of a modern low capex gold heap leach operation."
In recent months the Company's efforts at Guadalupe have advanced along a number of
paths simultaneously. Updates from all phases of this work
will be provided as available in the coming months.
- A local exploration office has been established in the
community adjacent to the project. Work is underway to fully
review historical project data and to establish priority target
areas of known mineralization for near surface resource expansion
drilling.
- Mapping of the Mariposa-Zapote
structure, which hosts the majority of the current surface resource
along strike to evaluate extensions that have not been drilled and
could be priority target areas to expand the resource.
- Metallurgical samples have been collected from existing
resource drill holes and are being prepared for gold leaching
optimization studies.
- Engineering efforts are underway to evaluate the project area
and establish locations and preliminary designs for gold heap
leaching facilities suitable for the Guadalupe current and future resources.
Guadalupe de los Reyes
Project Background
Gold and silver were discovered at Guadalupe by the Spanish in the late 1700s and
mining occurred in the area for over 150 years up until the
1950s. The main Guadalupe
underground operation opened in the late 1800s and to date is the
most significant source of gold production in the district.
It is estimated (historical estimates only) to have produced
approximately 500-600,000 ounces of gold and 40 million ounces of
silver over its operational life at reported grades of +10 g/t Au
and +500 g/t Ag. Most of the historical production is derived
from a single section of mineralized structures over a length of
approximately 2 km. At least eight other mineralized zones
have been identified at site along three structural arms of the
same large regional system. In total, the system
mineralization has been mapped at surface over a total combined
distance of approximately 10 km.
From the 1950s through the 1980s there was limited activity in
the Guadalupe area other than
exploration reconnaissance studies. The one exception was a
small vat leaching operation that was constructed and operated by
the local concession owner in the late 1980s. It is reported
that during this period approximately 32,000 tonnes of coarse
crushed mineralized rock (5 to 6 g/t au) was leached with cyanide
in open vats.
Modern drilling was re-initiated at the Guadalupe project area in the 1990s and was
targeted at defining significant area of shallow and lower grade
gold/silver mineralization in areas surrounding the Guadalupe underground operations. Since
that time, in excess of 40,000 meters of drilling (RC and diamond)
have been completed within the current project boundaries.
The resource estimates for the Project as completed by Tetra Tech
Inc. (reported in accordance with CSA National Instrument NI 43-101
resource requirements) are summarized below.
Guadalupe de los Reyes
Resources
|
|
|
|
|
|
Resource
Classification
|
Metric
Tonnes
|
Gold Grade
(g/t)
|
Silver Grade
(g/t)
|
Contained Gold
(oz)
|
Contained Silver
(oz)
|
Indicated
|
6,843,000
|
1.73
|
28.71
|
380,100
|
6,315,300
|
Inferred
|
3,200,000
|
1.49
|
34.87
|
155,200
|
3,639,000
|
Notes:
|
|
1.
|
Mineral Resources are
summarized as reported in the NI 43-101 Technical Report
titled "Updated Technical Report Guadalupe de los Reyes Gold Silver
Project" by Tetra Tech Inc. dated April 16, 2018
|
2.
|
To the best of
knowledge, information and belief of Minera Alamos, there is no new
material scientific or technical information that would make the
disclosure of the mineral resources in the Report inaccurate or
misleading.
|
3.
|
Mineral Resources
were calculated based on a cut-off grade of 0.5 g/t Au.
|
4.
|
No Measured Resources
of Mineral Reserves of any category were identified.
|
5.
|
Mineral Resources are
not Mineral Reserves and by definition do not demonstrate economic
viability. There is no certainty that all or any part of the
Mineral resources will be converted into Mineral
Reserves.
|
Guadalupe Property Terms
Pursuant to the terms of the October 23,
2017 Agreement, the Company is earning 100% by paying Vista
Gold a total of US$ 6.0 million in
staged payments as follows: US$ 1.5
million on closing (paid), US$ 1.5
million on each of the 12 and 24 month anniversary dates in
order to maintain the option and a final purchase price of
US$ 1.5 million on or before the
earlier of (i) an announcement of a construction decision by the
Company, or (ii) the 48 month anniversary of the Agreement.
Production from any open pit mining operations at the Project
(the "Open Pit Royalty") will be subject to a minimum 1% net
smelter return royalty ("NSR") payable to Vista Gold which could
increase up to 2% if gold prices exceed US$
1,600 per ounce. This royalty is capped at US$ 2 million. Vista Gold also retains the right
to acquire a 49% non-carried interest in the development of
underground gold resources should the Company decide at a later
date to pursue potential zones of deep mineralization (excludes all
open pit accessible mineralization).
About Minera Alamos
Minera Alamos is an advanced
stage exploration and development company. Its growing portfolio of
high-grade Mexican projects includes the La Fortuna open pit gold project in Durango
and the Guadalupe de los Reyes
gold/silver project in Sinaloa as
well as the now combined Santana/Los Verdes gold-copper project in
Sonora. The Company is well
financed to conduct all of its planned exploration and development
activities and continues to pursue additional project acquisitions
in Latin America.
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. Mr. Koningen has supervised the
preparation of, and approved the scientific and technical
disclosures in this news release.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking information and
Minera Alamos cautions readers that
forward-looking information is based on certain assumptions and
risk factors that could cause actual results to differ materially
from the expectations of Minera
Alamos included in this news release. This news release
includes certain "forward-looking statements", which often, but not
always, can be identified by the use of words such as "believes",
"anticipates", "expects", "estimates", "may", "could", "would",
"will", or "plan". These statements are based on information
currently available to Minera Alamos
and Minera Alamos provides no
assurance that actual results will meet management's expectations.
Forward-looking statements include estimates and statements with
respect to Minera Alamos' future
plans with respect to the Projects, objectives or goals, to the
effect that Minera Alamos or
management expects a stated condition or result to occur and the
expected timing for release of a resource and reserve estimate on
the Projects. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results relating to, among other things, results of exploration,
the economics of processing methods, project development,
reclamation and capital costs of Minera
Alamos' mineral properties, the ability to complete a
preliminary economic assessment which supports the technical and
economic viability of mineral production could differ materially
from those currently anticipated in such statements for many
reasons. Minera Alamos' financial
condition and prospects could differ materially from those
currently anticipated in such statements for many reasons such as:
an inability to finance and/or complete an updated resource and
reserve estimate and a preliminary economic assessment which
supports the technical and economic viability of mineral
production; changes in general economic conditions and conditions
in the financial markets; changes in demand and prices for
minerals; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments;
technological and operational difficulties encountered in
connection with Minera Alamos'
activities; and other matters discussed in this news release and in
filings made with securities regulators. This list is not
exhaustive of the factors that may affect any of Minera Alamos' forward-looking statements. These
and other factors should be considered carefully and readers should
not place undue reliance on Minera
Alamos' forward-looking statements. Minera Alamos does not undertake to update any
forward-looking statement that may be made from time to time by
Minera Alamos or on its behalf,
except in accordance with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Minera Alamos Inc.