Alamos Gold Inc. (TSX: AGI) (NYSE: AGI), a leading mining company, has announced a significant extension of high-grade gold mineralization at the Island Gold mine in northern Ontario.
The company announced the discovery on Thursday as a result of ongoing underground exploration drilling, which has revealed substantial high-grade intercepts within several recently defined structures.
These structures, known as hanging wall and footwall structures, are strategically located near the existing underground infrastructure. This proximity could potentially streamline future mining operations, enhancing efficiency and productivity. Over the past year, the company has successfully defined multiple sub-parallel and perpendicular hanging wall zones.
These zones represent a significant opportunity to add near mine Mineral Reserves and Resources, potentially extending the life and profitability of the mine.
The extension of high-grade gold mineralization could potentially lead to more efficient mining operations and higher yields. This development could stimulate further exploration efforts in the area, potentially leading to more discoveries in the future.
Alamos Gold stock dropped slightly by 1.77 per cent on Thursday to $16.10 on the Toronsto Stock Exchange.
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Alamos Gold allocated $14M for exploration in Island Gold
Alamos Gold has allocated a budget of $14 million for exploration at Island Gold in 2023. The company has been focusing on adding high-grade mineral resources at depth through surface directional drilling, which has tripled the mineral reserve and resource base since 2017.
With a 17-year mine life and the expansion ramping up, the focus has shifted to a cost-effective expanded underground exploration drilling program leveraging existing underground infrastructure.
The underground exploration drilling program has been expanded from 27,500 metres in 2022 to 45,000 metres in 2023, focusing on defining new mineral reserve and resources near existing production horizons and infrastructure.
These potential high-grade additions could be incorporated into the mine plan and mined within the next several years, increasing the value of the operation.
To support the underground exploration drilling program, 444 metres of underground exploration drift development is planned. In addition to the exploration budget, 36,000 metres of underground delineation drilling has been planned and included in sustaining capital for Island Gold.
As of June, 20,027 metres of underground exploration drilling, and 6,426 metres of delineation drilling has been completed.
A regional exploration program, including a total of 7,500 metres of drilling, is also underway to evaluate and advance exploration targets outside the Island Gold Deposit on the newly expanded 55,300-hectare Island Gold property.
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High-grade results in hanging wall and footwall structures
The Island West showed high-grade mineralization extended outside of mineral reserves and resources within the main C-Zone. The C and E1E-Zones are the main structures which host the majority of currently defined mineral reserves and resources at Island Gold.
New highlights include:
• 146.33 g/t Au (37.19 g/t cut) over 2.20 m (580-473-22)
• 38.92 g/t Au (38.92 g/t cut) over 2.10 m (790-479-16)
The Island West Hanging Wall Zones showed high-grade gold mineralization intersected within subparallel zones in the hanging wall and within a newly defined perpendicular structure,
the NS1 Zone.
Multiple sub-parallel and perpendicular hanging wall zones have been defined over the past year close to existing underground infrastructure and represent a significant opportunity to add near-mine mineral reserves and resources.
New highlights in the NS1 Zone include:
• 89.31 g/t Au (7.73 g/t cut) over 2.40 m (770-466-03)
• 25.57 g/t Au (5.68 g/t cut) over 2.50 m (770-466-07)
• 42.27 g/t Au (7.43 g/t cut) over 2.30 m (580-473-26)
• 16.06 g/t Au (6.95 g/t cut) over 2.80 m (770-466-02)
• 14.50 g/t Au (10.08 g/t cut) over 3.10 m (580-473-25)
New highlights in the G1 Zone include:
• 60.03 g/t Au (25.70 g/t cut) over 2.50 m (790-479-13)
• 11.13 g/t Au (6.82 g/t cut) over 2.20 m (850-471-01B)
The Island West Footwall Zones showed high-grade gold mineralization intersected within the newly defined sub-parallel structure the DN zone.
New highlight includes a measure of 22.34 g/t Au (22.34 g/t cut) over 2.90 m (790-479-04).
In the Island East, it was found high-grade mineralization extended outside of mineral reserves and resources in the main E1E-Zone. New highlights include:
• 104.48 g/t Au (50.76 g/t cut) over 3.10 m (840-608-49)
• 40.54 g/t Au (33.33 g/t cut) over 2.50 m (840-608-43)
• 11.93 g/t Au (11.93 g/t cut) over 4.20 m (840-632-17)
The Island East Footwall Zones showed high-grade gold mineralization intersected within subparallel zones in the footwall (NTH2, NTH3) in proximity to existing underground infrastructure.
New highlights in the NTH2 Zone include:
• 44.48 g/t Au (9.71 g/t cut) over 3.10 m (620-629-03)
• 17.91 g/t Au (5.34 g/t cut) over 2.10 m (620-629-01)
New highlights in the NTH3 Zone include:
• 12.34 g/t Au (7.65 g/t cut) over 3.30 m (840-554-44)
• 16.86 g/t Au (11.40 g/t cut) over 2.30 m (840-554-60)
• 13.21 g/t Au (13.21 g/t cut) over 2.70 m (840-554-04)
• 11.02 g/t Au (7.29 g/t cut) over 2.30 m (840-566-08)
“Our continued exploration success within recently defined sub-parallel structures demonstrate the significant opportunities to add high-grade ounces near our existing mining horizons,” President and CEO John A. McCluskey said in a statement.
“This includes the newly defined NS1-Zone in the hanging wall which we are currently developing and mining beyond existing mineral reserves and resources and outside of our 2023 mine plan,” he added.
McCluskey said the company is continuing to extend high-grade mineralization across the main Island Gold zone to the East and West as part of its transition from surface exploration drilling to more cost-effective underground drilling.
Alamos Gold operates the Young-Davidson and Island Gold mines located in northern Ontario, Canada, as well as the Mulatos mine situated in Sonora State, Mexico. The company also boasts a robust portfolio of growth projects. These include the Phase 3+ Expansion at Island Gold and the Lynn Lake project in Manitoba, Canada.
